In response to the growing world trade and the increasing influence of MNCs several attempts have been made during 1970s to establish and institutionalize international codes for ethical business practices. One such initiative was that of the International Labour Organization (ILO), which developed covenants with regard to better labour practices and encouraged member nations to practice these and their earlier covenants and incorporate them into their own national statues and codes.

In 1974, the United Nations established the UN Commission on Transnational Corporations (UNCTC), at the instance of 77 developing countries that sought the creation of a new international economic order. In 1976, The UNCTC ...

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