Rule of Law

GE’s day-to-day experiences around the world testify to the critical importance of rule of law. Those societies that have strong, predictable and transparent legal institutions and processes engender confidence, investment and growth. By contrast, those with weak institutions and processes tend to lag in economic development and political stability. GE works actively to support stronger rule of law around the world. Key areas of focus include anticorruption, legal and administrative transparency and predictability, independent judiciaries, and fair and effective dispute resolution. GE’s rule-of-law efforts begin with our day-to-day business activities around the world, which are predicated on a strong culture of compliance. GE’s employees further contribute to strengthening rule of law, as does the GE Foundation.

Recent GE activities in the area of rule of law include:

• GE’s global public policy and national executive teams and the GE Foundation have been actively engaged in supporting rule-of-law efforts in developing countries around the world, ranging from Albania to Yemen, in partnership with Partners for Democratic Change. Partners’ innovative approach to rule of law is based on the establishment of self-sustaining “conflict resolution centers,” which seek to manage and mediate the conflicts and changes that arise as their countries transition to more democratic systems.
• GE and GE Foundation are working to strengthen rule of law in China, through the U.S.-China Legal Cooperation Fund. This highly regarded program has worked to support efforts in a wide variety of areas ranging from enhanced protection for intellectual property rights to employment rights of migrant workers. The GE China legal team has also been actively engaged in legal education efforts in Chinese law schools and with Chinese civil society.
• GE and GE Foundation have been leading sponsors of the ABA Rule of Law Project, a global effort to strengthen rule of law, including through the creation of a “Rule of Law Index” — a quantitative methodology for evaluating a country’s rule of law based on its respect for human rights, access to justice, regulatory framework for investors, transparency and curbing of abuses of government power.
• GE and GE Foundation have worked to strengthen rule of law in Vietnam. Through a grant issued to the U.S.-Vietnam Trade Council Education Forum, GE has helped support efforts by Vietnamese state government agencies, NGOs, business associations, academic institutions and others to increase regulatory transparency and public participation in the law and rule-making process. Under this GE Foundation–supported program, the past year witnessed a focus on Vietnam’s new energy legislation.
• GE and GE Foundation have promoted good governance and legal excellence in Argentina through grants to public/private dialogues and judicial training programs, working with the American Chamber of Commerce in Argentina, the Association of American Chambers of Commerce in Latin America, the Fundacion Red de Acción Política, the Centro de Estudios Americanos and the International Judicial Academy.

In addition to these activities, GE also regularly raises rule-of-law issues in regional dialogues, such as the Trans Atlantic Business Dialogue, the Americas Competitiveness Forum and APEC, to encourage regulatory reform and harmonization and the establishment of regional programs to promote rule of law.