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V. Transnational corporations
36. Globalization and trade liberalization have allowed transnational corporations
to gain greater and easier access to otherwise closed markets. Their increasing
presence in the world economy has enabled them to influence international and
domestic law-making and infringe upon States’ policy space. They have influenced
food consumption patterns 27 and promoted the use of tobacco, especially in
developing countries. 28 They have also affected the rights of large communities with
impunity, causing displacement, 29 contamination of groundwater 30 and loss of
livelihood. 31 They have directly perpetrated serious human rights violations, in
particular in developing and least developed countries. 32 They have thus seriously
affected the laws, policies and social and economic environments of States and have
violated the economic, social and cultural rights of individuals and comm unities,
including the right to health.
37. It may be difficult for States or affected individuals to hold foreign
transnational corporations accountable for harmful actions that were orchestrated
through their domestic subsidiary. The involvement of multiple jurisdictions may
effectively protect transnational corporations from liability for their human rights
violations 33 or may lead to protracted litigation in multiple forums. 34
38. The magnitude of violations by transnational corporations and the ease wi th
which they can evade responsibility for such violations call for an international
mechanism to hold them liable for human rights abuses. Such a mechanism should
supplement domestic laws rather than diminish the importance of domestic law. The
mechanism should therefore enable States and individuals to hold transnational
corporations to account for their human rights violations.
39. Previous efforts made in international forums to confer obligations on
transnational corporations have resulted only in voluntary guidelines. 35 In 2003, the
Subcommission on the Promotion and Protection of Human Rights approved norms
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29
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31
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33
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35
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See Corinna Hawkes, “Uneven dietary development: linking the policies and processes of
globalization with the nutrition transition, obesity and diet-related chronic diseases”,
Globalization and Health, vol. 2, No. 4 (2006).
See M. Otañez, H. Mamudu and S. Glantz, “Tobacco companies’ use of developing countries’
economic reliance on tobacco to lobby against global tobacco control: the case of Malawi”,
American Journal of Public Health, vol. 99, No. 10 (October 2009).
See Human Rights Watch, “How Can We Survive Here?”: The Impact of Mining on Human
Rights in Karamoja, Uganda (2014).
See N. Cingotti and others, “No fracking way: how the EU-US trade agreement risks expanding
fracking”, Issue Brief (Transnational Institute, March 2014).
Office of the United Nations High Commissioner for Human Rights, “India: urgent call to halt
Odisha mega-steel project amid serious human rights concerns”. Available from
www.ohchr.org/en/NewsEvents/Pages/DisplayNews.aspx?NewsID=13805&LangID=E.
Olivier De Schutter, “The accountability of multinationals for human rights violations in
European law”, New York University School of Law, Center for Human Rights and Global
Justice Working Paper No. 1, 2004.
Amnesty International, “India: court decision requires Dow Chemical to respond to Bhopal gas
tragedy”, 3 July 2013.
Reuters, “Ecuador plaintiffs file lawsuit in Canada against Chevron”, 30 May 2012.
The Guidelines for Multinational Enterprises adopted by the Organization for Economic
Cooperation for Development in 1976; the Tripartite Declaration of Principles Concerning
Multinational Enterprises and Social Policy adopted by the International Labour Organization in
1977; and the United Nations Global Compact initiated by the Secretary-General in 1999.
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