People increasingly recognize that corporations, like people, must deal on a sound ethical foundation. Enlightened corporate strategy calls for companies to respond effectively to the concerns of investors, consumers and the public at large. Reputation is one of a company's most important assets. Reputation contributes powerfully to a company's bottom line, its shareholder value. Globalization is another driving factor behind the growing need for increased corporate social responsibility.
Globalization brings with it the promise of new economies of scale.
It also creates more cross-cultural encounters than ever. We saw the divisiveness globalization can engender in Seattle and Prague. The United States can play an important role in shaping an approach to globalization that fosters opportunity and prosperity while raising standards worldwide on important priorities such as core labor rights and environmental protection. The OECD has developed its Guidelines for Multinational Enterprises with a view to providing companies with a tool for crafting corporate standards that are both internationally accepted and applicable. The Guidelines differ from other sets of guidelines in several ways.