Introduction
In 2007/8, there were an estimated 78,000 transnational corporations (TNCs) with 790,000
foreign affiliates and 82 million employees. UNCTAD estimates that their total sales amounted
to $31 trillion, representing an estimated 11% of global GDP in 2007.1 With such economic
power, it is clear that the activities of TNCs have the potential for far-reaching social and
political consequences.
While it is generally accepted that the activities of TNCs have brought, and continue to bring,
significant direct and indirect benefits to home and host states, there are also examples of
where the activities of TNCs have been associated with human rights violations.
Such negative consequences have been frequently observed in states where a power
imbalance exists between the economic might of the TNC and the State, a fact noted by the
Special Representative of the United Nations Secretary-General on the issue of human rights
and transnational corporations and other business enterprises, Professor John Ruggie, who
stated that:
“a negative symbiosis [exists] between the worst corporate-related human rights
abuses and host countries that are characterized by a combination of relatively low
national income, current or recent conflict exposure, and weak or corrupt
governance . . .”.2
Concerns about the real and potential impact of TNCs on the realisation of human rights
prompted the Asia Pacific Forum of National Human Rights Institutions (APF) to request the
Advisory Council of Jurists (ACJ) to report on the relationship between human rights, corporate
accountability and government responsibility.
At the 12th Annual Meeting of the APF held in Australia in July 2007, Forum Councillors
adopted a reference on human rights, corporate accountability and government responsibility,
requesting the Advisory Council of Jurists to advise, and where relevant, make
recommendations on:
•
•
The basis for attributing human rights responsibilities to transnational corporations under
international human rights law
The State’s obligations to regulate transnational corporations with regard to human rights
violations within its territorial jurisdiction
•
The State’s obligations to regulate transnational corporations with regard to human rights
violations occurring outside its territorial jurisdiction?
•
The concept of corporate complicity in international crimes to protect human rights
•
•
The jurisdictional barriers exist in enforcing human rights obligations against corporations
The role of NHRIs in ensuring that States regulate the human rights activities of
transnational corporations
•
The role do NHRIs have in educating and/or monitoring corporations involved in human
rights abuses
This report outlines the responses of the ACJ to the terms of reference, as well as a
consolidated list of the recommendations for consideration by NHRIs. Additional information is
available in the Supplementary Report and Annexures, available at: www.asiapacificform.net/acj
1
World Investment Report Overview: Transnational Corporations and the Infrastructure Challenge. United Nations
Conference on Trade and Development, New York and Geneva, 2008 @ Page 5.
2
Ruggie, J. Interim Report of the Special Representative of the Secretary-General on the Issue of Human Rights and
Transnational Corporations and Other Business Enterprises, U.N. Doc. E/CN.4/2006/97 (2006).
-5-