Question

4. Examine corporate responses to globalization in the form of codes of conduct, among other things,

Answer 1

The United Nations Global Compact is a good start, since it identifies ten broad principles in the area of humanrights, labor, environment, and anti-corruption-all of which we’ve described in this chapter. The global compactis not legally binding, but it is a helpful guide for companies in establishing a code of conduct.

Motivations for corporate responsibility- - Companies generally experience four strong motivations for acting responsibly: Unethical and irresponsible behavior can result in legal headaches, especially in such areas as financialmismanagement, bribery, and product safety. Such behavior could also result in consumer action such as a boycott. Unethical behavior can affect employee morale. Conversely, responsible behavior can have a positiveinfluence on a workforce, both at corporate headquarters and in overseas facilities.You never know when bad publicity is going to cost you sales. Perhaps this concern is one reason why Nikeand other apparel and clothing companies responded so quickly to criticism about allegedly unfairemployment practices in developing countries.

Developing a code of conduct -- Four criteria to make a good internal code of conduct: It sets global policies with which everyone working anywhere for the company must comply. It communicates company policies not only to all employees but to all suppliers and subcontractors as well. It ensures that the policies laid out in the code are carried out.4.It reports the results to external stakeholders.

Corporate ethics in the future -- As countries confront common problems, such as corruption and bribery, and try to work together to solvethose problems, there will be a greater convergence of proper ethical conduct.

Goals of the global code of conduct are:
1. Aligning the company statutory requirements to its code of conduct
2. Avoid risk of violating international laws, rules and regulations
3. A universal code of conduct which will not change when the company expands its operations to other nations