Business Actors’ Interest in Harder and Softer Regulation of Human Rights Due Diligence

Scholars of global governance have long attended to the role of non-state actors in formulating and interpreting regulatory instruments, analysing these actors’ engagement with processes, their influence, and their preferences in terms of the content and, to a limited degree, form of regulation. Among the non-state actors involved in governance settings, business actors are an interesting subject given the resources at their disposal to exert material, structural, and ideational power and due to the global nature of large corporations. They are especially relevant in human rights regulation, as the global nature of business activity through supply chains, subsidiaries, and finance is contrasted with a state-centred human rights regime. Several regulatory instruments have been passed in this space, both nationally and internationally, and regulatory initiatives are increasingly common. This article focuses on business actors’ potential interest in the form of regulation, how different forms of regulation may affect different business actors, and how the interest of business actors can be traced back to notions of public and private.KEYWORDS: hard lawsoft lawbusiness interestshuman rights Disclosure StatementThe author reports that there are no competing interests to declare.Notes1 Doris Fuchs, ‘Commanding Heights? The Strength and Fragility of Business Power in Global Politics’ (2005) Millennium - Journal of International Studies 33 (3), S. DOI: 10.1177/03058298050330030501; John Mikler, ‘The political power of global corporations’ (Wiley 2018).2 For example, the French Loi de Vigilence (2017), the UKs Modern Slavery Act (2015), the Dutch Child Labour Due Diligence Act (2019) and more.3 Benjamin Cashore, ‘Legitimacy and the privatization of environmental governance’ (2002) Governance 15(4), 503–529. DOI: 10.1111/1468-0491.00199. Allen Buchanan, Robert O. Keohane, ‘The legitimacy of global governance institutions’ (2006) Ethics & International Affairs 20(4), 405–437. DOI: 10.1111/j.1747-7093.2006.00043.x.4 Kenneth W Abbott and others, ‘The Concept of Legalization’ (2000) Int Org 54 (3), S. 401–419. DOI: 10.1162/002081800551271.5 Cornelia Woll, ‘Firm Interests’ (Cornell University Press 2008).6 E.g. BBC, ‘Ogoni nine: Nigerian widows lose case against oil giant Shell’ BBC News (The Hague, 23 March 2022 https://www.bbc.com/news/world-europe-60851111 accessed 09 August 2023; Maggie Andresen, ‘Nigerians could see justice over Shell oil spills after six decades’ Guardian (Okogbe-Ahoda, 29 September 2011) https://www.theguardian.com/world/2021/sep/29/nigerians-could-see-justice-over-shell-oil-spills-after-six-decades accessed 09 August 2023.7 E.g. BBC, ‘Bangladesh factory collapse toll passes 1,000’ BBC (London, 10 May 2013). https://www.bbc.com/news/world-asia-22476774 accessed 09 August 2023.8 Elizabeth Smythe, ‘In Whose Interest? Transparency and Accountability in the Global Governance of Food: Agribusiness, the Codex alimentarius, and the World Trade Organization’. In Doris Fuchs and Jennifer Clapp (eds.). Corporate power in global agrifood governance. (MIT Press 2009).9 Doris Fuchs (2005); John Mikler (2018).10 Carlos López, ‘The 'Ruggie process'. From legal obligation to corporate social responsibility?’ In Surya Deva und David Bilchitz (eds.). Human rights obligations of business. Beyond the corporate responsibility to respect? (Cambridge University Press 2013).11 Justine Nolan.’ The corporate responsibility to respect human rights. soft law or not law?’ In Surya Deva und David Bilchitz (eds.). Human rights obligations of business. Beyond the corporate responsibility to respect? (Cambridge University Press 2013).12 Genevieve LeBaron, Jane Lister and Peter Dauvergne, ‘Governing Global Supply Chain Sustainability through the Ethical Audit Regime’ (2017) In Globalizations 14 (6), S. 958–975. DOI: 10.1080/14747731.2017.1304008.13 Mark Anner, Jennifer Bair and Jeremy Blasi, ‘Toward Joint Liability in Global Supply Chains: Addressing the Root Causes of Labor Violations in International Subcontracting Networks’ (2013) In Comparative Labor Law and Policy Journal, 35:1, p.1-44.14 David Bilchitz and Surya Deva, ‘The human rights obligation of business. A critical Framework for the future’ In Surya Deva and David Bilchitz (eds.). Human rights obligations of business. Beyond the corporate responsibility to respect? (Cambridge University Press 2013).15 John Ruggie and John F. Shermann III, ‘The Concept of 'Due Diligence' in the UN Principles on Business & Human Rights: A Reply to Professors Bonnitcha and McCorquodale’ (2017) The European Journal of International Law, 3.16 John Ruggie, Caroline Rees and Rachel Davis, ‘Ten Years After: From UN Guiding Principles to Multi-Fiduciary Obligations’ (2021) Business and Human Rights Journal, 6.17 Geordan Graetz and Daniel M. Franks, ‘Incorporating human rights into the corporate domain: due diligence, impact assessment and integrated risk management’ (2013) Impact Assessment and Project Appraisal, 31:2, 97–106, DOI: 10.1080/14615517.2013.771006.18 Björn Fasterling, ‘Human Rights Due Diligence as Risk Management: Social Risk Versus Human Rights Risk’ (2017) In Business and Human Rights Journal, 2(2), 225-247. DOI:10.1017/bhj.2016.26.19 David Hess, ‘The Management and Oversight of Human Rights Due Diligence’ (2021) Am Bus Law J, 58: 751-798. DOI: 10.1111/ablj.12197.20 Robert McCorquodale and others, ‘Human Rights Due Diligence in Law and Practice: Good Practices and Challenges for Business Enterprises’ (2017) Business and Human Rights Journal, 2(2), 195–224. DOI: 10.1017/bhj.2017.2.21 Janne Mende, ’Unternehmen als gesellschaftliche Akteure: Die unternehmerische Verantwortung für Menschenrechte zwischen privater und öffentlicher Sphäre‘ (2020) In Julia Druschel, Nikolaus Goldbach, Franziska Paulmann and Carolina Vestena (eds.). Interdisziplinäre Perspektiven auf Soziale Menschenrechte. Nomos Verlagsgesellschaft mbH & Co. KG, S. 77–98.22 Mende, Janne: ‘Corporate Human Rights Responibilities’ This issue.23 Mende (2020).24 Maria Gjølberg, ‘Explaining Regulatory Preferences: CSR, Soft Law, or Hard Law? Insights from a Survey of Nordic Pioneers in CSR’ (2011) Business and Politics. 13 (2), S. 1–31. DOI: 10.2202/1469-3569.1351.25 Gregory C. Shaffer and Mark A. Pollack, ‘Hard vs. soft law: Alternatives, Complements, and Antagonists in International Governance’ (2010) Minnesota Law Review 94, S. 706–799.26 Kishanthi Parella ‘Hard and Soft Law Preferences in Business and Human Rights’ (2020) AJIL Unbound 114, PP. 168–173. DOI: 10.1017/aju.2020.33.27 Emilie Hafner-Burton, David G. Victor and Yonatan Lupu, ‘Political Science Research on International Law: The State of the Field’ (2012) Am. j. int. law 106 (1), S. 47–97. DOI: 10.5305/amerjintelaw.106.1.0047.28 Abbott et al. (2000).29 Ibid.30 Shaffer and Pollack (2010).31 Abbott et al. (2000).32 Ibid.33 Shaffer and Pollack (2010).34 Ibid.35 Ibid.36 Parella (2020).37 Parella (2020).38 Grietje Baars, ‘Capital, Corporate Citizenship and Legitimacy. The Ideological Force of 'Corporate Crime' in International Law.’ In Grietje Baars and André Spicer (Eds.). The corporation. A critical, multi-disciplinary handbook (Cambridge University Press 2017).39 Grietje Baars, ‘The Corporation, Law and Capitalism. A Radical Perspecive on the Role of Law in the Global Political Economy’ (Brill, Historical Materialism Book Series 2019).40 Mende (2020).41 European Commission, Directorate-General for Justice and Consumers, Francisca Torres-Cortés and others ‘Study on due diligence requirements through the supply chain : final report’ (Publications Office 2020) https://data.europa.eu/doi/10.2838/39830 accessed 09 August 2023.42 Benedikt Lennartz, ‘Process Documents for BHR Regulation in Germany and at UN Level’ (Harvard Dataverse 2023), DOI: 10.7910/DVN/SNUCJQ.43 United Nations Human Rights Office of the High Commissioner, ‘The corporate responsibility to respect human rights’ (2012) https://www.ohchr.org/sites/default/files/Documents/publications/hr.puB.12.2_en.pdf accessed 09 August 2023.44 Auswärtiges Amt, ’Nationaler Aktionsplan zur Umsetzung der VN-Leitprinzipien für Wirtschaft und Menschenrechte 2016-2020‘ (2017) https://www.auswaertiges-amt.de/blob/297434/8d6ab29982767d5a31d2e85464461565/nap-wirtschaft-menschenrechte-data.pdf.accessed 09 August 2023, p. 6f.45 Initiative Lieferkettengesetz, ’Noch nicht am Ziel, aber endlich am Start: Was das neue Lieferkettengesetz liefert - und was nicht‘ (2021) https://lieferkettengesetz.de/wp-content/uploads/2021/06/Initiative-Lieferkettengesetz_Analyse_Was-das-neue-Gesetz-liefert.pdf accessed 09 August 2023; Armin Paasch and Karolin Seitz, ’Lieferkettengesetz: Aufstand der Lobbyisten‘ (2021) https://www.misereor.de/fileadmin/publikationen/briefing-lieferkettengesetz-aufstand-der-lobbyisten-2021.pdf accessed 09 August 2023.46 United Nations Human Rights Council, ‘Open-ended intergovernmental working group on transnational corporations and other business enterprises with respect to human rights’ (2023) https://www.ohchr.org/en/hrbodies/hrc/wgtranscorp/pages/igwgontnc.aspx accessed 09 August 2023.47 International Organisation of Employers and International Chamber of Commerce, ‘Joint views of the IOE and ICC on the draft “Norms on the responsibilities of transnational corporations and other business enterprises with regard to human rights”’ (2004) http://www.reports-and-materials.org/IOE-ICC-Exec-Summary-views-UN-Norms-March-2004.doc accessed 09 August 2023; Morrison, John, ‘An Overview of Current Practice and Policy Relating to Business Activities and Human Rights: Some of the Implications for Corporate “Rule-Making”’ In Ingo Pies and Peter Koslowski (eds.), Corporate Citizenship and New Governance: The Political Role of Corporations (pp. 7–18) (Springer 2011).48 United Nations, ‘Guiding Principles on Business and Human Rights: Implementing the United Nations “Protect, Respect, Remedy” Framework’ (2011).49 Deutsche Gesellschaft für die Vereinten Nationen, ’Unternehmen und Menschenrechte. Zögerliche Umsetzung der UN-Leitprinzipien‘ (2018) https://dgvn.de/meldung/unternehmen-und-menschenrechte-zoegerliche-umsetzung-der-un-leitprinzipien/ accessed 09 August 2023.50 Auswärtiges Amt, ’Nationaler Aktionsplan zur Umsetzung der VN-Leitprinzipien für Wirtschaft und Menschenrechte 2016-2020‘ (2017) https://www.auswaertiges-amt.de/blob/297434/8d6ab29982767d5a31d2e85464461565/nap-wirtschaft-menschenrechte-data.pdf.accessed 09 August 2023 p.8.51 Ibid.52 Auswärtiges Amt, ’Zwischenbericht. Explorative Phase 2018’ (2019) https://www.auswaertiges-amt.de/blob/2232418/1531aad304f1dec719954f7292ddbc05/190710-nap-zwischenbericht-data.pdf accessed 09 August 2023.53 CorA-Netzwek für Unternehmensverantwortung and others (2019) ’Stellungnahme zum NAP-Monitoring. Monitoring-Methodik ist zur Überprüfung der menschenrechtlichen Sorgfalt deutscher Unternehmen ungeeignet – Gewerkschaften und Nichtregierungsorganisationen fordern ein Lieferkettengesetz‘ (2019) https://www.cora-netz.de/wp-content/uploads/2019/07/Stellungnahme-Endfassung-des-ersten-MonitoringZwischenberichts-Berichts_Layout.pdf accessed 09 August 2023.54 Auswärtiges Amt, ’Monitoring zum Nationalen Aktionsplan für Wirtschaft und Menschenrechte‘ (2020) https://www.auswaertiges-amt.de/de/aussenpolitik/themen/aussenwirtschaft/wirtschaft-und-menschenrechte/monitoring-nap/2124010 accessed 09 August 2023.55 Deutscher Bundestag, ́Bundestag verabschiedet Lieferkettengesetz` (2020) https://www.bundestag.de/dokumente/textarchiv/2021/kw23-de-lieferkettengesetz-845608 accessed 09 August 2023.56 OEIGWG Chairmanship, ‘Legally Binding Instrument to Regulate, in International Human Rights Law, the Activities of Transnational Corporations and Other Business Enterprises. Third Revised Draft.’ (2021) https://www.ohchr.org/Documents/HRBodies/HRCouncil/WGTransCorp/Session6/LBI3rdDRAFT.pdf accessed 09 August 2023.57 Ibid.58 United Nations (2011) p. 17ff.59 United Nations (2011).60 Nicolas Bueno and Claire Bright, ‘Implementing Human Rights Due Diligence Through Corporate Civil Liability’ (2020) International & Comparative Law Quarterly, 69(4).789-818.61 Auswärtiges Amt (2016), p. 8f.62 Bundesgesetzblatt Jahrgang 2021, ’Gesetz über die unternehmerischen Sorgfaltspflichten in Lieferketten‘ (2021) In Bundesgesetzblatt Jahrgang 2021, Teil I Nr 46. 2959–2969. P. 2961ff.63 OEIGWG Chairmanship (2021). p. 7ff.64 United Nations (2011) p. 21f.65 Auswärtiges Amt (2016), p. 8f.66 Bundesgesetzblatt Jahrgang 2021 (2021).67 OEIGWG Chairmanship (2021).68 International Organisation of Employers (IOE), International Chamber of Commerce (ICC), and Business and Industry Advisory Committee to the OECD (BIAC). ‘Joint initial views of the International Organisation of Employers (IOE), the International Chamber of Commerce (ICC) and the Business and Industry Advisory Committee to the OECD (BIAC) to the Eighth Session of the Human Rights Council on the Third report of the Special Representative of the UN Secretary-General on Business and Human Rights’ (2008), www.business-humanrights.org/sites/default/files/reports-and-materials/Letter-IOE-ICC-BIAC-re-Ruggie-report-May-2008.pdf accessed 09 August 2023.69 Business Leaders Initiative on Human Rights (BLIHR), ‘Initial Statement by the Business Leaders Initiative on Human Rights in response to the 2008 report of the UN Special Representative on Business and Human Right’(2008) https://media.business-humanrights.org/media/documents/files/reports-and-materials/BLIHR-statement-Ruggie-report-2008.pdf accessed 09 August 2023.70 Business & Human Rights Resource Centre. Unsere Verantwortung in einer globalisierten Welt. Für eine gesetzliche Regelung menschenrechtlicher und umweltbezogener Sorgfaltspflichten. (2020) https://www.business-humanrights.org/de/schwerpunkt-themen/mandatory-due-diligence/gesetz/ accessed 09 August 2023.71 Presseportal. Rheinische Post: Arbeitgeberpräsident bezeichnet Lieferkettengesetz als „großen Unfug“, (2019) https://www.presseportal.de/pm/30621/4464682 accessed 09 August 2023.72 Paasch, A.; Seitz, K. (2021).73 Uwe Kerkow and Karolin Seitz, ’Regeln zu Wirtschaft und Menschenrechten –Wirtschaftslobby gegen jegliche Verbindlichkeit und wie die Politik darauf reagiert‘ (2018) https://archive.globalpolicy.org/images/pdfs/Briefing_0518_Wirtschaftslobby_NAP.pdf accessed 09 August 2023.74 International Organization of Employers, ‘Draft Strategy on IOE Engagement in the “Ecuador Resolution” Intergovernmental Working Group on Business and Human Rights’ (2014) https://www.ioe-emp.org/fileadmin/ioe_documents/publications/Policy%20Areas/business_and_human_rights/EN/_2014-11-05__Draft_IOE_Strategy_Engagement_with_Ecuador_Initiative_IWG__Final_.pdf accessed 09 August 2023.75 European Commission, Directorate-General for Justice and Consumers, Francisca Torres-Cortés and others (2020).76 Ibid.77 Ibid.78 Ibid.79 Auswärtiges Amt, 2‘. Konferenz Nationaler Aktionsplan Wirtschaft und Menschenrechte‘ (2015a) p. 5 www.auswaertiges-amt.de/blob/267194/2de0f55219007205e8439c6476cd5c5a/150506-dokumentation-plenum2-data.pdf. Accessed 09 August 2023.80 International Organisation of Employers (2014).81 Auswärtiges Amt, ’Dokumentation – Nationaler Aktionsplan Wirtschaft und Menschenrechte. Anhörung 3‘ (2015b) https://www.auswaertiges-amt.de/blob/273838/e35d00d9a8150c0e25b2d91e979daed4/expertenanhoerung3-data.pdf accessed 09 August 2023.82 Business & Human Rights Resource Centre, ‘Unsere Verantwortung in einer globalisierten Welt. Für eine gesetzliche Regelung menschenrechtlicher und umweltbezogener Sorgfaltspflichten‘ (2020) https://www.business-humanrights.org/de/schwerpunkt-themen/mandatory-due-diligence/gesetz/ accessed 09 August 2023

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