Economic Governance of Multinational Corporations: The Role of Codes of Conduct

This article explores the potential of voluntary and binding codes of conduct as economic regulators of multinational enterprises in the global marketplace. It traces key international initiatives—particularly within the United Nations—aimed at adopting a comprehensive corporate code, and analyses the political, legal and economic barriers that have impeded their formalization. Drawing on empirical case studies and existing frameworks such as the OECD Guidelines and sector-specific charters, the author assesses the effectiveness of these instruments in promoting corporate accountability, correcting market failures, and fostering sustainable economic development. The paper further examines how codes of conduct shape foreign direct investment, enhance stakeholder confidence, ensure competitive equity across jurisdictions, and leverage enforcement mechanisms and compliance incentives. In conclusion, it offers targeted policy recommendations, arguing that robust, economically-focused codes of conduct can meaningfully complement traditional international legal measures to advance responsible business practices and strengthen the governance of transnational corporations.