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)

Morality and economic rationality: integrative economic ethics as the rational ethics of economic activity; Part II. Reflections on the Foundations of Economic ...

This article assesses some of the implications of globalization for the scholarly debate on business ethics, CSR and related concepts. The argument is based, among other things, on the declining capacity of nation state institutions to regulate socially desirable corporate behavior as well as the growing corporate exposure to heterogeneous social, cultural and political values in societies globally. It is argued that these changes are shifting the corporate role towards a sphere of societal governance hitherto dominated by traditional political actors. (...) This leads to a discussion of the ambivalent results of such a process for a responsible corporate role in a globalized world. While assessing the current reception these changes have received in the management literature, the contributions of the four articles in this Special Issue are framed and evaluated. The argument closes by highlighting avenues of future research on this new challenge. (shrink)

ABSTRACT:In a series of reports the United Nations Special Representative on the issue of Human Rights and Transnational Corporations has emphasized a tripartite framework regarding business and human rights that includes the state “duty to protect,” the TNC “responsibility to respect,” and “appropriate remedies” for human rights violations. This article examines the recent history of UN initiatives regarding business and human rights and places the tripartite framework in historical context. Three approaches to human rights are distinguished: moral, political, and legal. (...) It is argued that the tripartite framework’s grounding of the responsibility of TNCs to respect human rights is properly understood as moral and not merely as a political or legal duty. A moral account of the duty of TNCs to respect basic human rights is defended and contrasted with a merely strategic approach. The main conclusion of the article is that only a moral account of the basic human rights duties of TNCs provides a sufficiently deep justification of “the corporate responsibility to respect human rights” feature of the tripartite framework. (shrink)

We review recent developments in ethical pluralism, ethical particularism, Kantian intuitionism, rights theory, and climate change ethics, and show the relevance of these developments in ethical theory to contemporary business ethics. This paper explains why pluralists think that ethical decisions should be guided by multiple standards and why particularists emphasize the crucial role of context in determining sound moral judgments. We explain why Kantian intuitionism emphasizes the discerning power of intuitive reason and seek to integrate that with the comprehensiveness of (...) Kant’s moral framework. And we show how human rights can be grounded in human agency, and explain the connections between human rights and climate change. (shrink)

ABSTRACT:Central to the United Nations Framework setting out the human rights responsibilities of corporations proposed by John Ruggie is the principle that corporations have a responsibility to respect human rights in their operations whether or not doing so is required by law and whether or not human rights laws are actively enforced. Ruggie proposes that corporations should respect this principle in their strategic management and day-to-day operations for reasons of corporate (enlightened) self-interest. This paper identifies this as a serious weakness (...) and argues that identifying the responsibility to respect human rights as an explicitly ethical obligation to be respected for that reason would provide a much stronger justificatory foundation for respecting the principle seen from a corporate perspective, given that corporations are accountable to their shareholders for their deployment of the firm’s financial resources. (shrink)

ABSTRACT:Should companies’ human rights responsibilities arise, in part, from their “leverage”—their ability to influence others’ actions through their relationships? Special Representative John Ruggie rejected this proposition in the United Nations Framework for business and human rights. I argue that leverage is a source of responsibility where there is a morally significant connection between the company and a rights-holder or rights-violator, the company is able to make a contribution to ameliorating the situation, it can do so at modest cost, and the (...) threat to human rights is substantial. In such circumstances companies have a responsibility to exercise leverage even though they did nothing to contribute to the situation. Such responsibility is qualified, not categorical; graduated, not binary; context-specific; practicable; consistent with the social role of business; and not merely a negative responsibility to avoid harm but a positive responsibility to do good. (shrink)

The criticism that voluntary codes of conduct are ineffective can be met by giving greater centrality to human rights in such codes. Provided the human rights obligations of multinational corporations are interpreted as moral obligations specifically tailored to the situation of multinational corporations, this could serve to bring powerful moral force to bear on MNCs and could provide a legitimating basis for NGO monitoring and persuasion. Approached in this way the human rights obligations of MNCs can be taken to include (...) support for political as well as economic rights. This will go some way towards filling the regulatory gap created by the difficulty of controlling the activities of corporations operating globally. However, such a proposal will require a measure of ‘meta-regulation’ whereby the operations of MNCs are legally required to be sufficiently transparent to create the conditions for effective external moral scrutiny. (shrink)

As corporations are going global, they are increasingly confronted with human rights challenges. As such, new ways to deal with human rights challenges in corporate operations must be developed as traditional governance mechanisms are not always able to tackle them. This article presents five different views on innovative solutions for the relationships between business and human rights that all build on empowerment, dialogue and constructive engagement. The different approaches highlight an emerging trend toward a more active role for corporations in (...) the protection of human rights. The first examines the need for enhanced dialogue between corporations and their stakeholders. The next three each examine a different facet of empowerment, a critical factor for the respect and protection of human rights: empowerment of the poor, of communities, and of consumers. The final one presents a case study of constructive corporate engagement in Myanmar (Burma). Altogether, these research projects provide insight into the complex relationships between corporate operations and human rights, by highlighting the importance of stakeholder dialogue and empowerment. All the five projects were presented during the Second Swiss Master Class in Corporate Social Responsibility, held in Lausanne, Switzerland on December 12, 2008. The audience for this conference, which examined business and human rights, was composed of researchers, governmental representatives, and business and non-governmental organization practitioners. (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.

As corporations are going global, they are increasingly confronted with human rights challenges. As such, new ways to deal with human rights challenges in corporate operations must be developed as traditional governance mechanisms are not always able to tackle them. This article presents five different views on innovative solutions for the relationships between business and human rights that all build on empowerment, dialogue and constructive engagement. The different approaches highlight an emerging trend toward a more active role for corporations in (...) the protection of human rights. The first examines the need for enhanced dialogue between corporations and their stakeholders. The next three each examine a different facet of empowerment, a critical factor for the respect and protection of human rights: empowerment of the poor, of communities, and of consumers. The final one presents a case study of constructive corporate engagement in Myanmar (Burma). Altogether, these research projects provide insight into the complex relationships between corporate operations and human rights, by highlighting the importance of stakeholder dialogue and empowerment. All the five projects were presented during the Second Swiss Master Class in Corporate Social Responsibility, held in Lausanne, Switzerland on December 12, 2008. The audience for this conference, which examined business and human rights, was composed of researchers, governmental representatives, and business and non-governmental organization practitioners. (shrink)

The United Nations Special Representative on Transnational Corporations and Human Rights, John Ruggie, has adopted a new framework for considering this issue within the international legal system. This article examines this framework in terms of its coherence, its consistency with international human rights law and how it can be 'operationalized' (which is required by the United Nations). In regard to the states legal obligation to protect human rights, it is considered whether this obligation is broader and deeper than is envisaged (...) in the framework, especially if it can include the extra-territorial activities of corporations. The corporate responsibility to respect human rights is examined in terms of its conceptual and definitional problems, and the article also questions whether there will be sufficient legal remedies available to victims under the framework. (shrink)

This paper examines the extent to which the voluntary adoption of codes of conduct by multinational corporations (MNCs) renders MNCs accountable for the performance of actions specified in a code of conduct. In particular, the paper examines the ways in which codes of conduct coordinate the expectations of relevant parties with regard to the provision of assistance by MNCs on grounds of rescue or justice. The paper argues that this coordinative role of codes of conduct renders MNCs more accountable for (...) the performance of actions specified in a code of conduct than they would be without a code of conduct. This interpretation of the significance of codes of conduct is contrasted with the view that codes of conduct render MNCs accountable for performing actions specified in a code of conduct by grounding contractual obligations for the performance of such actions. (shrink)

It is no longer a revelation that companies have some responsibility to uphold human rights. However, delineating the boundaries of the relationship between business and human rights is more vexed. What is it that we are asking corporations to assume responsibility for and how far does that responsibility extend? This article focuses on the extent to which economic, social and cultural rights fall within a corporation's sphere of responsibility. It then analyses how corporations may be held accountable for violations of (...) such rights. Specifically, the article considers the use of soft law as a protective mechanism; it also details how victims of harmful corporate behaviour are using litigation (pursuant to ATCA and common law domestic causes of action) to seek redress and recognition of the harms they have directly or indirectly experienced. The article concludes with an analysis of Professor Ruggie's (the United Nations Special Representative on the issue of transnational corporations and human rights) 2008 and 2009 Reports in which it is suggested that a respect-based framework must be interpreted as imposing proactive requirements on companies to prevent the infringement of human rights. Future efforts must also be directed towards the recognition of a specialised complementary corporate responsibility to protect human rights. (shrink)

Despite the appeal of the stakeholder concept, little work had been done with respect to the development of specific structures for the management of stakeholder relations. This paper draws upon the organizational justice literature to demonstrate how many of its concerns coincide with those of the stakeholder management literature. It shows that organizational justice can provide specific advice for the design of stakeholder relations, while stakeholder theory can broaden the scope of current inquiries into organizational justice.

Resource extraction companies worldwide are involved with Indigenous peoples. Historically these interactions have been antagonistic, yet there is a growing public expectation for improved ethical performance of resource industries to engage with Indigenous peoples. (Crawley and Sinclair, Journal of Business Ethics 45, 361–373 (2003)) proposed an ethical model for human resource practices with Indigenous peoples in Australian mining companies. This paper expands on this work by re-framing the discussion within the context of sustainable development, extending it to Canada, and generalizing (...) to other resource industries. We argue that it is unethical to sacrifice the viability of Indigenous cultures for industrial resource extraction; it is ethical to engage with indigenous peoples in a manner consistent with their wishes and needs as they perceive them. We apply these ideas to a case study in the coastal temperate rainforest of Clayoquot Sound, British Columbia, Canada. In this case a scientific panel comprised of Nuu-Chah-Nulth elders, forest scientists and management professionals, achieved full consensus on developing sustainable forest practice standards by drawing equally on Indigenous traditional ecological knowledge and Western science in the context of one of the most heated and protracted environmental conflicts in Canadian history. The resulting sustainable forest practice standards were later adopted by leading forestry firms operating on the coast. Our analysis of this scientific panels success provides the basis for advancing an ethical approach to sustainable development with Indigenous peoples. This ethical approach is applicable to companies working in natural resource industries where the territories of Indigenous peoples are involved. (shrink)

Today, sustainable relations with a broad range of key stakeholders are not only important from a normative business ethics perspective, but also from an entrepreneurial viewpoint to allow and support the long-term survival of a firm. We will argue that the traditional conception of a firm’s corporate social responsibility does not reflect this view and that a comprehensive and dynamic conception of a firm’s responsibilities is necessary to map the reality of business practice and to manage the challenges implied by (...) sustainability. We think that distributive justice, that is the way in which firms involve their stakeholders in their wealth creation and dissemination processes, provides a comprehensive understanding of corporate responsibilities. Concerning procedural justice, we will discuss how firms involve stakeholders in their strategic processes according to their contribution to wealth creation. In the course of the article, we will propose a framework along with three design principles that can be used for shaping dynamic and comprehensive corporate responsibilities, and which thereby allow a sustainable procedure for changing business and non-business environments. (shrink)

This article argues that the extension of the international regime of human rights to companies has not changed the essentially state-centric nature of the regime. The analysis focuses on three recent United Nations initiatives: (1) 'Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights', (2) the Global Compact, and (3) the work of the UN special representative on business and human rights. The analysis shows that, despite these initiatives, states are the primary holders (...) of human rights obligations and have a key role in the decision making and enforcement of the regime. Companies have participated to the regime, but they have done so mainly through lobbying governments and thus enforcing the role of states. The analysis also shows that the engagement of new actors to decision-making about the extension of regime norms is essential for norm adoption. Finally, the issue of non-compliant companies needs to be resolved before the regime can be considered established. (shrink)

The 3rd Report of the Special Representative of the Secretary-General of the United Nations appears to have generated significant consensus around its approach to business and human rights. This state of harmony relies mainly upon a narrow mandate limiting the endeavour largely to a mapping exercise. It also relies upon a process of 'operationalisation' that is yet to be undertaken despite the recent release of a 4th Report. After a brief presentation of the main parameters of the framework proposed by (...) the 3rd Report and of its precarious advantage over other similar initiatives, this article takes a close look at the main link that needs to be operationalised: i.e. the link between corporate responsibility for human rights and the concept of legal and criminal responsibility. The article then addresses the constitutive elements of the concept of responsibility to shed light upon the responsibility of business organisations in a human rights law context. It looks at the innovative ways in which the concept of corporate criminal responsibility has been dealt with in various domestic jurisdictions and at the new paradigms of corporate agency resulting in the process. Building on this inquiry, the analysis focusses on the way in which the legal discourse acquires new dimensions of corporate responsibility by moving away from an individualistic perspective. On the basis of this, the article suggests conceptual tools that can become instrumental in the process of the operationalisation of the 3rd Report, albeit at the likely cost of rendering the consensus around it more fragile. (shrink)