Click on the questions below to view the answers:
Doesn't the U.S. already require reports from corporations on their environmental, labor and human rights practices abroad?
No, the U.S. currently has no laws that would require any disclosure of these
kinds of activities abroad by U.S. corporations.
Can U.S. laws apply to companies operating abroad?
Congress can choose to apply laws abroad to companies that fall under U.S. jurisdiction. The companies that U.S. laws can apply to abroad include those incorporated in the U.S. or those registered with the Securities and Exchange Commission (SEC) to sell stocks. For example, the Foreign Corrupt Practices Act prohibits such companies from bribing foreign officials and requires them to track any payments they make to foreign governments. An International
Right to Know law would similarly apply to incorporated companies and those registered with the SEC.
How will an International Right to Know law be enforced?
U.S. government agencies such as the Environmental Protection Agency, the Department of Labor and the State Department will have responsibility to monitor and enforce the law. Models already exist for this kind of enforcement abroad. For example, the Commerce Department has responsibility to enforce the Foreign Corrupt Practices Act, and the Customs Office currently has similar responsibility for ensuring that imports to the U.S. are not produced using forced child labor abroad. However, the enforcement capability of U.S. agencies worldwide is limited. An International Right to Know law will therefore also include the same kind of provisions that exist in every major U.S.
environmental law for citizens to monitor and bring suits against violators.
Will an International Right to Know law make U.S. companies less competitive?
The costs simply of reporting on their operations rather than being forced by law to change their practices - will not be significant. In fact, Right to Know laws that apply in the U.S. have been found to save companies money. For example, New Jersey reports that its statewide Right to Know legislation for toxic releases, which is stricter than the federal version, has saved companies between five and six dollars in reduced clean-up and other costs for every dollar the companies spent on reporting. Similarly, the federal Right to Know legislation, the Emergency Planning and Community Right to Know Act, has led
manufacturers to voluntarily reduce their toxic releases by half.