The article is guided by two main research questions: First, do the Equator Principles (EPs), a voluntary CSR-initiative in the project finance sector, and the recently published working paper of the Thun Group of Banks adequately address the U.N. Guiding Principles on Business and Human Rights or do they fall behind the ‘Ruggie framework’? Second, is the demand for human rights due diligence sufficient to classify the EPs as a positive and leverage-based concept of CSR (à la Wettstein and Wood) (...) or is this requirement still a feature of a negative and impact-based concept of CSR? In case it is a negative and impact-based concept of CSR, the question comes up which further steps should be taken by financial institutions to fulfill their positive and leverage-based responsibilities. The article argues that positive and leverage-based responsibilities for multinational companies exist – due to the moral nature of human rights and due to the political authority of multinational companies – and that the current (Ruggie-like) requirements for human rights due diligence are not adequate for a positive and leverage-based concept of CSR. Further measures should be taken by multinational companies – and especially (Equator) banks which possess a high leverage-influence over their clients – to not only ensure the respect for human rights, but also the on-the-ground protection and realization of human rights. (shrink)

ABSTRACT:Increasingly, global businesses are confronted with the question of complicity in human rights violations committed by abusive host governments. This contribution specifically looks at silent complicity and the way it challenges conventional interpretations of corporate responsibility. Silent complicity implies that corporations have moral obligations that reach beyond the negative realm of doing no harm. Essentially, it implies that corporations have a moral responsibility to help protect human rights by putting pressure on perpetrating host governments involved in human rights abuses. This (...) is a controversial claim, which this contribution proposes to analyze with a view to understanding and determining the underlying conditions that need to be met in order for moral agents to be said to have such responsibilities in the category of the duty to protect human rights. (shrink)

The “Protect, Respect, Remedy” Framework along with the UN Guiding Principles on Business and Human Rights is the current global standard regarding corporate conduct. This article analyses the UN Framework from the vantage point of labour rights in India by looking at the garment supply chain. It argues that it can do little to induce states and businesses to bring substantive improvements to working conditions in a largely informal economy like India. Without the state performing its duty to protect human (...) rights, the secondary responsibility of corporations can do very little in realising the rights of workers. Nonetheless, its tallest contribution is that it has given a platform for civil society to push for better conduct from all businesses and marks the beginning of a unified international business and human rights agenda. (shrink)

Following the situation of poverty in the rights paradigm, this paper explores the links between the rights-based and corporate social responsibility approaches to the realization of socioeconomic rights in the broader context of an emerging recognition of CSR as private regulation of business behaviour. It examines complex theoretical and practical dimensions of responsibility and potential contributions of businesses to poverty alleviation and clarifies the apparent paradox of legal compulsion of essentially voluntary CSR activities. Rather than treat rights and CSR as (...) parallel approaches to protecting socioeconomic rights, it is argued that CSR can be part of a coherent framework of laws and policies for legally translating broad human rights commitments to poverty reduction into concrete programmes. The paper demonstrates how legally propped CSR arrangements can support poverty reduction and appropriate task-specific contextualised definitions and boundaries of CSR that complement the rights-based approach. It is argued that human rights principles have normative dimensions to guide and help formulate policies, programmes and practices, which in turn allow for a creative use of and legal prop to CSR. The conceptualization of human rights is not restricted to one implementation method, and CSR can partly satisfy states’ human rights obligations and transcend the narrow conventional human rights discourse on obligations of non-state actors. (shrink)

Abstract Today’s scholarship and policymaking on business and human rights (BHR) urges businesses to better understand their human rights responsibilities and remedy them, when and if abuses do occur. Despite the public discourse about businesses and human rights, the state—as the main duty bearer in international human rights law—plays a fundamental role as the protector and enforcer of human rights obligations. Yet, the existing literature overlooks state involvement as perpetrators of abuse in the corporate context. We develop the term _economic (...) complicity_ to shed light on the state’s role in directly or indirectly abusing human rights within a corporation’s sphere of influence, such as police violence toward nonviolent protesters or granting environmental licenses without adhering to legally required community consultations. We ask: What contributes to the state’s engagement in economic complicity in corporate human rights abuses? We assess hypotheses emergent from the democratic change and development studies literatures with a unique database that includes economic complicity data from Latin America, the Corporations and Human Rights Database (CHRD). This research has important theoretical implications for the business ethics and BHR literatures, as understanding economic complicity highlights the need for business actors to avoid shirking their moral responsibilities to not only ‘do no harm’ but also to protect human rights when they are threatened by the state. (shrink)

Human rights declarations are instruments used to introduce universal standards of ethics. The UN’s Protect, Respect, and Remedy Framework (Ruggie, Protect, respect, and remedy: A Framework for business and human rights. UN Doc A/HRC/8/5, 2008; Guiding principles on business and human rights: Implementing the United Nations “Protect, Respect, and Remedy” framework. UN Doc A/HRC/17/31, 2011) intends to provide guidance for corporate behavior in regard to human rights. This article applies concepts from the field of organizational justice to the arena of (...) business and human rights for the purpose of operationalizing the UN Framework. This approach facilitates the recognition of gaps between perceptions of justice held by stakeholders versus businesses and/or the State. Such recognition raises the potential for addressing issues that lead to divergent perceptions of justice, thus potentially improving the human rights performance of businesses. The research also shows the potential for complicity of businesses in human rights abuses and exposes a fundamental weakness in the UN Framework, which attempts to draw a sharp distinction between duties of States versus responsibilities of business. We illustrate this approach through analysis of the case of Goldcorp’s Marlin Mine in Guatemala; an extractive industry project that affects indigenous communities. (shrink)

This article develops a conceptual pattern of the reasons and scope of business responsibility for modern slavery. It introduces modern slavery as either relation or structure and designs an understanding of a broad and a narrow model of business responsibility, consisting of business power, internal and external realms of business conduct and public and private roles of companies. Crossing the two models of modern slavery with the two models of business responsibility, the article carves out the strengths and limits of (...) their junctions. The continuous pendulum between the junctions allows to discuss how and why companies can be responsible for modern slavery. It thus contributes analytically, practically and normatively to tackling modern slavery. (shrink)

Many corporations are large, powerful, and wealthy. There are massive shortfalls of global justice, with hundreds of millions of people in the world living below the threshold of extreme poverty, and billions more living not far above that threshold. Where injustice and needs shortfalls must be remediated, we often look towards agents’ capabilities to determine who ought to bear the costs of rectifying the situation. The combination of these three claims grounds what I call a ‘linkage-based’ account of why corporations (...) have demanding positive duties to the global poor. In this paper, I put forward a distinctive linkage-based account of corporations’ positive duties centred on the idea of dependence and the importance of meeting agents’ core needs. In addition to outlining and defending this account, I will show that we can utilise its basic conceptual components to make headway on questions that have received insufficient attention in the business ethics literature; specifically, we can say something substantive about the weighting of needy agents’ competing claims to assistance, and about the limits to the demands that can be lodged against corporations on the basis of others' unmet needs. Having integrated considerations of duties' grounding, their comparative weight, and the limits of their demandingness into a single account of corporate positive duty, I conclude by discussing a challenge to attributing to corporations duties owed to the worst-off amongst the global poor. (shrink)

ABSTRACT:In this article I inquire into Confucian ethics from a non-ideal stance investigating the complex interaction between Confucian ideals and the reality of the modern workplace. I contend that even Confucian workers who regularly engage in social rites at the workplace have an internal, Confucian reason to appreciate the value of rights at the workplace. I explain, from a Confucian non-ideal perspective, why I disagree with the presumptuous idea that labor rights are necessarily incompatible with Confucian ideals and values. Specifically, (...) I argue that if managers were “sages,” the highest moral exemplars and authorities in the Confucian tradition, they would perceive that social rituals alone are often not a contextually intelligent and valued response for the development of intimate communities in the modern workplace. The sage perspective will lead Confucian managers to realize, from their own moral perspective, that they have good reason to balance rites with rights, so long as the adoption is extrinsically valuable and consistent with the Confucian ideal. This article contributes to the debates about Confucianism's compatibility with rights, helps Western human rights scholars better contextualize their arguments in Confucianism-influenced cultures, and contributes to the development of a Confucian or Chinese approach to business ethics. (shrink)

ABSTRACT:Microfinance is often assumed to be an ethically progressive industry, but in recent years it has been the target of much ethical criticism. Microfinance institutions have been accused of using exploitative lending techniques and charging usurious interest rates; and critics even question the ability of microfinance to alleviate poverty. This article reviews recent research on the microfinance sector that addresses these ethical issues. We show how this research is relevant to a number of theoretical issues, such as how to define (...) poverty, how to understand exploitation, and how to balance financial and social goals in commercial organizations. We conclude by identifying a critical agenda for future research. (shrink)

The modern corporation offers significant potential to contribute to the human rights project, in part because it is free from the challenges posed by national sovereignty. That promise has begun to be realized in businesses practicing corporate due diligence with regard to the human rights of persons involved in or affected by those enterprises. Yet due diligence preserves the self-seeking orientation of the conventional corporation and seeks only to protect itself from committing human rights abuses. This approach, typified by the (...) UN Guiding Principles on Business and Human Rights, does not address background conditions for and root causes of vulnerability to human rights abuses. My alternative, the human rights corporation, takes an other-regarding orientation that advances human rights within the corporation and in its human, social, economic, and natural environments. It moves beyond the due diligence carrot-and-stick model to a model in which the corporation produces not only goods and services but also human rights consciousness and practice as well. (shrink)

The ‘Guiding Principles on Business and Human Rights’ (Principles) that provide guidance for the implementation of the United Nations’ ‘Protect, Respect and Remedy’ framework (Framework) will probably succeed in making human rights matters more customary in corporate management procedures. They are likely to contribute to higher levels of accountability and awareness within corporations in respect of the negative impact of business activities on human rights. However, we identify tensions between the idea that the respect of human rights is a perfect (...) moral duty for corporations and the Principle’s ‘human rights due diligence’ requirement. We argue that the effectiveness of the ‘human rights due diligence’ is in many respects dependent upon the moral commitment of corporations. The Principles leave room for an instrumental or strategic implementation of due diligence, which in some cases could result in a depreciation of the fundamental norms they seek to promote. We reveal some limits of pragmatic approaches to coping with business-related human rights abuses. As these limits become more apparent, not only does the case for further progress in international and extraterritorial human rights law become more compelling, but so too does the argument for a more forceful discussion on the moral foundations of human rights duties for corporations. (shrink)

The private sector is vital to building and sustaining peace. These efforts are often recognized as “Business for Peace” or “Peace through Commerce.” Academic research on Business for Peace is almost twenty years old and tends to be theoretical. This paper is the first to present qualitative findings on businesses operating in an active violent conflict such as the case of Iraq. Companies in Iraq operate under the constant threat of violence and yet many still try to enhance peace through (...) operations. We interviewed more than 40 participants who were business owners, managers, government officials, and international policymakers who were active in the Iraqi theater. We discuss our findings that relate to the perception of company activities as peace enhancing into four categories: capacity building, rule of law, social cohesion, and local engagement. Our findings support the existing business and peace categories of rule of law and social cohesion. Our findings also suggest that current theory may be missing capacity building and local engagement as important business activities to promote peace. We conclude by noting the limitations of the paper and the need for more qualitative research. (shrink)

This study examines the influence of Christian religion on corporate decisions related to human rights in the United States. Specifically, it examines the empirical association between a company's human rights practices and the Christian religiosity in its local community, as well as individual CEO religiosity in the United States, both of which have not been tested in prior studies. Employing a large sample from the United States, we find a congruent association between the “human rights friendly” practices of a company (...) and the Christian religiosity of the local community. This novel finding is robust to a diverse set of tests. In addition, we find that the association between Christian religiosity in the United States and human rights is more significant in reducing human rights concerns, than it improves human rights strengths. This study interprets these results as upholding the religious morality hypothesis, namely, that companies located in areas with higher religiosity are likely to engage in more human rights-friendly practices, and the United States. Christians consider religion as an influencing factor that encourages managers to embrace human rights. Furthermore, this study finds that individual religious managers tend toward more human rights-friendly practices, supporting our religious manager hypothesis. (shrink)

ABSTRACT:We provide a brief history of the business and human rights discourse and scholarship, and an overview of the articles included in the special issue.

ABSTRACT:We provide a brief history of the business and human rights discourse and scholarship, and an overview of the articles included in the special issue.

The social licence to operate concept is little developed in the academic literature so far. Deployment of the term was made by the United National Guiding Principles on Business and Human Rights and the UN ‘Protect, Respect and Remedy’ Framework, which apply SLO as an argument for responsible business conduct, connecting to social expectations and bridging to public regulation. This UN guidance has had a significant bearing on how public regulators seek to influence business conduct beyond Human Rights to broader (...) Corporate Social Responsibility concerns. Drawing on examples of such public regulatory governance, this article explores and explains developments towards a juridification of CSR entailing efforts by public regulators to reach beyond jurisdictional and territorial limitations of conventional public law to address adverse effects of transnational economic activity. Through analysis of an expansion of law into the normative framing of what constitutes responsible business conduct, we demonstrate a process of juridification entailing a legal framing of social expectations of companies, a proliferation of law into the field of business ethics, and an increased regulation by law of social actors or processes. (shrink)

Public pressure is essential for providing multinational enterprises (MNEs) with motivation to follow the standards of human rights conduct set in soft-law instruments, such as the United Nations Guiding Principles on Business and Human Rights. But how does the public judge MNE involvement in human rights violations? We empirically answer this question drawing on an original survey of American adults. We asked respondents to judge over 12,000 randomly generated scenarios in which MNEs may be considered to have been involved in (...) human rights violations. Our findings reveal substantial gaps between public judgments and the standards set in soft law and the normative literature. We identify the attributes of episodes of human rights violations involving MNEs that influence public judgments, including the relationship between the MNE and the perpetrator, the practice of due diligence, and the type of abuse. These results provide insights as to when we might expect public pressure to drive MNE compliance with soft-law instruments, and they direct attention to specific standards that will likely require stronger, ‘hard’ law approaches or broader efforts to shift the public’s view. (shrink)

The private sector is vital to building and sustaining peace. These efforts are often recognized as “Business for Peace” or “Peace through Commerce.” Academic research on Business for Peace is almost twenty years old and tends to be theoretical. This paper is the first to present qualitative findings on businesses operating in an active violent conflict such as the case of Iraq. Companies in Iraq operate under the constant threat of violence and yet many still try to enhance peace through (...) operations. We interviewed more than 40 participants who were business owners, managers, government officials, and international policymakers who were active in the Iraqi theater. We discuss our findings that relate to the perception of company activities as peace enhancing into four categories: capacity building, rule of law, social cohesion, and local engagement. Our findings support the existing business and peace categories of rule of law and social cohesion. Our findings also suggest that current theory may be missing capacity building and local engagement as important business activities to promote peace. We conclude by noting the limitations of the paper and the need for more qualitative research. (shrink)