Protection for the Rights and Interests of Local Communities Adversely Affected by Multinational Energy Companies’ Activities
Abstract
Foreign investments of Multinational Corporations (MNCs) bring several advantages for the host states where they operate. In the case of foreign investment in the energy sector, the business activities of MNCs have an impact on social and environmental issues that adversely affect the right and interests of the local communities. In terms of addressing such problems, some binding and non-binding international legal instruments were established and adopted by states and international organizations/bodies. This article discusses the sufficiency of the protection provided by international law for the local communities adversely affected by MNCs in the energy sector especially with regards to human rights, environmental, and anti-corruption matters. This article argues that protection of the rights and interests of local communities from the activities of MNCs are developed through an international legal framework, both general and bilateral treaties, as well as the national law of host States.
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References
Book
Sornarajah, M. The International Law on Foreign Investment. 4th ed. Cambridge: Cambridge University Press, 2017. https://doi.org/10.1017/9781316459959
Subedi, Surya P. International Investment Law: Reconciling Policy and Principle. London: Hart Publishing, 2020. https://r3.vlereader.com/Reader?ean=9781509936373
Journal Article
Akpan, George S. Litigating Problems that Arise From Natural Resources Exploitation in Foreign Courts: Impediments to Justice. Journal of Energy & Natural Resources Law 20, no. 1 (2002): 55–78. https://doi.org/10.1080/02646811.2002.11433283
Amao, Olufemi O. Corporate Social Responsibility, Multinational Corporations and the Law in Nigeria: Controlling Multinationals in Host States. Journal of African Law 52, no. 1 (2008): 89–113. https://doi.org/10.1017/S0021855308000041
Anderson, Michael. Transnational Corporations And Environmental Damage: Is Tort Law The Answer. Washburn LJ 41, no. 3 (2002): 399–426.
Azaria, Danae. Community Interest Obligations in International Energy Law. Community Interest Across International Law 1, no. 1 (2018): 297–315. https://doi.org/10.1093/oso/9780198825210.003.0016
Bantekas, Ilias. Corporate Social Responsibility in International Law. Boston University International Law Journal 22 no. 2 (2004): 309–348. https://doi.org/10.4324/9780429057182-5
Bhatt, Kinnari, and Gamze Erdem Türkelli. “OECD National Contact Points as Sites of Effective Remedy: New Expressions of the Role and Rule of Law within Market Globalization?” Business and Human Rights Journal 6, no. 3 (2021): 423–448. https://doi.org/10.1017/bhj.2021.30
Choudhury, Barnali. Investor Obligations for Human Rights. ICSID Review - Foreign Investment Law Journal 35, no. 1, (2020): 82–104. https://doi.org/10.1093/icsidreview/siaa002
Ejims, Okechukwu. "The 2016 Morocco–Nigeria Bilateral Investment Treaty: more practical reality in providing a balanced investment treaty?." ICSID Review-Foreign Investment Law Journal 34, no. 1 (2019): 62-84. https://doi.org/10.1093/icsidreview/siz001
Fauchald, Ole Kristian. “International Investment Law in Support of the Right to Development?” Leiden Journal of International Law 34, no. 1 (2021): 181–201. https://doi.org/10.1017/S0922156520000655
Frynas, Jedrzej G. Corporate Social Responsibility or Government Regulation? Evidence on Oil Spill Prevention. Ecology and Society 17, no. 4. (2012): 1-13. https://doi.org/10.5751/ES-05073-170404
Gray, Kevin R. Foreign Direct Investment and Environmental Impacts - Is the Debate Over?. Review of European Community and International Environmental Law 11, no. 3 (2002): 306–313. https://doi.org/10.1111/1467-9388.00329
Kettunen, Erja. “On MNC-Host Government Relations: How Finnish Firms Respond to National and Regional Policies in ASEAN, The Copenhagen Journal of Asian Studies 34, no. 2 (2016): 54-76. https://doi.org/10.22439/cjas.v34i2.5306
Khalid, Fahad, Juncheng Sun, Guanhua Huang, and Chih-Yi Su. 2021. "Environmental, Social and Governance Performance of Chinese Multinationals: A Comparison of State- and Non-State-Owned Enterprises," Sustainability 13, no. 7 (2021): 1-21, https://doi.org/10.3390/su13074020
Konne, Barisere Rachel. Inadequate Monitoring and Enforcement in the Nigerian Oil Industry: The Case of Shell and Ogoniland. Cornell International Law Journal 47, no. 1 (2014): 181-204.
Kuswanto, Kuswanto, Herman W. Hoen, and Ronald L. Holzhacker. “Bargaining between local governments and multinational corporations in a decentralised system of governance: the cases of Ogan Komering Ilir and Banyuwangi districts in Indonesia,” Asia Pacific Journal of Public Administration 39, no. 3 (2017): 189-201 https://doi.org/10.1080/23276665.2017.1368246
Kyove, Justine, Katerina Streltsova, Ufuoma Odibo, and Giuseppe T. Cirella. "Globalization Impact on Multinational Enterprises" World 2, no. 2 (2021): 216-230. https://doi.org/10.3390/world2020014
Leader, Sheldon. Human rights, risks, and new strategies for global investment. Journal of International Economic Law 9, no. 3 (2006): 657–705. https://doi.org/10.1093/jiel/jgl015
Morgera, Elisa. An Environmental Outlook on the OECD Guidelines for Multinational Enterprises: Comparative Advantages, Legitimacy, and Outstanding Question in the Lead Up to the 2006 Review. Georgetown International Environmental Law Review 18, no.4 (2006): 751–777.
Mostajelean, Bahareh. Foreign Alternatives To The Alien Tort Claims Act: The Success (Or Is It Failure?) Of Bringing Civil Suits Against Multinational Corporations That Commit Human Rights Violations. The George Washington International Law Review 40, no. 2 (2008): 497–526.
Perrone, Nicolás M. The “invisible” Local Communities: Foreign Investor Obligations, Inclusiveness, and The International Investment Regime. AJIL Unbound, 113 (2019): 16–21. https://doi.org/10.1017/aju.2018.92
Prihandono, Iman. Barriers to Transnational Human Rights Litigation Against Transnational Corporations (TNCs): The Need for Cooperation Between Home and Host Countries. Journal of Law and Conflict Resolution 3, no. 7 (2011): 89–103. https://doi.org/10.5897/JLCR.9000006
Spears, Suzanne A. The quest for policy space in a new generation of international investment agreements. Journal of International Economic Law 13, no. 4 (2010): 1037–1075. https://doi.org/10.1093/jiel/jgq048
Ullah, Subhan, Kweku Adams, Dawda Adams, Rexford Attah-Boakye, “Multinational corporations and human rights violations in emerging economies: Does commitment to social and environmental responsibility matter?, Journal of Environmental Management 280 (2021) https://doi.org/10.1016/j.jenvman.2020.111689
Yan, Yueming. Anti-Corruption Provisions In International Investment Agreements: Investor Obligations, Sustainability Considerations, and Symmetric Balance. Journal of International Economic Law 23, no. 4 (2020): 989–1013. https://doi.org/10.1093/jiel/jgaa026
Zugliani, Niccolò. Human Rights In International Investment Law: The 2016 Morocco-Nigeria Bilateral Investment Treaty. International and Comparative Law Quarterly 68, no. 3 (2019): 761–770. https://doi.org/10.1017/S0020589319000174
Vadi, Valentina, “Jus Cogens in International Investment Law and Arbitration,” Netherlands Yearbook of International Law (2015): 357-388
Thesis
Ouzelet, François. “Human Rights and Multinational Corporations: The United-Nations Policies And Companies’ Responsibilities To Protect Human Rights In Business.” Master Thesis, Department of Management University of Exeter, September 2018.
Legal Documents
European Economic Community. Brussel Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters (1968).
India. Model Text for Indian Bilateral Investment, T. Model Text for Indian Bilateral Investment Treaty. (2021). https://dea.gov.in/sites/default/files/ModelBIT_Annex_0.pdf.
Indonesia. Law No. 40 of 2007 concerning Limited Liability Company
International Labour Organization, “Indigenous and Tribal Peoples Convention (1989)” https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:312314
Morocco-Nigeria BIT. Reciprocal Investment Promotion And Protection Agreement Between The Government of The Kingdom of Morocco and The Government of The Federal Republic of Nigeria. (2016). https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/5409/download
Norway. Draft Version 130515 Model Agreement Promotion and Protection Investment the Kingdom of Norway https://www.regjeringen.no/contentassets/e47326b61f424d4c9c3d470896492623/draft-model-agreement-english.pdf
OECD. “OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions”
OECD. “OECD Guidelines for Multinational Enterprises.” (2011). https://doi.org/10.1787/9789264204881-zh.
The United Nations Economic and Social Council, “Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights,” U.N. Doc. E/CN.4/Sub.2/2003/12/Rev.2 (2003).
United Nations. “UN Guiding Principles on Business and Human Rights.” (2011). https://doi.org/10.4324/9781351171922-3.
United Nations. “United Nations Convention on the Law of the Sea” https://www.un.org/depts/los/convention_agreements/texts/unclos/unclos_e.pdf
United Nations. “United Nations Declaration of Human Rights (1948).
United Nations. “United Nations Declaration on The Rights of Indigenous People”. (2007). https://www.un.org/development/desa/indigenouspeoples/wp-content/uploads/sites/19/2018/11/UNDRIP_E_web.pdf
The United States of America. The 2012 U.S. Model Bilateral Investment Treaty https://ustr.gov/sites/default/files/BIT%20text%20for%20ACIEP%20Meeting.pdf
Vienna Convention on the Law of Treaties (1969)
Other Document
Gordon, Kathryn. and Joachim Pohl. “Environmental Concerns in International Investment Agreements: A Survey,” OECD Working Papers on International Investment, OECD Publishing, 2011.http://dx.doi.org/10.1787/5kg9mq7scrjh-en
Website Content
Respant, Magali Garin and Andrew Willcocks. “Environmental Issues in ISDS”. https://jusmundi.com/en/document/wiki/en-environmental-issues-in-isds
Rathi, Riya. “Scope and Evolution of International Investment Law. https://www.latestlaws.com/articles/scope-and-evolution-of-international-investment-law/
Sornarajah, M. The International Law on Foreign Investment. 4th ed. Cambridge: Cambridge University Press, 2017. https://doi.org/10.1017/9781316459959
Subedi, Surya P. International Investment Law: Reconciling Policy and Principle. London: Hart Publishing, 2020. https://r3.vlereader.com/Reader?ean=9781509936373
Journal Article
Akpan, George S. Litigating Problems that Arise From Natural Resources Exploitation in Foreign Courts: Impediments to Justice. Journal of Energy & Natural Resources Law 20, no. 1 (2002): 55–78. https://doi.org/10.1080/02646811.2002.11433283
Amao, Olufemi O. Corporate Social Responsibility, Multinational Corporations and the Law in Nigeria: Controlling Multinationals in Host States. Journal of African Law 52, no. 1 (2008): 89–113. https://doi.org/10.1017/S0021855308000041
Anderson, Michael. Transnational Corporations And Environmental Damage: Is Tort Law The Answer. Washburn LJ 41, no. 3 (2002): 399–426.
Azaria, Danae. Community Interest Obligations in International Energy Law. Community Interest Across International Law 1, no. 1 (2018): 297–315. https://doi.org/10.1093/oso/9780198825210.003.0016
Bantekas, Ilias. Corporate Social Responsibility in International Law. Boston University International Law Journal 22 no. 2 (2004): 309–348. https://doi.org/10.4324/9780429057182-5
Bhatt, Kinnari, and Gamze Erdem Türkelli. “OECD National Contact Points as Sites of Effective Remedy: New Expressions of the Role and Rule of Law within Market Globalization?” Business and Human Rights Journal 6, no. 3 (2021): 423–448. https://doi.org/10.1017/bhj.2021.30
Choudhury, Barnali. Investor Obligations for Human Rights. ICSID Review - Foreign Investment Law Journal 35, no. 1, (2020): 82–104. https://doi.org/10.1093/icsidreview/siaa002
Ejims, Okechukwu. "The 2016 Morocco–Nigeria Bilateral Investment Treaty: more practical reality in providing a balanced investment treaty?." ICSID Review-Foreign Investment Law Journal 34, no. 1 (2019): 62-84. https://doi.org/10.1093/icsidreview/siz001
Fauchald, Ole Kristian. “International Investment Law in Support of the Right to Development?” Leiden Journal of International Law 34, no. 1 (2021): 181–201. https://doi.org/10.1017/S0922156520000655
Frynas, Jedrzej G. Corporate Social Responsibility or Government Regulation? Evidence on Oil Spill Prevention. Ecology and Society 17, no. 4. (2012): 1-13. https://doi.org/10.5751/ES-05073-170404
Gray, Kevin R. Foreign Direct Investment and Environmental Impacts - Is the Debate Over?. Review of European Community and International Environmental Law 11, no. 3 (2002): 306–313. https://doi.org/10.1111/1467-9388.00329
Kettunen, Erja. “On MNC-Host Government Relations: How Finnish Firms Respond to National and Regional Policies in ASEAN, The Copenhagen Journal of Asian Studies 34, no. 2 (2016): 54-76. https://doi.org/10.22439/cjas.v34i2.5306
Khalid, Fahad, Juncheng Sun, Guanhua Huang, and Chih-Yi Su. 2021. "Environmental, Social and Governance Performance of Chinese Multinationals: A Comparison of State- and Non-State-Owned Enterprises," Sustainability 13, no. 7 (2021): 1-21, https://doi.org/10.3390/su13074020
Konne, Barisere Rachel. Inadequate Monitoring and Enforcement in the Nigerian Oil Industry: The Case of Shell and Ogoniland. Cornell International Law Journal 47, no. 1 (2014): 181-204.
Kuswanto, Kuswanto, Herman W. Hoen, and Ronald L. Holzhacker. “Bargaining between local governments and multinational corporations in a decentralised system of governance: the cases of Ogan Komering Ilir and Banyuwangi districts in Indonesia,” Asia Pacific Journal of Public Administration 39, no. 3 (2017): 189-201 https://doi.org/10.1080/23276665.2017.1368246
Kyove, Justine, Katerina Streltsova, Ufuoma Odibo, and Giuseppe T. Cirella. "Globalization Impact on Multinational Enterprises" World 2, no. 2 (2021): 216-230. https://doi.org/10.3390/world2020014
Leader, Sheldon. Human rights, risks, and new strategies for global investment. Journal of International Economic Law 9, no. 3 (2006): 657–705. https://doi.org/10.1093/jiel/jgl015
Morgera, Elisa. An Environmental Outlook on the OECD Guidelines for Multinational Enterprises: Comparative Advantages, Legitimacy, and Outstanding Question in the Lead Up to the 2006 Review. Georgetown International Environmental Law Review 18, no.4 (2006): 751–777.
Mostajelean, Bahareh. Foreign Alternatives To The Alien Tort Claims Act: The Success (Or Is It Failure?) Of Bringing Civil Suits Against Multinational Corporations That Commit Human Rights Violations. The George Washington International Law Review 40, no. 2 (2008): 497–526.
Perrone, Nicolás M. The “invisible” Local Communities: Foreign Investor Obligations, Inclusiveness, and The International Investment Regime. AJIL Unbound, 113 (2019): 16–21. https://doi.org/10.1017/aju.2018.92
Prihandono, Iman. Barriers to Transnational Human Rights Litigation Against Transnational Corporations (TNCs): The Need for Cooperation Between Home and Host Countries. Journal of Law and Conflict Resolution 3, no. 7 (2011): 89–103. https://doi.org/10.5897/JLCR.9000006
Spears, Suzanne A. The quest for policy space in a new generation of international investment agreements. Journal of International Economic Law 13, no. 4 (2010): 1037–1075. https://doi.org/10.1093/jiel/jgq048
Ullah, Subhan, Kweku Adams, Dawda Adams, Rexford Attah-Boakye, “Multinational corporations and human rights violations in emerging economies: Does commitment to social and environmental responsibility matter?, Journal of Environmental Management 280 (2021) https://doi.org/10.1016/j.jenvman.2020.111689
Yan, Yueming. Anti-Corruption Provisions In International Investment Agreements: Investor Obligations, Sustainability Considerations, and Symmetric Balance. Journal of International Economic Law 23, no. 4 (2020): 989–1013. https://doi.org/10.1093/jiel/jgaa026
Zugliani, Niccolò. Human Rights In International Investment Law: The 2016 Morocco-Nigeria Bilateral Investment Treaty. International and Comparative Law Quarterly 68, no. 3 (2019): 761–770. https://doi.org/10.1017/S0020589319000174
Vadi, Valentina, “Jus Cogens in International Investment Law and Arbitration,” Netherlands Yearbook of International Law (2015): 357-388
Thesis
Ouzelet, François. “Human Rights and Multinational Corporations: The United-Nations Policies And Companies’ Responsibilities To Protect Human Rights In Business.” Master Thesis, Department of Management University of Exeter, September 2018.
Legal Documents
European Economic Community. Brussel Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters (1968).
India. Model Text for Indian Bilateral Investment, T. Model Text for Indian Bilateral Investment Treaty. (2021). https://dea.gov.in/sites/default/files/ModelBIT_Annex_0.pdf.
Indonesia. Law No. 40 of 2007 concerning Limited Liability Company
International Labour Organization, “Indigenous and Tribal Peoples Convention (1989)” https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:312314
Morocco-Nigeria BIT. Reciprocal Investment Promotion And Protection Agreement Between The Government of The Kingdom of Morocco and The Government of The Federal Republic of Nigeria. (2016). https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/5409/download
Norway. Draft Version 130515 Model Agreement Promotion and Protection Investment the Kingdom of Norway https://www.regjeringen.no/contentassets/e47326b61f424d4c9c3d470896492623/draft-model-agreement-english.pdf
OECD. “OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions”
OECD. “OECD Guidelines for Multinational Enterprises.” (2011). https://doi.org/10.1787/9789264204881-zh.
The United Nations Economic and Social Council, “Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights,” U.N. Doc. E/CN.4/Sub.2/2003/12/Rev.2 (2003).
United Nations. “UN Guiding Principles on Business and Human Rights.” (2011). https://doi.org/10.4324/9781351171922-3.
United Nations. “United Nations Convention on the Law of the Sea” https://www.un.org/depts/los/convention_agreements/texts/unclos/unclos_e.pdf
United Nations. “United Nations Declaration of Human Rights (1948).
United Nations. “United Nations Declaration on The Rights of Indigenous People”. (2007). https://www.un.org/development/desa/indigenouspeoples/wp-content/uploads/sites/19/2018/11/UNDRIP_E_web.pdf
The United States of America. The 2012 U.S. Model Bilateral Investment Treaty https://ustr.gov/sites/default/files/BIT%20text%20for%20ACIEP%20Meeting.pdf
Vienna Convention on the Law of Treaties (1969)
Other Document
Gordon, Kathryn. and Joachim Pohl. “Environmental Concerns in International Investment Agreements: A Survey,” OECD Working Papers on International Investment, OECD Publishing, 2011.http://dx.doi.org/10.1787/5kg9mq7scrjh-en
Website Content
Respant, Magali Garin and Andrew Willcocks. “Environmental Issues in ISDS”. https://jusmundi.com/en/document/wiki/en-environmental-issues-in-isds
Rathi, Riya. “Scope and Evolution of International Investment Law. https://www.latestlaws.com/articles/scope-and-evolution-of-international-investment-law/
Published
2022-01-30
How to Cite
PURWANINGSIH, Putu.
Protection for the Rights and Interests of Local Communities Adversely Affected by Multinational Energy Companies’ Activities.
Udayana Journal of Law and Culture, [S.l.], v. 6, n. 1, p. 1-22, jan. 2022.
ISSN 2549-0680.
Available at: <https://ojs.unud.ac.id/index.php/ujlc/article/view/75281>. Date accessed: 19 nov. 2024.
doi: https://doi.org/10.24843/UJLC.2022.v06.i01.p01.
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