Tuesday, July 22, 2008

Voluntary Corporate Codes of Conduct may not be meaningful

We periodically receive newsletters from a wide variety of government reform news sources. These focus on only the major events within their respective areas of expertise. Here is a selection from a recent email newsletter:
From PRWatch.org
http://bit.ly/4ydfqL

Purposes of Voluntary Codes of Conduct
From "Who Really Benefits from Voluntary Corporate Codes of Conduct?"

The BAT incident [in England] demonstrates how deceptive, and even fraudulent, self-imposed corporate "voluntary codes" of conduct can be. Corporations, and even entire industries, publicly claim that they adopt such codes out of caring and concern for the health and welfare of people and the environment. In reality, these codes confer far greater benefits upon the companies than they do upon the public. Corporations use these codes as a crisis management strategy to stave off government regulation, improve their image, boost their credibility with legislators and regulators, and thus preserve their seat at the table in any regulatory discussions. Voluntary codes also give political cover to legislators who favor industry by giving the legislators something they can point to to calm public demands to rein in harmful corporate behavior.

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