Human Rights and Multinationals: Is there a Problem?

Abstract

In recent years interested individuals and pressure groups have expressed considerable concern over the alleged complicity of multinational enterprises (MNEs) in violations of human rights. While such allegations are not historically unprecedented, the context in which they arise has changed. In particular, the increased integration of the global economy has created a perception that MNEs should take more responsibility for the social dimension of their actions, a perception that enterprises themselves have in part accepted through inter alia the issuing codes of corporate conduct. Furthermore, the rise of identity and lifestyle politics has made MNEs, as purveyors of products and services that help to define consumer lifestyles, a target of concern. These changes have significant implications for the evolution of human rights theory. In particular, they require a shift in the traditional view that corporations can only be victims of violations of human rights committed by states, towards one that extends responsibility for the commission, prevention and avoidance of such violations to MNEs themselves. On the other hand, there exist strong arguments against such an extension of human rights responsibilities. In particular, it is said that MNEs should only be responsible for the conduct of their business and should not be forced to involve themselves in such wider social issues. They are also private law entities and so should not possess the same responsibilities as states. This articles posits that such arguments in favour of extension, though strong and likely to remain influential, cannot answer the need for an extension of responsibility for human rights violations to MNEs where appropriate, on the basis that any attack on human dignity, whatever that legal nature and functions of its originator, must be liable to legal sanction. The technical legal means by which this might be done are considered. None the less, the article ends with a caution that any extension of human rights responsibilities to MNEs must not be allowed to deflect attention from the primary responsibility of states, as the most likely perpetrators of human rights violations, to avoid human rights violations on their own part and to establish a legal order in which the risk of such violations committed by private entities can be minimized, whether through effective national regulatory laws or international agreements on standards of corporate conduct.