Abstract
This chapter analyses the complex relationship between multinational companies and human rights in the era of globalization. Although they contribute to economic and social development, these companies also generate challenges, such as violations of human rights and environmental degradation at a global level. The text explores the economic, environmental, and social challenges, as well as legal risks, highlighting the lack of effective mechanisms at both national and international levels. The text examines business impunity in relation to insufficient regulatory loopholes and sanctions, as well as state responsibility in the extractive, textile, and technological sectors. It explores the global perspective of companies as subjects of international law and presents international theories and proposals, such as the UN treaty, as potential solutions. In conclusion, a multidimensional approach is needed to address these challenges, including stricter regulations and changes in state responsibility, in order to balance economic growth with respect for human rights.
TopEconomic Impact And Social Challenges In The Era Of Globalization
The process of globalization began at the end of the last century and intensified in the 21st century due to the exponential growth of ICTs, transportation, and communication. This has led to almost instant access to information and procedures from any part of the world.
The exchange of goods and communication costs decreased significantly, resulting in increased commercial relations and trade volume. This allowed companies to operate globally as a unified entity.
The fall of the iron curtain led to the collapse of the bipolar world and the emergence of a multipolar one, which strengthened the financial positions of commercial organizations and multinational corporations. Globalization refers to the worldwide integration of economic, political, and cultural spheres.
It is characterized by a free market economy, global competition, and interdependence among countries. This has created tension between the accumulation of wealth by the market (plutocracy and technocracy) and the promotion of democracy and human rights. The West has facilitated a process of globalization, made possible by its history of civilization culminating in technology and economics (Banchio, 2023).
This has resulted in an interconnected network among international actors, transforming the international legal scenario and giving rise to a world economy that extends beyond the sphere of exclusive control of the States. The role of the state in the international system has been diminished due to the process of globalization, which has led to increased connections between new influential legal actors in the global context, including TNCs (Smith & Johnson, 2021).
Key Terms in this Chapter
Multinational Companies: Organizations with operations in multiple countries, playing a key role in the global economy.
Economic and Social Development: A process that seeks to improve the economic and social conditions of a society, including poverty reduction and increased welfare.
International Relations: Study of interactions between states, international organizations and other actors in the global field.
Business Impunity: Lack of effective legal consequences for companies that violate human rights and standards.
Violation of Human Rights: Actions that violate the fundamental rights of people, such as freedom, life and dignity.
State Liability: Obligation of governments to protect human rights and ensure compliance with legal regulations.
Globalisation: Process of interconnectedness and interdependence at the global level, which affects economic, social and cultural aspects.
International Regulations: Standards and agreements established at global level to guide the behavior of international actors, including multinational companies.