Academic defenders of sweatshops argue that disregarding labour rights will result in increased welfare in the developing nations where transnational corporations (TNCs) operate. They argue that TNCs should ignore local labour laws in the best interests of the poor. In this article we criticise this ‘ignore the law’ position regarding sweatshops on three separate grounds. First, it fails to acknowledge the demands for businesses to respect the rule of law as part of the development process. Second, it utilises an inadequate account of voluntary contractual bargaining which overlooks how employment practises operate in sectors prone to utilising sweatshop labour, leading to coercive employment conditions incompatible with human dignity and free choice. Third, it fails to adequately account for labour law and international labour standards, which embody a strong moral conception of dignity at work and observance of fundamental human rights in protecting workers against abuse through the resulting legal duties placed on states and corporate actors. We conclude that poverty reduction requires the support of both private and public actors. Advocating the side-stepping of labour laws distracts from the important work of institution building necessary to protect workers and facilitate economic growth consistent with decent work, sustainable development, fairness and human dignity as embodied in international labour standards.

This Special Issue denotes the first comprehensive attempt to place business and human rights-related (BHR) developments in the Central and Eastern Europe (CEE) region on the map of global discussions in BHR. The CEE is a geographical area that is historically, politically, socio-economically, geo-strategically and culturally distinct from other regions, including Western Europe. Hence, this Special Issue explores the region’s specific elements and factors and how they affect and influence the implementation and embedding of human rights in the practice of business enterprises in the region. The ‘Scholarly Articles’ and ‘Developments in the Field’ pieces collected in this issue highlight the promising and not-so-promising developments and practices of state institutions, business enterprises, and other actors. It documents the current situation in the region and outlines ideas and prospects for addressing the identified challenges over the next decade. As an introduction to the Special Issue, this editorial outlines the region’s leading trends and prospects in BHR. It reflects on persisting challenges and notes the region’s progress in BHR awareness, knowledge and capacity in recent decades.

This paper analyses five constitutional developments in Central and Eastern Europe that can impact the domestic implementation of the UN Guiding Principles on Business and Human Rights (UNGPs). Using Czechia, Poland and Slovenia as examples, the paper highlights four potential drivers, namely: (1) the process of constitutionalizing human rights; (2) the proliferation of the doctrine of horizontal effect of constitutional rights; (3) the constitutional legitimacy of state intervention in the free market economy; and (4) the mechanism of judicial review. Furthermore, the author underlines the most significant challenge, which is increasing resistance to international norms in some countries, e.g., Poland. The paper concludes that the jurisprudence of the constitutional courts can facilitate the domestic implementation of the UNGPs, particularly Pillars I (State duty to protect human rights) and III (access to remedy).

The business and human rights (BHR) framework has regularly been considered the superior legal regime of corporate accountability for business-related human rights abuses, which must be both protected from and incorporated into investment treaties. However, investment treaties have surpassed the BHR framework in an important respect: certain investment treaties impose strict international legal obligations, including human rights-related obligations, directly on investors, thereby going beyond the normatively ambiguous corporate responsibility to respect. Investment treaty reform initiatives, including those seeking to align investment treaties with the BHR agenda, should, therefore, take care to avoid inadvertently undoing this advance towards investors’ legal accountability.

This article utilizes a ‘rituals-ritualism’ framework to assess the perils and potentials of relying upon mandatory human rights due diligence (mHRDD) laws to regulate the behaviour of transnational corporations (TNCs). This framework offers a socio-legal perspective that seeks to show how law is both influenced by and influences the social context within which it operates, i.e., the socially embedded operation of law.1 It has been advanced as a useful rubric for assessing whether and how states comply with human rights treaties,2 but can be extended to an assessment of mHRDD laws. Ultimately, this article hypothesizes that the potential regulatory effectiveness of mHRDD laws hinges on the extent to which HRDD obligations are transformed into rituals akin to cultural norms. In the absence of such a transformation, ritualism in HRDD will only further entrench a problematic status quo that has allowed TNCs to externalize the human rights and environmental impacts of their activities.

Following the first-ever rule of law conditionality procedure in September 2022, a resolution was adopted by the European Parliament which declared that Hungary could no longer be considered a full democracy, as it had turned into a ‘hybrid regime of electoral autocracy’. Against this background, this article explains the business and human rights (BHR) gap in Hungary and presents its consequences for the Ukrainian refugee crisis. We first provide a general overview of the role of business in the development and consolidation of the Orbán regime over the past 13 years, highlighting how businesses are both agents and victims of legal and political developments. The paper distinguishes four types of ‘business’: multinational and foreign companies that are direct beneficiaries of the regime; local companies that are direct beneficiaries of the regime; multinational companies that are targets of restrictive and repressive populist rhetoric and economic policies; and the ‘rest’, the remainder that try to avoid becoming targets of oligarchic takeovers. The article also documents how the state and other stakeholders are failing to meet their commitments under the United Nations Guiding Principles on Business and Human Rights (UNGPs). The next part of the article assesses how companies are responding to the refugee crisis caused by the war in Ukraine, Hungary’s neighbour. If the government does not adopt Pillar I and Pillar III of the UNGPs, what room for manoeuvre do companies have? The focus here is on how companies, domestic and foreign, multinational enterprises (MNEs) and small and medium enterprises (SMEs), engage in humanitarian (and human rights) crisis management.

Governments sometimes adopt policies that are not aligned with their preferences or have not come onto their agendas when doing so is linked to a reward. International organizations can therefore set conditions for coveted membership that include adopting new human rights and regulatory policies. As international organizations increasingly converge around the UN Guiding Principles on Business and Human Rights, how might they promote national uptake of these guidelines? This article considers the prospects of accession conditionality in answering this question. The focus of the article is on European Union and Organization for Economic Cooperation and Development (OECD) expansion in Central and Eastern Europe, where uptake of business and human rights policies remains comparatively low. The article argues that while these organizations increasingly include business and human rights conditionalities in accession negotiations, there remains significantly greater scope for promoting the Guiding Principles.

Large-scale investment projects often involve contestation over competing notions of ‘development’—from promises of economic growth and integration into global value chains to perspectives that emphasise strong connections between people, territory, culture and way of life. This contestation also echoes diverse theories that have variously conceptualised development as growth, freedom, right or sustainability. This article argues that, in the face of such diversity and complexity, the notion of development that underpins international investment law tends to prioritise economic considerations. In the context of investment disputes, this can marginalise the ideas of development advanced by local actors and indigenous peoples. By connecting human rights and development in immediate terms, ongoing discussions about the right to development can provide an arena to centre ‘peoples’ as the key actor in development processes. But this normative shift would also require ensuring that the wider frameworks of international economic law recognise and provide space for plural notions of development.

The war in the former Yugoslavia produced many highly trained and experienced combatants, some of whom engaged not only in a variety of organized criminal activities such as the illicit trade of natural resources, trafficking and corruption, but also war crimes. In the post-war environment various criminal groups took advantage of post-conflict transition conditions which enabled them to be transformed into legitimate legal entities. The failure to investigate and hold to account those involved in criminal activity meant that demobilized soldiers turned to highly profitable, legally constituted private military and security companies (PMSCs). This is coupled with poorly designed security sector reforms that often fail to enhance effective and accountable security that is respectful of human rights. In recent years, similar transformations of many former combatants and criminal groups into legitimate PMSCs around the globe have raised new concerns about their growing activities across different sectors. This article uses the former Yugoslavia as an example from which to highlight some of the increasingly common problems posed by the creation of private military and security providers globally, as a result of the current uncoordinated processes to prevent armed conflicts. The article reflects on the need to avoid smart sanctions and use other foreign policy tools, while calling for an integrated approach to security sector reform and transitional justice that is necessary for sustainable peace.

After the endorsement of the United Nations Guiding Principles on Business and Human Rights (UNGPs) by the Human Rights Council on 16 June 2011, 15 March 2024 marked another milestone for transnational corporate governance. That day, a qualified majority of the member states of the European Union (EU) voted in favour of the Directive on Corporate Sustainability Due Diligence (CSDDD) setting human rights and environmental obligations for large companies in their global value chains.1 The CSDDD is the first region-wide due diligence legislation, yet it is also a political compromise among EU member states, which civil society and business have been watching closely. This piece explains the main elements of the CSDDD and outlines some of its implications beyond the EU.

The increasing focus on business and human rights (BHR) in civil society and policymaking has not been matched by research on corporate actions to respect and protect human rights. The lack of research on BHR is especially acute outside of Western Europe and Anglo-centric contexts. This paper seeks to investigate how the largest Russian firms conceptualize and fulfil their human rights obligations under the UN Guiding Principles and the extent to which internationalization of those firms may have impacted these behaviours. I use a unique dataset created from a sample made of the 100 largest firms listed on the Moscow Stock Exchange. Using the theoretical construct of institutional conflict, I find that cross-listing on other stock exchanges and the extent to which firms frame their broader social responsibility issues as ‘sustainability’ or ‘sustainable development’ rather than ‘corporate social responsibility’ has a substantial impact on firm attention to human rights. While this attention is encouraging, firm disclosure of actions taken to mitigate against violations and protect human rights is extremely limited and the strength of domestic institutional pressures has resulted in very little firm action in the face of the extreme and widespread human rights violations being committed in Ukraine by Russia.

While divestments and decisions to exit commercial fossil fuel ventures are not new, the imperatives of the energy transition are catalysing such moves at a global industry-wide level, as oil companies position themselves for the future. The international normative framework for business and human rights provides clear guidance on how responsible divestment from fossil fuels should occur; however, in the absence of intergovernmental coordination and regulation, individual business divestment decisions create severe human rights risks. The case of Shell’s divestment from onshore Niger Delta oil production illustrates business and human rights issues relevant to the energy transition.

Batteries containing cobalt will play a central role in the global transition to cleaner energy. Most of the world’s cobalt comes from the Democratic Republic of the Congo (DRC). However, the negative human rights image of the minerals sector in the DRC, and the emergence of an inaccurate and exploitative “blood cobalt” narrative risks harming small-scale, ‘artisanal’ producers who rely on this industry for their livelihood. The DRC government, civil society and small-scale producers already have a roadmap for ending child labour and improving working conditions. Countries and companies whose economies and business interests rely on these precious natural resources should engage with this roadmap rather than disengaging from the country’s mining sector altogether.

Non-judicial remedies for corporate human rights abuses have a viable and complementary role to judicial remedies in mature jurisdictions, although in Ukraine the ‘bouquet’ of effective remedies is more of a still-life. The national mediation community is gaining momentum and the authors argue that mediation may take place within state-based non-judicial remedies when institutionalized by the office of the Ombudsman. The objective of this article is to scrutinize the rule of law, access to justice, and the effectiveness criteria of the UNGPs with regard to mediation. The authors conclude that mediation can meet all of the effectiveness criteria requirements and special effort should be devoted to addressing the challenges of power imbalances between parties, the confidential nature of mediation and the public demand for transparency, to ensure that mediation outcomes are in accord with internationally recognized human rights. Based on the findings, the authors suggest that a state-based business and human rights mediation scheme, in line with the UNGPs’ effectiveness criteria, should have its own three pillars, namely, accessibility, availability and awareness, with quality assurance as its cornerstone.

The concept of heightened human rights due diligence (hHRDD) is often used to address corporate responsibilities in situations of armed conflict. For companies in these contexts, the first step is to assess whether their activities impact the conflict and its dynamics, and, as a result, whether they are involved in conflict-related human rights abuses. However, companies often find that they have no impact on the conflict. Should companies in these scenarios just focus on regular human rights due diligence (HRDD)? This piece aims to illustrate, based on the example of Ukraine, the human rights challenges that emerge during a war which companies with no influence on the conflict still face and to respond to the question of whether in such situations companies should still engage in hHRDD or continue to conduct HRDD as usual.

This article aims to highlight peculiarities relating to the realization of the state duty to protect human rights during the crisis situation after the 2020 presidential elections in Belarus. It proposes that we engage more seriously with the context of a strong authoritarian state, which does not have people’s protection as a priority and deliberately involves business in human rights violations. Such a context is at odds with the more often presumed model in the BHR discussion: a strong business and a weak state that cannot protect its people. Two systemic factors, which stem from the authoritarian nature of the Belarusian political regime and which worsened during the crisis are discussed in the context UN Guiding Principles on Business and Human Rights: the use of business as a tool to achieve political goals and the dependence of all institutions in the country on the authorities. One of the key conclusions of the article is that the Belarusian crisis, aggravated by the complicity of Belarus in the Russian aggression, prompts businesses to adopt a new optic on human rights due diligence and to assess their long-term risks and strategies in authoritarian countries. At the very least there is an awareness among businesses of the direct link between political and human rights risks.

The debate over home state responsibility for human rights has focused on how home states might use accountability mechanisms to promote respect for human rights among their businesses abroad. However, a set of activists and researchers have opened a new front on the question of home state responsibility by focusing on the activities of Canadian diplomats providing advice and consular services to extractive firms abroad. This work documents how home states can be directly implicated in business and human rights controversies and how home state diplomats can put human rights defenders at increased risk. This paper outlines the growing body of research on the hidden influence of Canadian economic diplomacy in human rights controversies, suggesting a troubling disregard for corporate social responsibility and human rights concerns in these contexts, and making the case for robust accountability mechanisms to influence the conduct of both corporate actors and diplomatic officials.

This DiF paper analyses the 2021 Consultations for Central & Eastern Europe and Central Asia, conducted as part of the process underlying the United Nations Working Group ‘Report on human rights-compatible international investment agreements’. These consultations led to three unique conclusions concerning International Investment Agreements (‘IIAs’), which were absent in other consultations: (i) the ‘regulatory chill’ caused by IIAs with respect to human rights regulations is moot in authoritarian and ‘hybrid’ regimes in this region, (ii) IIAs tend to be perceived in this region as tools to protect human rights, which can spill over to other areas of socio-economic life, and as a source of inspiration and a model for building similar protections in such other areas, and with the potential to (iii) have a positive impact on the development of domestic laws (and their relationship with the rule of law and good governance reforms in developing host states).

Since their adoption, the UN Guiding Principles on Business and Human Rights have become crucial to intensify actions to protect human rights in the context of business conduct. Numerous countries, including Poland, have adopted National Action Plans (NAPs). Taking into account the years that have passed, it is worth assessing the implementation of their goals. Guidelines for the preparation of NAPs on business and human rights of the United Nations Working Group on Business and Human Rights (UNWG) are helpful in assessing the Polish NAPs. This Development in the Field piece concludes that every NAP should begin with an assessment that would help identify areas where there is a need to implement necessary policies. Such an assessment could be used to compare the initial stage with future achievements. It should rely on clear milestones mentioned in NAPs, and on key performance indicators to assess effectiveness while also relying on inclusive decision-making processes. Unfortunately, this was not the case with the two Polish NAPs.

Multiple independent studies have highlighted the remarkable process of multistakeholder dialogue in the development of Peru’s first National Action Plan (NAP) on business and human rights. While facing several challenges, not least a global pandemic, the process was indeed a success in so far as it opened up a new path for policy making in Peru: that of multistakeholder dialogue including actors who traditionally deeply mistrust each other. This piece describes the key enabling conditions and operational strengths that allowed for such a highly participatory process and, ultimately, resulted in some strong commitments on business and human rights.