REGULATING MULTINASIONAL CORPORATIONS
Economic globalization is usually associated with economic interdependence and a dominance of a liberalized marketplace. It was generally understood that the emergence of MNC was influenced by the principles of market liberalization and economic globalization. MNC’s operations are based on the idea of profit-maximization which recognizes minimal moral obligation for people in the countries where they operate. The emergence of MNCs in the global economic has a fundamental impact on human rights. “Among major rights being violated are that of economic, social and cultural rights, civil and political rights and the rights protected under international humanitarian law.” Thus, it is common for MNCs to be associated with various human rights violations within the area of their business activities. However, it should be noted that, there are some positive influences of the MNCs; therefore, it is necessary to manage and control MNCs conduct by establishing and adopting policies and initiatives in order to minimize effects of MNCs on human rights.
Briefly, this study described by five parts. First, begin with a brief introduction to the concept of corporate social responsibility as well as the definition of MNCs. Second, discusses about the impacts of MNCs towards human rights. Third, provide some mechanisms that can be used to hold MNCs accountable for their human rights violation. Fourth, highlights the main initiative of CSR approach to human rights. Lastly is conclusion.
STATEMENT OF THE PROBLEM
There are three major problems on this study and there are following: 1. What are the major threats of MNCs on human rights?
2. How do we manage the MNCs?
3. What are the main initiatives of CSR approach to human rights?
OBJECTIVE OF THE STUDY
The main objectives of the study are:
1. To analyze the impacts of MNCs on human rights
2. To provide some mechanisms that can be used to hold MNEs more socially responsible. 3. To analyze the possibilities initiatives offered by the CPRs to influence corporation’s behaviours
DEFINITION OF CORPORATE SOCIAL RESPONSIBILITY (CSR)
“CSR is associated with the conduct of corporations and in particular whether corporations owe a duty to stakeholders other than shareholders.” There are a lot of definitions in relation to CSR, such as corporate sustainability, corporate social investment, triple bottom line, socially responsible investment and corporate governance. However, various individuals and organisations have developed formal definitions of CSR, including” •‘The commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life’ (World Business Council on Sustainable Development). •‘Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business’ (Business for Social Responsibility). •‘A set of management practices that ensure the company minimises the negative impacts of its operations on society while maximising its positive impacts’ (Canadian Centre for Philanthropy). •‘The integration of business operations and values whereby the interests of all stakeholders including customers, employees, investors, and the environment are reflected in the company’s policies and actions’ (The Corporate Social Responsibility Newswire Service).”
DEFINITION OF MNCs
MNCs are a business that operates in more than one country. This corporation has its facilities and other assets in at least one country other than its home country. MNCs today play an important role in international political economy, specifically for the state itself, which is of increasing interest to governments. Through international direct investment, such corporations can bring benefits to home and host countries...