Transnational Corporate Accountability for Overseas Human Rights Violations: Normative Developments and Enforcement Gaps in International Law

Globalisation has dramatically reshaped the business landscape in the twenty-first century. With the rise of multinational corporations (MNCs), businesses now operate on a global scale with supply chains that span across continents and a market presence in virtually every country. Forced labour, displacement of indigenous communities, environmental degradation and armed conflict, etc., have caused immense human rights violations that largely remain mediated through state action rather than imposing binding obligations on Corporations. This paper will critically examine the evolving framework of transnational corporate accountability for human rights violations under international law, highlighting both normative developments and persistent enforcement gaps. Currently, several instruments and initiatives exist that aim to regulate corporate behaviour and ensure accountability, such as the UN Guiding Principles on Business and Human Rights (UNGPs), the ONGC Guidelines for Multinational Corporations, and ILO Standards. They have contributed to normative coherence but remain non-binding in nature. Countries have also enacted legislation in order to ensure companies are diligent in protecting human rights, signalling a gradual shift from voluntary standards towards enforceable obligations. However, the cross-border supply chains maintained by MNCs create jurisdictional and enforcement barriers. Corporate criminal liability does not fall under the jurisdiction of the International Criminal Court (ICC), making it difficult to fix accountability. High-profile transnational litigation reveals systemic barriers faced by victims, including jurisdictional hurdles, corporate veil protections, and power asymmetries between corporations and affected communities. This paper will delve into the insufficiency of current international legal regime governing transnational corporate accountability in addressing cross-border human rights harms effectively. It seeks to contribute to the discourse on reimagining corporate accountability in a manner that aligns global economic activity with fundamental human rights protections.