Analysis On The International Regulation Of The Social Responsibility Of Multinational Corporations

In the context of world economic integration, multinational companies(MNCs) which take the world as market target come to be the symbol of economic integration process. As well as the MNCs become to be the beneficiaries of economic globalization, they should undertake the corresponding responsibilities of economic and social problems that accompanied with economic globalization. The mechanisms which could play a role in binding MNCs includes self-regulation,domestic legal regulation and international regulation. Because of MNCs' organizational structure of multinational operations and the economic nature of profit pursuit, both self-regulation and domestic legal regulation cannot restrict MNCs'behavior effectively. Therefore, international regulation has become to be a necessary means of regulating social responsibility of MNCs. However, as the limited application of international hard law and non-legally binding of international soft law norms, the existing international regulations of MNCs'social responsibility is always insufficient. Therefore this paper argues that on the basis of existing norms, it isn't only necessary to improve the implementation mechanisms of existing international norms, but also to promote legislative efforts on international hard law which could directly regulate MNC s social responsibility, and encourage non-governmental international organizations to draw up international soft law norms to improve the international regulation system of MNCs'social responsibility.In the first part of this dissertation it mainly introduces the theoretical basis of social responsibility of MNCs, including the problems of whether it should be committed to social responsibility, the scope of social responsibility and how to take the social responsibility. As for the legitimacy of MNCs'social responsibility, the economic theory argues that the corporations'only pursuit of maximum profit should be replaced by both social responsibility and pursuit of profit, this is because that the exist and development of corporations is inseparable from social factors and stakeholders. If the corporations want to keep sustainable development, they should take social responsibility as well as obtaining resources from the community. The legal theory argues that the legitimacy of MNCs'social responsibility consists in its meeting of the basic values. On this basis, with the combination of social responsibility of MNCs and the theory of corporate social responsibility, the connotation of MNCs'social responsibility consists of home countries social responsibility,the host countries social responsibility and international social responsibility according to the regional division; and according to the content it should include the respect for national sovereignty of the host countries as well as home countries, and also the action should be in accordance with the strategy of host and home countries.The second part particularly analyzes the necessity of strengthening international regulation to MNCs'social responsibility, and the current situation and deficiencies of international norms regulating MNCs. With MNCs'global nature of organization,decision-making mechanisms and the strategic arrangements, both MNCs' self-regulation and the domestic regulation are insufficient. So strengthening the international regulation comes to be a necessary means. The current international regulation to MNCs'social responsibility consists of international laws with legally binding, and also soft law of international norms including international soft law and MNCs'social responsibility standards that legislated by international organizations. As a result of international hard law's restrictive application and the soft law of international norms's non-legally binding, there is always a shortage of the current international regulations of MNCs'social responsibility.The third part puts forward recommendations on how to improve the international regulation system of MNCs'social responsibility. As to international hard law-firstly it should promote legislative efforts on international hard law which could directly regulate MNC s social responsibility. Even though MNCs are not subjects of international law, and it tends to be difficult to bring MNCs into subject of international law, but we can not totally negate the possibility of development of international law for multinational companies. Secondly it should strengthen the application of the existing international hard law. For soft law of international norms, firstly it should continue to encourage non-governmental international organizations to draw up soft law norms, making the soft law norms to be the vanguard of international legislation and the reference to the relevant international legislation; and secondly it should strengthen the enforcement mechanisms.