7 January 1999, For immediate release

CODE COULD END ABUSE BY COMPANIES IN THIRD WORLD

Years of oppression and exploitation by multi-national companies operating in developing countries could end if a radical new initiative, spearheaded by Euro MP Richard Howitt, gets the go ahead next week in the European Parliament.

Labou's Richard Howitt is urging his colleagues to vote "yes" to a comprehensive code of conduct, which will safeguard workers, protect the environment and respect the rights of indigenous people, by promoting an ethical approach to business.

Richard Howitt MEP said: "For more than two decades every international institution has debated drawing up guidelines to stop this abuse - but in practice, virtually nothing has happened. The European Parliament's proposed code of conduct will defend the interests of enlightened companies by exposing the shortcomings of those which continually practice double standards. That's why companies like The Body Shop are supporting my initiative.

"My resolve to make a difference has been strengthened by what I've seen and heard. For instance, in India last year, I saw the effects of bonded child labour, where children as young as six were forced to work in factories weaving carpets. Meanwhile in Manilla, women receive just 3p for stitching a shirt, which their factory owner sells for ,2 and is then sold in Europe for ,20. We must act now to put an end to this kind of misery."

The code seeks to: guarantee minimum standards on the environment; implement agreed health and safety conditions in the workplace; eradicate the use of forced, bonded child labour; respect women's and indigenous people's rights; and increase corporate accountability.

To achieve these aims, Richard Howitt MEP is proposing a package of measures which include setting up a European monitoring platform; extending voluntary initiatives; developing fiscal and other incentives to reward companies for positive efforts; clarifying the situation where European companies could be made subject to legal actions; and working with governments and non-governmental organisations to monitor what is happening on the ground.

The European Parliament will vote on the proposals early next week and if successful, the European Commission will have six months to respond.

For further details contact Lynne Pearce , media adviser, on 0181 348 5129 (UK office) or 0403 268543 (mobile, UK only) or Richard Howitt MEP on 01268 550600 (UK office), or 00333 88 17 5477 (European Parliament office).