I
106TH CONGRESS
2D SESSION
H. R. 4596
To require nationals of the United States that employ more than 20 persons
in a foreign country to implement a Corporate Code of Conduct with
respect to the employment of those persons, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 7, 2000
Ms. MCKINNEY (for herself, Mr. SANDERS, Mr. KUCINICH, Mr. JACKSON of
Illinois, Mr. WYNN, Ms. CARSON, Mrs. MEEK of Florida, Mr. STARK, Mr.
EVANS, Mrs. MINK of Hawaii, Mr. OWENS, Mr. DEFAZIO, Mr. FILNER,
Mr. PAYNE, and Mr. NADLER) introduced the following bill; which was
referred to the Committee on International Relations, and in addition to
the Committees on Government Reform, and Banking and Financial
Services, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion on the committee concerned
A BILL
To require nationals of the United States that employ more
than 20 persons in a foreign country to implement a
Corporate Code of Conduct with respect to the employ-
ment of those persons, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Corporate Code of
Conduct Act’’.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) On January 31, 1999, at the World Eco-
nomic Forum, United Nations Secretary General
Kofi Annan challenged world business leaders, in
their individual corporate practices and by sup-
porting appropriate public policies, to ‘‘embrace and
enact’’ the Global Compact, an agreement that asks
corporations to protect human rights, labor rights,
and the environment.
(2)(A) On November 16, 1999, the Program on
International Policy Attitudes (PIPA) issued a re-
port that contained the results of a poll of 1,826
randomly selected adults, weighted to be demo-
graphically representative, conducted from October
21–29, 1999, relating to international agreements
on environmental and labor standards.
(B) In the poll, 93 percent of the respondents
stated that ‘‘countries that are part of international
trade agreements should be required to maintain
minimum standards for working conditions’’, 77 per-
cent of the respondents believed (of which, 48 per-
cent strongly believed) that there should be more
international agreements on environmental stand-
ards, and 88 percent of the respondents agreed (of
which, 67 percent strongly agreed) that ‘‘American
companies that operate in other countries should be
expected to abide by [United States] environmental
standards.’’.
(3) The European Parliament has passed a Eu-
ropean Code of Conduct calling for European busi-
nesses to abide by European Union laws in oper-
ations outside of Europe.
(4) The recent protests against the World
Trade Organization (WTO) in Seattle, Washington,
and the World Bank and International Monetary
Fund (IMF) in Washington, D.C., demonstrate a
growing constituency against the unregulated expan-
sion of globalization.
(5) Unfortunately, too many United States
businesses with operations abroad are notorious for
their blatant disregard for the well being of the citi-
zens of their host nations who are employees of the
businesses.
(6) Many United States businesses recklessly
pollute the local environment of foreign countries,
pose serious health risks to local citizens, and
threaten the cultural heritage of local citizens.
(7) 70 percent of workers in United States pro-
duction factories abroad are women. Many of these
women face mandatory pregnancy testing on a
monthly basis and are forced to take birth control
provided by their employer.
(8) Public confidence has declined substantially
in the capacity and effectiveness of government at
all levels to counteract unfair economic competition
and to command greater corporate responsibility in-
side and outside of the marketplace.
(9) At the same time, public concern is growing
regarding the increasing concentration of unaccount-
able corporate power and the declining corporate re-
sponsibility across national borders.
(10) Yet every year the United States Govern-
ment provides a wide array of taxpayer-financed
services and financial subsidies as well as special tax
breaks as assistance to United States-based multi-
national corporations, especially to enable such cor-
porations to invest overseas, to create jobs in foreign
countries, and to expand their access to foreign mar-
kets.
SEC. 3. RESPONSIBLE BUSINESS PRACTICES OF UNITED
STATES NATIONALS IN FOREIGN COUNTRIES.
(a) REQUIREMENT.—A national of the United States
that employs more than 20 persons in a foreign country,
either directly or through subsidiaries, subcontractors, af-
filiates, joint ventures, partners, or licensees (including
any security forces of the national), shall take the nec-
essary steps to implement the Corporate Code of Conduct
described in subsection (b) with respect to the employment
of those persons.
(b) CORPORATE CODE OF CONDUCT.—The Corporate
Code of Conduct described in this subsection is as follows:
(1) Provide a safe and healthy workplace.
(2)(A) Ensure fair employment, including the
prohibition of the use of child and forced labor, the
prohibition of discrimination based upon race, gen-
der, national origin, or religious beliefs, respect for
freedom of association and the right to organize
independently and bargain collectively, and the pay-
ment of a living wage to all workers, including, at
a minimum, a living wage that would meet the basic
needs of an average-size family and provide some
discretionary income for an average-size family.
(B) Prohibit mandatory overtime work by em-
ployees under the age of 18.
(C) Prohibit the practice of pregnancy testing
of employees, including the forced usage of birth
control, and further prohibit the dismissal or dis-
crimination of employees based on pregnancy.
(D) Prohibit retaliation against any employee
who conveys information, either internally, publicly,
or to government regulators in the country involved
or the United States, relating to a violation or al-
leged violation of any provision of this subsection.
(3) Promote good governance and good business
practices, including prohibiting illicit payments, en-
suring fair competition, and revocation of corporate
charters when corporations fail to serve the public
good and general welfare.
(4)(A) Maintain, through leadership at all lev-
els, a corporate culture that respects free expression
consistent with legitimate business concerns, does
not condone political coercion in the workplace, en-
courages good corporate citizenship and makes a
positive contribution to the communities in which
the national of the United States operates, and pro-
motes ethical conduct that is recognized, valued, and
exemplified by all employees.
(B) In addition, comply with internationally
recognized worker rights and core labor standards.
(5) Uphold responsible environmental protection
and environmental practices, including compliance
with internationally recognized environmental stand-
ards and with all Federal environmental laws for
similar operations that would be applicable to the
national of the United States if the operations of the
national were located in the United States.
(6) Comply with minimum international human
rights standards.
(7)(A) Require, under terms of contract, part-
ners, suppliers, and subcontractors of the national of
the United States (including any security forces of
the national) to adopt and adhere to the principles
described in paragraphs (1) through (6).
(B) In addition, require full public disclosure of
information relating to location and address, cor-
porate name, applicable financial agreements, worker
rights practices and labor standards, working condi-
tions, environmental performance, and applicable in-
vestments of partners, suppliers, subsidiaries, con-
tractors, and subcontractors of the national of the
United States (including any security forces of the
national).
(8) Implement and monitor compliance with the
principles described in paragraphs (1) through (7)
through a self-financing program internal to the
business that is designed to prevent and detect con-
duct that is not in compliance with such principles
by any employee of the national of the United
States, or any employee of the partner, supplier, or
subcontractor of the national, and that includes—
(A) standards for ethical conduct of such
employees which refer to the principles;
(B) procedures for assignment of appro-
priately qualified personnel at the management
level to monitor and enforce compliance with
the principles;
(C) procedures for reporting violations of
the principles by such employees;
(D) procedures for disciplinary action in
response to violations of the principles;
(E) procedures designed to ensure that, in
cases in which a violation of the principles has
been detected, reasonable steps are taken to
correct the violation and prevent similar viola-
tions from occurring;
(F) procedures for providing educational
and employment-related counseling to any em-
ployee in violation of the principles; and
(G) communication of all standards and
procedures with respect to the principles to
every employee—
(i) by requiring the employee to par-
ticipate in a training program; or
(ii) by disseminating information in
writing that explains the standards and
procedures.
(c) DEFINITIONS.—In this section:
(1) BASIC NEEDS OF AN AVERAGE-SIZE FAM-
ILY.—The term ‘‘basic needs of an average-size
family’’—
(A) means nutritious food, clothing, health
care, education, potable water, child care, trans-
portation, housing, and energy; and
(B) shall be determined by wage studies
that measure the purchasing power necessary to
provide for the needs described in subparagraph
(A).
(2) INTERNATIONALLY RECOGNIZED ENVIRON-
MENTAL
STANDARDS.—The term ‘‘internationally
recognized environmental standards’’ includes stand-
ards relating to—
(A) mitigation of global climate change;
(B) reduction in the consumption and pro-
duction of ozone-depleting substances;
(C) reduction in ship pollution of the
oceans from such sources as oil, noxious bulk
liquids, hazardous freight, sewage, and garbage;
(D) the ban on international ocean dump-
ing of high-level radioactive waste, chemical
warfare agents, and hazardous substances;
(E) 
government 
control 
of 
the
transboundary movement of hazardous waste
materials and their disposal for the purpose of
reducing global pollution due to such materials;
(F) preservation of endangered species;
(G) conservation of biological diversity;
(H) promotion of biodiversity; and
(I) preparation of oil-spill contingency
plans.
(3) MINIMUM INTERNATIONAL HUMAN RIGHTS
STANDARDS.—The term ‘‘minimum international
human rights standards’’ means standards contained
in the following United Nations instruments relating
to international human rights: the Universal Dec-
laration of Human Rights, the International Cov-
enant on Civil and Political Rights, the Convention
Against Torture and Other Cruel, Inhuman or De-
grading Treatment or Punishment, the Convention
on the Prevention and Punishment of the Crime of
Genocide, the Slavery Convention, the Supple-
mentary Convention on the Abolition of Slavery, the
Slave Trade and Institutions and Practices Similar