Doubts On Yahoo's Human Rights Code of Conduct
Ian Lamont writes "The US Senate has been pushing American technology companies to work with rights groups to develop a human rights code of conduct, which would help to guide their overseas activities. Yahoo now claims that it has established the 'core components' of a global code of conduct, and a more complete version will be ready this fall. However, the Industry Standard notes that there's a fundamental flaw with such efforts: US law is not world law. Following the local laws is a requirement of doing business in any country, and conflicts between corporate ethics and the law of the land in which these corporations do business are inevitable. The US Senate's push for such a code was prompted by a number of incidents, including Yahoo's complicity in the arrest of Chinese dissidents and a Chinese journalist."
Middle Kingdrom syndrome is the tendency to believe that "our" culture is the best, and that "our" laws, customs, and culture should supercede all other laws, customs, and culture.
China is occasionally accused of Middle Kingdom syndrome by some Americans. Seems that the pot is still calling the kettle nasty names.
If you haven't been down-modded lately, you aren't trying.
Sacred cows make the best hamburger.
This is certainly true. However, the silver lining here is that the law the Senate may want to push can provide a way for companies like Yahoo to not comply with a government like China. Yahoo can point the finger back at U.S law and claim that their hands are tied. China would then have to determine what is in it's best interests and whether or not to expel Yahoo.
Furthermore, if a company really did have a code of ethics and morality that it openly proclaimed it was following, why it would compromise to make a buck in a country that did not share their values? You would think there would be limits. I am certain that sounds incredibly cynical, yet there is mountains of evidence in every corner of business that supports this observation.
It is this reality that leads many to conclude there are no limits, no ethics, no principles in business. There is only the law, what influence a company can have on the laws that constrain it, what influence a company can have on laws that help it, and what a company can get away with in terms of net liability when violating the law.
I was never surprised by what Yahoo did in China. "When in Rome, do as the Romans do". Well in China, Yahoo has to operate according to Chinese laws and cultural values. If the U.S Senators are really that upset about it then pass a law and Yahoo will have no choice. It is a bit hypocritical though considering that there are many countries in the world abhor how corporations in the US get to treat their customers.
In the end, I suspect this will mostly be hot air. As long as their are profits to be made in China, US companies will be there regardless of how they have to "bend" their values to operate.
Goodbye western society, it was nice to have you around. Seriously, we're trying to force some corporation to have an ethical code of conduct while our own government officials take bribes, shoplift, and sleep around? I mean, really?
Check out the sentiments we'll be facing at the feet of our enemes soon. We've got angry Russians tearing through one of our minion-states, like this:
http://www.youtube.com/watch?v=1dy1b34Ehdg
You know what he's saying? He's saying "we're living like bums, they're living like kings, all this nice stuff, and look what happened to them"
That's just a shadow of things to come. Our government is going to be a weak joke compared to anybody with a moderately angry army and a united set of principles. In fact you can say it already happened, with 9/11, etc.
Sigh. (Sorry for the rant)
The tendency to believe that all aspects of all cultures are equally "valid".
Bullshit. It's about "morality", "codes of conduct". Not "law". Obviously companies have to follow the laws of the land or suffer penalties. Similar laws exist to prevent American companies using bribery overseas regardless of the laws in the foreign country. If it's an American company doing business overseas, they have to work with two regimes. If they can't, too bad. Stay at home.
Everything is not just about the bottom line. If a company's actions can send a person to jail, if the only calculation they make is "Is it good for business?", well, they're assholes and they can deal with the bad karma and hopefully a massive PR disaster.
I hate these corporate apologists who say they have an "obligation to maximise profits regardless of morality". No, you don't. What you mean is you have a desire to get a bigger bonus. Obligations, even in business, go beyond that, if you're a human being.
For an illustrative example, google Blackwater illegal prosecution and you'll see that they get away with murder. Literally.
Or for another example, google Chevron Chernobyl.
The key feature of "Globalisation" as we know it is US corporations (and military) being able to break local and international law at will. Apparently in the US this isn't considered a problem.
you had me at #!
If you want to do business in a country where the laws block you from operating within your ethical framework, whatever that is, you shouldn't do business there.
Companies that exploit cheap labor in foreign markets are not ethically against doing that; if they were, they wouldn't do that.