The Australian businesses have the mandate of ensuring that the ethics and effective leadership
reflects in the organizations. A significant challenge affecting most organizations is failing to protect the
human rights by promoting slavery, poor working conditions, and child labor (Kelly, 2016). The
Australian organizations should demonstrate the responsibility of handling human rights issues as is
expected by the United Nations Guiding Principles on Business and Human Rights.
The supplies chain is a significant area where the human rights are being violated. Many companies
are choosing easy ways of maximizing their profits by risking the lives of their workers. Australian
consumers have expressed their concerns about the violation of labor rights of organizations in the food
supply and agriculture sector (AHRC et al., 2015). Many have cited the use of forced labor which has
interfered with the production of quality goods. This is one of the impacts of the violation of human rights
which also affects the reputation of the companies.
The violation of human rights not only destroys the reputation of organizations but also reduces the
profitability. Many workers tend to lose their morale due to working in poor conditions and also receiving
unfair wages which affect their performance. For instance, in Bangladesh, Dhaka, the Rana Plaza
collapsed leading to the demise of at most, 1100 employees due to poor working conditions (Nolan,
2016). The building had five garment factories posing a danger to the workers. Therefore, if the working
environment were safe then, it would not have caused the firms’ profitability and reputation.
Organizations should take the issue of protecting human rights by addressing significant concerns
like poor working environments, discrimination, child labor, and human trafficking seriously. Other than
following the principles set by the United Nations Guiding Principles on Business and Human Rights,
organizations should implement their human rights policies to demonstrate corporate social responsibility
(Nolan, 2016).
References
AHRC, ACCSR, and GCNA (2015). Human rights in the supply chains: prompting positive practice.
Melbourne
Kelly, A. (2016). Children as young as seven mining cobalt used in smartphones, says Amnesty
Nolan, J. (2016). In Jena Martin & Karen E. Bravo (Eds.), The Business and Human Rights Landscape
(pp.387-413).
MGTS7610: MANAGEMENT COMMUNICATION
Writing Task 3 Criteria Sheet
ASSESSMENT ITEM DETAIL
Before and after completing your assignment, carefully review these instructions and
the criteria sheet to make sure you have not missed anything.
Assessment: Writing Task 3
Type of
assessment:
Learning
objective (as
published in
ECP):
Due date and
submission:
Argumentative genre – Opening and closing paragraphs
L2: Express your opinions clearly by using words and sentence structures efficiently.
L3: Make a convincing argument by structuring your ideas coherently and
persuasively.
Beginning of Week 7 tutorial (03 September 2018 – 07 September 2018), in hard
copy to your tutor AND online through Turnitin via Blackboard Note that similarity
reports can take up to 24 hours to be ready.
How to submit online: Go to the course site on Blackboard and click on ‘Assessment’
on the left-hand menu. Go to the folder for the assessment item. Inside this folder
you will find a Turnitin submission link for which you need to click ‘View/Complete’.
Follow the prompts to upload your assignment. Make sure you have successfully
uploaded your assignment by reviewing the ‘View/Complete’ button to see your
submission again. Your Turnitin Digital Receipt is not your similarity/originality
report.
Weighting:
5% (5 marks total)
Length:
Two paragraphs @ 100-150 words per paragraph
Formatting
11pt Calibri or Times New Roman font, 1.5-line spacing, normal margins
requirements:
Referencing APA 6th Edition style
style:
Task
This task is designed for you to practise what you have learned in weeks 5 and 6.
Description:
Edit and improve the opening (Thesis) and closing (Reiteration of Thesis) paragraphs
of your Writing Task 2 assessment, based on the feedback you received and what
you have learned in class.
Use complete paragraph structures and arrange the parts of each paragraph in the
order shown below:
Argumentative genre:
1. Paragraph 1: Thesis
(1. Background, 2. Thesis statement, 3. Outline, 4. Significance)
2. Paragraph 2: Argument 1
(1. Topic sentence 2. Elaboration 3. Example 4. Interpretation 5. Explanation
[optional] & Link to next paragraph)
3. Paragraph 3: Argument 2
(1. Topic sentence 2. Elaboration 3. Example 4. Interpretation 5. Explanation
[optional] & Link to next paragraph)
4. Paragraph 4: Reiteration of Thesis
(1. Summary, 2. Significance, 3. Limitations, 4. Suggestions)
MGTS7610: MANAGEMENT COMMUNICATION
Writing Task 3 Criteria Sheet
Note:
•
•
•
•
•
In Writing Task 2, you wrote about 60 words each for your opening and closing
paragraphs; in this task, please expand on your first draft by writing 100-150
words for each paragraph.
Please submit the body paragraphs you wrote for Writing Task 2, along with your
revised opening and closing paragraphs. These will not be re-graded at this time,
but they will help your tutor grade your revised opening and closing paragraphs.
Three required sources are listed below for each topic. You may use only the
references on these approved lists, and you must all of the sources on the list for
your topic (these can be included within your body paragraphs or your opening
and losing paragraph).
Do not include references in your Thesis statement and Topic sentences.
All references must be presented in the APA (6th edition) style, and your
reference list should start on a separate page.
Annotation:
On your hard copy, highlight your Thesis statement and Topic sentences, and label
all parts of your opening and closing paragraphs. Draw arrows connecting:
•
•
•
What to hand
in:
keywords in the Background to keywords in the Thesis statement and
Outline
keywords in your Outline to keywords in your Topic sentences
the last part of each paragraph to the keywords in the Summary in the
Reiteration of Thesis paragraph.
1. In class: your hard copy assignment (stapled together) containing the
following in order:
• Cover sheet filled in correctly (see p.3)
• Your argumentative writing that has been labelled and highlighted
appropriately
• Your similarity report from Turnitin (see p.4)
• Writing task 3 criteria sheet filled out correctly (see p.2)
Without any of the above, your assignment is incomplete, and marks will be
deducted per calendar day late (please see your ECP for full assessment policies)
2. Blackboard (via Turnitin): your soft copy assignment, containing
• Your argumentative writing
Don’t forget to highlight, label, and draw arrows on your assignment
MGTS7610: MANAGEMENT COMMUNICATION
Writing Task 3 Criteria Sheet
How to fill out your criteria sheet:
Make sure you fill in both yours and your tutor’s name.
How to fill out your cover sheet
your lecturer’s name
MGTS7610: MANAGEMENT COMMUNICATION
Writing Task 3 Criteria Sheet
How to find your Similarity (or Originality) Report from Turnitin:
NOTE: similarity reports can take up to 24 hours to be ready. Allow plenty of time so that your hardcopy submission is complete.
1. Once you have successfully submitted your assignment, you can review it on Turnitin by going
back to the submission link and clicking ‘View/Complete’. Note that a Turnitin Digital Receipt
is not a Similarity Report.
2. Follow the prompts to see your own submission. Your submission will appear something like
the following:
3. To see your similarity score, you need to click on the number in red in the right column. If your
score reads ‘0’, it is unlikely the similarity report has fully generated (it is highly unlikely that
any assignment has 0%).
4. Once you have clicked on the red number you will see your assignment with your similarity
presented.
5. Highlighting means that the expression has not been paraphrased. If you see any large
amounts of highlighting, you should review your assignment to make sure you have
adequately referenced and paraphrased.
MGTS7610: MANAGEMENT COMMUNICATION
Writing Task 3 Criteria Sheet
6. To download a copy of your similarity report, click on the grey download button
appears towards the bottom of the menu items.
7. You will be presented with a few options here:
that
8. Choose ‘Current View’ to download the similarity report. NOTE: You must have the similarity
report open on the screen (by having clicked on the red number) to download the similarity
report.
9. When you click to download you will receive a PDF document. This is your similarity report.
This report will contain a cover page, your assignment submission highlighted and your
summary percentages. This whole report is required for your assessment submission.
Further help
The UQ Library has developed videos and articles to help you in your assignment submission process.
•
•
•
•
•
Submit your assignment - https://web.library.uq.edu.au/node/1921/0#0
Upload your assignment - https://web.library.uq.edu.au/node/1921/1#1
Review and submit your assignment - https://web.library.uq.edu.au/node/1921/2#2
Confirm your submission - https://web.library.uq.edu.au/node/1921/3#3
View originality report and marks - https://web.library.uq.edu.au/libraryservices/it/learnuq-blackboard-help/learnuq-assessment/turnitin-assignments/vieworiginality-report-and-marks
MGTS7610: MANAGEMENT COMMUNICATION
Writing Task 3 Criteria Sheet
Name:______________________________________
Marks:_______________
Tutor:______________________________________
Criteria
Writing techniques
1
Genre
Consists of 4 parts: Background in the opening paragraph is
(purpose and
1.Background
relevant and concise, providing some
structure of the
2.Thesis statement understanding and justification for the topic.
opening paragraph) 3.Outline of paper Thesis statement clearly signals the purpose
4.Significance
of the paper, and the outline reflects the
order of the topic sentences. Significance of
the research is clearly stated.
Genre
Consists of 4 parts: Concluding paragraph summarizes the
(purpose and
1.Summary
findings in each paragraph. Significance of
structure of the
2.Significance
the findings is highlighted. Limitations and
closing paragraph) 3.Limitations
some suggestions are provided for further
4.Suggestions
research or applications.
Discourse semantics Lexical ties and
Appropriate lexical ties are used to
(cohesion)
the known-new
effectively link sentences and paragraphs.
arrangement
Paragraphs are developed using appropriate
links between known and new information.
Lexicogrammar
Sentence structure Sentences start with important information,
(grammar and
and clear style
and follow Standard English conventions
vocabulary)
with minimal errors. Word choices and
sentence structures are clear and easy to
understand.
Graphology
Formatting, spelling Documents are properly completed, follow
(spelling and
and reference list
formatting guidelines and spellchecked.
presentation)
Reference list is complete and formatted
according to APA style.
Comments:
Level of achievement
0.5
0
Background is irrelevant, the purpose of the Part of the opening paragraph is missing or
paper is unclear, the outline does not reflect not in the correct sequence.
the structure, or the positioning of the
research is inappropriate.
Some findings are left out of the summary, Part of the concluding paragraph is missing
or they are irrelevant to the significance and or not in the correct sequence.
suggestions in the concluding paragraph.
Some evidence of an attempt to provide links General lack of lexical ties between
between sentences and paragraphs, but
sentences, and sentences seem
lexical ties
disconnected.
are inappropriately used.
Sentences follow Standard English
Frequent misuse of words, and sentences are
conventions with some systematic errors.
badly phrased, making their meaning very
Sentences and wordings are unnecessarily difficult to understand. (Student must see
complicated and ambiguous.
Student Services for additional support.)
Documents and reference list generally
follow formatting guidelines with some
minor inconsistencies in the details.
Documents are incomplete or ignores
formatting guidelines. The reference list
consistently fails to follow the APA style.
Accessed: 26.01.2016
Children as young as seven mining cobalt
used in smartphones, says Amnesty
Amnesty International says it has traced cobalt used in batteries for household
brands to mines in DRC, where children work in life-threatening conditions
Annie Kelly
Tuesday 19 January 2016 11.02 AEDT Last modified on Tuesday 19
January 201619.49 AEDT
Children as young as seven are working in perilous conditions in the
Democratic Republic of the Congo to mine cobalt that ends up in
smartphones, cars and computers sold to millions across the world, by
household brands including Apple, Microsoft and Vodafone, according to a
new investigation by Amnesty International.
The human rights group claims to have traced cobalt used in lithium
batteries sold to 16 multinational brands to mines where young children
and adults are being paid a dollar a day, working in life-threatening
conditions and subjected to violence, extortion and intimidation.
More than half the world’s supply of cobalt comes from the DRC, with 20%
of cobalt exported coming from artisanal mines in the southern part of the
country. In 2012, Unicef estimated that there were 40,000 children
working in all the mines across the south, many involved in mining cobalt.
In a joint-investigation with African Resources Watch (Afrewatch), an
African NGO focusing on human rights in the minerals and extractive
industries, Amnesty International says it interviewed 90 adults and
children working in five artisanal cobalt mine sites. Workers spoke of
labouring for 12 hours a day with no protective clothing, and with many
experiencing significant health problems as a result.
The report says that child miners as young as seven carried back-breaking
loads and worked in intense heat for between one or two dollars a day
without face masks or gloves. Several children said they had been beaten by
security guards employed by mining companies and forced to pay “fines” by
unauthorised mines police sent by state officials to extort money and
intimidate workers.
http://www.theguardian.com/global-development/2016/jan/19/children-as-young-as-seven-miningcobalt-for-use-in-smartphones-says-amnesty
Accessed: 26.01.2016
The human rights groups say they traced the supply chain from these
mining sites to Congo Dongfang Mining (CDM), one of the largest mineral
processors in the DRC and a wholly owned subsidiary of Chinese mineral
company Zhejiang Huayou Cobalt Ltd (Huayou Cobalt).
The report says that Huayou Cobalt sources more than 40% of its cobalt
from the DRC and processes the raw mineral before selling it to battery
makers, who claim to supply companies including Apple, Microsoft and
Vodafone. This supply chain has not been independently verified by the
Guardian.
Responding to the allegations, Huayou Cobalt told Amnesty
International that “our company has not been aware that any of our
legitimate suppliers has hired child labour in their mining sites or operated
in unsafe working conditions … CDM has rigorously selected its ore
suppliers to ensure the procurement of raw materials through legitimate
channels”.
Of the 16 companies listed in the report as sourcing from battery
manufacturers using processed cobalt from Huayou Cobalt, two
multinational companies denied sourcing any cobalt from the DRC and five
said they had no links with Huayou Cobalt. The remaining companies
either accepted Amnesty’s claims or were investigating the claims.
In its response to Amnesty’s allegations, which Amnesty has published in
full alongside responses from the other named companies, Apple said it was
currently evaluating whether cobalt in the company’s products originated in
the DRC.
“Underage labour is not tolerated in our supply chain and we are proud to
have led the industry in pioneering new safeguards,” it says.
Vodafone, in its response to Amnesty, stated that the company “is unaware
as to whether or not cobalt in our products originates in Katanga in the
DRC … both the smelters and the mines from which the metals such as
cobalt are originally sourced are several steps away from Vodafone in the
supply chain”.
http://www.theguardian.com/global-development/2016/jan/19/children-as-young-as-seven-miningcobalt-for-use-in-smartphones-says-amnesty
Accessed: 26.01.2016
Amnesty International and Afrewatch claim that despite the denials by
some of the named multinationals, none of those companies named could
independently verify where the cobalt in their products come from.
“What is very worrying is that none of the companies that we identified
through our research and named in investor documents could trace the
cobalt they use in their products back to the mines where it originated.
Around half of all cobalt comes from the DRC, and no company can validly
claim that they are unaware of the human rights and child labour abuses
linked with mineral extraction in the region,” says Mark Dummett, business
and human rights researcher at Amnesty International.
Advertisement
He said that some of the company responses to Amnesty’s assertions were
“staggering”. For example, when asked by Amnesty International whether it
sourced cobalt from CDM or Huayou Cobalt, Microsoft responded by
saying: “We have not traced the cobalt used through our supply chain to the
smelter level due to the complexity and the resources required.”
“These are some of the biggest companies in the world, with combined
profits of $125 billion and there is no excuse that companies aren’t
investing some of that profit into ensuring that they can trace where the
minerals they are using are coming from,” says Dummett. “Anyone with a
smartphone would be appalled to think that children as young as seven
carrying out back-breaking work for 12 hours a day could be involved at
some point in the making of it.”
The DRC has a long history of bloody conflict fuelled by the region’s
mineral wealth and the region still has an estimated $24 trillion in
untapped minerals.
Global demand for cobalt is increasing, but the global cobalt market
remains largely unregulated as it falls outside “conflict mineral” legislation
regulating the extraction and sale of other mineral such as gold, coltan and
tin from the DRC.
Amnesty and Afrewatch are using the findings of the report to call on
multinational companies to conduct investigations of their supply chains
http://www.theguardian.com/global-development/2016/jan/19/children-as-young-as-seven-miningcobalt-for-use-in-smartphones-says-amnesty
Accessed: 26.01.2016
for lithium-ion batteries, to check for child labour or labour abuses and to
be more transparent about their suppliers.
http://www.theguardian.com/global-development/2016/jan/19/children-as-young-as-seven-miningcobalt-for-use-in-smartphones-says-amnesty
Cambridge Books Online
http://ebooks.cambridge.org/
The Business and Human Rights Landscape
Moving Forward, Looking Back
Edited by Jena Martin, Karen E. Bravo
Book DOI: http://dx.doi.org/10.1017/CBO9781316155219
Online ISBN: 9781316155219
Hardback ISBN: 9781107095526
Paperback ISBN: 9781107479371
Chapter
13 - From Principles to Practice: Implementing Corporate Responsibilit
y for Human Rights pp. 387-413
Chapter DOI: http://dx.doi.org/10.1017/CBO9781316155219.014
Cambridge University Press
13
From Principles to Practice
Implementing Corporate Responsibility for Human Rights
Justine Nolan
There is a convoluted and complex relationship between human rights and
corporations. While it is uncontested that corporations should obey the law in the
jurisdictions in which they operate, where the content of rights in such jurisdictions
does not meet the standards of international law or the law is not enforced, there
is a failure in the legal governance regime for protecting human rights. The steady
evolution of a global social expectation that companies should respect international
human rights standards, combined with the occasional foray by states in adopting an
expansive extraterritorial approach to protecting rights, is changing the nature and
possibility of developing a firmer basis for corporate legal accountability for human
rights. The interplay between national and international law and soft law and state
and non-state actors is crucial in establishing both a legal and/or quasi-legal basis for
holding corporations accountable for human rights violations.
The responsibility for protecting and advancing respect for human rights has long
been assumed to be the duty of the state. It is only quite recently that discussion has
shifted to focus on the human rights responsibilities of corporations and how such
duties and/or responsibilities might be allocated between state and non-state actors.
The adoption by the United Nations (UN) Human Rights Council in 2011 of the
Guiding Principles on Business and Human Rights1 has entrenched the notion of
1
Human Rights Council, “Guiding Principles on Business and Human Rights: Implementing the
United Nations ‘Protect, Respect and Remedy’ Framework: Report of the Special Representative of
the Secretary-General on the Issue of Human Rights and Transnational Corporations and Other
Business Enterprises,” A/HRC/17/31 (21 March 2011) (2011 Guiding Principles). The Guiding Principles
operationalize the 2008 “Protect, Respect and Remedy Framework for Business and Human Rights”
also developed by the Special Representative: Human Rights Council, “Protect, Respect and
Remedy: A Framework for Business and Human Rights: Report of the Special Representative of the
Secretary-General on the Issue of Human Rights and Transnational Corporations and Other Business
Enterprises,” A/HRC/8/5 (7 April 2008) (2008 Report).
387
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Cambridge Books Online © Cambridge University Press, 2016
388
Nolan
the existence of a corporate responsibility to respect human rights,2 but interpreting
and implementing that responsibility on the ground is a longer-term task.
The Guiding Principles, developed by the UN Special Representative on the
issue of human rights and transnational corporations and other business enterprises,
John Ruggie (the Special Representative), set out a three-pronged framework for
delineating between the roles of the state and of business with respect to human
rights. First, states have a duty to protect people from human rights violations by
corporations. Second, corporations have a responsibility to respect, uphold, and
not interfere with human rights. And, third, both states and corporations have a
responsibility to ensure that people who are victims of corporate violations have
access to an effective remedy. This demarcation between a state’s duty and a
corporation’s responsibility explicitly acknowledges the traditional primary role of
states in protecting human rights but also recognises the urgent need for the private
sector to take a prominent role in advancing respect for rights.
While the Guiding Principles provide a useful foundation for future action, well
before their adoption in 2011, many global companies were already involved in
establishing or working within private compliance programs that were sometimes
complementary to existing national laws and, at other times, superseded state
efforts to protect workplace rights. The rise of and reliance on soft-law and private
regulation to drive corporate compliance with human rights is symptomatic of
the fact that governments in many of the countries where the goods are produced
are unable or unwilling to implement improved working conditions. The growth
and depth of soft-law mechanisms that have developed around the theme of
corporate responsibility is in part an acknowledgement of the sluggish pace at
which international (and often national) law develops and the political reality that
there is likely to be limited appetite at present among states for the development
of a new treaty focused specifically on business and human rights concerns.3 But
2
3
The Special Representative commented in 2010 that the corporate responsibility to respect rights
is a notion that has been gradually emerging and is “acknowledged in virtually every voluntary
and soft-law instrument related to corporate responsibility, and now affirmed by the Human Rights
Council itself.” J. Ruggie, The UN “Protect, Respect and Remedy” Framework for Business and Human
Rights (September 2010), http://198.170.85.29/Ruggie-protect-respect-remedy-framework.pdf (accessed
24 June 2013). This stands in contrast to earlier views by economist Milton Friedman, who argued
that it was a “fundamental misconception of the character and nature of the free economy” for a
corporation to have any concern other than maximisation of profit. Milton Friedman, Capitalism and
Freedom (University of Chicago Press, 1962), 133; and, more recently, David Henderson, Misguided
Virtue: False Notions of Corporate Social Responsibility (Institute of Public Affairs, 2001), 147.
J. Ruggie, Treaty road not travelled (May 2008), www.hks.harvard.edu/m-rcbg/news/ruggie/Pages%20
from%20ECM%20May_FINAL_JohnRuggie_may%2010.pdf. However, recent developments
and a call by Ecuador in August 2013 at the Regional Forum on Business and Human Rights for
Latin America and the Caribbean, and later at UN Human Rights Council session in September
2013, for a legally binding international instrument on business and human rights to be concluded
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From Principles to Practice
389
these soft-law initiatives have become important tools in attempting to prevent and
remedy corporate rights violations.
The logical involvement of the non-state sector (including companies,
non-government organizations (NGOs), unions, industry bodies, and/or
international organisations) has been a useful, if not sufficient, tool to temper this
governance gap. Private intervention alone is unlikely to be sufficient to develop
longevity and consistency around corporate compliance for human rights and, thus,
for real change to occur, governments must get involved. Violations occurring in
a far-flung factory in Bangladesh are not a problem that can simply be isolated or
fixed by focusing on improvements at the factory level. Attention also needs to be
directed to the corporate and state policies and practices that are being foisted on the
factory from within their borders and beyond, both by states and by the global buyers
who place the orders in those factories. A blend of private and public regulation
is required to tackle these inherent labor problems. How this unfolds in a world
of volatile consumer markets that require increased flexibility in production, rigid
labor markets that do not allow flexibility, and rising costs that incentivise cost
cutting is challenging.
1. Re-Regulating the Business and Human Rights Landscape
As the global business and human rights agenda has evolved in the last three to
four decades, we have witnessed the rise of and reliance on private regulation4 as a
means of driving consensus on how corporations should or could advance respect
for human rights. International human rights law and its state-centric framework
for protecting rights are proving inadequate to stem (or redress) the rise of corporate
human rights violations and are proving to be more the backdrop for the development
4
within the UN system has revived discussion on this point. The instrument envisioned “would
clarify the obligations of transnational corporations in the field of human rights” and “provide for
the establishment of effective remedies for victims in cases where domestic jurisdiction is clearly
unable to” provide them. The declaration was supported by the African Group, the Arabic Group,
Pakistan, Sri Lanka, Kyrgyzstan, Cuba, Nicaragua, Bolivia, Venezuela, and Peru. More than a
hundred regional and international human rights organizations and social movements welcomed
the petition. See: Statement on behalf of a Group of Countries at the 24th session of the Human
Rights Council, General Debate – Item 3 Transnational Corporations and Human Rights, Geneva,
September 2013, http://business-humanrights.org/media/documents/statement-unhrc-legally-binding
.pdf. Also see a response by John Ruggie, A UN Business and Human Rights Treaty? An Issues Brief, 28
January 2014, http://business-humanrights.org/media/documents/ruggie-on-un-business-human-rightstreaty-jan-2014.pdf and an update of 1 May 2014, http://www.business-humanrights.org/media/un_
business_and_human_rights_treaty_update.pdf.
Regulation as referred to in this chapter incorporates both formal and informal, legal and non-legal
mechanisms or techniques designed to influence or at times coerce corporations to better respect and/
or protect human rights.
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390
Nolan
of mechanisms to prevent and protect individuals from corporate human rights
violations rather than the prism through which corporate accountability might
be filtered. The unwillingness and/or inability of many governments to fulfil
their human rights obligations have led to protection gaps. All around the global
marketplace, non-state actors have stepped in to fill this gap.
This transfer or sharing of regulatory authority from states to non-state actors
is not so much ‘deregulation’ but rather what might be termed re-regulation5
or even a regulatory renaissance.6 The ongoing reliance on private regulatory
mechanisms utilizes a combination of hard and soft laws to establish relevant
standards that companies strive to achieve. The source of such hard law tends to
be readily accessible international and national legislation focused on defining
consistent standards for health and safety, wages, hours, and conditions of work.
The source of soft-law standards is more diverse. While there is no entrenched
definition of what constitutes soft law, in this context, it might commonly include
instruments as diverse as those internationally formulated (other than a treaty) that
contain ‘principles, norms, standards or other statements of expected behaviour’7
but also widely accepted codes of conduct that have been developed by a group
of stakeholders as a mechanism to prevent corporate rights abuses. The Guiding
Principles are the latest (and most authoritative) in a long line of soft regulatory
techniques that rely in large part on private regulation that encourages but does not
necessarily require a corporation to comply with human rights.8
5
6
7
8
Peter Utting, Rethinking Business Regulation, from Self-Control to Social Control, United Nations
Research Institute for Social Development, Technology, Business and Society Programme Paper
Number 15, September 2005, 1 at 14. Available at http://www.unrisd.org/unrisd/website/document.nsf
/462fc27bd1fce00880256b4a0060d2af/f02ac3db0ed406e0c12570a10029bec8/$FILE/utting.pdf.
Ibid., 1; Richard M. Locke, The Promise and Limits of Private Power (Cambridge University Press,
2013), 169.
D. Shelton, “Normative Hierarchy in International Law,” American Journal of International Law
100 (2006): 291, at 319. Also see Jaye Ellis, “Shades of Grey: Soft Law and the Validity of Public
International Law,” Leiden Journal of International Law 25.2 (June 2012), 313–334. Also see David
Vogel, “Private Global Business Regulation,” Annual Review of Political Science 11 (2008): 261–282
at 262, who refers to civil regulation as soft law and defines it as “socially focused voluntary global
business regulations.”
Within the Guiding Principles, there is specific reference to legal compliance with national laws
(Guiding Principle 23, for example; see n.1 2011 Guiding Principles), but the general principle
establishing the corporate responsibility to respect human rights and conduct due diligence as a means
of implementing this responsibility does not purport to stem from a legal requirement. For an overview
of the challenges of utilizing private regulation and soft law in this field, see Richard M. Locke, The
Promise and Limits of Private Power, supra note 6; Andre Sobczak, “Are Codes of Conduct in Global
Supply Chains Really Voluntary: From Soft Law Regulation of Labour Relations to Consumer Law,”
Business Ethics Quarterly 16.2 (2006): 167–184; E. Pariotti, “International Soft Law, Human Rights
and Non-State Actors: Towards the Accountability of Transnational Corporations?” Human Rights
Rights Review 10 (2009): 139–155; L. Baccaro and V. Mele, “For Lack of Anything Better? International
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What we are witnessing is a process of re-regulation whereby state and non-state
actors are utilizing a combination of public and private regulation to improve the
framework for corporate human rights compliance. The pivotal role played by
non-state actors in this process is crucial in establishing a regulatory framework that
encourages, cajoles, and sometimes threatens companies to comply with human
rights standards. The role of the state and the possibilities for it to both complement
and supplement private regulation so as to better protect human rights is also vital.
Ultimately, this chapter proposes that the regulation of corporate activity with respect
to human rights requires a multiplicity of stakeholders and a very nuanced mix of
public and private regulation that may be difficult to replicate easily across different
sectors, states, and cultural boundaries. While, in this field, the state may no longer
play the primary protection role ascribed to it in either international human rights
law or the Guiding Principles, it remains an essential piece of the human rights
enforcement puzzle, and greater attention needs to be paid to analysing what mix of
international/domestic, state/non-state, and hard/soft regulatory mechanisms will be
most effective in protecting human rights in the workplace.
2. The Rise of and Reliance on Private Regulation
For the last several decades, globalization has posed both challenges and opportunities
for advancing the protection of human rights in the global marketplace. Significant
developments have been taking place in factories, fields, and offices all over the
world, where a variety of stakeholders have been pushing and prodding corporations
to adopt operational changes that will lead to sustained compliance with international
human rights standards. Sometimes business has been proactive in seeking such
changes; at other times it has been reluctant or simply absent. In today’s global
economy, large companies in most industries have come to rely on a series of
contractors and suppliers in a range of countries to produce their products. Today’s
global supply chains link individual workers with large and small companies across
national, political, and cultural boundaries, and ‘in a world of 80,000 transnational
corporations, ten times as many subsidiaries and countless national firms, many of
which are small and medium-sized enterprises,’9 any attempt to regulate corporate
9
Organizations and Global Corporate Codes,” Public Administration 89.2 (2011): 451–470; Surya Deva,
Regulating Corporate Human Rights Violations (Routledge USA, 2012), 64–118; and Wesley Cragg
“Business and Human Rights: A Principle and Value-Based Analysis,” in Business and Human Rights,
ed. Wesley Cragg (Edward Elgar, 2012), 3–46.
Human Rights Council, Business and Human Rights: Further Steps toward the Operationalization
of the “Protect, Respect and Remedy” Framework,” Report of the Special Representative of the
Secretary-General on the issue of human rights and transnational corporations and other business
enterprises (UN Doc A/HRC/14/27), 9 April 2010, para. 82, available at http://198.170.85.29/
Ruggie-report-2010.pdf [accessed 24 June 2013].
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behaviour will always be a challenge. What is becoming increasingly apparent is
that for sustained improvements to occur, a multiplicity of stakeholders must be
involved, including but not necessarily relying only on the state. Some of the most
powerful global actors today are companies, not governments.10 Logically, recourse
to local laws and a system of enforcement and judicial relief in the host countries
where global corporations operate should be the first option for ensuring greater
respect for human rights. However, the reality is that in many countries, this
simply is not happening. In developing countries (but not exclusively so), laws are
sometimes weak but enforcement weaker still, and corruption can be endemic –
reflecting chronic failures in developing a governmental order based on the rule
of law.11 Thus, reliance on the state to ensure human rights are protected remains a
long-term proposition.
The development and implementation of private regulatory methods that do not
rely on the role of the state as the ‘human rights protector’ include the incremental
but now widespread adoption of codes, guidelines, principles – at the micro and
macro levels – which are being used as mechanisms to drive corporate compliance
with international human rights standards.12 Such developments have urged
and continue to urge a change in corporate culture that recognises that workers,
wherever they are located, must be treated with dignity and respect. Slowly but
surely, a paradigm shift is taking place that affects the way companies and society
are increasingly viewing this issue, with the state being viewed as (possibly) part
of the solution but not the solution. Companies, in particular global transnational
companies, are ‘required’ to play a significant role in developing a solution. ‘In the
recent past, it was sufficient for vanguard companies to do their best to avoid causing
environmental and social damage. Now they are being asked to become a force for
10
11
12
For example, in its 2013 World Report, Human Rights Watch noted that “In 2011 alone, oil and gas
behemoth ExxonMobil generated revenues of US$467 billion – the size of Norway’s entire economy.
Walmart, the world’s third-largest employer with more than 2 million workers, has a workforce that
trails only the militaries of the United States and China in size.” Human Rights Watch, World Report
2013 (USA, 2013), at 29.
Bangladesh provides a contemporary example of this. See Sarah Labowitz and Dorothée
Baumann-Pauly, Business as Usual Is Not an Option: Supply Chains and Sourcing after Rana Plaza,
April 2014, http://www.stern.nyu.edu/cons/groups/content/documents/webasset/con_047408.pdf.
The rise of private voluntary initiatives aimed at regulating corporate adherence to human rights has
a rich but relatively brief history, is well documented, and includes prominent examples such as the
Sullivan Principles regulating business conduct in South Africa during the apartheid era to more
recent initiatives such as the Fair Labor Association or the Forestry Stewardship Council. See, for
example, D. O’Rourke, “Outsourcing Regulation: Analyzing Nongovernmental Systems of Labor
Standards and Monitoring,” Policy Studies Journal 31.I (2003): 1–30; Elliott J. Schrage, Promoting
International Worker Rights through Private Voluntary Initiatives: Public Relations or Public Policy,
A Report to the U.S. Department of State on behalf of The University of Iowa Center for Human
Rights (January 2004), available at www.cfr.org/content/. . ./Schrage-DOS.pdf; and D. Vogel, “Private
Global Business Regulation,” Annual Review of Political Science 11 (2008): 261–282.
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good, and discovering they cannot do it alone.’13 Thirty to forty years ago, very few
companies acknowledged any affirmative obligation to address workplace conditions
in the factories of their foreign suppliers – factories they generally neither owned nor
operated – but this concept is no longer anathema to many companies.14 For many
(but not all) companies, the question is no longer ‘Do we have an obligation to
address workers’ rights in suppliers’ factories? It is ‘How do we do it, at what cost, and
with whom do we collaborate in addressing the problems that exist?’15
Take, for example, the different corporate responses to two workplace disasters
nearly thirty years apart. In December 1984, fourteen years after Milton Friedman’s
acknowledgment of the limited scope of a corporation’s social responsibility,16
a corporate catastrophe occurred in the Indian city of Bhopal. On the night of 2
December 1984, a massive leakage of toxic gases from a storage tank at a chemical
plant resulted in the deaths of more than 3,000 people in its immediate aftermath
and injured and subsequently killed thousands of others.17 Some blame was
attributed to the central and state Indian governments and their lax enforcement of
safety laws and haphazard planning permissions,18 but public attention also focused
on the plant operator, Union Carbide India Limited, and its U.S.–based parent
company, Union Carbide (UCC). Although UCC exercised extensive control over
its Indian subsidiary (evidenced not simply by share ownership or representation
on the board of directors but also by involvement in ‘key decisions regarding issues
such as, technology, plant design, safety . . . training of employees’19), UCC started
shifting the blame for the accident to its subsidiary. The reaction of the principal
companies involved was generally denial, obfuscation, and a lack of responsibility
for the calamity that ensued, and liability was strictly defined in terms of legal
accountability for the disaster. Litigation was pursued in both the American and
13
14
15
16
17
18
19
Ross Tieman, “Supply Chain: Groups Face Rising Concern on Safety,” Financial Times, June 11, 2013,
http://www.ft.com/intl/cms/s/0/5bd48c1a-b7e2-11e2-9f1a-00144feabdc0.html#axzz2W3By2VWv.
See, for example, the companies profiled in Richard M. Locke, The Promise and Limits of Private
Power, supra note 6; and the vast number of companies who have (at least in theory) embraced the
concept of human rights via their involvement with the UN Global Compact.
Michael Posner, President, Human Rights First, Testimony before the United States Congressional
Human Rights Caucus, “Human Rights and Brand Accountability: How Multinationals Can Promote
Labor Rights,” 8 February, 2006, available at http://digitalcommons.ilr.cornell.edu/cgi/viewcontent
.cgi?article=1012&context=codes (accessed 24 June 2013).
See note 2 and discussion at note 30.
According to official government figures, 3,000 people died in the immediate aftermath, but this
figure was later revised upward: Bhopal Gas Tragedy Relief and Rehabilitation Department, Bhopal,
State of Mahdya Pradesh, “Profile,” available at www.mp.nic.in/bptrrdmp/profile.htm. However,
according to Amnesty International’s estimate, between 7,000 and 10,000 people died within the first
three days of the gas leak. Amnesty International, Clouds of Injustice: Bhopal Disaster 20 Years On
(UK, 2004), 12.
Surya Deva, Regulating Corporate Human Rights Violations, supra note 8, at 30.
Ibid., 28.
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Indian courts with mixed results.20 The action against the parent company, UCC, was
ultimately dismissed and the Indian case settled. Bhopal remains one of the modern
world’s worst industrial accidents, and, as a legal precedent, it is most noteworthy for
highlighting the limitations of the law and the lack of justice ultimately delivered
to those worst affected.21 So, in the nearly thirty years since, as corporate violations
of human rights have continued to occur, what, if anything, has changed in terms
of corporate and public perceptions of a company’s responsibility to act and provide
redress in the face of such a tragedy?
In April 2013, the Rana Plaza building in Dhaka, Bangladesh, collapsed. The
building housed five garment factories, and more than 1,100 workers were killed.
Interest from the world’s media immediately centred on the global companies
outsourcing production to the garment workers in that building. Questions focused
on the corporate responsibilities of these global buyers – legal or otherwise – in
both preventing and redressing this workplace disaster. The ease with which
modern technology distributed disturbing images of those killed and maimed in
these factories no doubt played a key role in capturing corporate attention.22 In
the aftermath of the tragedy, global press reports focused primarily on the role
and involvement of the private sector in remedying this problem rather than on
the Bangladeshi government and its clearly inadequate regulatory enforcement of
human rights and labor standards.23 The fact that direct legal liability may be very
difficult to prove in linking the global firms with the collapse of the factory was not
portrayed in the media as a barrier to responsibility.
In the six months following the Rana Plaza building collapse, three different
initiatives formed, all with the stated aim of improving working conditions inside
Bangladeshi factories. In May 2013, a group of predominantly European apparel
20
21
22
23
In re: Union Carbide Corporation Gas Plant Disaster at Bhopal, India, in December 1984. MDL
Docket No. 626, U.S. District Court, Southern District of New York, Ordered November 8, 1985.
Interlocutory Application No. 19, Filed in Court of District Judge, Bhopal, in Regular Suit No. 1113
of 1986, Date, February 4, 1986; Order 05-04-1989 in Civil Appeal Nos. 3187–89, Union Carbide
Corporation v. Union of India, Supreme Court of India.
Litigation is still ongoing in this matter, and in recent reports, Amnesty International has consistently
highlighted that victims are still waiting for justice. See http://www.amnesty.org/en/news/28-ye
ars-later-women-bhopal-still-waiting-justice-2012-12-03 and Amnesty International, Press Release,
“India: Court Decision Requires Dow Chemical to Respond to Bhopal Gas Tragedy,” July 23, 2013,
https://www.amnesty.org/en/for-media/press-releases/india-court-decision-requires-dow-chemic
als-respond-bhopal-gas-tragedy-2013.
See Julfikar Ali Manik, Steven Greenhouse, and Jim Yardley, “Western Firms Feel Pressure as Toll
Rises in Bangladesh,” New York Times, April 25, 2013, http://www.nytimes.com/2013/04/26/world/asia/
bangladeshi-collapse-kills-many-garment-workers.html?pagewanted=all&_r=0; and Dan Viederman,
“Supply Chains and Forced Labor after Rana Plaza: Lessons Learned,” The Guardian, May 30, 2013,
http://www.guardian.co.uk/global-development-professionals-network/2013/may/30/rana-plaza
-bangladesh-forced-labour-supply-chains and on Twitter: https://twitter.com/TheRanaPlaza.
See Sarah Labowitz and Dorothée Baumann-Pauly, n.11.
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companies developed the Accord on Fire and Building Safety,24 quickly followed
in June by the establishment of the Alliance for Bangladesh Worker Safety, made
up of North American retailers including Walmart and Gap.25 These two initiatives
demonstrate ‘regulatory renaissance’ at work by both recognizing the limited
governmental capacity to provide a short-term remedy to prevent further disasters
and accepting that corporate social responsibilities extend beyond those that can
be defined in stark legal terms. These initiatives adopt a collective workplace safety
standard and auditing plan that essentially privatizes aspects of workplace safety
in respect of the remediation of safety threats. Together, the plans ‘encompass
financial commitments of almost $250 million, plus up to an additional $100 million
in low-cost loans to help pay for building upgrades.’26 This utilization of non-state
actors to protect human rights builds on state efforts in promulgating human rights
standards but also explicitly acknowledges the state’s limited enforcement capacity
and outsources the implementation of the proposed protection regime to the
non-state sector.27
Several months later, in October 2013, the International Labour Organization
(ILO) announced a three-year initiative to improve Bangladesh’s garment factories.28
The ILO initiative, co-sponsored by the Bangladesh government, will conduct a fire
and building safety assessment on 1,000 to 1,500 factories and run safety and health
awareness training. The $24.1 million project – funded mainly by the British and
Dutch governments – also aims to provide skills training to survivors of the Rana
Plaza building collapse. This initiative uses government funds to enforce national
and international regulations and aims to build the capacity of the Bangladesh
government to enforce safety standards across a broad spectrum of local factories.
In the interim, the private funds of European and American brands are at work,
improving a narrower range of factories that are linked to the companies via their
supply chain.29 While the competing nature of these three initiatives potentially
24
25
26
27
28
29
See the Accord at http://www.bangladeshaccord.org/.
See the Alliance at http://www.bangladeshworkersafety.org/.
Sarah Labowitz, “The $250 Million Commitment to Bangladesh’s Factories Misses the
Point,” July 19, 2013, Quartz. Available at http://qz.com/105852/the-250-million-commitment
-to-bangladeshs-factories-misses-the-point/.
While schemes such as these predominantly operate in developing countries where governments
are more commonly unable or unwilling to regulate corporate compliance with human rights,
multistakeholder initiatives operate in a variety of countries largely driven by the location of the
manufacturing or resource base of the goods being produced. The Fair Labor Association, for
example, monitors factories in Bangladesh along with those in more developed economies such as
China and Turkey.
See ILO, “Improving Working Conditions in the Ready-Made Garment Sector,” at http://www.ilo.org/
dhaka/Informationresources/Publicinformation/Pressreleases/WCMS_226720/lang–en/index.htm.
For a discussion on the benefits and shortcomings of these developments in Bangladesh, see Sarah
Labowitz and Dorothée Baumann-Pauly, supra note 11.
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makes implementation all the more challenging, it also recognizes that potential
solutions must be multi-pronged and may need to co-exist, offering workplaces a mix
of public and private regulation that has the potential to fill gaps that another program
may overlook. A sub-contracting factory that does not have direct relationships with
Western brands may not garner the attention of either the Accord or the Alliance but
may fall within the parameters of the ILO project. This is the essence of re-regulation,
utilizing public and private regulation that sources standards from international and
national legislation to create real reform of workplace safety that encompasses, in
this case, a large proportion of Bangladesh’s garment industry. While it is limited to
one country and one sector, one can see the promise of this regulatory renaissance,
but it is also not without its challenges.
3. From Principles to Practice
Writing in 1970, economist Milton Friedman argued that a company possesses the
social responsibility only ‘to use its resources and engage in activities designed to
increase its profits so long as it stays within the rules of the game, which is to say,
engages in open and free competition without deception or fraud.’30 Writing more
than four decades ago, Friedman narrowly defined corporate social responsibility in
legal terms, but developments since then have seen the emergence of a substantial
body of soft law which exemplifies a broader and less legalistic approach toward the
incorporation of and responsibility for human rights by the corporate sector.
As was exemplified by the non-state sector’s response to the Bangladeshi tragedy,
the practical protection of human rights is being pursued at the ground level by civil
society and international institutions acting in concert with business. The reasons
that the various codes, guidelines, and principles have proliferated in the last three
to four decades are multifaceted (including an increase in pressure on companies
from NGOs and a willingness on the part of some companies to adapt corporate
strategies to incorporate such codes), but it is also clear that the development of these
initiatives is in part a response to an inadequate legal framework. There remain very
few legal obligations dealing with human rights that bind corporations operating
transnationally.31 This lack of clear legal liability has been central to the creation
of the permissive international ‘human rights–free’ environment32 in which some
30
31
32
Milton Friedman, New York Times Magazine, September 13, 1970 122.
David Kinley and Junko Tadaki, “From Talk to Walk: The Emergence of Human Rights Responsibilities
for Corporations at International Law,” Virginia Journal of International Law 44 (2003–2004): 931,
944–947.
Olivier De Schutter, Extraterritorial Jurisdiction as a Tool for Improving the Human Rights Accountability
of Transnational Corporations, November 2006. Available at http://www.reports-and-materials.org/
Olivier-de-Schutter-report-for-SRSG-re-extraterritorial-jurisdiction-Dec-2006.pdf.
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corporations now operate and the parallel increase in the development of soft-law
mechanisms to regulate corporate behaviour. In spite of this, or more accurately
because of this, a plethora of codes and guidelines have been established that,
with varying levels of success, seek to take on the role of the state in encouraging
adherence to human rights standards.33
For example, in 2011, after persistent criticism about the working conditions
at Foxconn, (one of Apple’s principal suppliers),34 Apple agreed to allow the
non-profit Fair Labor Association (FLA) access to some Foxconn factories to assess
compliance with Chinese legal requirements and the FLA’s Workplace Code.35
Multi-stakeholder initiatives such as the FLA, which is a collaborative effort of
companies, universities and colleges, and civil society organizations, epitomize
the private regulatory mechanisms that have developed with the lofty goal of
establishing a practical framework for human rights protection. FLA’s subsequent
audits of Foxconn revealed multiple labor and human rights violations that violated
both Chinese laws and FLA code standards, including infractions relating to hours
of work, health and safety, compensation, and industrial relations.36 The FLA, along
with the principal companies involved, then started to develop a plan to remedy
these violations. The FLA is only one of a series of multi-stakeholder initiatives that
emerged in the 1990s focused on the apparel sector,37 in which companies work in
partnership with civil society to attempt to regulate unregulated jurisdictions. In
this form of re-regulation, private actors are delivering public goods such as labor
inspections, traditionally a state function; but the assessable standards are a mix of
public and private regulations. This acceptance (albeit often reluctantly) by (some)
businesses of their human rights responsibilities is indicative of the transformation
of the rules of the game and an acknowledgement that the rules can no longer be
framed in narrow and legalistic terms.
33
34
35
36
37
See Utting, supra note 5, 14–15.
For a summation of some of these criticisms, see Aditya Chakrabortty, “The Woman Who Nearly
Died Making Your iPad,” The Guardian, 5 August 2013, available at http://www.theguardian.com/
commentisfree/2013/aug/05/woman-nearly-died-making-ipad; and China Labor Watch, Beyond
Foxconn: Deplorable Working Conditions Characterize Apple’s Entire Supply Chain, June 27, 2012.
Available at http://www.chinalaborwatch.org/pdf/2012627-5.pdf.
FLA Workplace Code of Conduct, http://www.fairlabor.org/labor-standards.
Fair Labor Association, Independent Investigation of Apple Supplier, Foxconn, Report Highlights
(March 2012). Available at http://www.fairlabor.org/sites/default/files/documents/reports/foxconn_
investigation_report.pdf.
Other multi-stakeholder initiatives include Social Accountability International, the Ethical Trading
Initiative, and the Fair Wear Foundation. Worldwide Responsible Apparel Production (WRAP) is
an industry grouping. Such voluntary initiatives set up to regulate supply chains or hold companies
accountable vary widely, and some have failed to agree on the need for external audits with transparent
results. This shortcoming has arguably made them less effective and credible; http://www.wrapapparel.org/.
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The Guiding Principles on Business and Human Rights, the latest and most
authoritative to date of a long line of soft-law standards designed to curb corporate
rights violations, unabashedly assert a corporation’s responsibility to respect human
rights.38 This corporate responsibility, the UN Special Representative reasoned,
emerged not from law but from the basic expectation society has of business: an
expectation that companies will do no harm.39 The Guiding Principles stipulate that
the corporate responsibility to respect human rights ‘means that they [companies]
should avoid infringing on the human rights of others and should address adverse
human rights impacts with which they are involved.’40 The explanatory Commentary
accompanying the Principles states that ‘the responsibility to respect human rights
is a global standard of expected conduct for all business enterprises wherever they
operate [and that] [i]t exists independently of States’ abilities and/or willingness to
fulfil their own human rights obligations, and does not diminish those obligations.’41
What does this mean in practice, and how do such top-down announcements
from the UN filter down to impact workers’ rights on the floor of a sub-contracting
factory in Bangladesh? To some, the loose language of corporate responsibility rather
than obligation implies an acceptance of a ‘world where companies are encouraged,
but not obliged, to respect human rights’42 and requires few real changes in the
way business operates. ‘The soothing promise of responsibility can deflect public
attention from the need for stricter laws and regulations.’43 Responsibility is
distinguished from accountability, and corporations interpreting these principles in
practice may choose to take their cue (or not) from a mix of international standards
selectively embodied in a soft-law format.
Following this line of reasoning, some argue that it is illegitimate for private
companies to be conducting labor inspections and that resources should rather be
devoted to strengthening public labor administration systems.44 The combination
of utilizing soft-law standards and enforcement by private actors while filling
a governance gap left open by the state attracts reasonable criticism around the
selective nature of the standards monitored and the perennial problems of leaving
38
39
40
41
42
43
44
Human Rights Council, 2011 Guiding Principle, supra note 1 Principle 11 [II.A.11].
Human Rights Council, 2008 report, supra note 1 [9] and [24].
Human Rights Council, 2011 Guiding Principles, supra note 1, Guiding Principle 11 [II.A.11].
Ibid.
A. Ganesan, Human Rights Watch, “UN Human Rights Council: Weak Stance on Business
Standards,” 16 June 2011. Available at www.hrw.org/news/2011/06/16/un-human-rights-councilweak-stance-business-standards. See also AFL-CIO, “Responsibility Outsourced: Social Audits,
Workplace Certification and Twenty Years of Failure to Protect Worker Rights,” April 23,
2013. Available at http://www.aflcio.org/Learn-About-Unions/International-Labor-Movement/
Responsibility-Outsourced-Report.
R. B. Reich, Supercapitalism: The Transformation of Business, Democracy and Everyday Life (Knopf,
2007), 170, quoted in Locke, n.6, 157.
AFL-CIO, supra note 42, 17.
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the ‘fox guarding the henhouse.’45 In some cases, the standards monitored by some
multi-stakeholder initiatives set a lower bar than that required by local law,46 and
some initiatives lack independent auditing and transparency.47 Many of the soft-law
codes and guidelines that have multiplied in this sector in the last three to four
decades exhibit these types of problems.
While some credence can be given to the argument that these codes, guidelines,
and principles have emerged simply because there is a lack of anything better and/
or as a tactic for avoiding government regulation, the use of soft law can also be a
deliberate strategic choice because it is attractive to the participation of a broad group
of stakeholders (particularly business and sometimes government). The attraction
of such soft law (to some participants) can be easily understood if the standards
are viewed as containing aspirational goals that aim for the best possible scenario
with limited constraints if such goals are not met. But soft law is not necessarily
commensurate with soft results. Any clear demarcation between hard and soft law
is challenging48 and, while some may argue that ‘the essence of any soft law rule
is that it is not binding’49 in this particular field, differentiation between soft and
so-called hard (or legally binding) law is not binary but one that should be viewed
as developing on a continuum. What is legally sanctioned is distinguishable from
activities that are not, but reputational sanctions can be crucial to business.50 The
reality is that, not unlike the global framework for enforcing international human
rights law, such initiatives are only as strong as their members choose to make them,
and they do not apply to those that do not want to join them. The potentially flexible
language of the Guiding Principles’ corporate responsibility to respect principle
(that is, it is a principle not ‘law’) was deliberately adopted in contrast to the legal
protection duties it ascribes to states that are grounded in international human rights
45
46
47
48
49
50
Commission on Human Rights, “Interim Report of the Special Representative of the
Secretary-General on the Issue of Human Rights and Transnational Corporations and Other
Business Enterprises,” E/CN.4/2006/97 (22 February 2006), [53].
For example, in the Apple-Foxconn case, the FLA Workplace Code required a maximum of 60 hours
worked per week (regular and overtime), while Chinese law limits work to 40 hours per week and a
maximum of 36 hours overtime per month, potentially meaning a maximum of 49 hours per week.
FLA’s audit found both standards had been exceeded. The reality is that the Chinese legal limits are
not enforced: Fair Labor Association, n.36, 8.
See, for example, the Worldwide Responsible Apparel Production (WRAP): http://www.wrapapparel
.org/, supra note 37.
A.E. Boyle, “Some Reflections on the Relationship of Treaties and Soft Law,” International and
Comparative Law Quarterly 48 (1999): 901, at 901–902.
A. D’Amato, “Softness in International Law: A Self-Serving Quest for New Legal Materials: A Reply
to Jean d’Aspremont,” European Journal of International Law 20 (2009): 897 at 899.
Chikako Oka, “Accounting for the Gaps in Labour Standard Compliance: The Role of
Reputation-Conscious Buyers in the Cambodian Garment Industry,” European Journal of
Development Research 22.I (2010): 59–78.
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law. What distinguishes the Guiding Principles from earlier UN efforts to regulate
corporations with respect to human rights51 is the deliberate decision to move away
from pursuing an explicit legal connection between international human rights law
and corporations and rely on a more amorphous but broader societal expectation
that attaches to companies. Such looseness in language can affect how consistently
the Principles are interpreted, who they attach to, and how compliance is coerced,
but it may also allow for participation of a broader set of stakeholders that may be
willing to adopt and operationalize the Principles than might otherwise be involved.
One of the many challenges associated with the Guiding Principles is their
practical implementation. While, theoretically, emphasis is placed on the primary
protective duty of the state to safeguard human rights, it is increasingly obvious,
from a practical perspective, that in many markets, this needs to be supplemented by
private actors.52 The Guiding Principles’ recognition of the corporate responsibility
to respect as the second (and complementary) pillar of the UN framework is
acknowledgement of this. The capacity of many national governments, along
with venerable institutions like the ILO, to stem rights violations is limited, and
the decline of state-backed labor inspections and the ferocious appetite of the
global marketplace have quite simply overwhelmed most national systems of labor
market regulation.53 Even developed market economies have trouble maintaining
adequate levels of inspection.54 The need for private actors to take responsibility
for labor inspection remains and will probably grow. Foxconn is China’s largest
51
52
53
54
For example, see United Nations Sub-Commission on the Promotion and Protection of Human
Rights, “Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises
with Regard to Human Rights,” E/CN.4/Sub.2/2003/12/Rev.2 (2003). And more generally on earlier UN
efforts, see P. Utting, UN-Business Partnerships: Whose Agenda Counts? Paper presented at a seminar
on Partnerships for Development or Privatization of the Multilateral System, Oslo, 8 December 2000,
2. Available at www.unrisd.org/unrisd/website/document.nsf/d2a23ad2d50cb2a280256eb300385855/
a687857bd5e36114c1256c3600434b5f/$FILE/utting.pdf.
Locke, n.6, 157.
One positive example of how the synergy between the public and private sectors can work to improve
labor conditions is the ILO’s Better Work program, which is a collaboration between the ILO and
the International Finance Corporation (IFC) focused on the application of labor standards in private
sector development. The Better Factories Cambodia project, launched in 2001, has often been held
up as providing a concrete example of how international standards, together with strong monitoring
and trade incentives, can usefully be combined to form a strong and sustainable basis for improving
working conditions (see discussion at n.93). However, for a contrary view, see International Human
Rights and Conflict Resolution Clinic Stanford Law School & Worker Rights Consortium, Monitoring
in the Dark: An Evaluation of the International Labour Organization’s Better Factories Cambodia
monitoring and reporting program (2013): http://www.workersrights.org/linkeddocs/Monitoring-InThe-Dark-Stanford-WRC.pdf.
Lance A. Compa, Unfair Advantage: Workers’ Freedom of Association in the United States under
International Human Rights Standards (Cornell University Press, 2004). Also Human Rights Watch,
Blood, Sweat, and Fear: Workers’ Rights in U.S. Meat and Poultry Plants, 25 January 2005, available at
http://www.hrw.org/en/reports/2005/01/24/blood-sweat-and-fear.
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private employer,55 and, in spite of this, or perhaps because of this, state-regulated labor
inspections were inadequate to address the ongoing rights violations in the factories. No
socially responsible company wants to be publicly associated with child labor, forced
labor, or unsafe working conditions in the production of their goods, so the need to
perform due diligence to ensure that labor and human rights standards are respected,
even in jurisdictions where labor inspectors are active, is often a necessity.
The ideal situation would be one in which non-state actors complement the work
of the state by mobilising resources to protect human rights that are comprehensively
defined by reference to international standards. The work of the non-state actors is
not to relieve states of their duties or selectively determine what workplace standards
are relevant to their operations but to assist in building the capacity of governments to
assume or resume their obligations to improve working conditions. That synergy has
been hard to capture, and in many states where violations are rampant, their public
agencies are either in denial or in bad faith about the lamentable state of labor law
enforcement in their jurisdictions.56 Reducing corporate violations of workers’ rights is
a process of progressive realisation. While a diverse range of initiatives aimed at curbing
violations of workers’ rights has proliferated in recent decades, it is also clear that such
initiatives ‘have been unable to stem the flow of human rights violations by TNCs.’57
This should not be taken as an indication that such measures are altogether devoid of
merit. Initiatives that have relied on the development of soft law via such tools as codes
of conduct can play a vital role in internalising human rights norms within corporations
and solidifying the notion that corporations have duties with respect to shareholders
and stakeholders (including workers in their supply chain) alike – a process that in time
‘can shape the standards of care that are legally expected of business.’58
55
56
57
58
Fair Labor Association, supra note 36, 1.
Bangladesh is a prime example of this, and the decision by the U.S. government in June 2013 to suspend
Bangladesh’s trade privileges with the United States was an attempt by the U.S. administration to
increase the pressure on the Bangladeshi government to act more quickly to improve workers’ rights.
The involvement of the Bangladesh government in the 2013 ILO factory initiative might be interpreted
as a sign that such pressure was effective. See Steven Greenhouse, “Obama to Suspend Trade Privileges
with Bangladesh,” The New York Times, June 27, 2013; http://www.nytimes.com/2013/06/28/business/
us-to-suspend-trade-privileges-with-bangladesh-officials-say.html?emc=edit_na_20130627&_r=0.
David Kinley and Rachel Chambers, “The UN Human Rights Norms for Corporations: The Private
Implications of Public International Law,” Human Rights Law Review 6.3 (2006): 491.
Halina Ward, Legal Issues in Corporate Citizenship, International Institute for Environment and
Development, February 2003, iii, available at http://pubs.iied.org/pdfs/16000IIED.pdf. The much
larger issue that cannot be fully explored in this chapter deals with the diversity and variance in codes
of conduct and other soft-law standards in this field. It is almost impossible to even compare some
of the different multi-stakeholder initiatives, as they operate according to individualistic structures
peculiar to their particular sectors. For example, the Voluntary Principles on Security and Human
Rights (http://www.voluntaryprinciples.org/) has a high level of state and corporate involvement
but has been persistently criticized for its lack of implementation and enforcement mechanisms.
Meanwhile, an initiative like the FLA, which operates primarily in the apparel and footwear sector,
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But relying purely on either the blind faith of market forces or the state to curb
corporate violations has its challenges and, ultimately, is likely to have limited
longevity in bringing about sustained workplace improvements.59 To move from the
development of these soft-law principles to their practical implementation requires
articulated regulation by a multiplicity of stakeholders. In essence, re-regulation
relies on a form of ‘networked governance’60 that places corporate behaviour
under the scrutiny of not only states but also NGOs, unions, industry bodies, and
international organizations. Private regulatory mechanisms that borrow standards
from both hard- and soft-law instruments may transcend but also complement
the traditional and formal regulatory role played by states in protecting human
rights. This form of regulatory renaissance is not so much ‘governance without
government’61 but rather governance that recognizes the limitations of government
and seeks to supplement those regulatory gaps by directly involving other crucial
stakeholders.
4. Blending Public and Private Regulation:
The Changing Role of the State
In its 2013 World Report, Human Rights Watch stridently makes the case for a more
prominent – practical not just theoretical – role to be played by states in regulating
corporate compliance with human rights: ‘[w]e have nearly reached the paltry limits
of what can be achieved with the current enforcement-free approach to the human
rights problems of global companies. It is time for governments to pull their heads
out of the sand, look the problem they face in the eye, and accept their responsibility
to oversee and regulate company human rights practices.’62 Human Rights Watch’s
argument is fortified by the many examples of corporate irresponsibility it has
tabulated over the years,63 including several in which companies have professed
to be operating according to a human rights code of conduct. Reasserting the
role of the state in improving workplace conditions does not necessarily mean,
as one commentator puts it, ‘a return to traditional command control regulation
[as] [t]he limits of that approach are well known.’64 What is needed is some level
59
60
61
62
63
64
has no governmental involvement (but was formed partly at the behest of government) and is stronger
on compliance but has been criticized for its lack of union and broad civil society participation.
Locke, supra note 6, 157.
Baccaro and Mele, supra note 7, 453.
Vogel, n.12, 263.
Human Rights Watch, supra note 10, 30.
See Human Rights Watch reports at https://www.hrw.org/topic/business.
Locke, supra note 6, 2. Command and control regulation might be loosely defined as direct regulation
of a company, industry, or activity by legislation that states what is permitted and what is not.
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of involvement by the state to harden the ‘societal expectations’ foisted on some
companies and more readily assumed by others:65 a blending of public and private
regulation or re-regulation.
It is reasonable to argue that compliance by companies with soft-law human
rights standards is more likely if some aspects of those initiatives encouraging
certain behaviours are mandated in the form of a ‘hard’ law requirement.66 Such
requirements can take various forms, and one obvious area where this might be
effective in the current climate is government-imposed human rights due diligence
or specific reporting requirements on companies.67 These obligations could be
mandated via domestic legislation (operating extraterritorially) to ‘harden’ principles
that are currently cast in a soft format.
The Guiding Principles, for example, encourage companies to conduct due
diligence as a means by which companies might discharge their responsibility
to respect rights.68 Such due diligence involves companies conducting a human
rights risk assessment as part of their business operations, but the parameters of
such due diligence are not clearly defined.69 There is no legal obligation in the
Guiding Principles either to conduct such an assessment or to publish its results.
However, the hope or expectation that some companies might willingly adopt such
responsibilities stems from experience over the last few decades of some companies
who have been involved in multi-stakeholder initiatives that require companies to
integrate human rights responsibilities into their modus operandus. The Guiding
65
66
67
68
69
The fact that states have a duty to protect from third-party violations is non-controversial. How far that
obligation extends and whether it should be applied extra-territorially is far less settled; see Human
Rights Council, 2008 report, supra note 1 [18].
For example, a recent briefing paper by a European NGO (The Center for Research on
Multinational Corporations (SOMO) at http://www.somo.nl/) examined the due diligence efforts
of 186 companies that are listed in Europe and make use of the minerals covered by s. 1502 of the
Dodd–Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111– 203, H.R. 4173) (see
discussion at n.82). The results indicated that only a small percentage of European Union (EU)–
listed companies are directly affected by Dodd Frank 1502 and are therefore required to publicly
disclose their use of conflict minerals, and the large majority of companies that are not required
to comply with Dodd Frank 1502 simply do not conduct human rights due diligence on conflict
minerals. SOMO, “Conflict Due Diligence by European Companies,” November 2013. Available at
http://www.somo.nl/publications-en/Publication_4003?utm_source=SOMO+Alert&utm_campaign
=e3922a78cd-SOMO_Alert_Conflict_Minerals10_23_2013&utm_medium=email&utm_term
=0_20c962ad76-e3922a78cd-318982993.
For a discussion of (now) failed legislative attempts in the United States, Canada, and Australia to
impose national human rights standards on companies regardless of where they operate, see Adam
McBeth, “A Look at Corporate Code of Conduct Legislation,” Common Law World Review 33
(2004): 222, 251.
Human Rights Council, 2011Guiding Principles, supra note 1, 17 [II.A.17] and 18 [II.A.18].
For more on this, see J. Nolan, “The Corporate Responsibility to Respect Human Rights: Soft Law or
Not Law?” in Human Rights Obligations of Business: Beyond the Corporate Responsibility to Respect?,
eds. S. Deva and D. Bilchitz (Cambridge University Press, 2013), 138–161.
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Principles leave a significant amount of ‘wiggle room’ for companies in setting the
parameters of due diligence and note that:
Human rights due diligence:
(a) Should cover adverse human rights impacts that the business enterprise may
cause or contribute to through its own activities, or which may be directly linked to
its operations, products or services by its business relationships . . .70
The text of this provision is nebulous and open to interpretation. Whether the operations of a sub-contracting factory in Bangladesh can be ‘directly linked’ to its U.S.–
based buyer is debatable, and with no legal requirement to conduct due diligence,
compliance is likely to be patchy and inconsistent. Selective implementation of this
principle is also likely to be furthered by the Commentary attached to the Guiding
Principles, which states that ‘[w]here business enterprises have large numbers of
entities in their value chains it may be unreasonably difficult to conduct due diligence
for adverse human rights impacts across them all.’71 States, however, could supplement
and strengthen this process by legislating to require companies they regulate to carry
out such due diligence and set the parameters for what it should incorporate.
Articulating the reach of a state to impose such obligations (and therefore
defining which companies a state might regulate) opens the proverbial bag of
worms. Should (or could) such regulations extend beyond a parent company to
its subsidiary operating in India or down its supply chain to its contracted supplier
factories? Although, in most jurisdictions, national law regulates corporate
activities that affect human rights, including labor rights, anti-discrimination law,
environmental protection, and criminal law, domestic legislation typically does not
apply extraterritorially. However, several UN bodies have, in the last few decades,
taken an expansive approach on who and what a state might regulate in the pursuit
of protecting human rights. For example, the UN Committee on Economic, Social
and Cultural Rights, when considering how states might protect the right to health,
noted that state actions might need to cross national boundaries.
To comply with their international obligations . . . States parties have to respect the
enjoyment of the right of health in other countries, and to prevent third parties
from violating the right in other countries, if they are able to influence these third
parties by way of legal or political means . . .72
Postulating two years later in respect to protecting an individual’s right to water,
the same UN Committee called upon states ‘to prevent their own citizens and
70
71
72
Human Rights Council, 2011 Guiding Principles, supra note 1, 17 [II.A.17].
Human Rights Council, 2011 Guiding Principles, supra note 1, 17 [II.A.17] (Commentary).
Committee on Economic, Social and Cultural Rights (CESCR), “General Comment 14, The right to
the highest attainable standard of health (art. 12),” UN Doc E/C.12/2000/4, 11 August 2000 [39].
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companies from violating the right to water of individuals and communities in other
countries [w]here States parties can take steps to influence other third parties to
respect the right, through legal or political means. . . .’73
Despite this expansive and pragmatic approach taken by the UN Committee on
Economic, Social and Cultural Rights that encourages states to protect individuals
from corporate harms wherever they occur, the Guiding Principles adopted a more
conservative view as to whether a state might regulate corporate activities that
extend beyond its borders and jurisdiction. The Guiding Principles note that ‘States
must protect against human rights abuse within their territory and/or jurisdiction
by third parties, including business enterprises.’74 The Commentary attached to
Guiding Principle 2 further elaborates on these territorial and jurisdictional limits
by noting the possibilities open to states to broaden and deepen the scope of the duty
to protect but does not go so far as to suggest states are obliged to act in this regard.75
The Guiding Principles’ rather limp stance in recognising but not requiring states
to regulate companies extraterritorially turns its back on a window of opportunity
offered by the UN Committee on Economic, Social and Cultural Rights in
recommending an assertive extraterritorial approach to protection. The Maastricht
Principles on Extraterritorial Obligations of States in the area of Economic, Social
and Cultural Rights76 developed by a group of experts in September 2011 takes up
the challenge of more solidly integrating international human rights law with the
realities of the global economy and the transnational operations of business by
declaring that “[a]ll States must take necessary measures to ensure that non-State
actors which they are in a position to regulate . . . such as transnational corporations
and other business enterprises, do not nullify or impair the enjoyment of economic,
73
74
75
76
Committee on Economic, Social and Cultural Rights (CESCR), “General Comment 15: The right to
water,” UN Doc. E/C.12/2002/11 (20 February 2003), [31].
Human Rights Council, 2011 Guiding Principles, supra note 1, Guiding Principle 1 (I.A.1).
The Commentary attached to the Guiding Principles states: At present States are not generally
required under international human rights law to regulate the extraterritorial activities of businesses
domiciled in their territory and/or jurisdiction. Nor are they generally prohibited from doing so,
provided there is a recognized jurisdictional basis. Within these parameters some human rights treaty
bodies recommend that home States take steps to prevent abuse abroad by business enterprises within
their jurisdiction. There are strong policy reasons for home States to set out clearly the expectation
that businesses respect human rights abroad, especially where the State itself is involved in or supports
those businesses. The reasons include ensuring predictability for business enterprises by providing
coherent and consistent messages, and preserving the State’s own reputation.” Human Rights
Council, 2011 Guiding Principles, supra note 1 (I.A.2).
Maastricht Principles on Extraterritorial Obligations of States in the area of Economic, Social and
Cultural Rights (29 February 2012) (Maastricht Principles); http://www.lse.ac.uk/humanRights/
articlesAndTranscripts/2011/MaastrichtEcoSoc.pdf; Olivier De Schutter, Asbjørn Eide, Ashfaq
Khalfan, Marcos Orellana, Margot Salomon, and Ian Seiderman, “Commentary to the Maastricht
Principles on Extraterritorial Obligations of States in the Area of Economic, Social and Cultural
Rights,” Human Rights Quarterly 34 (2012): 1084–1169 at 1135.
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social and cultural rights.”77 Maastricht Principle 25 then goes on to clarify that states
will be in a position to regulate such corporations if the corporation, or its parent or
controlling company, has its centre of activity, is registered or domiciled, or has its
main place of business or substantial business activities, in the State concerned.”78
When looking for examples of how a state might reasonably regulate corporate
activities beyond its borders, one model of extraterritorial legislation that has had a
widespread impact on the private sector is the U.S. Foreign Corrupt Practices Act.79
Adopted in 1977, it has influenced the way in which U.S. businesses operate abroad
and has changed the global business environment more generally with respect to
corruption. Setting a precedent for how a legislative model can reverberate globally,
the U.S. act was followed into operation by the OECD Convention on Combating
Bribery of Foreign Public Officials in International Business Transactions and the
77
78
79
Maastricht Principles, supra note 76, Principle 24 at 5.
Ibid., Principle 25 at 5 and on a related issue with respect to determining the nationality of a
TNC for the purpose of determining the judicial fora in which claims against a TNC may be
heard; see the Barcelona Traction Case (New Application: 1962) (Belgium v. Spain) [1970] ICJ
Rep 3, where the International Court of Justice held that the nationality of a corporation is to be
determined by reference to the state in which the TNC is incorporated. This does not, of course,
surmount the problems posed by the separation of legal personality recognised throughout the
common law world; nor does it dispense of the procedural issues that arise in transnational claims.
It does, however, mean that a corporation incorporated, for example, in Australia can in theory be
sued in the courts of Australia based on actions committed in another jurisdiction. However, the
expansive approach taken in the Maastricht Principles stands in contrast to the approach of the
U.S. Supreme Court in a 2013 decision examining the extraterritorial liability of corporations for
human rights violations. The decision in Kiobel v. Royal Dutch Petroleum (133 S.Ct. 1659), while
focused exclusively on the jurisdictional limits of piece of legislation – the Alien Torts Claims Act
(ATCA) – complicates the territorial question a little further. In Kiobel, a majority of the court
further restricted – though did not close the door to – future litigation involving the actions taken
by global companies outside the United States, especially for non–U.S.–based companies. The
justices split five to four in their reasoning, with the majority relying on the presumption against
extraterritoriality arguing that nothing in the wording, logic, or history of the ATCA showed
that Congress necessarily meant to sweep into U.S. courts wholly non–U.S. claims involving
non–U.S. parties. Justice Breyer, however, in a concurrence joined by three others, rejected that
the presumption against extraterritoriality applied to the statute and instead advocated an analysis
“guided in part by principles and practices of foreign relations law” (at 1) to determine whether an
ATCA plaintiff’s allegations involved “sufficient ties” to the United States to trigger jurisdiction. In
Kiobel, with non–U.S. plaintiffs, defendants and conduct surrounding the claims, it was deemed
insufficient to trigger such potential jurisdiction. Recently the United Kingdom (U.K.) Supreme
Court took a more expansive view toward extraterritoriality (albeit not in relation to corporate
responsibility) when it considered the extraterritorial application of the European Convention on
Human Rights in Smith (and Others) v. MOD [2013] UKSC 41. The Court considered whether the
U.K. government had jurisdiction over British soldiers killed while serving in Iraq. The Supreme
Court held unanimously that the U.K. exercised extraterritorial jurisdiction based on the authority
and control which the U.K., through the chain of military command, had over the individuals
despite the U.K. no longer exercising “public powers” in the region.
(1977)15 U.S.C. § 78dd-1.
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UN Convention Against Corruption,80 which established international standards for
combating corruption. Companies have responded to these global anti-corruption
laws by developing due diligence programs to proactively identify potential risks. The
global implementation of laws to combat corruption is a useful model for assessing
how more rigor could be brought to bear in applying international human rights
standards to business, and the mandated due diligence requirements showcase how
the Guiding Principles could be hardened into a national legislative model with
extraterritorial reach.
States might also supplement private regulatory mechanisms by mandating
increased transparency in global business operations with a view to increasing
respect for human rights. For example, the UN Global Compact (a very soft
version of soft law in this field) asks companies to commit to issuing an annual
‘Communication on Progress’81 as a means of advancing corporate responsibility
for human rights. While the Compact can cajole companies (and, as a last resort,
threaten companies with expulsion) into complying, states can require companies
they regulate to report on their global activities and the steps they are taking to
ensure the protection of human rights. For example, Section 1502 of the U.S.
Dodd-Frank law requires all listed companies to report on the sources of minerals
used in their products that originate from the Democratic Republic of Congo
or adjoining countries.82 The purpose of this provision is to provide greater
transparency about how the trade in minerals is potentially fuelling and funding
the armed struggle in the Democratic Republic of Congo and relies on the
adverse reputational impact of such disclosure rather than mandating penalties
for actually sourcing minerals from conflict-afflicted regions. In addition, as part
of the decision to lift certain economic sanctions applicable to Burma/Myanmar,
the Obama administration has established new reporting requirements for
U.S. companies that are investing more than $500,000 in business in Burma. The
reporting requirements include a provision that compels companies to outline
the steps they are taking to ensure that their commercial engagements do not
contribute to human rights abuses.83
80
81
82
83
OECD. Convention on Combating Bribery of Foreign Public Officials in International Business
Transactions (adopted by the Negotiating Conference on 21 November 1997), and the UN, Convention
against Corruption, adopted 31 October 2003, A/58/422, entry into force 14 December 2005.
The UN Global Compact offers businesses a strategic framework aligning their operations with ten
universally accepted principles in the areas of human rights, labor, environment, and anti-corruption.
See http://www.unglobalcompact.org/COP/index.html.
In addition, s.1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub.
L. 111–203, H.R. 4173) addresses financial transparency. This section requires all listed oil and mining
companies to disclose the revenues they pay to governments worldwide.
See Burma Responsible Investment Reporting Requirements, http://www.humanrights.gov/wp-content/
uploads/2013/05/Responsible-Investment-Reporting-Requirements-Final.pdf.
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The European Parliament has recently approved a Directive on the disclosure
of non-financial information by EU companies. The Directive will require
EU public-interest entities with more than 500 employees to provide an annual
written report on human rights, environmental issues, and social issues to give an
understanding of their impact in each of these areas.84 The Directive is expected
to impact about 6,000 companies and is significant because it ‘is the first time that
EU companies will be legally required to report publicly on the human rights,
environmental and social impacts of their global operations, as well as their due
diligence procedures for identifying, preventing, mitigating, and addressing
those impacts.’85 These transparency initiatives feed off the earlier efforts of
multi-stakeholder initiatives such as the Extractive Industries Transparency Initiative
and Publish What You Pay, which have long championed the need to increase
transparency as well as the due diligence guidelines set out in the UN Guiding
Principles.86 Such reporting requirements – both state and non-state sanctioned –
indelibly link transparency with accountability, and in a field where accountability
is arguably pursued by civil society with often greater vigor than states, the more
information that is made available on global business operations, the more doable
the work of these non-state actors becomes to privately regulate corporate activities.87
As these examples illustrate, interactions between public and private regulation
can take many different forms, and mandating certain aspects of human rights due
diligence and reporting is one way in which state regulation can supplement private
regulatory efforts to improve corporate compliance with human rights standards.88
Private regulatory mechanisms might sometimes impose more in-depth transparency
requirements that exceed state reporting requirements, but public regulation could
84
85
86
87
88
Public-interest entities are listed companies, credit institutions, insurance undertakings, and any other
entity designated by an EU member state as a public-interest entity (for example, because they are of
significant public relevance due to the nature of their business, size, or number of employees). See
Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013, Article 2(1).
Amnesty International Public Statement, April 29 2014, http://www.amnesty.org/en/library/asset/
IOR61/005/2014/en/b09652a3-b4b3-47db-9949-1bd8ddaa731e/ior610052014en.pdf.
Extractive Industries Transparency Initiative, http://eiti.org/; http://www.publishwhatyoupay.org/;
Publish What You Pay, http://www.publishwhatyoupay.org/; and 2011 Guiding Principles,” supra, note 1,
Guiding Principle [15].
There are those that argue that the costs of such transparency initiatives (including funding the
reporting and due diligence requirements and potentially directing trade away from developing
countries in need of foreign investment) outweigh any potential benefits. For a summary of the pros
and cons of such arguments, see a transcript of a discussion held on December 13, 2011, hosted by
Brookings and Global Witness, “The Transparency, Conflict Minerals and Natural Resources: What
You Don’t Know About Dodd-Frank,” an event examining Sections 1502 and 1504 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act, http://www.brookings.edu/research/opinions/2011/
12/20-debating-dodd-frank-kaufmann....
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