ABSTRACT

Just ten years after the neo-liberal euphoria that accompanied the fall of the Berlin Wall in 1989, street protests in Seattle, US bore testament to an emerging current of international dissent. National governments, international regulatory bodies and global corporations have been quick to respond to this new mood of popular hostility and concern. The UN Global Compact was established by Secretary General, Kofi Annan, at the Davos World Economic Forum in February 1999 ‘to develop and promote the principles of human rights, labour standards and respect for the environment’ (Financial Times 2000). This Compact has brought 12 Non-Governmental Organisations (NGOs) into direct contact with 50 leading multinationals, including such popular targets as Shell, Rio Tinto and Nike. The corporations involved have pledged themselves to nine principles that include support for human rights, trade unionism, anti-discriminatory practice and protection of the environment. In this regard, many transnational corporations (TNCs) have published codes of conduct committing themselves to responsible practice in employment, community and the environment (Diller 1999; Hale 2000; European Works Councils Bulletin 2000a; Hughes 2001; Pearson and Seyfang 2001). Yet, as Hale (2000) suggests, with particular reference to the garment industry, these efforts to promote labour standards are constantly undermined by the downward pressure on costs associated with global competition, led by the very same companies that sign up to corporate codes.