Responsibility of Multinational Corporations in Regard to Human Rights

Traditionally the studies on the promotion of human rights and the investigations into violation of human rights had centered around the countries and their governments (Meyer 1996). But the growing clout of MNCs in the global affairs made them an important stakeholder in the promotion of human rights around the world. Globalization has accentuated the expansion of MNCs and influence that they wield on countries and governments. Direct violations of human rights and encouragement of governments/countries which violate human rights by MNCs made activists to accuse them of unethical business practices. Instances of MNCs lobbying their home country governments to support governments/dictators who are favorable to them abound. During the 1980s and 1990s, many MNCs have supported dictators in commodity rich countries as they could be easily bribed to control the people of their countries from disrupting their business operations.

But there are instances where multinational corporations have turned into protectors of human rights by governments around the world. Governments and international bodies like UNO have also imposed human rights accountability (both legal and non-legal) on MNCs (Kinley and Joseph 2002). This has given some positive results. Some of the big MNCs’s balance sheets have bigger net worths than many poor countries in the world. This gave them enough power to influence the policies of these countries’ governments. Promtion of human rights in the countries where MNCs have their operations can give positive results for MNCs too as this ultimately leads to better law and order situation which in turn makes their operations smoother.

One of the key responsibility of MNCs towards protecting human rights is not having any business relationship with countries/governments with a record of human rights abuse. This is a ‘weak’ responsibility of MNCs in upholding the human rights. Eventhough the growing clout of MNCs make them indispensable in the upkeep of world order, their business interests conflict with the domestic industry making them to limit their influence. Many big apparel companies in Europe have refused to source the products from Bangladesh and India until the companies there agreed to not use child labor in their business operations. This went a long way in the prevention of child labor in developing countries.

The second case of upholding the human rights of people is by making products like life saving drugs accessible to people in poor countries who couldn’t otherwise afford them. This also involves conducting research in areas which are generally neglected by other companies. Novartis, a Swiss pharma giant, had been working to develop new drugs for diseases like malaria, dengue, and leprosy as the older drugs were no longer effective in the treatment of these diseases (Novartis 2006). Novartis also has a policy of zero tolerance towards discrimination of people and its employees at the work place.

A third way in which MNCs can encourage the practice of human rights is by directly contributing financial and nonfinancial resources in programs targeted at better the human rights record in target countries. This is a ‘strong’ responsibility of MNCs as the growing importance given to corporate social responsibility is making more MNCs to commit their resources towards the society. Coca Cola makes it compulsory for its partnering firms like bottling units to practice and promote globally recognized human rights standards. Coca Cola provides both financial and nonfinancial to its partnering organizations in the upkeep of human rights (Coca Cola 2012).

 

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