Escolar Documentos
Profissional Documentos
Cultura Documentos
Jeff Aguero
History 1917
Elkins
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clothing and show manufacturers ensure wages for workers in developing nations in Asia
that will allow them to pay their bills and buy food without having to work ninety hours
per week. Imagine a world where investment firms voluntarily withdraw funds from
countries if they refuse to provide necessary medicine from their ailing populations. All
of these scenes are few and far between in our modern world, because corporations rarely
involve themselves in protecting human rights beyond the minimal responsibilities which
normative or regulatory structures mandate. At the same time, such a world is not all that
far off, assuming that changes in how the relationship between corporations and human
rights is conceptualized.
The corporation is at the same time extremely dangerous and infinitely valuable
when it comes to protecting human rights; in today’s world, where globalization rules, the
corporation is arguably the most influential structure in affecting situations around the
globe. Corporations make up for many of the deficiencies that the nation-state and NGOs
exhibit in dealing with human rights, and have tremendous power to right many wrongs,
though such influence remains largely untapped. In order to change this, we must seek to
change the nature of the corporation in the regulatory and normative spheres of society.
Fundamentally, such changes must make it beneficial and good business practice for the
show while such transfigurations will undoubtedly be painstakingly difficult, the benefit
is far too great to ignore. Both opportunity and necessity to protect all of the world’s
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citizens dictate that efforts to bring about this change must be undertaken – and soon at
that.
whatever cost – and create the greatest amount of economic value; human rights on the
other hand seeks to optimize the conditions of the survival and protect against
infringements upon basic guarantees or safety and protection. Fundamentally, the profit
motive and the rights motive should be polar opposites, with virtually no overlap. Why
then would the thought of ever combining these two concepts ever be plausible?
The discourse on the relationship and need to combine human rights discourse
and private corporations derives first and foremost in the obsolescence of the nation-state
in the modern world. It has become clear that as globalization increases, that the
problems of inter-state hostility that plague the nation-state must be addressed in a new
form. The suggestion to turn to international political organizations such as the United
Nations is a clear one, and yet when looking at the evolution of our prior social
structures, there is still something lacking. In looking at where the level of social
organization is headed, the past has shown that the next level will encompass more than
just a compilation of units of the same level. To quote Alvin Wolfe: “A tribe is not a
federation of families; a nation is not a federation of tribes; neither is it likely that man’s
present problem will be solved by a federation of states.” 1 There are additional structures,
1
Wolfe, Alvin W. “The African Mineral Industry: Evolution of Supranational Level of Integration.” Social
Problems, Vol. 11, No. 2 (Autumn, 1963), pp 153-164.
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institutions, and entities that make up each higher level and in doing so transcend a mere
amalgamation of the individual units. So too, as Wolfe suggests, will be the case with the
new order to succeed the nation-state. If we are not to turn only to organizations such as
the United Nations as the successor to the nation-state for social organization, the
corporation and private enterprise arises as a logical contender. To fully evaluate the
sovereignty and boundaries of power. The concept of national sovereignty is both the
pride and the plague of the nation-state; it allows for great amounts of power and
origination within a given space, but at the same time complicates and effectively
prohibits any other nation from interacting within another nation’s boundaries. Nation-
states are seen to have direct and complete control over their physical borders and any
attempts by another nation to meddle in the affairs within that space are seen as hostile
interference, and in many cases a direct act of war. So, while nations that behave
appropriately and maintain human rights accords pose no problem, other nations, who do
infringe upon human rights, raise the question of how to bring about legitimate change
and rectify the situation in those countries. Should it be the realm of an international
body made up of many nations – such as NATO or the UN Security Council – to regulate
such issues? Should individual states – such as the United States in Iraq – be able to take
these are questions with no clear answer and lack a feasible, long-term solution. No clear
mandate exists on how to address the tricky balance between national sovereignty and
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human rights protection. This is even more complicated by the ever-more global
environment of the present day, as quite often the events in one nation have direct and
indirect effects on the consequences of other nations, both on a regional and global scale.
Compare the problems faced by the nation-state on this issue with the position of
the corporation. Unlike nation-states, modern corporations are rarely limited by physical
constraints on space. In fact, most corporations not only have flexible locations and
multiple offices within a given country or region, but often have personnel and
employees throughout the world. The desire of the corporation to reach new markets of
consumers and new sources of resources has led to mass diffusion of employees across
the globe. These long arms of the corporation allow for a vast web of influence that not
only is global in scope, but can be redirected and reallocated relatively easily. Take a
large company such as Procter and Gamble, with offices in over a hundred countries
worldwide, ranging form Argentina to Yemen and Norway to Vietnam. Not only does
Procter and Gamble have offices on the ground in each of these locales, with local
experts who are familiar with the in and outs of each specific country, but they also have
the ability to shift resources and power between different offices and countries with
relative ease. If a new product in Peru generates the need for added personnel or
additional funds, then the corporate headquarters in the United States can easily
Indonesia, and they need machinery from a Russian refinery then it can easily be moved
there on request. Clearly, these may be oversimplification of the issues faced by TNCs
on a daily basis, but it does make the point that companies are far easily to negotiate
international boundaries and move resources between them than nation-states in their
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present form are able to. In this way, the TNC substantially makes up for the
previously managed by the government – such as healthcare – have been privatized and
are now under control by private enterprises.2 Because of this, and the investment that
private corporations already have in certain aspects of social services that were
concerned with the manufacturing and providing of those services, but also to ensure that
A second issue that arises with the form of the nation-state in dealing with human
rights abuses and protection focuses on the availability of and accessibility to resources.
While many Western nation states have plentiful economic resources at their disposal,
nations in the developing world often lack financial power and clout, and it is more often
in developing nations, such as those in Africa, where the vast majority of human rights
abuses and violations occur. The fact that these abuses occur in the countries that are
most often ill-equipped in terms of resources to deal with them presents an extremely
dangerous predicament. Without more resources human rights abuses may continue, but
it may difficult to acquire more resources if human rights abuses also hamper economic
production. Turning again to the TNC, we see that this issue is more easily handled by a
private entity with more accessibility to resources; in fact, in many cases, the annual
gross income of many TNCs is equivalent to or greater than some developing countries.3
Transnational corporations, unlike nation states, must generally be fiscally solvent and
companies that exist and function even while unprofitable – whether through government
intervention or some other method – in most cases, the TNC, in order to effectively
company ceases to be financially viable, then it will soon cease to exist, meaning that the
TNCs that do exist are generally profitable in the long term. Compare this to the nation-
state, which even if it does go bankrupt or run out of funds, does not go cease to function,
but can just inject more money into the economy or run on a deficit, often leading to
in turn means that the nation-state will have financial resources that can be used to
augment human rights protection and enact change to promote the protection of human
rights. While clearly a company cannot spend all of its funding on protecting human
rights, the fact remains that TNCs are often in far better positions to offer funding for
human rights protection than governments. Likewise, the sheer volume of TNCs in the
world means that there will be a greater degree of capital accessible as a whole. Again, in
this way, TNCs are better equipped to deal with the human rights issue in the global
world.
human rights arena, concerns not the nation-state, but rather another private entity that
has sought to assist in the area of human rights protection – the non-governmental
organization (NGO). NGOs are extremely important actors in the fight for ensuring
human rights as their sole purpose is often dedicated to this specific cause. Furthermore,
they employees or volunteers are highly committed and have a genuine interest in
bringing about change as their primary goal. Despite the good intentions and well-
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aligned motives, NGOs face major impediments in their quest. First, NGOs are
chronically and drastically under funded and always are in search of more financial
resources. Few and far between (if at all) are there NGOs that have adequate funding for
the programs or initiatives they seek to advance. Whether healthcare rights, stopping
genocide, or ensuring food and drinking water, NGOs constantly struggle to acquire more
funding from private donors, grants, gifts, governmental assistance, and the like. The
small economic profile of these organizations also directly affects the second problem
they face – their low status position in the society’s power hierarchy. While NGOs
clearly gain high status from their motives and goals, quite often their low economic
stature leads them to have little clout when it comes to advancing their positions. The
requisite societal actors on who NGOs rely on to help further their organization often
give little credence to their demands as serious threats or requests, and instead only deal
with them when convenient. The high esteem with which these NGOs are held is often
hampered in its effectiveness by their lack of financial resources, which when considered
comparing the problems faced by NGOs to the form of the TNC, many of these
difficulties disappear. Unlike the NGO, the TNC does not suffer from lack of resources
or funding, as the very nature of the organization is aimed at making a profit. Likewise,
developing countries anxious for injections of capital, the TNC holds a position as a high-
status actor; national leaders, scared of losing investment by the TNC are far more likely
to consider demands and give support to programs proposed by a TNC rather than an
NGO. From these two instances, it again becomes clear as to the superior nature of the
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While the corporation clearly retains advantages in some aspects of being able to
protect human rights in the international arena, that does not preclude its own difficulties
as well. One major problem with trying to move corporations into the arena of human
rights lies in how to realign an organization which has traditionally had motives based
purely on profit to be concerned with defending human rights practices of individuals not
directly connected directly with the company. Companies have always been focused on
generating profits and retaining fiscal profitability as their primary goal, by default of the
has a desire to make money and so it is necessary to adjust and realign this goal if one is
to move TNCs into the role of human rights defenders. But because of the nature of the
TNC in relation to capitalism, one simply cannot tell a company that it must protect
human rights and expect it to comply. Peter Muchlinski writes: “…TNCs and other
business enterprises are in business. Their only social responsibility is to make profits for
their shareholders. It is not for them to act as moral arbiters in relation to the wider issues
arising in the communities in which they operate.”4 Muchlinksi’s point is well taken, and
this presents a major obstacle to any discussion on TNCs and human rights.
Closely related to this is the great power that corporations have to negatively
impact human rights as well. As discussed in the previous section, TNCs have an
extremely influential position when it comes to being able to influence human rights.
4
Muchlinski, Peter. “The Development of Human Rights Responsibilities for MNEs.” In Business and
Human Rights. Rory Sullivan, ed. Sheffield, UK: Greenleaf Publishing, 2003.
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However, quite often corporations utilize their unique position to achieve their own goals
at the cost of human rights. Consider the role that TNCs play in providing food for
developing nations, such as the island states of the Caribbean, where the economic
growth generated by the TNCs has often been withheld from the lower social and
economic classes; on this, David Kowalewski writes: “An increase in wealth does not
necessarily imply an increase in the enjoyment of rights.”5 Because of there small size
and lack of abundant soil for production in Caribbean nations, as well as there large
population growth over the past few decades, there is considerable strain on the
environments of these small island nations. Further contributing to the problem is that
even where there is good soil, most of the land is taken up by commercial export farms
rather than domestic foodstuff production. Many TNCs from the United States, Britain,
Canada, and the Netherlands have established operations in the Caribbean. The unique
situation of being close to the United States, disunited from each other (which thus allow
one island to be played off another), controlling vast resources, and low labor wages
inequality in Caribbean nations and thus exacerbate hunger problems. The fact that many
TNCs have annual incomes close or equal the entire national income of some countries
these nations. TNCs control a great deal of land for agricultural, tourist, or natural
resource extraction, and generally the land they control is among the highest quality on
the islands. For example, sugar magnates such as Tate and Lyle control a high percentage
5
Kowalewski, David. “Transnational Corporations and the Third World’s Right to Eat.” In Human Rights
Quarterly, Vol. 3, No. 4. (1981) pp 45-64.
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of the most desirable and profitable land in Puerto Rico and Trinidad and Tobago.
Additionally, TNCs will often not make the most publicly and socially responsible use of
the land they hold. In Puerto Rico, a number of companies hold huge masses of land idle
for real estate speculation purposes while keeping it undeveloped – whereas it could be
used for food production. Similar things occur with southern Caribbean islands and oil
companies who wish to keep the reserves untapped and prohibit other types of
development on the land. These TNCs also introduce high quality goods into the
environment (food included) that are either 1) out of reach economically for much of the
population, or 2) do not increase the nutrition level or health of the population relative to
the increased cost. This goes back to the TNCs ability, especially in economically
developing countries, to drastically impact consumer choice and preferences. One prime
higher proportion of income of poorer families than richer families. In turn, these poorer
families want to get the most efficiency from what little formula they have and dilute the
formula, to levels that negate its value or even may cause problems for the infants.6 Not
only does this provide higher health costs for the family as a whole, but it also diverts
These highlight some of the way in which TNCs can do harm in developing
nations. Consider however, that each of these situations could also easily be pivoted in a
positive way, also do to the TNC. It is essential that TNCs use their resources and
unique positions towards positive ends, and in order to promote such aims it is necessary
to evaluate both regulatory and normative aspects of changing the nature of the
Perhaps the most clear and easily comprehendible way of making corporations
relevant actors in the global human rights arena is to change regulations that govern the
conduct of corporations. Such changes can take many forms and affect TNCs in a variety
of ways, both directly and indirectly impacting their behavior in regards to human rights.
The most clear and distinct approach is to directly legislate that corporations act
to stop or prevent human rights abuses. This is clearly a very radical approach and is
something that has not been tested or applied in modern society, because it is tantamount
to restricting the free market and imposing state ideals and beliefs directly on the
company. Additionally, the degree of specificity required for an action such as this would
be so much as to hamper human rights protection in the long run. If governments and
other regulatory agencies or institutions passed direct legislation or rule changes every
time they saw a specific human rights abuse, it would clearly be a waste of time and
resources. Imagine a world where governments and the UN passed regulations forcing
corporations to act on behalf of them as proxies to stop human rights abuses in Darfur,
Rwanda, Yugoslavia, Zaire, and the list goes on. These regulatory agencies would be
spending so much time and money legitimating to tell TNCs to go and stop these abuses
that they could stop them on their own. Therefore, this type of direct, individual event-
based regulation relating to TNCs and human rights is clearly not feasible.
Another method seen with more frequency for regulating the relationship between
TNCs and human rights is to only change the regulatory environment in extreme,
standout cases. The most clear and well-recognized example of this is seen in combating
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apartheid in South Africa, when certain governments of developed nations – most notably
Japan and Sweden – forced their companies to divest from South Africa and South
Japan’s ban required an essential liquidation of all commercial assets, and Sweden’s
legislation froze it at current levels. Other countries such as the United States and
investments in South Africa and halted programs that previously aimed to foster growth.7
Sentiments against the situation in South African had been building for many years and
people from around the world had expressed disdain for the actions of the apartheid
regime. This extraordinary case of human rights of abuse definitely created a unique
environment that was exceptionally amendable to regulatory changes and shifts and for
the direct intervention of governments in forcing companies to withdraw. The issue with
instances such as South Africa (or more recently to a lesser degree in Darfur), is that it
takes such a large and coordinated effort on a tremendous scale in order to bring about
such a large change in the regulatory atmosphere. For the government to directly force
companies to refrain from doing business or stop human rights in a specific country due
to a specific violation is far from the norm and requires such a horrific event that it does
not happen often. Because of this, such action on behalf of the government to regulate
companies in such a direct way on a specific circumstance are extremely rare and
difficult to maintain and this type of governmental regulation should be considered the
7
Franck, Thomas M., Padgett, Anthony, et.al. “An Investment Boycott by the Developing Countries
against South Africa: A Rationale and Preliminary Assessment of Feasibility.” In Human Rights Quarterly,
Vol. 4., No. 3., (Autumn, 1982), pp. 309-332.
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regulatory structure. Rather than direct regulation on specific instances, governments are
much more well-equipped at changing the behavior of TNCs with respect to human right
general to protect human rights, rather than focus on specific instances. These indirect
regulations need not be abstract and removed from concrete understanding, but instead
TNCs are headquartered or largely based out of can require companies to report their
holdings and financial transactions with overseas entities to the public. This would allow
transparency of assets and allow for greater public knowledge of where firms’ funds are
located and in which countries they are working; if norms are present (which will be
discussed later in more depth) that view corporate presence in countries that violate
human rights is unacceptable, then knowing where companies are invested will clearly
help pressure companies to divest. Another and more direct form would be to develop
some type of objective criteria that would prohibit companies from investing in rights
violating countries at all. While the specific type of criteria for determining what would
characterize a “rights violating regime” is up for discussion, the fact that governments
could develop a criteria at all is not at issue. If such legislation were passed (whether by
from engaging in business with regimes or within countries that perpetuate human rights
violations, or could face penalties for engaging in such business. It would clearly be
more valuable to have an international standard for rating human rights records of all
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nations so that international standardization could occur and that TNCs would be held to
Such actions to generally change the way that governments deal with corporations
on human rights would be contrary to what has largely happened historically thus far.
During the Carter and Reagan administrations, the Treasury department – which controls
how the U.S. representative vote in all international monetary and economic institutions –
discouraged any linkage between votes to give aid to a country and the governments of
that country’s human rights record. Even if the country in question had a poor human
rights record, if the project promoted “basic human needs,” then funding went ahead as
scheduled – even if the funding that was allocated by institutions such as the IMF directly
or indirectly benefit the oppressive regimes. The Harkin Amendment was a major enabler
of this, and the Treasury department lobbied against it under Carter. This amendment
allows the U.S. to voice its opposition to loans or grants to violating countries but does
not require them to vote against it. Similar circumstances occurred in the Commerce
department under Reagan which also generally was against any binding and direct
linkages between trade policy and human rights. While the Commerce department did
receive information and recommendations from the State Department on human rights
abuses, before granting licenses that involved certain foreign governments, they were
only recommendations and the Commerce Department was not under any obligation to
abide by them. Furthermore, even when the U.S. has voted against funding to other
nations, the Treasury Department has been reluctant to lobby other nations to join us in
voting against such funding.8 Such actions demonstrate the need to change the regulatory
8
Maynard, Edwin S. “The Bureaucracy and Implementation of U.S. Human Rights Policy.” Human
Rights Quarterly, Vol. 11, No. 2. (May 1989) . pp. 175-248.
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environment to advocate more strongly in favor of protecting human rights, and against
Another, more concrete example of how governments can alter the regulatory
environment is in regards to the World Trade Organization (WTO). The signing of the
United States to the global treaty in 1994 (and subsequently the North American Free
Trade Agreement a few years later) ushered in a new era that had been slowly building in
free trade to our world and swiftly increased the pace of globalization. The WTO creates
a global trade environment that effectively puts restrictions higher than any domestic
laws on TNCs and international trade. Under the WTO, countries can bring each other to
when one country feels that it is being shortchanged by another on a trade issue or by a
policy within that country. Because in the United States (and many other countries
treaties are binding in nature once they have been signed, the findings and decisions of
the WTO and NAFTA are required to be adhered to – even if they go against current laws
in the United States (with some constitutional protections exempt). The most shocking
portion of this treaty however, and the most relevant to our current discussion, is that
TNCs can also bring charges or disputes against nation-states under the WTO rules. For
example, if a TNC that refines oil has been forced to improve its refinement techniques
due to a state or federal law, and it wants to challenge that law, it can bring the dispute to
the WTO in the same way a nation-state could.9 Clearly, such developments have led to
the tremendous increase in the power of TNCs to influence the environment and skirt
rules they formerly had to abide by. While this power is not always a negative thing for
9
Hartmann, Thom. Unequal Protection: The Rise of Corporate Dominance and the Theft of Human Rights.
New York: Rodale, 2002.
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TNCs, in respect to human rights protection it clearly presents a major threat, in that
TNCs have greater abilities to go around legislation that may have previously stopped
them from operating in countries that violate human rights as well as using practices or
processes that may endanger human rights. Consider that large transnational
pharmaceutical companies can use the WTO to move around local drug testing,
treatment, quality control, and distribution regulations in specific locales. Thus, a clear
and defined way that governmental actors can change the regulatory environment to
better protect human rights would be to modify the terms of the WTO to protect people
from being taken advantage of by TNCs who may choose to use the WTO to engage in
practices or do business with entities that perpetuate human rights abuses. Surely, such
action will generate strong criticism and steps will need to be small at first, but even the
institution of small safeguards can go a long way in helping to curve the degree of human
rights abuses. The WTO can also be used to bring about great positive result and defend
the poorest citizens of the world by ensuring they receive a fair price and equitable access
While regulatory changes are often easier to visualize concretely and to use to
convince people of the need for changes in the human rights protections, an equally, if
not more, powerful realm of helping to protect human rights lies in changing the
10
Kinsley, David and McBeth, Adam. “Human Rights, trade, and multinational corporations.” In Business
and Human Rights. Rory Sullivan, ed. Sheffield, UK: Greenleaf Publishing, 2003.
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normative environment and the culture of human rights discourse in society. Normative
changes do not necessarily focus on changing the codified and mechanical processes that
relate to human right sin the way that regulatory changes do, but instead changing
cultural attitudes, social feelings, and generally the way that human rights is
conceptualized in society. Rather than work to bring about legal changes that specifically
prohibit corporations from doing business in countries that violate human rights routinely,
or from engaging in practices that violate human rights, normative changes focus on
making it socially unacceptable for companies to violate human rights, and even
necessary for them to help protect human rights. Normative changes involve changing
the collective attitudes of society as to what the relationship is between the TNC and
human rights; some evidence supporting a normative shift exists, as seen in the inclusion
are also responsible for promoting and securing the human rights set forth in the
Universal Declaration of Human Rights.”11 There are a number of ways to achieve this
and a number of results that can occur, the most relevant of which will be discussed here.
As discussed above, the primary goal of TNCs is to earn financial profit – that is,
to make money. In most cases TNCs make money by providing a service or selling a
product, for which there is adequate demand in the marketplace. In most cases, the
process by which that product is made – as long as it is safe, clean, and at the expected
degree of quality – is of little concern to the average consumer. Companies sell a product
11
Accessible here: (http://www1.umn.edu/humanrts/links/norms-Aug2003.html). Norms on the
Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human
Rights, U.N. Doc. E/CN.4/Sub.2/2003/12/Rev.2 (2003).
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or service, and consumers buy the product or service if it meets the need at the time; as
much media attention may be focused on a given standout case at a time – such as Kathie
Lee Gifford’s slave-made clothes or the average wages of Nike workers in Indonesia –
there is little if any concern by the consumer as to the conditions under which that
product or service was manufactured. While there are cases such as those mentioned
above of consumer uproar regarding the human rights behind their clothes or other goods,
by and large there is little routine concern over such issues, and human rights is generally
absent from the consumer product market. It is not that individuals who buy these goods
necessarily condone human rights abuses for their own sake – for in many cases,
champions of human rights in one arena can be found wearing Nikes or Polo shirts – but
instead that, 1) they are too ignorant and ill-informed about many of the processes behind
their goods, and 2) they are more concerned with paying the lowest possible price for the
said good, while retaining the highest possible quality. These two key issues provide
enough of a distraction for the consumer that human rights, even when considered, is the
tertiary concern, at best. And because of this preference by consumers, companies have
no impetus to integrate human rights into the popular fold of their production or
manufacturing processes. Thus, in order to bring about companies – whose primary goal
is profit – we must work to make it profitable for companies to promote human rights (as
well as unprofitable for them to promote behavior that violates human rights). This
change can be aided by regulatory alternations and modifications, but at its heart must
come from changes in consumer preferences and market dynamics that govern the way
environment, can come in a number of forms, and work with different rates of success in
different nations. One key way to bring about normative change focuses on addressing
the ignorance and lack of knowledge of most people as to the practices and processes by
which their goods are made or their services are rendered. Greater education on the way
that goods are made and the conditions which workers who make them must endure are
essential in raising the stature of human rights in relation to TNCs. Raising awareness of
human rights issues can be done in a number of ways: television specials (that are quite
common today) on the production methods of many popular items, shifting education to
include greater sections on the modern economies of other nations (including those that
produce manufactured goods), and increasing forums available for discourse on such
companies to attached labels or ratings on the method of production o their goods. This
manifests itself more clearly as creating and establishing unofficial rating systems and
disseminating publicly, knowledge about the strip cubs. And as illuminating and
insightful as the CNN Special Report on Malaysian children who work for one dollar per
day can be, in many cases it is only a fleeting glimpse and the flavor the week, with little
lasting impact on the average person. Once the sources and pathways of information are
available, and people are able to access them, it is equally important to ensure that the
information “sticks” and that it will not disappear as soon as a new issue appears. This
reprioritizing human rights on the scale of relative importance; to raise the stature of
human rights it will be necessary to integrate it into the education system as a key
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element of basic learning and understanding. Also useful in this portion of the task is
utilizing mainstream cultural elements to integrate human rights discourse into everyday
life. Popular movies, cartoons, musicians, art, and the like are very valuable tools in
working to entrench the concept of global human rights in the American and Western
psyche, to the same degree that liberty, freedom, and democracy are. Once people begin
to understand concretely more about the processes by which their goods are produced,
such knowledge will surely begin to seep over to their considerations when purchasing
these goods; with the proper techniques for a human rights education campaign, one can
easily imagine a consumer force armed with the knowledge of how their sweatshirts and
tennis shoes are made, using this knowledge as part of the equation when deciding on
which brand to purchase. It would be foolish to think that individuals would blatantly
choose buying a shirt from a company that does not even pay its Indonesian workers who
make the shirts enough money to afford safe water. This is not to say that consumers will
make purchase decision solely on the basis of human rights (without a consideration of
costs or other issues), but that the humane production of goods by a company could
achieve the same importance in purchasing decision as a factor such as brand loyalty.
Once the normative changes begin to affect consumer buying preferences, companies will
soon be forced to adjust their mechanism to be in line with what consumers are
purchasing, lest they begin to lose money. If consumers begin to decide to purchase only
human rights friendly goods then companies necessarily must change their production
knowledge and scrutiny of business practices have been, one need only to look to the
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businesses themselves. Businesses are well aware of this increased scrutiny that has
come their way in recent years, from the media, government, NGOs, and even private
citizens, and have taken steps to be more proactive in such circumstances. Moreover,
literature on the subject that is read by management executives and other influential
makers of corporate policy stress the importance of human rights in Africa, and are
careful to advise companies not to underestimate the costs of not developing successful
human rights policies. One such manual, distributed by Amnesty International at the
Prince of Wales International Business Forum writes: “TNCs operating in countries with
repressive and corrupt regimes are at particular risk of criticism from a wide array of
stakeholders for complicity…it is naïve and risky for companies not to take their human
to Dell Computers to Microsoft have established campaigns and foundations that work to
address human rights issues on a global scale, whether directly through their own work or
through philanthropic efforts. The Bill and Melinda Gates Foundation is perhaps the
combating health and social crises worldwide through means ranging from direct funding
coffee companies, promotes the growing of “fair trade” coffee, where farmers receive a
decent and fair wage for their crops – so that they can live off of it.13 In its “Coffee
Social Responsibility” brochure, Starbucks writes that it takes steps, including: “paying
12
Taken from Human Rights: Is It Any of Your Business?, a manual that was distributed by Amnesty
International at the Prince of Wales International Business Leaders Forum. The book focuses on
establishing the responsibility of corporations in human rights as well as the benefits and repercussions of
having both successful and unsuccessful human rights policies. While clearly Amnesty International is a
group with a proclivity towards protecting human rights, this does not devalue the fact that such literature
was indeed distributed.
13
Taken from “Starbucks, Fair Trade, and Coffee Social Responsibility.” Available online at :
(www.starbucks.com/aboutus/StarbucksAndFairTrade.pdf)
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substantial premiums for all coffee purchases, long term contracts and affordable credit
for farmers, direct purchasing, investing in social projects in coffee communities, and
North American purchaser of fair trade certified coffee. The company also works
projects on water development (ETHOS) and wildlife and natural resource preservation
in Africa.14 Such practices are also in effect at Harvard, where signs advertising “fair
trade coffee” are present throughout dining halls on campus. These efforts by
environment so that companies have needed to pay larger attention to integrating human
rights into their corporate plans. Surely there are still plenty of companies who have not
adopted such policies, but by major companies such as Starbucks and Microsoft taking
the lead, it shows that such changes are at least on the way. As consumers continue to
demand more out of corporate actors in terms of promoting basic human rights, the
degree to which the corporate world on the whole embraces such efforts will increase as
well.
Another success story in the normative realm has been the changes that have
taken place in the business education field over the past two decades. Major
responsibility have taken hold in MBA and undergraduate business programs across the
country (and to a lesser extent, the world) and in doing so have provided a natural, new
avenue for human rights discussion in the academy. Though the specific inclusion of
what these curriculum areas entail and to what degree they are stressed at each particular
14
Taken from the “Starbucks in Our Communities” brochure, available in Starbucks worldwide. The
brochure claims that the ETHOS project “manages humanitarian water projects around the world.”
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school, there is a common thread that runs between them – the focus on the responsibility
of the corporation as a social actor. Whether the specific program focuses on making the
debacle) or on the need to protect natural resources or the environment as a manger, the
fact that corporations are even being discussed as having a legitimate responsibility as
social actors, with social responsibilities is a clear step forwards. We can surely hope that
as this program develops, schools will further develop programs that explicitly work to
educate manager business leaders on the need for international protections on human
rights through the corporation as a vehicle; this development may be many years off, but
the promising developments in this general field as of late are quite promising. And even
if, as some critic suggest, that the inclusion of such required courses on ethics and social
responsibility of TNCs is simply paying lip service to the issue, while not generating any
real change, it still has benefits in bringing about a discourse and forum for which more
discussion on the social responsibility of TNCs can be debated and discussed. Such
discourse will inevitably provide some degree of normative shifts in how people perceive
A final method of normative change of view of the human rights and business
relationship simply takes some of the previously discussed strategies and focuses them on
a single event – much in the same way that regulatory schemas can be used to achieve a
human rights abuse and mobilizing public sentiment to pressure companies who are
involved in or complicit with such actions has been successfully used a number of times.
Company A’s involvement in a country or region that is suffering human rights abuses, or
their business dealings with a regime or group that begins such violence. After and
during the education of the public to the company’s relationship to the abuses, a
rights violating activities begins. The normative change that occurs in individualized
cases such as these are generally very finely directed at specific companies, industries, or
regions, and the changes are short-lived; generally, when companies are pressured by
public sentiment to alter their behavior in cases such as these, they are not forced to alter
their activities across the board, but instead divest or disengage from specific countries or
regimes. In other cases the entire activities one company may come under scrutiny,
leaving other companies (at least temporarily) out of the spotlight. Whether focus is
in a specific country (such as with Darfur), it is often relatively short-lived and eventually
declines in popularity and importance. Beyond ending to relieving the human rights
abuses that are occurring at the present time in these sensationalized cases, these
localized normative changes and pressure also contribute to the long-term macro level
changes in norms of the relationship between business and human rights. As more and
more cases of pressure on companies to help stop (or at least not perpetrate) human rights
abuses, the nature of business’ role and the expectations of business in regards to human
rights begins to shift. The amalgamation of many different individual cases where
normative values have shifted to pressure companies to change their practices will
eventually lead to larger scale social change, and in many ways makes larger scale
changes easier to implement because some percent already exists. This is not to say that
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larger scale efforts to implement more sweeping changes in how corporations deal with
human rights should be abandoned, but just that individual campaigns such as those in
Darfur, Angola, and of course South African can be used to assist larger shifts.
The most important point to remember when looking at how to change both
regulatory and normative elements of the environment for the corporation and human
rights is to make greater positive corporate intervention in human rights issues seem
lucrative to the corporations themselves. The previous models to bring about such
change have stressed showing the negative repercussions to corporations should they
continue to violate human rights or perpetuate such abuses – namely that they will face
positive incentives that will make companies want to change their behavior proactively.
In terms of regulatory efforts in this area, the most clear and distinct example
would be to give some sort of benefit to corporations who proactively work to promote
human rights. Such promotion of human rights by the corporations themselves can take
many forms and will surely vary by locale. In some cases, it may be that corporations
who actively change their actions to promote human rights will be the threshold to
receive a benefit, but in other cases it may simply by corporations who voluntarily stop
violating human rights. The normative atmospheres of each community will determine
the degree to which the corporation must act to receive the slated benefit. Equally so, the
benefits themselves will also vary between each society. Certain societies may provide
financial rewards – in the form of direct payment or of some sort of tax break – to
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companies who promote human rights, while others may allow participating companies
to have better access to new markets or earn exceptions to other, non-related operational
the introduction of hybrid cars in the United States. While the governmental authorities
in the United States far hardly require hybrid vehicles for every citizen, they do offer
benefits to those who voluntarily drive the lower emission, higher efficiency vehicles.
Such incentives have come in the form of tax-credits to first-time buyers as well as the
ability for drivers of such vehicles to park and drive in special lanes. Such incentives
contribute to the list of reasons why one would buy a hybrid car.
In addition to positive regulatory incentives, similar changes can also occur in the
normative environment. Like their business counterparts, normative changes that provide
positive incentives for companies to voluntarily act positive with regards to human rights
can take many forms. One clear example of such normative changes would be to have
businesses that do promote human rights seen as leaders in the field and thus attractive
companies to buy from. More concretely, if companies who go out of their way to
implement concern for human rights into their processes and structures can align
themselves as industry leaders and pathfinders, then it will allow them to use that as a
marketing tool when selling their products. Consider the current campaign of British
Petroleum with its campaign slogan of “BP. Beyond Petroleum.” British Petroleum has
made a conscious effort to sell its environmentally friendly and innovative image as part
o f its marketing campaign; because of recent concerns and emphasis on protecting the
environment, British Petroleum’s shift towards moving beyond traditional fuel sources
such as gasoline and diesel to explore new methods of power as well as their emphasis on
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reducing the dependency on oil while developing these new technologies is a pristine
consumers who understand the need to move off oil and into new fuel sources, as well as
marketing tool to show their forward thinking and desire to incorporate popular
oriented human rights principles into their operations and organization focuses on hiring
employees. Human rights will surely continue to gain traction in its importance in
society, and much like areas such as diversity and philanthropy have grown into
important factors when job candidates are deciding between companies, a corporation’s
record on human rights and the degree to which protection and promotion of human
rights are integral to their business will increase in relevance in the job market. Thus,
companies who want to attract the best workers will find it in their own best interest to
make sure their business practices reflect a strong desire in promoting human rights.
Employers who are able to integrate comprehensive policies that promote human rights
earlier and more extensively will be better placed to attract the most talented employees –
whatever the industry may be. Headway has already been made in this area as many
companies – including those in the consulting industry – have begun to stress the work
that they do to promote human rights. For example, the Boston Consulting Group, a
management consulting firm, has a large international practice of pro-bono work that
Africa, Asia, and Latin America. This information is touted proudly on their website and
as a main part of their recruitment materials for potential employees. As human rights
continues to increase as a decisive issue in the job markets, those companies that take
increase their focus on human rights may be able to use this to hire more talented
candidates.
political and civil rights – involves the environment of the country itself. In areas that
have violations of political and civil rights, such as war-torn regions, the area is often
unstable and not ideal for business operations to occur. Companies must pay for
additional security forces to protect their assets, deal with corrupt regimes, and deal with
democratic institutions that promote civil and political rights protection, stabilization of
the environment is likely to occur and it will be better suited for business to occur.
Additionally, once the civil and political rights are resorted, if the corporation contributed
to their restoration, that company will likely be looked upon favorably by much of the
citizenry in that country and the rest the world, and in turn cultivate a better positive
image that may draw more consumers to purchase goods or services from that company.
There is little disagreement that we face a human rights crisis in the modern world
of unparalleled proportions and that the dominant current mechanism of the nation-state
structure to effectively stop human rights abuses and promote the welfare of people in
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countries around the world. This paper has explored the role that the private corporation
can play in addressing these problems, the related benefits and challenges, and some
possible means to achieve this. The size and degree of the human rights crisis however
extends well beyond the reach of this paper, and a great deal of further research and
policy-work must be undertaken in order to even begin to address the problems. That
said, some sort of synthesis between the modern nation-state and the TNC provides a
promising schematic for a new system of addressing human rights needs, but such a
model can only be realized if there is genuine and unfettered commitment to change the
regulatory and normative realms so as to make such collaboration both feasible and
enticing to TNCs and governmental entities – as well as to the general public. My hope
is that in coming years, the value of combining the best elements of the nation-state and
the TNC will be more widely recognized and that future research and efforts to address