Quest for a Global Code of Conduct for TNCs- A Grim Tale

Abstract

Over the last few decades, a variety of global initiatives for governing both financial and non-financial performance of transnational corporations (TNCs) have been proposed. The objectives of these initiatives share a similar purpose: to minimise conflicts towards developing a sustainable trade environment. However, most of these initiatives have been partially successful. Some of these attempts failed to reach completion, some are obsolete, and one was abandoned. The initiatives that are currently in operation have never been accepted by all stakeholders. A poignant reason for their poor performance is their lack of capacity to include the dynamics of governance beyond government, regulation beyond law, and responsiveness beyond responsibility. This chapter explores the main global initiatives, focusing on the interplay between the core of these initiatives and TNCs’ social responsibility and accountability governance.