Introduction

In the modern globalized business world of complex corporate structures, violations of human rights and other unethical conduct related to multinational companies normally take place at a level very distant from the listed parent company. This creates several difficulties in analysis of corporate responsibility.

When assessing corporate responsibility from an investor perspective, the general problem concerns the relationship between the listed company in which the investor holds shares and the often very distant level on which the unethical conduct or the unacceptable production takes place. That problem is the reverse of the problem that faces victims of corporate wrongdoings wanting to hold a listed company liable for consequences of unacceptable conduct like violations of human rights. Both problems belong to the overall discussion on corporate social responsibility. The basic difference between discussions of investor divestment due to unethical behaviour, on the one hand, and suits against companies based on the same type of conduct on the other, is the perspective from which the analysis has to be undertaken.