Holding corporations accountable for either direct conduct or complicity for human rights violations has become an increasing area of attention in promoting human rights. Multinational corporations in particular have been singled out as important figures, for better or worse, in the maintenance of human rights given their economic status and international dimension. As it currently stands there is no mechanism at the international level which can hold corporations legally accountable. Reliance has instead been placed upon a number of soft law instruments the most important one of which is the United Nations Guiding Principles on Business and Human Rights. With the potential exception for redress under the Alien Tort Statute corporations are only legally accountable for human rights violations under the municipal law of the Nation in which the violation is alleged to have occurred or the company is based.
Multinational corporations and human rights
Multinational corporations emerged in the 1990s as one of the most significant challenges to the dominance of states in the social and economic international order. In 2013 37 of the top 100 economies in the world were corporations, with Wal-Mart Stores annual revenue exceeding the GDP of all but the top 27 states in the world. As a result, there have been increasing concerns over the role multinationals have in promoting and protecting international human rights. Under an orthodox view of international law the obligation to protect human rights lies with the nation state. The power of multinationals has been recognized as diminishing the ability of weaker states to enforce human rights. Furthermore, concerns have been raised over the operation of multinationals in countries which have a poor human rights record. Numerous cases such as Doe v. Unocal Corp. alleging gross human rights violations carried out by multinationals or their associates in countries such as Burma (Myanmar) exist. Whilst concern has been raised over the role multinationals have played in human rights violations, recognition has also been given to the fact that multinationals have the potential to promote human rights in states with a poor track record beyond the ability of other nation states.
Accountability under the International human rights framework
Under the International human rights framework corporations can only be held directly accountable for human rights violations which constitute international crimes as provided for in the Rome Statute of the International Criminal Court. Under the orthodox view States are the primary “subjects” of international law, and whilst International Organizations hold international legal personality, individuals and corporations hold limited standing There has been extensive debate on what status multinational corporations should hold at international law. Those arguing that multinationals should hold rights and duties do so on the ground that this is necessary given their size and influence. Those who argue against the imposition of international law upon multinationals contend that to do so would mean conveying rights which would inevitably enhance the influence and power they hold. Recent developments have seen the articulation of the human rights obligations of corporations but no enforceable regulatory mechanism exists at the international level.