Code of Conduct for MNC

Introduction Multinational Corporations (“MNCs”) are large, politically influential and autonomous entities that can conduct operations from separate countries. MNCs within the international system are economically influential and larger than some national economies. MNCs can exert influence that approaches the level of tates or even surpassing it. !lo"ali#ation and outsourcing has for the past p ast two decades resulted in the development develop ment of  complex supply networ$s. %hese are often led " y multinational companies. %hese developments have inflicted less legal o"ligations on paren t companies and instead turned to suppliers that often have wea$ or wea$ly enforced regulation. Crimes committed "y multinational companies in practice involve relations with several actors. &t includes the MNC itself which could consist of several entities around the world, the plaintiffs (often the victims), the host tate and furthermore the ho me tates of the MNCs. %hus  'urisdictional concerns arise when the MNC commits violations in in a host tate. %o deal with such implications and corporate co rporate accounta"ility, international law as well as domestic law provides for remedies. upplementary to these are regional "odies and instruments that offer voluntary policies and mechanisms. tate responsi"ility can "e  placed in the domicile of the MNC or the host tate, the feasi"ility of such an inclination will "e discussed throughout the course of this pro'ect. &t is possi"le that the future could  produce an option where"y corporate lia"ility could "e asserted directly under international law, however at present such an option does not exist. &n add ition, there is no formal corporate code of conduct or any other multilateral agreement which could h old these companies responsi"le for their wrongdoings. oluntary oluntary instruments are also important means to promote accounta"ility since corporations can adapt the norms to their  individual corporate structure. %hus, the focus is now on other initiatives, such as the voluntary corporate codes of conduct. conduc t. owever, implementing and monitoring of these

codes of conduct has proved difficult. difficult.* %his pro'ect will see$ to pro"e into all such measures, voluntary or "inding, domestic or international which would in some form or the other constitute a code of conduct for multinational enterprises.

Objectives  

%o understand understand the meaning of the term “multinational corporation”. %o analy#e whether MNCs have international legal personality. %o study study the evolution and development d evelopment of the corporate code of conduct for

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MNCs. %o enumerate and study the various o"ligations imposed on MNCs under

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international investment law. %o highlight highlight various voluntary measures ta$en up "y MNCs in the light of

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corporate social responsi"ility. responsi"ility. %o provide meaningful suggestions for the formulation of an internationally

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 "inding corporate code of conduct for MNCs vis++vis international investment investment law.

Research Methodology %his pro'ect report is an analytical and descriptive study on

. econdary sources

have "een referred to and electronic sources have "een used at large to gather information a"out the topic.

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2oo$s and other references as guided "y the faculty of %rade 8 &nvestment 3aw have  "een useful in giving this pro'ect its "asic structure and details. 1e"sites, article and dictionaries have also "een used.

:ootnotes have "een provided wherever needed to ac$nowledge the source of information.

Multinational Corporations – Meaning and International Legal Personality 

What is a Multinational Corporation?

!enerally spea$ing a multinational corporation refers to a co rporate entity that has  "usiness operations worldwide. -ccording to the raft AN Code of Conduct on %ransnational Corporations of *B=, an MNC can "e defined as a corporation that has affiliated "usiness operations in more than two countries.> %he terms multinational and transnational corporations as well as multinational enterprises (MN0s) have "een used interchangea"ly in different international instruments and scholarly wor$s.H>??H/ev.>.

4 2eth tephens, The Amorality of Profit: Transnational Corporations and Human Rights , 20/40306 5. &N%I3 3., ol. >?, E= (>??>).

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