Anti-corruption legislation as precedent for a law on human rights due diligence - Due diligence in FCPA and the corporate responsibility to respect human rights
(2019) JURM02 20191Department of Law
Faculty of Law
- Abstract
- Corporations and in particular large multinational enterprises are important for every countries economic growth. However, exploitation and human rights abuses due to corporate activity are repeatedly occurring in states that lacks the proper legislation, enforcement or institutions to ensure human rights protection. Thus, there is an increasing call for lead firms of MNEs to exercise human rights due diligence in order to prevent human rights infringement from occurring in their supply chains. So far, few companies are responding to this moral obligation and existing legislation lacks legal teeth.
In terms of extra-territorial legislation, it has been noted that anti-corruption legislation and in particular the American anti-bribery... (More) - Corporations and in particular large multinational enterprises are important for every countries economic growth. However, exploitation and human rights abuses due to corporate activity are repeatedly occurring in states that lacks the proper legislation, enforcement or institutions to ensure human rights protection. Thus, there is an increasing call for lead firms of MNEs to exercise human rights due diligence in order to prevent human rights infringement from occurring in their supply chains. So far, few companies are responding to this moral obligation and existing legislation lacks legal teeth.
In terms of extra-territorial legislation, it has been noted that anti-corruption legislation and in particular the American anti-bribery law, US Foreign Corrupt Practices Act (1977) has been successful in imposing extra-territorial due diligence requirement on multinational enterprises. The law imposes strict liability for majority-owned subsidiaries and requires comprehensive due diligence efforts on any third party involved in overseas business transactions. As a result companies are well-advised to devise and maintain anti-corruption compliance programs so as to protect themselves from the risk of being involved in bribery of foreign officials.
Accordingly, the thesis inquires FCPA as a model for human rights due diligence.
It is found that the due diligence requirement under the FCPA and the UNGPs are both founded upon implementing risk management systems that provide companies with necessary oversight and internal structures to identify and respond to bribery, respectively human rights, risks. However, FCPA with its compliance-geared approach to supply chain entities is not the ultimate model for a law on human rights due diligence. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8978574
- author
- Gudmundsson, Arvid LU
- supervisor
-
- Radu Mares LU
- organization
- course
- JURM02 20191
- year
- 2019
- type
- H3 - Professional qualifications (4 Years - )
- subject
- keywords
- international law, anti-corruption legislation, human rights due dilligence
- language
- English
- id
- 8978574
- date added to LUP
- 2021-04-07 16:03:12
- date last changed
- 2021-04-07 16:03:12
@misc{8978574,
abstract = {{Corporations and in particular large multinational enterprises are important for every countries economic growth. However, exploitation and human rights abuses due to corporate activity are repeatedly occurring in states that lacks the proper legislation, enforcement or institutions to ensure human rights protection. Thus, there is an increasing call for lead firms of MNEs to exercise human rights due diligence in order to prevent human rights infringement from occurring in their supply chains. So far, few companies are responding to this moral obligation and existing legislation lacks legal teeth.
In terms of extra-territorial legislation, it has been noted that anti-corruption legislation and in particular the American anti-bribery law, US Foreign Corrupt Practices Act (1977) has been successful in imposing extra-territorial due diligence requirement on multinational enterprises. The law imposes strict liability for majority-owned subsidiaries and requires comprehensive due diligence efforts on any third party involved in overseas business transactions. As a result companies are well-advised to devise and maintain anti-corruption compliance programs so as to protect themselves from the risk of being involved in bribery of foreign officials.
Accordingly, the thesis inquires FCPA as a model for human rights due diligence.
It is found that the due diligence requirement under the FCPA and the UNGPs are both founded upon implementing risk management systems that provide companies with necessary oversight and internal structures to identify and respond to bribery, respectively human rights, risks. However, FCPA with its compliance-geared approach to supply chain entities is not the ultimate model for a law on human rights due diligence.}},
author = {{Gudmundsson, Arvid}},
language = {{eng}},
note = {{Student Paper}},
title = {{Anti-corruption legislation as precedent for a law on human rights due diligence - Due diligence in FCPA and the corporate responsibility to respect human rights}},
year = {{2019}},
}