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Litigating Corporate Human Rights Information
Authors:Rachel Chambers
Institution:1. Assistant Professor of Business Law, University of Connecticut School of Business. BA/MA, University of Oxford, LLM, University of Kent, and Ph.D., University of Essex. Barrister-at-law (England and Wales). An earlier version of this article was presented at the Ethical Leadership and Legal Strategies for Post-2020 Organizations symposium hosted by the Tobias Leadership Center at Indiana University;2. the Center for Legal Studies & Business Ethics at the Spears School of Business, Oklahoma State University;3. and the American Business Law Journal in March 2021. The current draft was presented at the Academy of Legal Studies in Business Conference in July 2022. The author is grateful to the Ethical Leadership symposium participants including the paper discussant, David Hess, and to Gerlinde Berger-Walliser, Robert Bird, Aya Dardari, Anthony Ewing, and Yonit Percival for their helpful comments, and to Jessica Zaccagnino and Kevin Musco for their research assistance.
Abstract:This article analyzes trends in litigation brought against corporate actors regarding human rights information. Such information includes, but is not limited to, statements on packaging claiming that products are “ethically sourced” and investor-facing disclosures representing that an issuer's operations are environmentally friendly. It proceeds by outlining the sources of human rights-related disclosures as they arise under both legal and voluntary regimes. The article then addresses the case law. Recent years have seen an increase in lawsuits involving human rights information, or lack thereof, imparted by companies. Consumer protection or consumer fraud cases are being filed, alleging that companies have either provided false and misleading information or omitted information about corporate human rights impacts and mitigation efforts. Investors are filing similar claims. The article examines the trend and considers the role of this litigation both in holding companies to their word and in providing corporate accountability for the underlying human rights abuses that false or misleading human rights information may mask. It ultimately argues that, although success at trial in such cases remains elusive, litigation is a useful and potentially growing tool for holding companies to their word regarding human rights claims. It contextualizes this litigation, arguing that other means by which companies can be held to their word should be strengthened, including public enforcement and—potentially—new disclosure and due diligence laws.
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