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2 - Corporations, Human Rights and the Governance Gap

Published online by Cambridge University Press:  13 December 2025

Claire H. Palmer
Affiliation:
Sixth Floor Chambers, Sydney
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Summary

This chapter surveys the international legal framework governing transnational corporations (TNCs) and human rights. It begins with a brief history of the corporation, traces the rise of transnational corporate power since the 1970s, and offers a definition of the TNC. It then outlines the various ways in which corporate activities can adversely affect human rights, drawing on some of the most notorious incidents of recent decades. The chapter highlights the persistent difficulty of regulating corporations at the international level and describes the current regime under which states bear primary responsibility for preventing and remedying human rights abuses within their territories, including those committed by businesses. Since 2010, several states have introduced modern slavery legislation requiring companies to conduct due diligence on their operations and supply chains.

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