Multinational Corporate Groups, Their Position in International Law and Regulating Multinational Corporate Groups

Abstract

This chapter aims to provide an insight into MNCs. Firstly, the concept of ‘company’ will be defined by focusing on the two principles concerning companies that are relevant for FDL (i.e. separate legal personality and limited liability principles). Secondly, the concept of ‘corporate group’ is analysed within the framework of Turkish law, which does not provide for a specific legal ground to address FDL claims, yet might constitute a basis on which to construe the parent company’s duty of care. Then the concept of MNCs will be clarified within the context of the available international legal instruments and legal doctrine by referring to the position of MNCs in international law, and the possibilities and challenges in regulating them effectively. To this end, FDL under tort law should be complemented and supported by alternative methods and mechanisms; such as a reform in company law to shift towards a multi-stakeholder approach in business, an international legal instrument to strengthen state duty to protect human rights in business and private arbitration as an alternative to court litigation.