Establishing Liability for Multinational Oil Companies in Parent/Subsidiary Relationships
A number of significant legal challenges impede the attribution of liability to parent corporations for the overseas operations of their subsidiaries. The multinational reach of these entities’ activities raise questions as to which forum is appropriate to hear the case, under which state’s jurisdiction an action may be brought and as to which state’s domestic law should be applied. The elaborate corporate structures exhibited by many multinational corporations (MNCs), which often incorporate holding companies, joint ventures and external contractors, serve to complicate matters still further. The recent case of Akpan & Anor v Royal Dutch Shell plc & Anor dealt with these issues in an environmental context. The case formed part of a class action suit brought by Milieudefensie (Friends of the Earth Netherlands), a Dutch non-governmental organisation (NGO) promoting environmental protection, and four Nigerian farmers. The farmers had all experienced damage to their farmlands and fishing ponds resulting from numerous oil spills across three proximate regions between 2004 and 2007. Akpan, the only successful applicant, is a farmer and fisherman residing in the village of Ikot Ada Udo, Nigeria. Throughout the course of the action, all four Nigerian applicants were supported by Milieudefensie, which itself attempted to bring claims against both the parent company and its wholly owned subsidiary as a third party.
Human Rights Obligations and Transnational Corporations: The Limits of Direct Corporate Responsibility
To date, multinational corporations have had no direct human rights obligations under international law. Nonetheless, international lawyers can no longer ignore the increasing role of non-state actors in international society. This article suggests analysing existing mechanisms and new proposals for enhancing the accountability of transnational corporations, grouped into those focusing on the responsibility of the home and host states and those centred on the imposition of direct obligations on corporations. This article will specifically draw attention to the limits of some of the suggested normative changes, from a legal-theoretical perspective and in terms of their capacity to address effectively the challenges of the lack of respect for human rights laws.
Assessing the Competitiveness of the Philippine Auto Parts Industry
The development of the Philippine automotive parts and components sector is critical to the automotive assembly industry. The availability of competitive parts and components that are locally manufactured can significantly contribute to boost the competitiveness of the assembly sector. Given the current state of small and medium manufacturers, making them internationally competitive and linking them with regional production networks are major challenges. Less competitive firms will have to contend with reduced market shares and eventually bankruptcy. The few remaining competitive ones need to define their strategies and the market position that they want to pursue. The government has an important role to play in the firms adjustment process. While increasing economic integration represent market opportunities; penetrating the export market is not easy and does not come automatically. As the firms search for internal ways and exert effort to improve their competitiveness, this must be complemented with active government support.