From poverty to power - Oxfam-Québec

5 THE INTERNATIONAL SYSTEM TRADINGThe International Chamber of Commerce and TransparencyInternational have each developed a voluntary code of conductagainst bribery, and the UK government has encouraged companiesto adopt similar voluntary codes for arms production and commerce.The UN Convention Against Corruption (UNCAC) came into forcein 2005; it was signed by 140 countries, of which 80 have ratified theConvention. UNCAC covers both developed and developing countries,and requires state action on public and private corruption, onboth bribe-givers and bribe-takers. It also promotes internationalco-operation (for example, joint investigation, extradition, legal andtechnical assistance, information sharing); provides for asset recovery(for example, returning millions of dollars stolen and stashed inNorthern banks); and provides protection to whistle-blowers.Finally, the international effort to track down and seize the financialaccounts of suspected terrorist organisations gives the lie to previousclaims that regulation is politically impossible. Northern governmentscould prevent banks and offshore tax havens from accepting theproceeds of corruption. This is a civic responsibility of the large privatecompanies involved, and is in the interests of ensuring long-termprosperity by promoting stable, democratic countries around the world.The governance of TNCs must address both responsible andirresponsible firms, not least to ensure that the latter cannot gain anunfair advantage by abusing employees, communities, or the environment,in the process undermining the contribution to development offoreign trade and investment. As well as restoring the role of the statein effectively regulating and managing foreign investment and tradein the national interest (see Part 3), a number of steps are needed at aglobal level.Responsibility: The first step is for TNCs to accept responsibility forpeople whose lives they affect, and not just for their direct employees,who are often few in number. After initial denial, most major garmentbrands today accept some responsibility for the labour conditions intheir suppliers’ factories.Recognition of corporate social responsibility (CSR) is nowspreading to some of the rapidly growing domestic companies indeveloping-country giants: a 2008 survey by the Economist magazinefound CSR thinking established in Brazil and India and growing in347