ANESU DERA: Missed opportunity to hold firms accountable for human rights abuses

As the UN prepares for the 10th session of its Open-Ended Intergovernmental Working Group (IGWG) on Transnational Corporations & Human Rights this month, there is little cause for celebration. The treaty, designed to hold multinational corporations accountable for their human rights abuses, has made slow progress, leaving many victims, particularly in the Global South, frustrated and disillusioned.

At its core, the IGWG process aims to create an international legal framework that holds corporations responsible for human rights violations, especially those that occur in developing countries where oversight is weak. The idea is simple but urgent: multinational companies that operate across borders should be legally bound to respect human rights in every country where they do business, from factories in Asia to mines in Africa. This would provide a much-needed counterbalance to corporate power, ensuring that companies cannot exploit vulnerable populations without facing consequences.

However, a decade of negotiations has yielded little in terms of actual change. Despite the treaty’s potential to tackle corporate abuses ranging from child labour to environmental destruction, progress has been painfully slow. The process has been plagued by delays, including the recent postponement of the 10th session from October to December. The treaty remains far from the binding international law that was originally envisioned. 

For communities in the Global South the lack of progress is a devastating blow. In countries rich in natural resources but mired in poverty and instability, multinational corporations often exploit local populations for profit. A stark example can be seen in Democratic Republic of Congo (DRC), where companies mining cobalt, a key component of batteries for electronics and electric vehicles, have been linked to child labour, forced labour and dangerous working conditions. Despite years of evidence showing these abuses, the legal frameworks needed to hold corporations accountable remain weak or nonexistent.

The victims of these violations are often powerless. Local governments may be complicit, and many of these corporations operate in countries where legal systems are too weak to challenge their dominance. As a result, the people most affected by corporate exploitation often see no justice, while the companies responsible evade any meaningful consequences. 

The human rights abuses tied to corporate activity are not only ongoing, they are getting worse. As demand for resources grows, particularly for minerals needed in green technologies, like lithium and cobalt, multinational companies are expanding their operations in some of the most vulnerable regions of the world. This exacerbates problems such as land grabs, environmental degradation and labour exploitation.

For example, the transition to renewable energy, which should be a positive shift for the planet, has led to an even greater extraction of minerals in places like Latin America and Africa. In many cases local communities are paying the price as their lands are stripped for profit with little regard for their rights or well-being. Meanwhile, the IGWG process continues to be bogged down in procedural delays, failing to provide any real solutions to these mounting challenges.

To move beyond this stagnation, the treaty process must be transformed into something that holds corporations truly accountable, through:

• Mandatory due diligence. Corporations should be legally required to ensure their supply chains are free from human rights abuses. This means they must actively monitor working conditions, environmental impacts, and labour rights throughout their operations, even in countries where laws may be weaker.
• Access to justice. Victims must be able to seek legal recourse, including the ability to hold corporations accountable in courts where they can get a fair hearing. This would allow affected communities to challenge abusive practices, no matter where the company is headquartered.
• Consequences for violations. Corporations that violate human rights must face real consequences. This could include financial penalties or being banned from doing business in certain countries. Without tangible repercussions, companies will have little incentive to change.
• Inclusive decision-making. Those most affected by corporate abuses, particularly in the Global South, need to have a voice in shaping the treaty. The treaty must reflect the needs and concerns of local communities, ensuring that their experiences guide the policy.
• Leadership from the Global South. Countries in the Global South, where most corporate exploitation occurs, must take a leading role in advocating for a stronger treaty. Their governments and civil society organizations should be at the forefront, ensuring the treaty addresses their specific challenges and needs. 

As the 10th session of the IGWG approaches the hope for a fair and just treaty is fading. The slow pace of progress is not only disappointing, it’s a missed opportunity for the millions of people suffering from corporate exploitation. The treaty must evolve from a series of discussions into a binding legal framework that enforces corporate responsibility.

If the international community fails to act decisively now, the treaty risks becoming just another unfulfilled promise, leaving victims of corporate human rights abuses without justice. The time for real action is long overdue.

• Dera is acting head of business & human rights at the Wits University Centre for Applied Legal Studies.