Competition, Choice, and Change

Abstract

Initiatives to promote information about business human rights impacts on the part of civil society activists demonstrate a shifting consciousness and increasing concern that could introduce moral considerations into capital and consumer markets at a scale sufficient to create an incentive for corporate actors to consider the risks particular business practices may present for human rights. This chapter considers how enforcement of corporate commitments to respect human rights could occur through the provision of actionable information on corporate performance to conscious constituencies of investors and consumers. It considers competitive pressures that could be brought to bear on particular industries by virtue of greater transparency, including the connected nature of communication enjoyed by a significant segment of consumers. A connected and concerned community of consumers and investors could leverage concerns into change. It contemplates ways to generate adverse market consequences for business activities that have adverse human rights consequences. Specifically, it considers the changes generated by shareholder activism on human rights issues and the advances achieved by a “worker driven, consumer powered and market enforced” fair food program. It also considers examples of corporations that have reaped rewards for responsible conduct consistent with the responsibility to respect human rights. This chapter argues that expectations on business with respect to avoiding adverse human rights impacts and complicity in abuses are increasing and that choices will reflect concerns aligned with rewarding responsible business conduct.