IMPACT OF CORPORATE GOVERNANCE ON HUMAN RIGHTS

AUTHOR – MOHD. REHAN ALI, STUDENT AT FACULTY OF LAW, ALIGARH MUSLIM UNIVERSITY, ALIGARH

Best Citation – MOHD. REHAN ALI, IMPACT OF CORPORATE GOVERNANCE ON HUMAN RIGHTS, ILE JOURNAL OF POLITICAL STUDIES (ILE JPS), 1 (1) of 2023, Pg. 1-7, APIS – 3920 – 0054 | ISBN – 978-81-964391-3-2

Abstract

This article explores the impact of corporate governance on human rights. Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It plays a crucial role in shaping a company’s behaviour and decision-making processes. Human rights, on the other hand, encompass the fundamental rights and freedoms that every individual is entitled to. The article highlights the connection between corporate governance and human rights, emphasizing that without effective corporate governance, the protection of human rights is not possible.

Inadequate corporate governance can lead to human rights violations such as environmental degradation, labour exploitation, discrimination, and violations of freedom of association. Multinational corporations often engage in serious abuses, taking advantage of weak local laws and mismanagement. Examples of such violations include the collapse of the Rana Plaza building in Bangladesh, oil spills in Nigeria, and the Bhopal Gas Tragedy. These cases underscore the importance of corporate accountability and the need for transparency, ethical decision-making, and community participation in business operations.

The article also discusses the ethical and legal violations of human rights by corporations, including the exploitation of labor, environmental damage, discrimination, and child labor. It emphasizes that corporate governance should ensure compliance with laws and regulations, set policies and practices that respect human rights, and monitor and report on the company’s impact on the environment and local communities. By prioritizing human rights, promoting transparency and accountability, and engaging with stakeholders, corporate governance can protect and promote human rights, build trust, and enhance a company’s reputation. The article concludes by highlighting the importance of laws and regulations in ensuring fair labor practices and creating safe working conditions for employees.

Key Words – Corporate governance,  Human rights, Labour Rights, Multinational corporations, Environmental degradation