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.

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.

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.

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.

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.

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.

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.

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.

Globally, companies are developing and implementing their strategies to reduce greenhouse gas emissions to limit the global temperature increase to 1.5 degrees Celsius above pre-industrial levels, in line with the Paris Agreement. However, there is also growing recognition and awareness of the potential negative impacts of these activities on human rights. Recent pressure from international normative standards and ESG expectations, emerging legislative developments, and legal precedents are driving companies to consider human rights impacts across their climate action. This piece explores some of the human rights risks associated with the transition to renewable energy; the transformation to regenerative agriculture; the scaling up of the circular economy; and the implementation of nature-based solutions. It then explores the challenges of conducting effective human rights due diligence given the scale and scope of the transitions needed and provides examples of how companies are seeking to respect human rights in their climate action.