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Abstract: This research critically examines corporate human rights violations (CHRVs) regarding exploitation and inequalities within the international business system. From the context of the emancipatory agenda of critical cross-cultural management, we present a novel framework for evaluating CHRVs based on a comprehensive analysis of reported cases between 2007 and 2017. Delving into the power dynamics and privileges that cast global workers, suppliers, and communities as the “other,” our research sheds light on how this conceptualization fuels decisions that put the rights of these “others” at risk. Our findings highlight violations related to all dimensions (abuse, labor, development, environment, and health) across industries and geographies. Notably, our findings align with the critical cross-cultural management literature on structural oppression that North American and Western European companies account for a significant number of violations in developing countries
Abstract: This paper investigates the extent and the strategies of human rights due diligence (HRDD) disclosure by the largest 100 EU-listed firms. Our work is performed at a key point in time when institutional expectations to conduct HRDD are building, allowing us to assess firms’ readiness for emerging and forthcoming legally binding regulation in the EU. To analyse corporate disclosures, we develop a scoring tool based on the United Nations’ Guiding Principles on Business and Human Rights (UNGPs). We interpret our findings building on Oliver’s (1991) theoretical framework of firms’ strategic responses to institutional pressures, as adopted in the context of social and environmental accounting and integrated with concepts from the literature on substantive and symbolic disclosure approaches. Our contributions advance the understanding of the ways that firms are engaging with the HRDD issue and the state or level of their engagement. We reveal three key HRDD disclosure strategies: dismissal, concealment, and compliance. The presence of the dismissal category is particularly significant, implying weak engagement with HRDD for many firms in our sample. Furthermore, we find that while many firms have a talk-orientation, where they communicate a commitment to protect human rights, the extent to which disclosures are action-oriented and detail the key practice of HRDD is significantly neglected. Important implications also follow for policymakers as our results can enhance the capability of new regulation to better enforce a strategic engagement outcome
Abstract: Human rights violations and pressing environmental issues have tainted agricultural trade. The role of international market demand for commodities such as soy in causing those problems is clear, yet they remain mostly unaddressed. Therefore, European countries have led a new global trend on mandatory human rights and environmental due diligence (HREDD), advancing the EU's growing global regulatory ambitions. Here, we analyse the prospects for successful externalisation of Europe's sustainability standards – a ‘Brussels Effect’ – using Brazilian soy as a case. Our analysis exposes how the practice of supply chain divergence (i.e., the segmentation of exports tailored to different consumer requirements) can easily evade policy impacts and negate their additionality where Europe commands a minor market share. To avoid becoming just a niche market in these cases, the EU would need to expand on its actions, (i) engaging with other major consumer countries to export its standards, (ii) doubling down on HREDD's coverage to include financial actors and companies trading with other markets, or (iii) moving beyond ‘do no harm’ policies to adopt more strategically targeted ‘do good’ instruments to counter drivers of deforestation on the landscape level.
Abstract: This essay outlines the changing modes of regulation of labor conditions in global apparel supply chains, which are mostly concentrated in Asia; assesses the effectiveness of 25 years of private voluntary regulation by global firms; and examines critically the implications of new European regulation now mandating what was previously a voluntary corporate activity. main argument Asia is the global center of apparel production, with Bangladesh, Cambodia, China, India, Indonesia, Pakistan, and Vietnam all being major exporters.(...)
Abstract: Human rights due diligence in supply chains is increasingly important for companies, as mandatory due diligence standards are being drafted and considered in domestic jurisdictions, at the European Union level and in an international treaty negotiation process. In applying a legal standard of care for human rights due diligence, a core consideration will be what can reasonably be required of a company in a supply chain. Yet evidence of companies’ actual practices in this area remains rare. This article remedies this by exploring some specific examples of what companies do in this area, in order to assist in an assessment of what is possible, what is challenging, and what is already being done in terms of human rights due diligence in supply chains. It analyses how companies have identified human rights impacts, what actions have been taken to prevent and respond to impacts, to track and monitor actions taken, and to communicate this. This article identifies key themes and clarifies the relevant applicable standard of human rights due diligence in practice, which is relevant for judges, regulators and claimants. This analysis will assist all companies in understanding what is expected of them and in formulating good practices.
Abstract: Over the last few decades, advances in transportation and production technology, in conjunction with economic globalization and the emergence of multinational corporations, have consolidated fragmented production processes into long and complex supply chains across jurisdictions. While there are benefits to such global supply chains (“GSCs”), the prevalence of human rights violations attributable to information asymmetry, as well as rule of law gaps between different jurisdictions, has been a constant challenge. Modern slavery, child abuse, harsh working conditions, low wages, and other problems have reoccurred in the factories of upstream suppliers in the global South and have been systemically ignored by buyers in the global North. As such, how to alleviate human rights abuses along GSCs is indeed a daunting problem. (…)
Abstract : The corporate responsibility to respect human rights was formally introduced in 2011 with the unanimous endorsement of the UN Guiding Principles on Business and Human Rights (UNGPs) by the UN Human Rights Council. It is grounded in social expectations and forms part of the companies' "social license to operate." This paper argues that this responsibility is progressively turning into a legal duty for lead companies to respect human rights in those types of value chains which are characterized by a high level of control by a lead company over its business partners. Our argument rests on two recent legal developments. Firstly, the article analyzes the judicialization of the corporate responsibility to respect in the case law on parent company liability in various jurisdictions, which, we argue, is highly likely to have some implications in relation to certain types of value chains so as to trigger the liability of lead companies for the human rights harms arising out of the activities of entities over which they exercise sufficient control. Secondly, the article delves into the legislative developments which increasingly require lead companies to exercise due diligence so as to prevent and address adverse human rights impacts in their own activities and global value chains.
Abstract: Environmental crimes are a growing concern of today’s society, as are human rights violations committed by corporations. The European Union has defined both topics as legislative priorities and put forward two legislative instruments to better regulate these issues. On a first glance, there is no connection between these topics. However, this paper suggests that there is such a connection, and that the excellent timing of the proposals, which are being discussed at the same time, should be seized. This paper thus argues that the proposal for an Environmental Crime Directive should encompass a human rights approach by criminalizing the violation of serious due diligence obligations of the Corporate Sustainability Due Diligence Directive. Through a detailed analysis of the legislative drafting procedure leading to the proposal for an Environmental Crime Directive, this paper will assess whether such human rights approach is possible and whether it should be followed.
Abstract by the authors: This paper re-examines why global collective action problems persist, and how to overcome them. Drawing on 140 interviews with campaigners, politicians, and businesses in 10 European countries, it suggests that many activists are stuck in a despondency trap. Never seeing radical reform, they lower their ambitions, and invest in more feasible but sub-optimal alternatives. This creates a negative feedback loop, in which the dearth of radical reform becomes self-fulfilling. But if reformists see advances at home and abroad, they may become more optimistic about collective mobilisation and break out of their despondency trap. This is shown by tracing the drivers of ground-breaking legislation. From 2018, large French firms must mitigate risks of environmental and human rights abuses in their global supply chains, or else be liable. This bill – the world’s first of its kind – was vociferously contested by businesses. But French campaigners and politicians persisted for four years, because they saw reasons for optimism. These include growing international support; public outcry; the French political culture (state intervention, and distrust of multinationals); together with a Centre-Left Government. Optimism galvanised relentless mobilisation. Legislative success in France then delivered a positive shock to activists across Europe, who were emboldened to launch similar campaigns and escape their despondency trap.
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