While international agreements should not be a substitute for or in replacement of national responses to corporate irresponsibility - such as the proposed International Right to Know legislation here in the United States - there are quite a number of compelling arguments for a global corporate accountability framework that would support domestic responses to corporate irresponsibility.

1. Multinational national investment has outstripped the bounds of national regulation
2. Countries need a level playing field
3. Companies need a level playing field and more stable expectations
4. Investment should be increased and appropriately channeled
5. Communities should be empowered
6. Citizens, consumers and investors need information and accountability

1. Multinational national investment has outstripped the bounds of national regulation

We are in an historical period that is roughly comparable economically to the period in the developed countries at the end of the 19th and beginning of the 20th century. Increasingly integrated national economies in that earlier period led national governments to develop regulatory standards to protect citizens. Laws regulating hours of work, health and safety standards, and monopolies first took hold then. The increasing integration of the global economy means that we now need worldwide standards that multinational corporations will be held accountable to.

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2. Countries need a level playing field

A corporate accountability framework can help to ensure that countries are not placed in the position of competing for investment by maintaining low standards or allowing (or even cooperating with) egregious corporate behavior. Moreover, many corporations operate using double standards for their operations in the global North and South, a situation that global standards would address. A corporate accountability framework that allows citizens harmed by corporate behavior to bring challenges in a home country or international court would help provide protection against unequal treatment.

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3. Companies need a level playing field and more stable expectations

As some corporations begin to take a more proactive role in making their global operations responsible, a corporate accountability framework would level the playing field by limiting the competitive advantage of companies that refuse to undertake positive action. A corporate accountability framework would also create more certainty and stability for companies doing business around the globe, clarifying the expectations for social and environmental responsibility in their operations.

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4. Investment should be increased and appropriately channeled

As multinational investors respond to the clear expectations and stability created by a corporate accountability framework, businesses may be more likely to increase their appropriate investments in developing countries. At the same time, a corporate accountability framework will enable citizens in developing countries to better ensure that investment is channeled towards social and environmental benefits.

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5. Communities should be empowered

One of the key features of any corporate accountability framework must be the protection of communities' control over their own resources and ability to address poor social and environmental conditions. Prior consultation with affected communities, disclosure of local impacts, and corporate liability in home country or international courts would help to ensure that communities do control their own destinies. In addition, an international framework can help empower communities to effectively develop and control their own natural resources for use in a global economic context.

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6. Citizens, consumers and investors need information and accountability

A corporate accountability framework that includes disclosure requirements about local impacts can provide critical information about corporate activities. In developing countries, required information about corporate operations can enable citizens to more effectively challenge the harmful impacts they face, while consumers and investors in corporations' home countries can choose to redirect their purchases or investments away from harmful corporate practices.

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