I 
109TH CONGRESS 
2D SESSION 
H. R. 5377 
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 
MAY 11, 2006 
Ms. MCKINNEY introduced the following bill; which was referred to the Com-
mittee on International Relations, and in addition to the Committees on 
Government Reform and Financial Services, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of 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: 
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(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 
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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 protests in 2000 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 
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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 
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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, 
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