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UN Guiding Principles

the ILO MNE Declaration provides that TNCs, as well as labor groups, employer organizations, and governments, should respect key human rights instruments like the Universal Declaration on Hu- man Rights.

The ILO MNE Declaration played an influential role in the creation of the UN Framework. As Ruggie stated, “on matters of workers’ rights [contained in the UN Framework] I have simply referenced the ILO from the start.” In March 2012, the ILO described its plans to work with Ruggie’s working group to create a Child Labour Guidance Tool. The UN Framework and Guiding Principles will serve as the guide for this project, “particularly as it pertains to companies’ respon- sibilities in contributing to the elimination of child labour.”18

C. World Bank Group

The World Bank Group is an IGO with a goal of “reduc[ing] poverty and support[ing] develop- ment.”19

Because entities seeking funding from the IFC must comply with the Performance Standards, the IFC stands in a powerful position to influence corporate behavior. Therefore, by integrating the ideas of the UN Framework and Guiding Princi- ples into the Performance Standards, the IFC has incentivized its aid recipients to comply with the Guiding Principles.

D. International Chamber of Commerce (ICC)

The ICC considers itself “the world’s only true global business organization.”21

Though techni-

cally not an IGO, it is modeled after an IGO and behaves like one in many respects. With busi- ness executives from around the world as its members and its influential business codes and policies, the ICC has a direct link to TNCs, and therefore it has immense potential to influence TNC behavior.

The International Financial Corporation

(IFC), one of the World Bank’s five sub-institu- tions, approaches the problem of global poverty by providing financial resources for private enter- prise development. Each year the IFC invested billions of dollars in hundreds of private sector projects throughout the developing world. With small businesses as the direct recipients of its aid programs, the IFC is well positioned to influ- ence corporations’ respect for human rights. And indeed, the IFC has made considerable strides toward encouraging the social responsibilities of its aid recipients.

To receive IFC funding, an aid recipient must comply with the IFC Performance Standards on Environmental and Social Sustainability (Perfor- mance Standards), which “define clients’ roles and responsibilities for managing their projects and the requirements for receiving and retaining IFC support.”20

In 2012 the IFC adopted the new

version of the Performance Standards, which is embedded with the ideas of the UN Framework.

In recent years, the ICC has used its status as a global business leader to promote corporate re- sponsibility. The ICC has committed to working with the United Nations “to advance the dissemi- nation and implementation of the framework and the Guiding Principles in a way that creates a sense of ownership of the issues among [its] members.”22

influence over TNCs to bolster the Guiding Prin- ciples’ legitimacy in the global economic com- munity.

E. World Trade Organization (WTO)

As evidenced from the above discussions, the OECD, ILO, IFC, and ICC have made important strides toward integrating the Guiding Principles into their already existing CSR instruments and toward demonstrating their overall support for the Guiding Principles. Despite all of this positive action, because each of these organizations relies mostly on soft power forms of persuasion and incentivizing, none has the ability to correct the biggest criticism of the Guiding Principles - that is, that the Guiding Principles remain a voluntary code of conduct.

ILSA Quarterly » volume 22 » issue 1 » October 2013 29

Thus the ICC is has been using its

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