Topic > paper 2 - 1365

Multinational corporations are powerful entities that exert considerable influence on the international scene. Their power continues to grow, and today some of the world's largest multinational corporations have more power than some developing nations. This creates problems for a number of reasons. The legal definition of a corporation places it in a position where it often falls into gaps in international law. Through globalization the international market has created numerous investment opportunities in developing countries where labor costs are low. However, weak host nation state regulations are often inadequate to prevent human rights abuses committed by multinationals. A brief overview of a company's legal structure is essential. Furthermore, while there are numerous international mechanisms created to regulate the actions of these businesses, many fall short. Further solutions proposed by different actors in the international community have some fundamental flaws. Finally, after discussing some proposed solutions to these problems, a closer look reveals that the risks associated with creating stronger accountability mechanisms create more risk than they are worth. International and domestic law have proven inconsistent and ineffective and therefore multinationals should be kept outside the international human rights legal framework until better alternatives become available. The legal structure of corporations places them in a unique position in international law. According to Iwai, when a group of shareholders come together and form a business, the resulting company becomes a legal entity in its own right (2002, p. 243). In essence this means that the company is given many of the same rights as an i...... middle of paper ......nomic Review 53 (3): 243-273. Katuoka, Saulius and Monika Dailidaite. 2012. “Transnational Corporate Liability for Human Rights Violations: Shortcomings of the International Legal Environment and Solutions Offered by National and Regional Legal Instruments.” Jurisprudencija 19 (4): 1301-1316. Khan, Wasima. 2013. “Corporate Power and Human Rights Protection in Balance.” Security and Human Rights 24 (1): 29-42. Kim, Dong-Hun and Peter F. Trumbore. 2010. “Transnational Mergers and Acquisitions: The Impact of Foreign Direct Investment on Human Rights, 1981–2006.” Journal of Peace Research 47 (6): 723-734. Leader, Daniel. 2008. Business and human rights: it's time to hold companies to account. vol. 8 Martinus Nijhoff.Watts, Michael J. 2005. "Right Oil? Human Rights, the Oil Complex, and Corporate Social Responsibility." Annual review of the environment and resources 30 (1): 373-407.