[Congressional Record Volume 140, Number 146 (Saturday, October 8, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
         THE INTERNATIONAL CORPORATE RESPONSIBILITY ACT OF 1994

                                 ______


                            HON. LANE EVANS

                              of illinois

                    in the house of representatives

                        Friday, October 7, 1994

  Mr. EVANS. Mr. Speaker, as a leader in the international economic 
community, our Nation can be proud that we also maintain one of the 
most progressive policies in the world by ensuring worker rights for 
our labor force. In general, U.S. corporations pay their employees fair 
wages, maintain safe and fair working conditions and are 
environmentally conscious. Yet, some companies do not feel compelled to 
treat their workers with the same dignity and respect when operating 
abroad. Even more disturbing is that although some companies have 
endorsed a code of conduct for their foreign subsidiaries to live by, 
there is a significant disparity between the application of these codes 
to operations in the United States and abroad.
  Although most companies would not knowingly contribute to repressive 
and irresponsible business practices, there have been cases where 
fundamental and internationally recognized worker rights have been 
violated. For example, in some U.S. affiliated factories abroad, 
children as young as 5 work alongside each other from 6 in the morning 
to 7 at night for less than 20 cents a day. in other cases, contractors 
like Reebok's Chinese affiliate, Yue Yuen, were found to combine 
warehouse, workplace and dormitory facilities--contributing to 
dangerous and inhumane working and living conditions. Fortunately, 
Reebok pressured its contractor to either correct the situation or lose 
its contract.
  However, the Reebok case is not unique. In many cases, U.S. 
multinationals engaged in joint ventures or other business 
arrangements, may not have complete control over ensuring that fair 
labor practices are guaranteed to workers. Therefore, it is 
increasingly important that these companies articulate a socially 
responsible policy and provide active oversight over these standards, 
so that decisions are not left solely in the hands of local partners.
  It is imperative that as an influential economic power, we take the 
initiative to not only encourage our corporations to adopt a set of 
voluntary and internationally-recognized principles that promote 
socially responsible business practices, but to improve their level of 
adherence to these standards.
  I am pleased that Chairmen Brown and Conyers, Congresswoman Kaptur, 
and Congressman DeFazio have joined me in introducing a bill that would 
codify and broaden socially responsible business practices for U.S. 
multinationals.
  Undert this bill, the State Department, in cooperation with relevant 
agencies, will develop a set of voluntary guidelines based on 
internationally-recognized principles. The bill calls on the State 
Department to include and reaffirm the following:
  The Organization for Economic Cooperation and Development [OECD] and 
International Labor Organization [ILO] guidelines concerning 
multinational enterprises and social policy.
  The Sullivan, MacBride, and Slepak Principles--codes of conduct for 
South Africa, Northern Ireland, and the former Soviet Union.
  Annual public hearings on the corporate compliance of these 
principles.
  Among other things, the bill calls for increased disclosure, 
monitoring, and publicity of the corporate level of adherence to these 
standards. By codifying and broadening awareness of these codes, the 
United States will demonstrate that foreign investment can remain 
competitive, while creating a socially responsible climate for trade 
and investment.
  Mr. Speaker, I urge my colleague to cosponsor this legislation to 
ensure that international trade and investment in a positive force in 
these countries--not a license to exploit workers.

                          ____________________