What is a corporate code of conduct and how effective are they in securing labors' rights in an international, global economy?

Question

What will be an ideal response?

Answer 1

A corporate code of conduct is a written statement of standards that a company pledges to follow in its business activities. They often specify fair business practices, labor standards, environmental standards, corporate citizenship and ethics, and respect for relevant laws. Corporate codes of conduct may address child labor, discrimination, and health and safety issues and, less frequently, collective bargaining rights. Corporate codes of conduct are voluntary and therefore not legally enforceable. This fact explains the relatively weak effect of corporate codes of conduct in addressing labor concerns in an international market. Because the codes are voluntary and rely on publicity rather than legal power for enforcement, it is difficult to enforce the content. Companies can create their own standards, exclude standards that serve their best interests, or change and ignore standards to suit their immediate needs. Further, the codes need not address all issues important to labor (e.g., collective bargaining). Companies that rely on self-monitoring have no accountability. While some codes are monitored by human rights groups, this can be controversial because enforcement may hold companies to high standards or these groups may not have the resources to adequately monitor many employers.