Navigating the Impact of Multinational Enterprises on Labor Rights: Barriers to Justice in Developing Countries

Abstract

The rise of multinational enterprises (MNEs) presents both economic opportunities and significant challenges, particularly in developing countries. This essay examines the adverse effects of MNEs on labor markets in these regions, focusing on redressing corporate rights violations and the barriers to justice for affected workers. The legal frameworks in both host and home countries often fail to hold MNEs accountable due to weak regulatory mechanisms and the corporate veil doctrine. International regulations, such as the UN Guiding Principles on Business and Human Rights, provide some guidance but lack enforceability. Recent due diligence laws in Europe offer promising steps toward corporate accountability, yet they fall short by excluding meaningful participation from stakeholders in the Global South, whose socio-economic realities are crucial to addressing MNE-related issues. The essay advocates an integrated approach that involves Global South governments, civil society, and local communities in decision-making, risk assessments, and enforcement processes to ensure justice and equitable protection for affected workers.