Corporate Social Responsibility and Human Rights: Case Study Analysis

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This report delves into the critical relationship between Corporate Social Responsibility (CSR) and Human Rights in the modern business landscape. It examines the significance of sustainable development and the ethical obligations of companies, particularly multinational corporations. The report highlights the UN Guiding Principles for Business and Human Rights (Ruggie Principles) and their role in shaping corporate responsibilities. A key case study, Vedanta v Lungowe [2019] UKSC 20, is analyzed to illustrate how companies can fail to uphold CSR standards, leading to human rights violations. The report emphasizes the need for businesses to prioritize human rights and engage in sustainable practices, ensuring their operations do not negatively impact communities. References to relevant academic sources are also included to support the analysis.
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Running head: CORPORATE SOCIAL RESPONSIBILITY AND HUMAN RIGHTS
Corporate Social Responsibility and Human Rights
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Author Note
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1CORPORATE SOCIAL RESPONSIBILITY AND HUMAN RIGHTS
The modern contemporary world is characterized by the working of several multinational
companies in the world. These companies compete with each other in order to earn a higher level
of profit margin1. However, capitalist world requires the different business organizations to pay
emphasis on the maintenance of the human rights during the course of their functioning.
In the present world order, there is a lot of emphasis on the issue of sustainable
development. Sustainable development refers to the process whereby the business firms try to
undertake those processes of production which does not put much pressure on the natural
resources of the Earth2. This is categorically against the character of the capitalist businesses.
Their main objective is to earn as much profit as they can. Opting for sustainable development is
a part of their corporate social responsibility which is essential for the society.
Different non-governmental organizations have taken the initiative to ensure that the
business firms are abiding by their responsibilities to the society. In this respect, the United
Nations formulated the UN Guiding Principles for Business and Human Rights. These Principles
are famously termed as the Ruggie Principles. The Ruggie Principles basically aimed at
governing the co-existing relationship between the functioning of a capitalist form of market and
the social responsibility towards the people of the community. As a consequence of this, in the
year of 2011, the Ruggie Principles were formally drafted and it laid down a guiding frame work
in which the companies and the countries would form their policies for fulfilling their respective
responsibilities in the society3.
1 Unit, Business. "Corporate social responsibility." (2015).
2 Grayson, David, and Adrian Hodges. Corporate social opportunity!: Seven steps to make corporate social
responsibility work for your business. Routledge, 2017.
3 Unit, Business. "Corporate social responsibility." (2015).
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2CORPORATE SOCIAL RESPONSIBILITY AND HUMAN RIGHTS
However, in the real life condition, it can be observed that major conflicts exist between
the functioning of a c0mpany and its responsibility towards the society. One of such cases was
the Vedanta v Lungowe [2019] UKSC 204. The people of Zambia living in Chingola brought an
issue before the English Courts. They protested against the activity of Vedanta Resources Plc
which was a British company. Its subsidiary company known as the Konkola Copper Mines Plc
was allegedly discharging its waste which was generated from the Nchanga Copper mine in to
the local water bodies. This severely affected the health of the local residents as they were
drinking polluted water.
This shows that the multinational companies across the world are failing at their effective
performance of corporate social responsibility. The twenty first century requires the business
organizations to be concerned about their adverse consequences that their functioning have on
the society by the way of maintain the human rights which are being violated in the process5.
In conclusion, it can be observed that the modern world places a lot of emphasis on the
guaranteeing of the human rights to the people. Their freedom and rights should not be abridged
by anyone in the society especially by the business firms. As a result of this, sustainable
developmental activities are required to be engaged in by the firms.
4 Blanco, Elena. "Vedanta, a long awaited landmark in extra-territorial tort litigation against parent companies:
Reflections on jurisdiction." Manchester Journal of International Economic Law (2019).
5 Crane, Andrew, Dirk Matten, and Laura Spence, eds. Corporate social responsibility: Readings and cases in a
global context. Routledge, 2019.
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3CORPORATE SOCIAL RESPONSIBILITY AND HUMAN RIGHTS
References:
Blanco, Elena. "Vedanta, a long awaited landmark in extra-territorial tort litigation against parent
companies: Reflections on jurisdiction." Manchester Journal of International Economic
Law (2019).
Crane, Andrew, Dirk Matten, and Laura Spence, eds. Corporate social responsibility: Readings
and cases in a global context. Routledge, 2019.
Grayson, David, and Adrian Hodges. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge, 2017.
Unit, Business. "Corporate social responsibility." (2015).
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