The U.S. Government has also encouraged U.S. corporations to adopt model business principles for their overseas operations. 16 Companies that import products from countries whose labor conditions have received negative publicity regarding child labor or abusive working conditions may develop codes of conduct in order to prevent further criticism. 18 Companies who spend hundreds of millions of dollars on advertising and whose sales depend heavily on brand image and consumer goodwill are particularly responsive to allegations that their operations exploit children or violate other labor standards. Doing the right thing from day one helps avoid future setbacks and regrets. Addressing ethical dilemmas when they arise may save your business from serious financial or reputational harm.
Some companies adopt codes as a direct response to public pressure.
For example, when Starbucks Coffee Company received hundreds of letters from consumers and investors demanding an improvement in working conditions on Guatemalan coffee plantations, it decided to introduce a code of conduct for all of its coffee bean suppliers. There is no information on the exact extent to which U.S. corporations have adopted codes of conduct governing their foreign operations. Press reports and other publicly available information suggest that a significant number of U.S. corporations and business organizations have done so. Most available information on codes of conduct is on large corporations. These business organizations include the Athletic Footwear Association, the Toy Manufacturers of America, and the Asia-Pacific Council of American Chambers of Commerce.