The Use of Transnational Labour Law in Steering Socially Responsible Corporate Governance Toward Increased Workers Protection

Abstract

Socially responsible corporate governance (SRCG) is a product of the interaction of corporate governance and corporate social responsibility. These two transnational business governance schemes have converged around the principles of accountability, sustainability and due diligence. This paper will examine to what extent SRCG can be useful in promoting worker protection. It will contend that, as a reflexive regulation, SRCG is normatively indeterminate and may easily be subject to regulatory capture by the traditional actors of corporate governance. This paper will argue that these risks may be alleviated by the interaction of SRCG with Transnational Labour Law. TLL increases SRCG’s responsiveness to the value of worker protection by offering labour more direct sources of participation to strengthen SRCG’s enforcement and alleviate risks of capture. Moreover, the principles of TLL weave a coherent and meaningful framework which can be used to assess the quality of the various corporate governance initiatives.