Research notes: Social and human rights implications of TNC activities in the extractive industries

Abstract

TNC operations in extractive industries can be associated with abuses of social and human rights in certain circumstances. For instance, competition over resource wealth may spark armed conflict in some countries, and even the formation of rebel groups; or, as another example, control of resources by the Government (may be linked to corruption and an inequitable distribution of public resources. This article examines the categories of human rights abuses which may occur, as well as the responsibilities of TNCs and other corporations in this regard. The latter is discussed in the context of “new players”, such as those from developing countries, the complex structures of many TNCs, and their governance (e.g. some are state-owned enterprises). The article concludes by assessing the roles that Governments, TNCs, NGOs and others can play in achieving a viable balance between a favourable investment environment in extractive industries and the interests of local populations.