‘‘Minding Our Business’’: What the United States Government has done and can do to Ensure that U.S. Multinationals Act Responsibly in

ABSTRACT. The United States Government does not mandate that US based firms follow US social and envi-ronmental law in foreign markets. However, because many developing countries do not have strong human rights, labor, and environmental laws, many multina-tionals have adopted voluntary corporate responsibility initiatives to self-regulate their overseas social and envi-ronmental practices. This article argues that voluntary actions, while important, are insufficient to address the magnitude of problems companies confront as they operate in developing countries where governance is often inadequate. The United States can do more to ensure that its multinationals act responsibly everywhere they operate. First, policymakers should define the social and environmental responsibilities of global companies. They must consistently make their expectations for global business clear – and underscore that this objective can often be accomplished without mandates. Second, the US should closely examine the policies that undermine global Corporate Social Responsibility (CSR) and address the many conflicting signals sent by policymakers. Third, the President should make the US government a CSR model by examining how to use its purchasing power to pro-mote human rights. Finally, the US government should require pension funds to report on the social and envi-ronmental consequences of their investments. In these ways, Americans can mind our business – and thus make sure that US based firms do not undermine social and environmental progress when they operate in the devel-oping world