Document Type

Article

Disciplines

International Law

Abstract

In recent years, the international community has become increasingly aware of the benefits and potential dangers presented by transnational corporations [TNCs]. This awareness and concern, among United Nations organizations in particular, prompted interested states to initiate concrete measures aimed at regulating the activities of transnational corporations. Thus, in 1974, the United Nations Economic and Social Council [ECOSOC] established a Commission on Transnational Corporations.' In 1976, the Commission appointed an Intergovernmental Working Group' to develop and draft a regulatory code of conduct for TNCs.

The comprehensive draft code is currently in its final stages. After review in the special session of the Commission, it will be transferred to the United Nations Economic and Social Council." The latter body will then submit the final revision to the United Nations General Assembly for appropriate action. It is noteworthy that throughout the development stages, other United Nations bodies, committees, and specialized agencies have worked on aspects of the code that come within the purview of their respective fields of competence.

The global code of conduct has several antecedents, varying in scope according to geographical application, substantive coverage, and successfulness. These include the International Convention on the Treatment of Foreigners (1920); the Havana Charter of the International Trade Organization (1948);  the International Code of Fair Treatment for Foreign Investments (1949); the Abs/Shawcross Convention on Investment Abroad (1959); the International Association for the Promotion and Protection of Private Foreign Investment (1959);" the Harvard conventions on the international responsibility of states for injuries to aliens (1929 & 1961); the ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy (1977); the UNCTAD International Code of Conduct on Transfer of Technology (1980); and the UNCTAD Principles and Rules for the Control of Restrictive Business Practices (1980).

This article addresses the purpose and significance of various attempts made in the international community to formulate or implement interregional codes of conduct and examines the formal characteristics of such instruments. In addition, it reviews the substantive issues addressed in interregional codes of conduct and, particularly, in the draft United Nations Code of Conduct on Transnational Corporations.

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