Multinational corporations and human rights violations. Call for rebuilding the laws of twenty-first century
| Date | 07 October 2013 |
| Published date | 07 October 2013 |
| Pages | 422-432 |
| DOI | https://doi.org/10.1108/JFC-02-2013-0006 |
| Author | Barcelona Panda |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial crime |
Multinational corporations
and human rights violations
Call for rebuilding the laws
of twenty-first century
Barcelona Panda
Hidayatullah National Law University, New Raipur, India
Abstract
Purpose – The article aims to reflect the present legal position in regard to the upsurging human
rights violations by powerful multinational corporations in India and the need of controlling it. This is
one area of law which needs to be addressed at the earliest, at an international level by many
stake-holders such as companies, legislature, judges, human rights activists and students.
Design/methodology/approach – Doctrinaire research methodology using secondary sources.
Findings – Human rights violations in corporate arena is upsurging. Lack of good governance
mechanisms and vigilances are reasons. Progressive laws are sought at both international and national
which can maintain the balance between international and national endeavours to control such issues.
Originality/value – This is not much highlighted issue and hence is updated to various legislations
across the world which talks about this issue.
Keywords Human rights, Multinational corporation
Paper type Viewpoint
Human rights are rooted in law. Respecting and protecting them was never meant to be an
optional extra, a matter of choice. It is expected and required. It should be part of the
mainstream of any company’s strategy, not only seen as part of its corporate social
responsibility strategy (Khan, 2005, Secretary-General, Amnesty International).
Introduction
Human rights are a set of fundamental rights provided to every citizen and cannot be
compromised upon. Human rights violations are common in the unorganised sector
even though recent cases have highlighted gross violation of such basic rights by large
multinational corporations (MNCs) (Grear, 2007). MNCs are very powerful entities in
the current world order. Their impact on the wellbeing of communities and individuals,
including in terms of human rights, is evident wherever they operate (Nandy and
Singh, 2009, p. 75). While there is considerable scope for that impact to be positive,
corporate activity is often perceived to have had, and has had, a detrimental impact on
human rights protection. Companies have always recognised the importance of the rule
of law in the context of their investments and operations around the world. They are
the first to stress the importance of a transparent, well-functioning and just legal
system as a critical part of an enabling environment for investment and economic
growth (Robinson, 2010). Respecting human rights obligations serve as tools to he lp
companies select business partners that are well managed, reliable and operate
ethically (Business for Social Responsibility, 2010).
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1359-0790.htm
Journal of Financial Crime
Vol. 20 No. 4, 2013
pp. 422-432
qEmerald Group Publishing Limited
1359-0790
DOI 10.1108/JFC-02-2013-0006
JFC
20,4
422
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