Introduction

To what extent can companies be morally, or even legally, responsible for human rights abuses that take place in connection with their conduct of business? Moreover, to what extent can investors be responsible for unethical conduct by companies within their portfolio?

Such questions have been discussed for many years and in many different settings; within religious groups, in financial institutions and, not least, in civil society. There has been extensive debate over the past years in many international fora, including the UN, about the concept of corporate responsibility for human rights abuses. The launching of the UN Global Compact in 1999, as well as the ‘Draft Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights’ (the Draft Norms), which were discussed but not adopted by the UN Commission on Human Rights in 2004, reflect such debates. The Secretary-General’s Special Representative on business and human rights, John Ruggie, has contributed to these discussions, as have a number of other intergovernmental organizations, non-governmental organizations, academics, companies and governments.