Responsibility of transnational corporations, supply chains and decent work

Abstract

This chapter examines the responsibility of transnational corporations for extreme forms of human exploitation occurring throughout global supply chains, including forced labour, servitude, slavery, child labour and forced marriage. Economic globalisation and the relocation of production to countries with weak labour regulation enable corporations to reduce costs while avoiding accountability for human rights violations committed by subsidiaries, suppliers and subcontractors. This situation is reinforced by the imbalance between the binding rules protecting corporate interests and the predominantly soft-law instruments governing business and human rights.

The chapter analyses the United Nations Guiding Principles on Business and Human Rights, relevant International Labour Organization conventions and national legislation addressing modern slavery and transparency in supply chains. Although these instruments promote corporate due diligence and disclosure, they generally establish obligations of conduct rather than results and rarely impose civil or criminal liability for the underlying abuses.

Particular attention is paid to the European Union’s corporate sustainability due diligence initiative, which seeks to require companies operating within the internal market to identify, prevent and mitigate adverse human rights and environmental impacts throughout their value chains. Despite its extraterritorial reach and provisions concerning civil liability and access to justice, significant limitations remain, particularly regarding criminal liability and the discretion afforded to Member States.

The chapter concludes that parent companies should be held liable for actions or omissions that cause or facilitate violations within their supply chains. It advocates binding international regulation and the development of an economic criminal law grounded in human rights to close jurisdictional gaps, protect victims and combat corporate impunity