Guidel<strong>in</strong>es voluntary, but non-OECD states are not even targeted. Fur<strong>the</strong>rmore, adoptionand adherence by a broader political, economic and social spectrum would go fur<strong>the</strong>r <strong>to</strong>change <strong>the</strong> behaviour of MNEs.Symp<strong>to</strong>matic of voluntary <strong>in</strong>struments is permissive language; <strong>the</strong> Guidel<strong>in</strong>es are noexception. Particularly, <strong>the</strong> human rights provision where MNEs are ‘encouraged’ <strong>to</strong>‘respect’ human rights. Not only is this provision drafted <strong>in</strong> permissive language, but <strong>the</strong>actual content of <strong>the</strong> provision is ‘ill-def<strong>in</strong>ed.’ This criticism is not limited <strong>to</strong> <strong>the</strong> humanrights provision; <strong>the</strong> Guidel<strong>in</strong>es, generally, “… [are] particularly vague <strong>in</strong> <strong>the</strong>ir enunciationof corporate […].” For <strong>in</strong>stance, enterprises are asked <strong>to</strong> take adequate steps <strong>to</strong> ensureoccupational health and safety, but <strong>the</strong> Guidel<strong>in</strong>es do not say what qualifies as adequate.Similarly, <strong>the</strong> child labour provision asks enterprises <strong>to</strong> contribute <strong>to</strong> <strong>the</strong> effective abolitionof child labour, but does not say what activities qualify as contribut<strong>in</strong>g. F<strong>in</strong>ally, <strong>the</strong> GeneralPolicies section uses <strong>the</strong> phrase good corporate governance without fur<strong>the</strong>r clarify<strong>in</strong>g whatk<strong>in</strong>ds of pr<strong>in</strong>ciples and practices this may <strong>in</strong>clude.Assum<strong>in</strong>g all parties do understand <strong>the</strong>ir duties, weak follow-up procedures undercut anyvalue <strong>the</strong> Guidel<strong>in</strong>es may conta<strong>in</strong>. A 2003 report, states <strong>the</strong> OECD has “… noted sixty-four<strong>in</strong>stances of alleged non-observance of <strong>the</strong> guidel<strong>in</strong>es by MNCs that had been filed withNCP. This is because, accord<strong>in</strong>g <strong>to</strong> critics, <strong>the</strong> OECD created no enforcement mechanism<strong>to</strong> go along with its Guidel<strong>in</strong>es. As a result, implementation of <strong>the</strong> Guidel<strong>in</strong>es depends on<strong>in</strong>dividual adher<strong>in</strong>g states and <strong>the</strong>ir NCPs.While, <strong>in</strong> general, <strong>the</strong> follow-up mechanisms have attracted some criticism, so <strong>to</strong>o have <strong>the</strong>dispute and review processes <strong>in</strong> particular. In terms of <strong>the</strong> NCP dispute process, <strong>the</strong>re areprocedural weaknesses that have led some <strong>to</strong> be critical of <strong>the</strong> mechanism. Major concernscentre around <strong>in</strong>consistency; <strong>the</strong>re is no consistent NCP procedure provid<strong>in</strong>g <strong>in</strong><strong>format</strong>ion<strong>to</strong> third parties, mak<strong>in</strong>g public <strong>the</strong> fact that a case has been filed, issu<strong>in</strong>g statements whilea matter is still under consideration, or mak<strong>in</strong>g public reasons for not proceed<strong>in</strong>g withconsideration of a case. O<strong>the</strong>rs are concerned that a central registry of NCP compla<strong>in</strong>tsdoes not exist, <strong>the</strong>re is no timeframe for deal<strong>in</strong>g with compla<strong>in</strong>ts, transparency <strong>in</strong> decisionmak<strong>in</strong>gis not ensured, <strong>the</strong>re is no appeal of an NCP’s <strong>in</strong>itial decision and decisions are notenforced. Fur<strong>the</strong>rmore, compla<strong>in</strong>ts are first assessed by state representatives.Perceived weaknesses <strong>in</strong> CIIME’s dispute process have caused <strong>the</strong> process <strong>to</strong> fall <strong>in</strong><strong>to</strong>disuse. For example, <strong>the</strong> Trade Union Advisory Committee (TUAC), created <strong>in</strong> 1948 by<strong>the</strong> OECD’s predecessor <strong>to</strong> provide feedback from <strong>the</strong> <strong>in</strong>ternational labour community,has s<strong>to</strong>pped br<strong>in</strong>g<strong>in</strong>g cases <strong>to</strong> CIIME. This may be because CIIME decisions require46|Private Sec<strong>to</strong>r Accountability <strong>in</strong> Combat<strong>in</strong>g <strong>the</strong> Commercial Sexual Exploitation of <strong>Child</strong>ren
consensus and/or, as <strong>the</strong>y are not b<strong>in</strong>d<strong>in</strong>g, <strong>the</strong>y have little <strong>in</strong>fluence on corporate behaviour.In both NCP and CIIME dispute resolution, a company’s identity is ‘often not disclosed.’Without public disclosure, <strong>the</strong> compla<strong>in</strong>ts procedure has little immediate impact on <strong>the</strong>behaviour of specific companies.While some critics focus on weak dispute resolution processes, o<strong>the</strong>rs focus on <strong>in</strong>effectivereport<strong>in</strong>g mechanisms. The Guidel<strong>in</strong>es, however, do not provide any guidance as <strong>to</strong> <strong>the</strong>ways <strong>in</strong> which MNCs can measure or report <strong>the</strong>ir behaviour. Ano<strong>the</strong>r criticism is thatmoni<strong>to</strong>r<strong>in</strong>g of compliance is not <strong>in</strong>dependent. It is true <strong>the</strong> guidel<strong>in</strong>es make provision for‘disclosure of <strong>in</strong><strong>format</strong>ion’ but this can hardly be called an effective report<strong>in</strong>g mechanism.2.4.2.2 Regulat<strong>in</strong>g corporate behaviour via public <strong>in</strong>ternational lawAs <strong>the</strong> above po<strong>in</strong>ts illustrate, <strong>the</strong>re have been a number of developments <strong>in</strong> <strong>the</strong> <strong>in</strong>ternationalarena consider<strong>in</strong>g <strong>the</strong> role played by private <strong>in</strong>dustry <strong>in</strong> <strong>the</strong> protection of children’s rights.Although <strong>the</strong> result<strong>in</strong>g <strong>document</strong>s are not b<strong>in</strong>d<strong>in</strong>g, <strong>the</strong>y do offer important guidel<strong>in</strong>es of<strong>the</strong> possible role <strong>to</strong> be played by private sec<strong>to</strong>r <strong>in</strong> both protect<strong>in</strong>g and promot<strong>in</strong>g such rights.Clearly, CSEC falls with<strong>in</strong> <strong>the</strong> ambit of all of <strong>the</strong>se <strong>document</strong>s, and any <strong>in</strong>volvement ofchildren <strong>in</strong> <strong>the</strong> mak<strong>in</strong>g or view<strong>in</strong>g of harmful material is prohibited by <strong>in</strong>ternational law orby <strong>in</strong>ternational policy guidel<strong>in</strong>es.Codes of conduct and global standard-sett<strong>in</strong>g cannot be solely relied on <strong>to</strong> ensure thatMNCs behave appropriately if faced with <strong>in</strong>ternational human rights violations, onaccount of <strong>the</strong> difficulty <strong>in</strong> enforc<strong>in</strong>g compliance due <strong>to</strong> <strong>the</strong>ir voluntary nature. Perhaps <strong>the</strong>obvious solution, as implicitly implied above, h<strong>in</strong>ges on <strong>the</strong> existence of an <strong>in</strong>ternationallegal regime <strong>to</strong> ensure enforcement of <strong>the</strong> voluntary codes. Mary Rob<strong>in</strong>son, <strong>the</strong> formerHigh Commissioner for Human Rights, has stated “that <strong>the</strong>re is still a need for…a legalregime [<strong>to</strong>] help <strong>to</strong> underp<strong>in</strong> <strong>the</strong> values of ethical globalization.” She <strong>the</strong>n called for <strong>the</strong>“next phase” <strong>to</strong> be less <strong>in</strong>spirational, less <strong>the</strong>oretical and abstract, and more about keep<strong>in</strong>gsolemn promises made.” 220In contrast <strong>to</strong> <strong>the</strong> UN Global Compact and <strong>the</strong> OECD Guidel<strong>in</strong>es, whose major weaknessis its voluntary nature, treaties are b<strong>in</strong>d<strong>in</strong>g <strong>in</strong>ternational agreements operat<strong>in</strong>g betweenstates that are party <strong>to</strong> <strong>the</strong>m. What makes human rights treaties particularly unique isthat party states assume <strong>the</strong> obligation <strong>to</strong> protect <strong>the</strong> rights of <strong>in</strong>dividuals, not party <strong>to</strong> <strong>the</strong>agreement, with<strong>in</strong> <strong>the</strong>ir respective terri<strong>to</strong>ries or subject <strong>to</strong> <strong>the</strong> jurisdiction of <strong>the</strong> state. To<strong>the</strong> extent that <strong>in</strong>ternational human rights law does embrace non-state ac<strong>to</strong>rs, it does sovery largely by way of hold<strong>in</strong>g states <strong>in</strong>directly liable for <strong>the</strong> direct <strong>in</strong>fr<strong>in</strong>gement of o<strong>the</strong>rs,<strong>in</strong>clud<strong>in</strong>g corporations.Private Sec<strong>to</strong>r Accountability <strong>in</strong> Combat<strong>in</strong>g <strong>the</strong> Commercial Sexual Exploitation of <strong>Child</strong>ren|47
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law enforcement agencies, but equal
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6. Financial Sub-SectorIt has been
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law enforcement is having trouble u
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Another important objective of the
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Endnotes1 Mark Erik Hecht is an aca
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35Canada. Industry Canada. Corporat
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84On 31 Jan. 1999, UN Secretary-Gen
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110Norms, D.111Norms, point 5. (Rea
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143Ibid., “General Policies.” P
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179Ibid., Annex, III: Global Report
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of the Guidelines).212Ibid., Part I
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258Ibid.259UNWTO Report to the UN G
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310Ibid., 12.311Council of Europe,
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Germany and South Africa, ISPs are
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The World Congress III against Sexu