Lhuilier, Gilles --- "MNCs’ obligations in their ‘sphere of influence’" [2018] ELECD 1216; in Radi, Yannick (ed), "Research Handbook on Human Rights and Investment" (Edward Elgar Publishing, 2018) 244

Book Title: Research Handbook on Human Rights and Investment

Editor(s): Radi, Yannick

Publisher: Edward Elgar Publishing

ISBN: 9781782549116

Section: Chapter 8

Section Title: MNCs’ obligations in their ‘sphere of influence’

Author(s): Lhuilier, Gilles

Number of pages: 29

Abstract/Description:

A new obligation of diligence is weighing on MNCs to apply human rights in their ‘sphere of influence’. By pressuring them to respect human rights no matter where or how these corporations operate and whatever their size or industry may be, it is ending transnational corporations’ impunity. This new obligation was created by a very peculiar ‘transnational legal process’ where the MNCs’ ‘policies’ and communications, or corporate social responsibility (CSR), which were non-binding soft law, are now quickly becoming a mandatory responsibility. This obligation which gives effectiveness to human rights, renews the distinction between soft law and legally binding regulations. It helps us to understand the current ‘silent revolution’ of international law: the ‘transnational legal process’ whereby States and others privates actors – MNCs – use a blend of domestic and international legal processes to give effectiveness to international legal norms in national jurisdiction.