Paying the price for socially irresponsible business practices

In recent years, there has been a strong increase in transnational civil liability claims brought against multinationals before home country courts in relation to the detrimental impacts of their activities on people and the planet in host countries. The trend towards these «foreign direct liability cases» originated in the US in the mid-1990s, but has since spread to Europe. It coincides with and augments the already existing socio-political pressure on policymakers, especially following the establishment of the UN Guiding Principles on Business and Human Rights, to come up with regulatory measures aimed at promoting international corporate social responsibility and accountability. Building on the results of a Dutch study into corporate duties of care with respect to international corporate social responsibility, this article discusses the international trend towards these cases from a comparative perspective and links it to the Swiss Responsible Business Initiative.