This article contextualises current debates over human rights and transnational corporations. More specifically, we begin by first providing the background to John Ruggie's appointment as 'Special Representative of the Secretary-General on the issue of human rights and transnational corporations and other business enterprises'. Second, we provide a brief discussion of the rise of transnational corporations, and of their growing importance in terms of global governance. Third, we introduce the notion of human rights, and note some difficulties associated therewith. Fourth, we (...) refer to Ruggie's scholarly work on 'embedded liberalism', the 'global public domain' and 'social constructivism'. Following this, we refer to the other five papers contained in this "Journal of Business Ethics" special issue, 'Spheres of Influence/Spheres of Responsibility: Multinational Corporations and Human Rights', and consider some of the potential obstacles to Ruggie's recent suggestion that a 'new consensus' has formed, or is forming, around his 'Protect, Respect and Remedy' framework. We conclude by raising questions regarding the processes of consensus-building around, and the operationalisation of, Ruggie's 'Protect, Respect and Remedy' framework. (shrink)

According to the principle of alternate possibilities (PAP), a person is morally responsible for an action only if he could have done otherwise. PAP underlies a familiar argument for the incompatibility of moral responsibility with determinism. I argue that Harry Frankfurt's famous argument against PAP is unsuccessful if PAP is interpreted as a principle about blameworthiness. My argument turns on the maxim that "ought implies can" as well as a "finely-nuanced" view of the object of blame. To reject PAP on (...) the blameworthiness interpretation, we must reject either this maxim or the finely-nuanced view or some other apparently innocuous assumption. (shrink)

In a recent important book,The Ethics of International Business, Tom Donaldson argues that multinational corporations (as well as individuals and nationstates) must, at a minimum, respect international human rights. For a purported right to be such a fundamental right it must satisfy three conditions. Donaldson calls the third condition the fairness-affordability condition. The affordability part of this condition holds that moral agents must be capable of paying for the burdens and responsibilities that a proposed human right would impose. If this (...) is impossible, then the purported right is not an international human right.I argue that Donaldson''s affordability condition is subject to four objections which reveal its untenability as one of the conditions upon which identification of international human rights must rest. I offer another way of treating problems of affordability and capability when it comes to such rights that all moral agents must respect. (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:This article examines the presuppositions and theoretical frameworks of the “new-wave” “Post-Westphalian” approach to international business ethics and compares it to the more philosophically oriented moral theory approach that has predominated in the field. I contrast one author’s Post-Westphalian political approach to the human rights responsibilities of transnational corporations (TNCs) with my own “Fair Share” theory of moral responsibility for human rights. I suggest how the debate about the meaning of corporate human rights “complicity” might be informed by the fair (...) share theory. While I point out that Post-Westphalians and moral philosophers may have fundamental disagreements about basic concepts such as legitimacy, justice, and democratic deliberation, I conclude that the Post-Westphalians have made a major contribution to the expansion of the field by presenting business ethicists with an opportunity to inform and guide debates about the potential future course of transnational governance. (shrink)

Transnational corporations have become actors with significant political power and authority which should entail responsibility and liability, specifically direct liability for complicity in human rights violations. Holding TNCs liable for human rights violations is complicated by the discontinuity between the fragmented legal/political structure of the TNC and its integrated strategic reality and the international state system which privileges sovereignty and non-intervention over the protection of individual rights. However, the post-Westphalian transition—the emergence of multiple authorities, increasing ambiguity of borders and jurisdiction (...) and blurring of the line between the public and private spheres—should facilitate imposing direct responsibility on transnational firms. Mechanisms for imposing direct responsibility on TNCs are considered including voluntary agreements and international law. However, I conclude that a hybrid public-private regime which relies on non-hierarchical compliance mechanisms is likely to be both more effective and consistent with the structure of the emerging transnational order. (shrink)

Today’s international business environment is complicated by human rights abuses and social and economic repression in variouscountries. This paper introduces controversies with foreign investment in Burma to develop and describe alternative terms of global business engagement in ethically challenging settings. Two forms of engagement—unrestricted and constructive—and two forms of non-engagement—principled and sanctioned—are discussed. All four alternatives are examined for their ethical, social change, andcultural foundations. Additional considerations are posed in respect to constructive engagement, moral leadership by global businessexecutives, needs for (...) model building and evaluative research, and realities in the ethical context of global business. (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 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)

Recent arbitration and human rights boards of inquiry cases involving discrimination against pregnant employees are reviewed. A comparison is made between remedies available under each procedure. It is suggested that the human resource managers review their policies and procedures relevant to this issue to ensure that they do not have the effect or intent of discriminating against pregnant employees.

ABSTRACT:The UN Framework on Human Rights and Business comprises the State’s duty to protect human rights, the corporate responsibility to respect human rights, and the duty to remedy abuses. This paper focuses on the corporate responsibility to respect. It considers how to overcome obstacles, arising out of national and international law, to the development of a legally binding corporate duty to respect human rights. It is argued that the notion of human rights due diligence will lead to the creation of (...) binding legal duties and that principles of corporate and tort law can be adapted to this end. Furthermore, recent legal developments accept an “enlightened shareholder value” approach allowing corporate managers to consider human rights issues when making decisions. The responsibility to respect involves adaptation of shareholder based corporate governance towards a more stakeholder oriented approach and could lead to the development of a new, stakeholder based, corporate model. (shrink)

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)

This is a third volume of philosophical essays by Joel Feinberg. It exemplifies the clear and elegant formulation, useful conceptual distinctions, perceptive and imaginative insights, and powerful argument we have come to expect from him. Each of the first twelve essays deals with a problem of importance to moral philosophy and philosophy of law; the last two provide a preliminary taste of his projected inquiry into the absurd. Although these essays are diverse, Feinberg informs us that this volume continues its (...) predecessor’s concern with problems about rights. (shrink)

Abstract:Building on John Rawls’s account of the Law of Peoples, this paper examines the grounds and scope of the obligations of transnational corporations (TNCs) that are owned by members of developed economies and operate in developing economies. The paper advances two broad claims. First, the paper argues that there are conditions under which TNCs have obligations to fulfill a limited duty of assistance toward those living in developing economies, even though the duty is normally understood to fall on the governments (...) of developed economies. Second, by extending Rawls’s account to include a right to protection against arbitrary interference, the paper argues that TNCs can be said to have negative and positive obligations in the areas of human rights, labor standards, and environmental protection, as outlined in the U.N. Global Compact. More generally, the paper aims to further our understanding of the implications of Rawls’s account of justice. (shrink)

The UN Global Compact is a voluntary initiative designed to help fashion a more humane world by enlisting business to follow ten principles concerning human rights, labor, the environment, and corruption. Although the four-year-old Compact is a relatively successful initiative, having signed up over eleven hundred companies and more than two hundred of the large multinationals, and having begun some important projects on globalization issues, there is a serious problem in that very few of the major U.S. companies have joined. (...) While the premier U.S. companies are interested in meeting the legitimate expectations of society, there is concerncentering around accountability issues. The accountability issues are in four major areas: 1. Accountability showing that the globalization of the economy actually helps the poor. 2. Accountability showing the corporate performance matches rhetoric. 3. Accountability that provides legitimacy to a two-tier pricing system and other measures that are designed to assist the poor in developing countries. 4. Accountability in the human rights area; what societal expectations are multinational companies accountablefor? The article outlines the problems that the Compact brings to the fore and offers some insight from the ethical literature that may address U.S. company concerns or provide new ways of thinking about the issues. It further argues that the forum provided by the Compact may be the most effective means to gain consensus of the role of business in society. (shrink)

The purpose of this article is to call for the formulation and adoption of a declaration on the universal rights and duties of business. We do not attempt to define the specific contents of such a declaration, but rather attempt to explain why such a declaration is needed and what would be some of its general characteristics. The catalyst for this call was the recognition that even under optimal conditions, good companies sometimes are susceptible to moral lapses, and when companies (...) undertake ventures in authoritarian countries with poor human rights records, even those with the best intentions may find themselves drawn into complicity in human rights abuses. There, market exigencies may persuade them to leave their codes of ethics and commitments to human rights at home. Pragmatism, it would seem, requires thatthey accept the ethical inconsistencies that follow from a “When in Rome, do as they Romans do” outlook. When facing the moral dilemma about whether or not to invest in human rights abusing countries, companies are offered two alternatives: they can operate in those countries and accept potential complicity or they can stay away. We suggest, however, that a preferable option is to address the underlying problem, and to this end we advocate the promulgation of a declaration for business that is comparable to the Universal Declaration of Human Rights. Our proposed name for this is the “Declaration on the Universal Rights and Duties of Business.” To be effective, such a declaration would require enforcement mechanisms. To illustrate this issue, we focus on China, not because China is unique in its human rights abuses, but because China occupies such a central place in the globalization efforts of the major companies from around the world. A robust international declaration is needed to provide a common framework for the practice of consistent and fair business competition everywhere. (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)

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

Abstract:We discuss the role that transnational corporations (TNCs) should play in developing global governance, creating a framework of rules and regulations for the global economy. The central issue is whether TNCs should provide global rules and guarantee individual citizenship rights, or instead focus on maximizing profits. First, we describe the problems arising from the globalization process that affect the relationship between public rules and private firms. Next we consider the position of economic and management theories in relation to the social (...) responsibility of the firm. We argue that instrumental stakeholder theory and business and society research can only partially solve the global governance issue, and that more recent concepts of corporate citizenship and republican business ethics deliver theoretically and practically helpful, fresh insights. However, even these need further development, especially with regard to the legitimacy of corporate political activity. (shrink)

This paper examines the issue of global child labor. The treatment is grounded in the classical economics of Adam smith and the more recent writings of human capital theorists. Using this framework, the universal problem of child labor in newly industrializing countries is investigated. Child labor is placed in its historical context with a brief review of practices in the United States and Great Britain at the time those countries were industrializing. Then, child labor is examined in its contemporary global (...) context. We argue that, as countries industrialize, they tend to follow predictable patterns of development – including use of and eventual abandonment of child labor. We argue that this convergence under the logic of industrial capitalism supports a universalist approach to human rights (that would condemn child labor) over a more tolerant cultural relativist approach. (shrink)

The chairman of Amnesty International’s UK Business Group considers how oil companies must change their attitudes in a world which is changing faster. “Silence or inaction will be seen to provide comfort to oppression and may be adjudged complicity.” Sir Geoffrey Chandler CBE is a former senior executive of the Royal/Dutch Shell Group and architect of Shell’s first Statement of General Business Principles. This article is reprinted with permission from Oxford Energy Forum, November 1, 1997.

Abstract‘Corporate Social Responsibility (CSR) is conceptualized in many ways. We argue that one cannot be indifferent about the issue of its conceptualization. In terms of methodology, our position is that any conceptual discussion must embed CSR in political theory. With regard to substance, we link up with the discussion on whether CSR must be defined on the basis of a tripartite or a quadripartite division of business responsibilities. We share A.B. Carroll’s intuition that a quadripartite division is called for as (...) a basis to define CSR. However, defending the quadripartite division of business responsibilities requires that the distinctions between economic, legal, ethical and discretionary business responsibilities be made intelligible. Carroll’s account is defective in this respect. We argue that contemporary Neo-Kantian political ethics is able to make sense of these distinctions, because of its specific interpretation of liberalism. Interestingly, from a conventional liberal perspective this interpretation of liberalism is atypical, as it extends public morality beyond the domain of the law. (shrink)

At the UN, important projects laying down transnational corporations' (TNCs) human rights responsibilities have been launched without ever clarifying the relevant theoretical foundations. One of the consequences is that the human rights principles in projects like the 2000 UN Global Compact and the 2003 Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights can be understood in different ways, which should not cause surprise given that their authors come from diverse backgrounds, including economics (...) and public policy. An examination of these projects and the views of their authors reveals that, although they are superficially linked to international human rights law, they go well beyond it and attempt to deal with corporate social responsibility issues in ways that elude neat classification as fitting neatly in either legal or non-legal categories. Too little attention has been paid to how in the course of developing these projects the legal and ethical dimensions have become entwined and how lines have gotten blurred. Meanwhile, there has been recognition that these UN projects have emerged simply as ad hoc responses to practical concerns about the sustainability of globalization. The lack of any foundational theory or normative framework should be addressed; it is time to bring together specialists from different fields concerned with the human rights responsibilities of corporations to see if it is possible to define a coherent overarching theory for these UN projects. (shrink)

'Corporate Social Responsibility (CSR) is conceptualized in many ways. We argue that one cannot be indifferent about the issue of its conceptualization. In terms of methodology, our position is that any conceptual discussion must embed CSR in political theory. With regard to substance, we link up with the discussion on whether CSR must be defined on the basis of a tripartite or a quadripartite division of business responsibilities. We share A. B. Carroll's intuition that a quadripartite division is called for (...) as a basis to define CSR. However, defending the quadripartite division of business responsibilities requires that the distinctions between economic, legal, ethical and discretionary business responsibilities be made intelligible. Carroll's account is defective in this respect. We argue that contemporary Neo-Kantian political ethics is able to make sense of these distinctions, because of its specific interpretation of liberalism. Interestingly, from a conventional liberal perspective this interpretation of liberalism is atypical, as it extends public morality beyond the domain of the law. (shrink)

ABSTRACT:Do corporations have a duty to promote just institutions? Agreeing with Hsieh’s recent contribution, this article argues that they do. However, contrary to Hsieh, it holds that such a claim cannot be advanced convincingly only by reference to the negative duty to do no harm. Instead, such a duty necessarily must be grounded in positive obligation. In the search of a foundation for a positive duty for corporations to further just institutions, Stephen Kobrin’s notion of “private political authority” offers a (...) promising connecting point. Political authority implies political responsibility; Political obligation, however, includes more than merely not doing any harm—it is essentially positive obligation. The implications of the new political responsibilities of multinational corporations may even go far beyond the particular duty to promote just institutions; they may be symptomatic for a much more profound shift from an individual to a collective age. (shrink)

Peter Frankental, Head of Business Networks, Amnesty International, explores the role of The UN Universal Declaration of Human Rights as a corporate code of conduct. Frankental observes a changing business context, which overall increases the risk to business of dealing with other parties, including countries, subcontractors, joint venture partners and their stockholders. The paper proceeds to examine the barriers to integration of human rights, and identifies dilemmas that firms need to resolve. While in the author’s view ethical behaviour does not (...) confer competitive advantages in the short run, companies that base their codes of conduct on the UN Universal Declaration of Human Rights are likely to find themselves in the stronger position to protect their reputation, brands and assets in the longer term. (shrink)

The UN Global Compact is a voluntary initiative designed to help fashion a more humane world by enlisting business to follow ten principles concerning human rights, labor, the environment, and corruption. Although the four-year-old Compact is a relatively successful initiative, having signed up over eleven hundred companies and more than two hundred of the large multinationals, and having begun some important projects on globalization issues, there is a serious problem in that very few of the major U.S. companies have joined. (...) While the premier U.S. companies are interested in meeting the legitimate expectations of society, there is concerncentering around accountability issues. The accountability issues are in four major areas: 1. Accountability showing that the globalization of the economy actually helps the poor. 2. Accountability showing the corporate performance matches rhetoric. 3. Accountability that provides legitimacy to a two-tier pricing system and other measures that are designed to assist the poor in developing countries. 4. Accountability in the human rights area; what societal expectations are multinational companies accountablefor? The article outlines the problems that the Compact brings to the fore and offers some insight from the ethical literature that may address U.S. company concerns or provide new ways of thinking about the issues. It further argues that the forum provided by the Compact may be the most effective means to gain consensus of the role of business in society. (shrink)

This article argues that foreign multinational corporations (MNCs) in South Africa cannot evade an ethical choice, how best to exercise their leverage against apartheid? Disinvestment is only one, ambiguous option. MNCs need clear ethical goals and an effective strategy. Both arise from the political economy of the MNC (1). It involves 3 relationships, between the MNC parent and its subsidiary; the MNC home society and host society; and the MNC home state and host state. That political economy explains the MNC's (...) dependency (1a) and modernization effects (1b). Those effects give foreigners some leverage against apartheid; but an effective and ethical MNC strategy is needed (2). It involves four goals: dismantling apartheid, a mixed economy, full democracy, and a negotiated peace (2a). It suggests a sequence of MNC/home state options from Do Nothing or Divest to More Corporate Activism, Home State Support, and International Sanctions (2b). But victory is not around the corner; rather, we are all condemned to freedom. (shrink)

Most shoppers like bargains. Do bargains come at the expense of workers in sweatshops around the world? The authors argue that many large multinational corporations are running the moral equivalents of sweatshops and are not properly respecting the rights of persons. They list a set of minimum standards of safety and decency that they claim all corporations should meet (and that many are not). Finally, they defend their call for improved working conditions by replying to objections that meeting improved conditions (...) will cause greater harm than good, even to the workers themselves. They consider many specifi c corporations and name names and point the finger at various forms of disrespect for persons, along the way. (shrink)

This article argues that foreign multinational corporations in South Africa cannot evade an ethical choice, how best to exercise their leverage against apartheid? Disinvestment is only one, ambiguous option. MNCs need clear ethical goals and an effective strategy. Both arise from the political economy of the MNC . It involves 3 relationships, between the MNC parent and its subsidiary; the MNC home society and host society; and the MNC home state and host state. That political economy explains the MNC's dependency (...) and modernization effects . Those effects give foreigners some leverage against apartheid; but an effective and ethical MNC strategy is needed . It involves four goals: dismantling apartheid, a mixed economy, full democracy, and a negotiated peace . It suggests a sequence of MNC/home state options from Do Nothing or Divest to More Corporate Activism, Home State Support, and International Sanctions . But victory is not around the corner; rather, we are all condemned to freedom. (shrink)