Transnational Corporations and Human Rights Also by Jedrzej George Frynas OIL IN NIGERIA: Conflict and Litigation between Oil Companies and Village Communities Also by Scott Pegg INTERNATIONAL SOCIETY AND THE DE FACTO STATE Transnational Corporations and Human Rights Edited by Je drzej George Frynas Lecturer in International Management Birmingham University UK and Scott Pegg Assistant Professor of Political Science Indiana University Purdue University Indianapolis USA * © Jedrzej George Frynas and Scott Pegg 2003 Softcover reprint of the hardcover 1st edition 2003978-0-333-98799-5 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 wn Tottenham Court Road, London 4LP. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2003 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N.Y. 10010 Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin's Press, LLC and of Palgrave Macmillan Ltd. Macmillan® is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN 978-1-349-43159-5 ISBN 978-1-4039-3752-0 (eBook) DOI 10.1057/9781403937520 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Transnational corporations and human rights / edited by Jedrzej George Frynas and Scott Pegg. p.cm. Includes bibliographical references and index. 15BN 978-1-349-43159-5 1. International business enterprises - Social aspects. 2. International business enterprises - Social aspects - Case studies. 3. Human rights. 4. Social responsibility of business. I. Frynas, Jedrzej George. II. Pegg, Scott. HD2755.5.T67452003 323-dc21 2003041433 10 9 8 7 6 5 4 3 2 1 12 11 10 09 08 07 06 05 04 03 Jedrzej George Frynas would like\to dedicate this book to victims of human rights abuses anywhere. Scott Pegg would like to dedicate this book to Reverend Moses Nyimale Lezor and Patrick Naagbanton, two local heroes with first-hand experience of how transnational corporations affect human rights. Contents Acknowledgements ix Notes on the Contributors x List of Abbreviations xiii 1 An Emerging Market for the New Millennium: Transnational Corporations and Human Rights 1 Scott Pegg 2 Activism and Research on TNCs and Human Rights: Building a New International Normative Regime 33 William H. Meyer 3 Regulating Transnational Corporations through Corporate Codes of Conduct 53 Alex Wawryk 4 Corporate Responsibility for Preventing Human Rights Abuses in Conflict Areas 79 Morton Winston 5 The Oil Industry in Nigeria: Conflict between Oil Companies and Local People 99 Jedrzej George Frynas 6 Mining and Environmental Human Rights in Papua New Guinea 115 Stuart Kirsch 7 US Certification Initiatives in the Coffee Industry: the Battle for Just Remuneration 137 Ronie Garcia-Johnson 8 The Transnational Garment Industry in South and South-East Asia: a Focus on Labor Rights 162 Jedrzej George Frynas vii viii Contents 9 Timber Logging in Clayoquot Sound, Canada: Community-Corporate Partnerships and Community Rights 188 Heike Fabig and Richard Boele Index 216 Acknowledgements We would like to thank all the contributors to this volume for their efforts. Our biggest debt of gratitude is to Alison Howson, our editor at Palgrave Macmillan. Alison was a pleasure to work with and her support was essential to us in completing this volume. We would also like to thank Kerry Coutts and everyone else at Palgrave Macmillan involved in this project. Barbara Slater did an outstanding job copy-editing the book. Finally, we would like to thank Roger Moody and Randy Persaud for putting us in touch with some of our contributors. ]edrzej George Frynas would like to thank Rosemarie Broadbent for her support throughout this project. Scott Pegg would like to thank Tijen for her love and support. He would also like to thank his current colleagues in the Department of Political Science at Indiana University Purdue University Indianapolis and his former colleagues in the Department of International Relations at Bilkent University for providing supportive environments in which to work on this book. Didem Ekinci, Paul Kay, ]ensine Larsen and Gizem Sucuoglu also contributed in various ways to this project. Thanks. ]EDRZEJ GEORGE FRYNAS, London Scon PEGG, Indianapolis ix Notes on the Contributors Richard Boele is a founding director of the Australian Institute of Corporate Citizenship (AICC). He has worked as a corporate social responsibility consultant and social auditor with a range of clients including Amnesty International, BHP Billiton, the British government, BP, Normandy Mining and the Novo Group. He previously held key positions at The Body Shop International (UK) and human rights organizations, both in Australia and Europe. Richard is a Visiting Associate at the Graduate Centre of the Environment at Macquarie University, Sydney, Australia and holds an Industrial Fellowship with the Centre for Stakeholding and Sustainable Enterprise at the Kingston University Business School in London, UK. Heike Fabig is a PhD candidate in Corporate Responsibility at the Graduate Research Centre for the Comparative Study of Culture, Development and Environment at the University of Sussex, UK. Her research examines the engagement of The Body Shop (a multinational skin and hair-care company) with the campaign for social and environ mental justice of the Ogoni people in Nigeria. She worked previously as a human rights campaigner for a Flemish non-governmental organiza tion focusing on the collective human rights of indigenous peoples, as a researcher and consultant for The Body Shop International and a tutor at the University of Sussex School of African and Asian Studies. Jedrzej George Frynas received his PhD in Management, Economics and Politics (MEP) from the University of St Andrews. He is a Lecturer in International Management at Birmingham Business School, Birmingham University, and the author of Oil in Nigeria: Conflict and Litigation between Oil Companies and Village Communities (2000). His research focuses on the activities of transnational corporations in devel oping countries and he has published articles in Third World Quarterly, African Affairs, Review of African Political Economy and Social & Legal Studies, among others. Ronie Garcia-Johnson received her PhD in Political Science from the University of Michigan. She is an Assistant Professor of Environmental Policy at the Nicholas School of the Environment and Earth Sciences, Duke University. Dr Garcia-Johnson is the author of Exporting x