In a globalised economy, transnational corporations from all sectors are directly or indirectly linked to global supply chains, in particular through transnational business activities and foreign investments. That this represents a potential threat to individuals and the environment has been revealed by persistent human rights abuses and damage to the environment. In practice, human rights abuses by transnational corporations often take place in countries of the Global South and affect the most vulnerable people, such as women workers, child labourers and residents of poor and rural areas. Nevertheless, the existing international human rights system does not impose direct human rights obligations on private actors, including transnational corporations. The responsibilities of transnational corporations for human rights in global supply chains are mainly based on a patchwork of soft regulations. In recent years, however, new initiatives have emerged at the national and international level, such as the the development of an internationally legally binding treaty to regulate business activities with respect to human rights or domestic legislation for corporate due diligence obligations. Most of these initiatives emphasise the role of the State in incorporating a “mediated” approach to the human rights responsibility of transnational corporations. This article explores recent developments connected to the human rights responsibilities of corporations and discusses their feasibility under international human rights law.
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