Profits with Principles

Mark Jia*

As non-state actors operating in a global business environment, multinational corporations (MNCs) inevitably face conflicts between profits and principles.  Voluntary corporate citizenship codes (CCCs) enable MNCs to influence and navigate human rights, environmental stewardship, fair labor standards, anticorruption, ethical supply chains, and other moral minefields without drastic and irreversible consequences.  Given political volatility, government failures, and the weakness of multilateral organizations, CCCs may be the best way to address problematic corporate behaviors and achieve reforms.  After years of heavy critique as self-regulation in disguise, CCCs have emerged as a promising tool for amplifying activist and stakeholder voices.  The case for grounding activist and stakeholder voices in CCCs is compelling.  Many critiques underestimate their historical function and contemporary power.  They are a definitive statement from corporations that they have social responsibilities.  This Article proposes the widespread adoption of a new, comprehensive CCC, developed with the input of varied stakeholders, and patterned on the historic Global Sullivan Principles.

*Lyle T. Alverson Professor of Law, The George Washington University Law School.