Abstract
The growth in power and influence of the transnational corporation under the forces of globalization has been touted as being one of the most significant developments both domestically and internationally. Changes to economic, political and financial barriers by many developing countries with the hope to attract international investment have seen the move by transnational corporations to exploit these opportunities. There are many who argue that the impact of transnational corporations has been positive, providing employment and income opportunities as well as country wealth. There are however, many who argue that the power and influence of the transnational corporation brings with it the ability to directly impact adversely on human rights and that as the transnational corporation operates outside human rights obligations assumed by each state pursuant to their status under international conventions, there needs to be a new human rights dialogue. This paper addresses the significance of the transnational corporation, the role of the transnational corporation in the context of human rights and concludes that as a result of the global financial crisis that we have lost the focus on traditional concerns for human rights violations and allowed economic and financial sustainability concerns to become paramount.
Highlights
The relationship between the processes of globalization and human rights has been the focus of much debate, both within academia and the global human rights community
This paper addresses the significance of the transnational corporation, the role of the transnational corporation in the context of human rights and concludes that as a result of the global financial crisis that we have lost the focus on traditional concerns for human rights violations and allowed economic and financial sustainability concerns to become paramount
Transnational corporations are in a position to have an enormous impact upon human rights, and as has been suggested, that impact can be either positive or negative (Anderson, 2000) Many transnational corporations have adopted voluntary codes of conduct, with some enforcing their codes very seriously by imposing strict internal controls in order to deter unethical or illegal behaviour. (Note 3) as is well known, codes of conduct, as well-meaning as they may be, are voluntary and until an effective regulatory model (Note 4) for the extraterritorial regulation of transnational corporations with respect to human rights obligations is developed, transnational corporations will continue to operate with virtual impunity (Kolk, van Tulder & Welters, 1999)
Summary
The relationship between the processes of globalization and human rights has been the focus of much debate, both within academia and the global human rights community. Multinational corporations have been aggressive in exploiting these new opportunities, and have, in doing so, re-written the rules of economic engagement and have challenged the established principles of juridical boundaries and state sovereignty They are able to exert considerable influence on the markets within which they operate, and on foreign affairs policy and international relations. As a result of this ability to potentially circumvent human rights obligations, the dialogue as to the responsibilities of transnational corporations has increased, and given the impact of the current global economic crisis, the relationship between transnational corporations and human rights has never been more significant. The third part will provide an analysis of the relationship between globalization, transnational corporations and human rights, and in the final part, the challenges presented by the recent global financial crisis will be discussed in the context of human rights dialogue and the role of the transnational corporation. This article concludes that the global financial crisis has had a direct impact upon our perceptions of human rights and has shifted the focus away from traditional concerns for human rights violations, to more economic and financial sustainability issues
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