Towards holding transnational corporations responsible for human rights

Abstract

Purpose The purpose of this paper is to provide a general review of international efforts to hold transnational corporations (TNCs) responsible for human rights. It tracks the evolution of international conventions related to TNCs and human rights and assesses their effectiveness. Design/methodology/approach The paper describes and analyzes efforts over the last four decades by the United Nations (UN), the Organisation for Economic Co‐operation and Development, the International Labour Organization and non‐governmental groups to provide guidelines and encourage TNCs to aspire to international standards in human rights. Findings The early attempts to regulate TNCs internationally lacked any form of the robust compulsion, systemic monitoring and effective enforcement mechanisms necessary to deal with the magnitude of the global investment arena. However, during the last decade, there has been explicit recognition on the part of the UN that action is necessary and the most recent convention emanating from the UN, the Norms , may evolve into a binding instrument on TNCs. Originality/value This paper, by mapping the development of global ethical conventions up to the UN Norms on the responsibilities for TNCs and other business enterprises with regards to human rights, informs corporate officers of the state of global discussions on this issue and lays the groundwork for further scholarly analysis of the Norms in the future.