ABSTRACT

This chapter deals with the relationship between demands and the nature of corporate behaviour, and focuses on whether multinationals have certain fundamental limitations in their ability to actively promote better human rights conditions in countries. It looks at the two arguments in order to establish whether and how they obstruct the ability of multinational enterprises (MNEs) to actively improve human rights conditions in developing countries outside these companies’ direct operations. In order to understand the basic abilities and limitations of MNEs people must look at the nature of MNE behaviour. Like the issue of regulatory mechanisms and accountability, the difference in views on human rights is rightly identified by M. Tabaksblat and C.A.J Herkstroter as an obstacle to MNEs engaging in active human rights promotion in developing countries. However, there is no inherent reason why MNEs cannot take such actions.