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[ { SETTING GLOBAL STANDARDS: GUIDELINES FOR CREATING CODES OF CONDUCT IN MULTINATIONAL CORPORATIONS } ] by Sethi, S Prakash (AUTHOR) Feb-24-2003 [ Hardcover ]
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Hardcover
First published August 15, 2002
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October 10, 2012
Written in 2003 and focusing on the 1990s this book does a great job of peeling away the face of globalization to reveal its hidden side. Sethi demonstrates how the benefits of globalization have been exaggerated, with greater levels of global inequity and the erosion of the health and welfare of workers in developing countries. Sethi analyzes news media reports to show over time by company the number of reported incidents of sweatshops and human rights abuses, focusing on unhealthy work conditions, low wages, excessive work hours, child labor, etc. He demonstrates that positive change is possible and that even a marginal increase in the wages of overseas workers, which typically account for less than 5% of a total product's costs, would be unlikely to have a material impact on the profitability of multinational corporations (MNCs).
Sethi calls for companies to not just be 'socially responsible' but rather 'responsive' by anticipating changes and emerging social problems and proactively responding. He then explores different mechanisms intended to change corporate practices. The Sullivan Principles ultimately failed for not being accountable to the critical outcomes in apartheid South Africa. The Fair Labor Association was too general in its requirements and weak in its monitoring and enforcement standards.
Sethi provides guidance on the establishment of a company code of conduct. He recommends a code addresses issues only in the reach of a company and that impact the relevant concerns of affected communities, stated in objective and outcome-oriented terms. A code should define zero tolerance issues not to be accepted under any circumstances. A code of conduct should define the measures a company will take where the performance of any strategic partners or its own falls below its avowed commitments. A code of conduct should be endorsed by the board of directors and top management. Additionally, practices should be exposed to public scrutiny through independent verification and accountability under a cooperative oversight model representative of different constituencies.
Sethi also provides recommendations in the area of corporate citizenship. He recommends MNCs provide a minimum level of support to improve social and cultural conditions and undertake quality of life measures. MNCs should distribute corporate citizenship dollars in a manner not ethnocentric and that does not favor the city or country of a home office, with funds instead distributed fairly and equitably across all worldwide locations. MNCs should consult with local partners and workers regarding activities suitable for MNCs to support. Finally MNCs should judge their efforts based not on magnitude but rather the capacity to undertake such actions and the extent to which acts are undertaken voluntarily.
Sethi calls for companies to not just be 'socially responsible' but rather 'responsive' by anticipating changes and emerging social problems and proactively responding. He then explores different mechanisms intended to change corporate practices. The Sullivan Principles ultimately failed for not being accountable to the critical outcomes in apartheid South Africa. The Fair Labor Association was too general in its requirements and weak in its monitoring and enforcement standards.
Sethi provides guidance on the establishment of a company code of conduct. He recommends a code addresses issues only in the reach of a company and that impact the relevant concerns of affected communities, stated in objective and outcome-oriented terms. A code should define zero tolerance issues not to be accepted under any circumstances. A code of conduct should define the measures a company will take where the performance of any strategic partners or its own falls below its avowed commitments. A code of conduct should be endorsed by the board of directors and top management. Additionally, practices should be exposed to public scrutiny through independent verification and accountability under a cooperative oversight model representative of different constituencies.
Sethi also provides recommendations in the area of corporate citizenship. He recommends MNCs provide a minimum level of support to improve social and cultural conditions and undertake quality of life measures. MNCs should distribute corporate citizenship dollars in a manner not ethnocentric and that does not favor the city or country of a home office, with funds instead distributed fairly and equitably across all worldwide locations. MNCs should consult with local partners and workers regarding activities suitable for MNCs to support. Finally MNCs should judge their efforts based not on magnitude but rather the capacity to undertake such actions and the extent to which acts are undertaken voluntarily.
Displaying 1 of 1 review