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The scope of legal expectations from business in human rights: carrot or stick?

Author

Listed:
  • Lyra Jakulevičienė

    (Mykolas Romeris University, Lithuania)

  • Dovilė Gailiūtė-Janušonė

    (Mykolas Romeris University, Lithuania)

Abstract

Although not all businesses acknowledge it, most face issues of human rights in their business operations or relationships. These issues can have positive or negative impacts, whether for their employees, consumers, or communities. In times of crisis, the issues of human rights in business are even more acute − as the COVID-19 pandemic has demonstrated, already having a dramatic impact on people across many supply chains. While the perception that states are responsible for human rights broadly prevails, businesses increasingly face growing expectations to assess, address, and remedy the negative impacts of their activities. Furthermore, developments in the past decade demonstrate the evolution of such expectations into legal requirements and mandatory regulation. States have employed various tools to influence business activities in this field, ranging from soft law to legal requirements both at national and international levels. This article analyses the main European trends of such an evolution within the selected areas of due diligence, non-financial reporting, and investment, and delves into recent developments from the perspective of benefits for business. It explores if the perceived benefits for businesses exclusively serve as a ‘stick’ that requires compliance, or whether they might extend beyond this.

Suggested Citation

  • Lyra Jakulevičienė & Dovilė Gailiūtė-Janušonė, 2020. "The scope of legal expectations from business in human rights: carrot or stick?," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(2), pages 932-946, December.
    • Handle: RePEc:ssi:jouesi:v:8:y:2020:i:2:p:932-946
    DOI: 10.9770/jesi.2020.8.2(56)
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    References listed on IDEAS

    as
    1. Ana Čertanec, 2019. "The Connection between Corporate Social Responsibility and Corporate Respect for Human Rights," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 2, pages 103-127, June.
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    More about this item

    Keywords

    business and human rights; UN Guiding Principles; due diligence; business impact; national action plans;
    All these keywords.

    JEL classification:

    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • K38 - Law and Economics - - Other Substantive Areas of Law - - - Human Rights Law; Gender Law; Animal Rights Law
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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