In a rapidly globalizing world, multinational corporations (MNCs) have emerged as the behemoths of economic power, wielding immense influence across continents—from the skyscrapers of New York and London to the emerging markets of Nairobi, Jakarta, and São Paulo. While they bring jobs, investment, and development opportunities, their global reach also brings them face-to-face with a critical challenge: upholding human rights in developing countries where governance might be weak, regulation insufficient, and poverty pervasive.
The Role of Multinational Corporations in Upholding Human Rights
Human rights are universal, inalienable, and interdependent. Yet, in many developing nations, they are at constant risk of being compromised. MNCs that choose to operate in these regions must acknowledge their pivotal role in safeguarding human dignity, beyond the legal requirements. It is no longer sufficient for these corporate giants to maintain a narrow focus on profit margins and shareholder value. Their operations must be underpinned by a genuine commitment to ethical practices, starting with a steadfast respect for human rights.
Labour Rights and Working Conditions: The Case of Rana Plaza
One of the most glaring areas where MNCs must focus their human rights efforts is within their own supply chains and operations. Sweatshop conditions, child labour, and unsafe workplaces are still realities in many parts of the world. The collapse of the Rana Plaza factory in Bangladesh in 2013 is a tragic testament to this issue. The eight-story building, which housed garment factories supplying some of the world’s most well-known clothing brands, collapsed due to structural failures, killing over 1,100 workers and injuring thousands more.
The Rana Plaza disaster underscored the dangerous conditions in which many workers in developing countries toil, often for wages far below a living standard. It highlighted the urgent need for MNCs to enforce rigorous labour rights standards throughout their supply chains. In response, some companies have taken steps to audit suppliers, implement worker safety protocols, and provide fair wages. However, these measures must be expanded and enforced consistently to prevent another tragedy of this magnitude. Failing to do so risks human lives and a severe backlash from consumers and investors increasingly attuned to ethical business practices.
Environmental Impact and the Right to a Healthy Environment: Shell in the Niger Delta
In many developing countries, communities rely heavily on their natural surroundings for their livelihoods—whether through agriculture, fishing, or other local industries. When MNCs engage in activities that degrade the environment—such as deforestation, pollution, or the over-extraction of natural resources—they directly threaten the rights of these communities to a healthy environment, clean water, and sustainable living.
The Niger Delta in Nigeria is a stark example. For decades, oil spills, gas flaring, and pollution caused by oil companies—most notably Shell—have devastated local communities, destroying farmlands, contaminating water sources, and threatening the very survival of the region’s inhabitants. In 2021, Shell was ordered by a Dutch court to compensate Nigerian farmers for oil spills that occurred between 2004 and 2007, a landmark ruling that underscored the company’s liability for environmental damage caused by its operations abroad.
The consequences of neglecting environmental stewardship have been devastating, leading to social unrest, displacement, and loss of livelihoods. This case underscores the need for MNCs to adopt sustainable practices that minimize their ecological footprint, respect local customs, and preserve natural resources for future generations. The ruling against Shell sets a precedent, showing that corporations can be held accountable in their home countries for their overseas actions—a powerful reminder that negligence has consequences.
Respecting Indigenous Rights and Cultural Sensitivities: The Case of Rio Tinto in Bougainville
MNCs often operate in areas inhabited by indigenous peoples, who have unique cultural, spiritual, and economic ties to their lands. Disrespecting these ties or forcefully acquiring land for mining, infrastructure projects, or agricultural expansion constitutes a grave violation of human rights. The case of Rio Tinto in Bougainville, Papua New Guinea, is illustrative.
In the 1980s, Rio Tinto operated the Panguna copper mine, one of the world’s largest, on Bougainville Island. The mine was accused of causing severe environmental degradation and social conflict. The indigenous communities alleged that Rio Tinto had polluted rivers, destroyed rainforests, and displaced people without proper compensation or consultation. Tensions escalated into a violent conflict that lasted a decade, resulting in thousands of deaths and a long-lasting impact on the region’s stability.
In 2020, Rio Tinto agreed to an independent review of the environmental and human rights impact of its past operations in Bougainville, acknowledging the company’s role in the conflict. This step, although late, reflects a growing recognition among MNCs of the need to engage meaningfully with indigenous communities, uphold their rights, and avoid coercive practices. This case serves as a critical lesson on the importance of free, prior, and informed consent from Indigenous communities regarding any development that affects their land or way of life.
Consequences of Neglecting Human Rights: Case Studies of Reputational and Legal Fallout
When MNCs fail to respect human rights, the consequences are severe and far-reaching. Beyond the immediate harm to individuals and communities, there are reputational risks, legal repercussions, and financial penalties.
For example, in 2019, tech giant Apple, along with other major technology companies, faced a lawsuit in the United States over allegations that they knowingly profited from the use of child labour in cobalt mines in the Democratic Republic of Congo (DRC). The lawsuit alleged that children were forced to work in dangerous conditions to extract cobalt, a key component in the batteries used in smartphones and other electronics. While the case is ongoing, the mere association with such allegations has significantly tarnished the reputation of these companies, highlighting the risks of neglecting human rights considerations in supply chains.
Similarly, the French oil company Total faced international criticism and legal action over its activities in Uganda. Total was accused by NGOs of failing to respect human rights, displacing thousands of people without adequate compensation, and failing to adhere to environmental standards in the development of its oil project in the Lake Albert region. In 2021, a French court ruled that Total must immediately address these human rights and environmental violations, showcasing the growing trend of legal accountability for corporate actions abroad.
A Call to Action: A New Era of Corporate Social Responsibility
Multinational corporations must embrace a more holistic and proactive approach to human rights to effect change truly. This means going beyond the minimum required by law and adopting a mindset where human rights considerations are integrated into every aspect of business strategy—from the boardroom to the factory floor.
Transparency and accountability must be at the forefront of this transformation. MNCs should publish detailed reports on their human rights practices, allowing stakeholders to scrutinize their commitments and hold them accountable. Collaborating with civil society organizations, local governments, and international bodies can help build trust and ensure that human rights are genuinely protected, not just used as a marketing tool.
Education and training programmes for employees and local communities can foster a culture of respect and awareness around human rights. Creating safe channels for reporting abuses without fear of retaliation is crucial for empowering individuals to speak out against injustices.
Conclusion: A Shared Responsibility
As the world faces rising inequalities, climate change, and social unrest, the role of MNCs in safeguarding human rights in developing countries has never been more critical. Companies must recognise that they are not just economic entities but also global citizens with the power to shape societies for better or worse. Respecting human rights is not just a legal or moral obligation but a strategic imperative that can drive sustainable growth and foster a more equitable global economy.
The West, Europe, Asia, and Africa must all come together to support a new paradigm where businesses thrive, not at the expense of human rights, but by uplifting them. Our choices today will determine whether MNCs will be remembered as architects of progress or as symbols of exploitation in the annals of history. The time for action is now.
