In an increasingly globalized world, many multi-national companies have begun implementing policies that reach beyond one single jurisdiction. Implementation of such policies is motivated by various factors, including multi-national companies' desire to streamline operations and achieve a uniform approach to employee issues. Moreover, many multi-national companies have felt pressure to align their policies and practice with international standards with regard to ethics and human rights in employment, resulting in the creation of international ethics policies. While international ethics policies are easier to implement globally because they are more general and aspirational in nature, drafting and implementing such policies is not without its challenges.

Why Adopt International Ethics Policies?

Many multi-national companies have begun implementing international ethics policies for altruistic and reputational reasons. With the rise of globalization, some multi-national companies have used their international presence to increase profits at the cost of ethics, for instance, by outsourcing labor to jurisdictions with less stringent protections than those in the company's home country and/or sourcing materials from companies operating in such areas. This activity has been met by a more recent emphasis on corporate responsibility. Indeed, company partners, customers, clients and other stakeholders often view corporate responsibility as an issue of paramount importance. One of the ways multi-national companies effectuate this is by implementing an international ethics policy. One of the many issues these policies often touch on is ensuring that multi-national companies' supply chains are ethical, meaning that its suppliers' labor practices do not run afoul of the company's ethical standards.