Gwynne L. Skinner, Rachel Chambers and Sarah McGrath: Transnational Corporations and Human Rights
Published online by Cambridge University Press: 22 February 2022
Summary
When committing human rights violations in developing countries, do transnational corporations stand above the law? During recent decades, there has been an exploding number of transnational corporations (TNCs). Due to this increase, TNCs have developed a complicated structure – and the legal system is not up-to-date. Laws no longer conform to the complex structures TNCs maintain, as there is not merely one main parent company, but a considerable number of subsidiaries behind it – sometimes owned by multiple corporations. In developing countries, TNCs benefit through their subsidiaries from low costs while posing a threat to the community on-site, especially people's health. The issue at hand is more pressing then ever: currently there are indicators that multiple giant TNCs (including Volkswagen (VW), Bayrische Motoren Werke AG (BMW), Hennes & Mauritz (H&M) and Adidas, to name only a few) are involved in the massive human rights violations against the Uighurs in China. This book examines the power imbalance between the profit TNCs make in developing countries and the very limited accountability parent companies have for human rights violations committed by their subsidiaries. Beyond this main objective, the book not only showcases our legal system's problems, but it also offers solutions.
The authors take a two-step approach to the issue of lack of accountability in TNCs. Part 1 of the book focuses on the barriers victims are facing when they seek compensation. First of all, seeking judicial remedies in the host country itself is typically almost impossible. As developing countries intend to attract TNCs, they accept insufficient regulations and oftentimes weak and corrupt judicial systems at the expense of their citizens. Additionally, local lawyers rarely take cases against corporations, either out of fear or a lack of resources. As a result, there seems to be a higher chance of being awarded compensation when bringing a claim before a court in another country, namely the home country of a TNC. However, even in these – often rich – home countries, plaintiffs are unable to achieve judicial remedy. This is where the authors’ focus lies: the possibility of bringing human rights claims against TNCs in their home country. As these typically lie in either the United States (US), Europe or Canada, the book offers an insight into the issues that arise in these legal systems. The three main
- Type
- Chapter
- Information
- European Yearbook on Human Rights 2021 , pp. 663 - 664Publisher: IntersentiaPrint publication year: 2021