When the World Rules Corporations: Pathway to a Global Corporate Charter
The ascent of transnational corporations poses fundamental questions of accountability, regulation, and democratic process. Although their footprints cross continents, TNCs still operate under legal licenses granted by national or state authority. In order to rectify the incongruence between global impacts and state control, and to align corporate behavior with social and ecological purpose, we propose a World Corporate Charter Organization. By defining the obligations of TNCs, global charters would balance the current emphasis of international institutions, such as the World Trade Organization, on TNC rights. With public concern about corporate power on the rise, the moment is propitious for establishing transnational governance of transnational corporations, a precondition for attaining just and sustainable societies.
The ascent of transnational corporations poses fundamental questions of accountability, regulation, and democratic process. Although their footprints cross continents, TNCs still operate under legal licenses granted by national or state authority. In order to rectify the incongruence between global impacts and state control, and to align corporate behavior with social and ecological purpose, we propose a World Corporate Charter Organization. By defining the obligations of TNCs, global charters would balance the current emphasis of international institutions, such as the World Trade Organization, on TNC rights. With public concern about corporate power on the rise, the moment is propitious for establishing transnational governance of transnational corporations, a precondition for attaining just and sustainable societies.
