Enhancing the Accountability of Transnational Corporations: The Case for 'Decoupling' Environmental Issues (original) (raw)

Environmental Degradation and Human Rights Violation: A Cursory Overview of the Potential of the Existing Frameworks to Hold Multinational Corporations Accountable

Groningen Journal of International Law, 2021

It has been reported that an estimated 100,000 multinational corporations (MNCs) account for about a quarter of the global gross domestic product (GDP), generating a turnover which exceeds, by leaps and bounds, the public budget of many countries. Unfortunately, the manner of operation of the ever-expanding MNCs appears to engender rampant environmental degradation and wanton human rights violations in host nations. Even though frameworks aiming to regulate the activities of these corporations are in place, the effectiveness of the said regulatory mechanisms has been vociferously challenged, time and again, by academics and experts across the globe. Drawing on a range of pertinent case law as well as secondary sources, this article attempts to critically explore, and navigate, the extent to which the existing regulatory frameworks have been effective in holding MNCs accountable for their environment and human rights-related transgressions. The article establishes that the extant reg...

Benefit-Sharing as a Bridge between the Environmental and Human Rights Accountability of Multinational Corporations

SSRN Electronic Journal, 2000

This paper analyses the tight linkages between human rights and environmental degradation due to sub-standard corporate conduct. It then proceeds to outline the development of international standards on corporate responsibility and accountability in relation to environmental protection, highlighting the significant level of detail and convergence of international standards for corporate environmental accountability. Against this background, the paper systematically examines instances in which conceptual and normative developments under international environmental law, and in particular under the Convention on Biological Diversity, have contributed to developing international standards on corporate responsibility to respect human rights. The paper furthers the understanding of the key concept of benefit-sharing, teasing out its inter-state and intra-state implications, as well as its current and potential applications to private companies. It concludes with some future perspectives on the role of benefit-sharing in the context of the green economy vis-àvis the environmental and human rights dimensions of corporate accountability.

Multinational Corporations: Making Dollars (and Sense) by Showing Respect for Environmental, Human and Labor Rights Issues

ecprnet.eu, 2010

In an increasing globalised world economy, Multi-National Corporations (MNCs) have been accelerating their push to shift production of their goods and services from higher cost developed countries to more economically attractive labour markets in the developing world. Developing countries are attractive not only from the standpoint of lower wages, but also because they often lack the means and or the political will to hold businesses accountable for violations of these nation’s respective environmental, human and labour rights regulation regimes. However, the growth and globalization of Human, labour and environmental rights Non-Governmental Organizations (NGO’s) has recently begun to act as a counterbalance and hold MNC’s accountable for violating those norms. As a consequence, MNCs that demonstrate a lack of respect for environmental, human and labor rights will eventually feel an impact on their bottom line, especially if one looks at the cumulative effect of avoiding such responsibilities over a period of years. In Part I, this paper seeks to delineate how, and in what areas of its business, offending MNC’s might expect to experience adverse economic impacts in the future. Said analysis is based largely on the negative consequences that have already been suffered by various MNC’s in a wide variety of different industries. Part II of this paper examines the growth and development of the NGO community as well as international norms dealing with human, labour and environmental rights around the world. It also explores the emergence of “corporate social responsibility (CSR) agreements designed to function as a non-state actor global business governance regime. In Part III, this paper concludes with an alternative strategy as well as some other methods Non-Governmental Organizations (NGOs) might wish to consider if they want to be successful persuading MNCs to show greater respect for environmental, human and environmental rights concerns within their respective workplaces. By using these alternative strategies and methods NGOs can also positively rather than negatively impact many MNC’s long term profitability in the process.

The Politics of Corporate Social Responsibility: Reflections on the United Nations Human Rights Norms for Corporations

Development Economics, 2007

Corporate Social Responsibility (CSR) has become a fixture on the agendas of corporate boards in much the same way as environmental issues did a decade or so ago. To what extent social responsibilities should be made legally enforceable remains a matter of some fierce debate. There are already many laws in Australia that bind corporations in respect of such social issues as occupational health and safety, labour standards, privacy, non-discrimination and environmental protection. But should there be more specific human rights coverage, especially in respect of off-shore corporate activities in developing countries where there are well-documented examples of corporate abuse - or corporate complicity in host-state abuses - of rights to life, protection from physical harm, trade union membership, labour standards and workplace conditions, and others? The United Nation's Draft Human Rights Norms for Corporations seeks to impose obligations on states to ensure that corporations withi...

Global Environmental Liability: Multinational Corporations under Scrutiny

Exchanges: The Interdisciplinary Research Journal, 2014

The purpose of this article is to analyse the extent of international rules that apply to multinational corporations (MNCs) regarding their environmentally degrading activities and quality control qua environmental impact. The first part of the article describes the ambiguous legal status of MNCs and examines the rules that international instruments and host state agreements impose on the activities of MNCs. The second part focuses on jurisdiction and choice of law issues of cross-border litigation and brings out its major shortcoming. Finally, the conclusion comments on the efficiency of international law in imposing environmental liability on MNCs.

Multinationals and Corporate Social Responsibility. Limitations and Opportunities in International Law," by J. A. Zerk

Business Ethics Quarterly, 2013

This paper aims to shed some more light on the current debate related to corporate social responsibility (CSR), specifically considering multinational enterprises (MNEs) and the complexities they face when dealing with international issues and a range of stakeholders. It discusses notions of CSR in the context of wider debates, including the question for whom and for what the firm exists, how responsibilities can or should be managed and by whom, and what room there is for managerial discretion. Particular attention is paid to cross-cultural differences, exploring the existing variety in ethical and societal norms relevant to MNEs: those originating from international agreements, those that are part of a so-called 'market morality' and those applicable in home and host countries. Although these norms may overlap, they can diverge as well, leaving ample room for managerial discretion in a 'moral free space'. The paper also explores recent trends, particularly the increasing importance of emerging economies such as China, which suggests that the picture is becoming even more complex, pointing at clear challenges for research and practice.

Multinational Corporations and Social Responsibility

International journal of applied management sciences and engineering, 2015

Non-governmental organisations often accuse multinational corporations of exploiting the various legal environments in different countries to their advantage in order to avoid the assumption of responsibility for human rights violations or environmental disasters. This empirical study shows that non-governmental organisations (NGOs) can, by employing various instruments, increase the likelihood of multinational corporations accepting social and environmental responsibility for their actions. These instruments, ranging from dialogue to scandalisation, are intended to influence corporate behaviour and their use depends on the pressure the NGO wishes to exert on a particular company. All instruments need careful research and the gathering of evidence, including witness statements. To gain public attention the information must be well prepared for the media, resonate in the corporation's domestic market, stimulate concern and be up-to-date. The most promising activities are those that emphasise that economic success could be compromised to the key decision makers within the company.