Selasa, 26 Agustus 2014

Transnational Corporations’ Obligations towards Human Rights in New Era, Globalization


After ‘a common standard of achieving’ and ‘understanding’ the inalienable and inviolable rights of all people have been protected and promoted under Human Rights Conventions, many people have improved their living conditions. It proves that the Human Rights regime has succeed in achieving its objective. However, since interaction and interdependence among actors are growing and states’ economic powers are lessened, this power is substituted by Transnational Corporations as ‘supplementary and complementary’[1] responsibility then in some developing countries, which have a lot of natural resources, have big problem to fulfill their international human rights obligations. This condition has arisen because Human Rights regime does not included the obligations of private actors, such as Transnational Corporations and they, indirect or direct, participate in the creation of ‘the hegemony of the great economic, industrial and military powers and ever form of neo-colonialism.’[2]
            The concept of Human Rights obligations for States to citizens is changing since globalization plays important role in many countries. States are not a sole agent of international law especially under international human rights laws and TNCs’ obligations have not covered at those laws. To re-conceptualize the human rights obligations for TNC, many soft laws have been adopted to regulate the conduct of corporations in adopting human rights norms in the form of voluntary codes of conduct, for instance, Codes of Conduct and a UN draft of Codes of Conduct for TNCs in 1984[3], Declaration of Principles adopted by the ILO in 1977 addressing labor rights and TNCs[4]. Those soft laws are unsuccessful to provide legal framework for obtaining TNCs’ human rights obligations.
            The States have primary tasks under international human rights law to ensure and secure the human rights in its territory. To transform the international legal order into national legal order, States can legislate the conduct of TNCs in accordance with the human rights obligations; however this legislation is criminal law which may have human rights concepts against individuals by other private parties, for example, protecting life of people in its territory, liberty, prohibiting of killing and arbitrary detention, etc.[5] Many states have criminal law which can apply for taking the TNCs human rights obligations if TNCs violate people’s rights; however, if TNCs violate people’s rights, many governments are unable to prosecute and apply the law because most of TNCs has much power than governments. Moreover, States are unlikely to take action against TNCs because they are afraid of losing foreign investment. In these condition States are powerless then TNCs are untouchable. It may be in some cases there is a problem for the national court to apply their jurisdiction over foreigner, a nationality of TNCs differs from host States.         
            The new trend towards TNCs as direct or indirect addressees of human rights may need to restructure the international legal order; States powers in some areas are decreasing and States are no longer as a sole actor of mediating between the international law level and the rights and duties of non-state actors. ‘The declining role of States, manifested through their declining power, leads to the attempt to address TNCs directly and goes hand in hand with the increase power and influence of TNCs.’[6]  With this power, it should come responsibility for TNCs ‘then it is logical to demand human rights observance by TNCs which are as powerful as some States and may thus violate human rights in the same way as States.’[7]
            Most of TNCs have huge opportunities in economics what it used to be in many States held in reserve as State business in the public and private services through the privatization of many utilities, such as, electricity, water, gas, energy supply services, transportations, communication, and technology, etc. TNCs has played important role in public sectors; however they are enjoying as private entities that do not have private obligations.
The Impact of Globalization
            Increasing cross boarder societal exchange and transactions on economics, communication, security, and all types of contemporary social life from culture to spirituality are widely opened. One of the impacts of globalization is increasing the influence of TNCs and other non-state actors and enlarging interdependence of States in many fields mostly in trade, investment, services, and finance.
            The promotion of liberalization, privatization, and deregulation by the International Financial Institutions (IFIs) makes States loss its control over TNCs and created human rights obligation for TNCs in specific areas like social, labor, environment, and other societal goods. The process of globalization makes it difficult for States to control their own economies. States face dilemma on one hand States’ role has increased complexly in interdependent world and on the other hand international capital is attempting to take it and States almost has to give up their regulation power[8] in respect to States’ human rights obligations.   
            It is estimated that TNCs control over 75 % of world trade and those firms have become stateless at the centre of the emergence of a global economy.[9]

The concept of international legal personality can be enlarged through the acknowledgement of the ICJ that the ‘subject of law in any legal system are not necessarily identical in their nature or in the extent of their rights, and their nature depends upon the needs of the community.[10] It opens the possibility that the TNCs may be reconsidered[11] in the new system of international court likes an International Human Rights Court.  

In conclusion, the failure is to realize that respecting and promoting the rights is not only transferring the International Human Rights Conventions to all nations but also responding the new phenomenon of TNCs’ obligation to respect and promote the rights. They exist in the socio-political structures where are incapable of guaranteeing respect for human dignity.[12]



[1] Ramcharan, Human Rights Thirty Years After The Universal Declaration, Martinus Nijhoff Publishers, 1979, p. 262
[2] The Algiers Declaration of the Rights of Peoples, the Preamble of the Declaration:…we live at a time … of frustration and defeat, as new form of imperialism evolve to oppress and exploit the peoples of the world. Imperialism, using vicious methods, with the complicity of governments that it has itself often installed, continues to dominate a part of the world. Through direct or indirect intervention, through multinational enterprises, through manipulation of corrupt local politicians, with the assistance of military regimes based on police repression, torture and physical extermination of opponents, through a set of practices that has become known as neo-colonialism, imperialism extends its strangehold over many peoples.’
[3] ECOSOC Res. 1913, UN ESCOR, 57th Sess., 5 December 1974, Supp. No. 1, 3 U.N. Doc. 5570/Add. 1 (1975)
[4] International Labor Organization (ILO) “Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy 16 November 1977, reprinted in 17 ILM (1978) 423
[5] Article 2 (2) ICCPR providing: ‘where not already provided for by existing legislative or other measures, each State Party to the present Covenant undertakes to take the necessary steps, in accordance with its constitutional processes and with the provisions of the present Covenant, to adept such legislative or other measures as may be necessary to give effect to the rights recognized in the present Covenant.
[6] Alston, Non-State Actors and Human Rights, Oxford, 2005 p. 74
[7] Kapur, From Human Tragedy to Human Rights: Multinational Corporate Accountability for Human Rights Violations, 10 Boston College Third World L.J. (1990) p. 2
[8] Cerny, The Changing Architecture of Politics: Structure, Agency and the Future of the State (1990) at 237.
[9] Higgott, Underhill, and Bieler, Non-State Actors and Authority in the Global System, London, Routledge, 2000, at 1-2
[10] Reparations for Injuries Case, 1949 ICJ paras. 178.
[11] Alston, Non-State Actors and Human Rights, Oxford, 2005, p. 19
[12] See supra note No. 1 p. 249

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