CYIL vol. 11 (2020)

CYIL 11 (2020) INVESTORS’ RESPONSIBILITIES BEYOND INVESTMENT TREATIES… business. 13 However, most of these obligations are indirect. States are bound by international law to use tools at their disposal provided by domestic law to protect common interests. In this way, States require businesses to behave properly. Typically, International Labour Organisation (ILO) conventions impose obligations on states to introduce and enforce basic labour rights. Though the end objects of regulations are employers, in the majority of cases corporations. Similarly, Contracting Parties to the United Nations Convention Against Corruption are obliged to prohibit their enterprises from bribing public officials. In practical terms, the Convention imposes on states to “establish liability” of corporations and provide access to civil damages for victims of corruption. Regarding human rights, the UN Draft Code of conduct for Transnational Corporations and the UN Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with regards to Human Rights largely failed to gain traction. This led to the appointment of John G. Ruggie as Special Representative of the Secretary-General to the United Nations on the issue of human rights and transnational corporations and other business enterprises in 2005. Ruggie subsequently proposed the new ‘Protect, Respect and Remedy Framework’ finalised in his 2011 Report known as the Guiding Principles on Business and Human Rights. 14 Their framework is established on three core principles: “the State duty to protect against human rights abuses by third parties, including business; the corporate responsibility to respect human rights; and the need for more effective access to remedies. The three principles form a complementary whole in that each supports the others in achieving sustainable progress.” 15 Last but not least, the most prominent interstate document on business responsibility is the OECD Guidelines for Multinational Enterprises. In essence, the OECD Guidelines are recommendations addressed by governments to MNEs and they clarify the shared expectations for business conduct of the governments adhering to them. 16 Still, the introduced standards are just several pieces of global regulation on business and human rights. The current international regime provides a mixed picture. 17 The situation is further aggravated by the fact that there is currently no international organisation with sufficient competency and enforcement mechanism over MNEs conduct. 18 13 Just to mention the most widespread, the OECD Guidelines for Multinational Enterprises, the UN Global Compact, the UN Guiding principles on business and human rights (UNGPs), the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, and the ISO 26000 Guidance Standard on Social Responsibility. 14 Guiding Principles on Business and Human Rights: Implementing the United Nations “Protect, Respect and Remedy” Framework, as endorsed by Human Rights Council, A/HRC/RES/17/4, 6 July 2011. 15 Report of the Special Representative of the Secretary-General on the issue of human rights and transnational corporations and other business enterprises, John Ruggie, A/HRC/8/5, 7 April 2008. 16 For an overview of the OECD Guidelines and related issues see other author’s work, SVOBODA, O. The OECD Guidelines for Multinational Enterprises and the increasing relevance of the system of National Contact Points. In: ŠTURMA, P., MOZETIC, V. A. (eds.) Business and Human Rights . Waldkirchen: rw&w Science & New Media, 2018, pp. 52-63. 17 KIRKEBO, T., LANGFORD, M. The Commitment Curve: Global Regulation of Business and Human Rights. Business and Human Rights Journal , 2018, Vol. 3, No. 2, pp. 157-185. 18 ZHAO, J. Human Rights Accountability of Transnational Corporations: A Potential Response from Bilateral Investment Treaties. Journal of East Asia and International Law , 2015, Vol. 8, No. 1, pp. 60-61.

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