Posted on 08/13/2003 11:22:01 AM PDT by comnet
UN aims to scrutinise multinationals
International companies could find their activities subject to investigation and censure by United Nations human rights officials under principles expected to be adopted on Wednesday in Geneva.
The UN's draft Norms on the Responsibilities of Transnational Corporations asserts that companies should be subject to the kind of enforcement procedures at the UN Commission for Human Rights previously applied only to nation states.
UN ethics guidelines may alarm multinationals Click here
The move to adopt the norms marks a first step by the UN towards the regulation of multinationals. It is likely to spark a long battle by international businesses to prevent the move to enforcement being backed by the full 53-nation UN human rights commission.
The draft norms bring together a range of legal obligations for companies drawn from existing human rights, labour and environmental standards.
But following sections that include workers rights, consumer protection, corruption and environmental obligations, the norms state that "transnational corporations . . . shall be subject to periodic monitoring and verification by United Nations, other international and national mechanisms".
An accompanying commentary suggests that: "The UN Commission on Human Rights should consider establishing a group of experts, special rapporteur or working group . . . to receive information and take action when businesses fail to comply."
The element of compulsion and enforcement contrasts with the voluntarist approach of other international initiatives aimed at promoting global corporate social responsibility and has been opposed by the Paris-based International Chamber of Commerce.
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