Why should corporate managers comply with international law? International agreements, customary international law, and non-binding recommendations are sources of norms that, if adopted, could address many of the harms that corporations create for society and the planet.
Corporations are increasingly exposed to a variety of reputational, legal, regulatory, and other risks when they operate in a manner inconsistent with society’s expectations. Environmental, social, and governance (ESG) issues are priorities at many corporations, but managers struggle with how to implement them. Fortunately, many international laws offer the blueprint for ESG strategies. For example, the United Nations Guiding Principles recognize the “corporate … Read more
Individually or collectively, corporate leaders are promising stakeholders to improve corporate practices on a range of issues. In a new article, I argue that they can demonstrate their commitment to stakeholders by designing contracts differently.
We are already attentive to the ways that stakeholders are harmed by the contracts they enter into directly with corporations. This awareness has raised concerns over contracting practices and bargaining power, information asymmetries, and informed consent. In my article, I focus on contracts to which stakeholders are not parties, and how those contracts can nonetheless harm stakeholders as third parties. For example, contracts … Read more
In a new paper, “Protecting Contract’s Hidden Parties,” I argue that harm to third parties from supply chains offers a compelling reason for requiring human rights due diligence in supply chains. Many scholars have turned to fiduciary duties or negligence theories to create incentives for companies to consider non-shareholder interests. My article shares this objective but takes a different path by examining a corporation’s duties to others in its role as a contracting party. This analysis can help to address human rights violations in supply chains and may also have implications for third-party harms arising in other types of contracts.… Read more