The Accountability Challenge to Global E-commerce: The Need to Overcome the Developed-Developing Country Divide in WTO E-commerce Policies

Abstract

Purpose – Because businesses conducting e-commerce are often able to set up off-shore to avoid regulation, taxation, and other aspects of corporate responsibility, the developed-developing divide which tends to inform World Trade Organization (WTO) policies is especially an impediment to future global e-commerce. This chapter explores the particular accountability challenges represented by WTO e-commerce policies.Design/methodology/approach – The framework of inquiry focuses on a policy research study of relevant WTO e-commerce policy documents, especially the ones related to the negotiations under the WTO Work Program on Electronic Commerce and the GATS Agreement.Findings – The virtual nature of e-commerce interactions means that businesses are often able to circumvent the national boundaries and controls of conventional commerce. Because of this, the WTO and its e-commerce policy are crucial to the responsible and accountable development of future global e-commerce. Such policies need to be significantly improved as a matter of urgency to overcome current omissions and inadequacies.Research implications – Accountability gaps within WTO’s e-commerce policies provide a basis for companies from developed countries to set up off-shore to avoid their corporate social responsibilities. A constructive critique of international agency policy documents is able to provide a basis for recommending change and improvement to the overall WTO framework.Practical and social implications – Companies should profess genuine rather than merely surface commitment to global as well as local corporate social responsibilities. Likewise the WTO should also aim to practice deep rather than “shallow” accountability by aiming to rectify omissions and inequities in its e-commerce policies.

Citation

Farrokhnia, F. and Richards, C.K. (2013), "The Accountability Challenge to Global E-commerce: The Need to Overcome the Developed-Developing Country Divide in WTO E-commerce Policies", Leonard, L. and Alejandra Gonzalez-Perez, M. (Ed.) Principles and Strategies to Balance Ethical, Social and Environmental Concerns with Corporate Requirements (Advances in Sustainability and Environmental Justice, Vol. 12), Emerald Group Publishing Limited, Leeds, pp. 161-181. https://doi.org/10.1108/S2051-5030(2013)0000012012