The role of multinational corporations in international law

Operations of International Law and Organizations

Reason MNCs have become important in International Relations and Law

International law is defined as a set of rules and customs governing the relationships among nation-states. Traditionally, nation-states are considered the principal actors of international law, however, there are an increasing number of other actors that influence the conduct of international relations. MNCs (multinational corporations), international organizations, domestic actors and individuals are increasingly influencing the conduct of international relations. Along with nation-states, MNCs are very important actors in international relations because their activities can influence the international affairs. A multinational corporation is a business entity that has sales operations and productions in several countries. In the contemporary business environment, many MNCs have immense financial resources, which are more than the annual budgets of many countries in Africa, Asia, and Latin America. With their huge financial resources, they have the power to influence a conduct of nation-states by sponsoring a candidate for an election and to the extent of toppling an incumbent government. An underlying conduct of MNCs in the international systems makes multinational corporations be identified as an important actor in international relations.

The MNCs are referred as a legal person because some of their conducts can affect the international peace and security. Henderson (2009) argues that MNCs have a legal personality in the international law, and the international law stipulates that all actors operating in the international systems must comply with rules laid down by the international law or face sanctions. The European countries always confer a legal personality on MNCs stating that they should be held responsible for their conducts. The issues of CSR (corporate social responsibility) make MNCs be more relevant to international relations because their business conducts can affect the international environment. The European countries, which are the leader in the institutional development and international law are always clear in this regard and affirm that compliance of MNCs is expected with respect of international CRS. Several international treaties directly impose liabilities upon the multinational corporations. The Vienna Convention for Nuclear Damage of 1963 and The International Convention for Oil Pollution Damage impose liability for a breach of these treaties and may hold MNCs responsible for various human rights abuses, which oblige MNCs to protect international environments.

3. Legislative Function at the International Level

At the international level, there is no recognized world government to carry out international legislative functions and having the power to punish offenders. Despite the absence of world government at the international level, legislative functions are still being carried out through an international governance organization that oversees the conduct of nation-states. An international governance organization is set up through a legal agreement having certain powers and duties under international law. The UN (United Nations) is a major example of an international governance organization that carries out legislative function at international level. For example, the United Nations sets up the Security Council to use military force to implement the UN mandate on nation-states. Several instances have occurred where the UN Security Council have used a military force to implement the mandate of the United Nation. In 2010-2011, the United Nation had used the military force to remove Laurent Gbagbo, a former president of Cote d'Ivoire, from the government and installed Alassane Quattara as the president.

The International Court of Justice has also carried out a critical role in implementing a legislative function at international level in the last few decades. The ICJ is a UN judicial body with the primary function to settle disputes at international level. While the ICJ does not have the power to prosecute offenders, nevertheless, its judgment is respected by the member states because the ICJ can seek for the service of Security Council to enforce its judgment. However, the international tribunal has acquired immense power in the last few years, former president of Liberia, Charles Taylor had been sentenced to 50 years imprisonment for a crime against humanity by the Hague's International Criminal Court. Similarly, the Ivory Coast former president, Lauren Gbagbo, is currently facing a trial at International Criminal Court for a crime against humanity.

4. Jurisdictions Coastal States Possess, which extend seaward from a Baseline of a State

The concept jurisdiction is a subpart of territorial seas that involves political variables. For example, a state may decide to recognize territorial waters of another state and claim the territorial waters as its own. Such determination may be through acceptance of the international treaty. Typically, exercising a jurisdiction power over a territorial water is an integral part of a state sovereignty, which a state is required to protect. In the United States, the U.S. Coast Guard assists in enforcing the U.S. federal laws and determines whether the U.S. can exercise a jurisdiction over a territorial water of another state. However, the United States may sign an agreement with other foreign states to operate on their territorial water, in this case, the U.S. can claim to have a territorial jurisdiction on the foreign territorial water.

Moreover, under the international law, a nation is required to regulate the operation of vessels where the flag is registered. Moreover, international law prohibits any country from asserting jurisdiction on the high sea which it does not have a jurisdiction. The international conventions also allow states to have jurisdictions over sea water. For example, 1958 Convention on Continental Shelf or 1958 Convention on High Seas allows nation-states to extend seaward from a baseline of a state.

Reference

Henderson, C.W. (2009). Understanding International Law. London. John Wiley & Sons.