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What role do multinational corporations play in International human rights law?

Caren MacAindreis

Multinational corporations play a significant and complex role in international human rights law. On the one hand, these corporations bring jobs, development, and innovation to countries throughout the world, supporting human rights in the process. However, multinational corporations can also perpetrate or facilitate human rights abuses, particularly in countries where legal systems are weak or non-existent.

One of the most significant challenges in regulating the role of multinational corporations in international human rights law is their transnational nature. Companies frequently operate in multiple jurisdictions, each with its own legal system, cultural norms, and human rights practices. This creates significant difficulties in ensuring that multinational corporations adhere to international human rights norms consistently.

Governments and NGOs have pursued several approaches to address these challenges. Some governments have developed national regulations that hold firms accountable for human rights abuses, potentially using penalties or legal action. Meanwhile, NGOs and activists have called on corporations to participate in international human rights initiatives voluntarily. The UN Guiding Principles on Business and Human Rights represent a framework that seeks to establish a shared international human rights standard for corporations. These principles provide guidance on conducting due diligence on human rights, identifying, preventing, mitigating, and remedying impacts on human rights, and monitoring effectiveness.

There are intrinsic and extrinsic motivating forces underlying the adoption of such practices. Intrinsic motivation is a positive force, driven by values and an inner sense of morality. Extrinsic motivation is more of a negative force that comes from outside – fear of litigation, pressure from NGOs, or risk of losing contracts. Although extrinsic motivators can be effective in curbing abuses, intrinsic motivation is stronger for fostering sustainable change.

In conclusion, multinational corporations play a significant role in international human rights law, both to promote and detract from human rights causes. Efforts must be made towards establishing a shared, consistent international human rights standard for corporations, both through voluntary engagement and regulatory action. Additionally, encouraging intrinsic motivation for change and discouraging extrinsic motivators can be a strong force for sustaining change and ultimately promoting human rights across the globe.