Corporate Code of Conduct Act

H.R. 2782, the Corporate Code of Conduct Act, would require U.S. companies and their international partners that employ more than 20 people abroad to follow a standardized set of rules regarding human rights, environmental protection, and fair labor practices. To encourage compliance, the bill directs federal agencies to give preferential treatment in government contracts, export assistance, and international financing to companies that adopt and enforce these standards.

For citizens, this legislation aims to ensure that American businesses operate ethically overseas by holding them accountable for the actions of their foreign subsidiaries and subcontractors. If a company is found to be in violation of these standards, the bill allows for the termination of their government contracts and provides a legal pathway for individuals to petition the government to investigate alleged misconduct.