Critical Evaluation of Legal Obstacles in Regulating the Activities of Multinational Companies

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Legal Obstacles in Regulating the Activities, By the activities of Multinational Corporations, the main problems which are to be faced by various nations are as follows

1. Environmental problems
2. Human rights problem

Now it is well understood that the reasons for and consequences of the change of environment of the globe cannot be addressed by the efforts of any single country. Though the global community has made many advanced developments in creating new international treaties regime. But their total coverage and implementation of international law within the territorial jurisdictions of various countries is yet at very low level.

Many regulations relating to environment and enforcement of environmental law yet have been implemented by few countries but the situation is totally different in non developed countries where the major operations of the multinational corporations are under progress. The main problem is not to control the pollution within local and territorial jurisdiction of any one country but t the cross border environment issues cannot be dealt easily because decision made by any one country directly or indirectly affect the area, atmosphere or environment of the other countries.

At the same time we should understand that the consequences of multinational companies in respect in respect of creating pollution by various manners are out of reach of human being and any damaged caused to the natural system cannot be reversed.

In these circumstances there is an immediate need to enact legal instruments which could control across the borders of nations. The cross border legal interest was practically witnessed in “Trail Smelter” case [1]

It was a straight case of tort which became slow, expensive and difficult to resolve due to geographical situation and international borders.

A factory situated in a town namely “Trail” in British Columbia was having a production of copper smelter and due to its operation the vapours of sulphur dioxide were entering in the air. These vapours were carried out by the winds to the “Washington State” of USA and causing damage to the timber, crops, properties and even to the health of the people as well    as to the live stocks. The affected parties could not get remedies from the courts situated within the local territorial jurisdiction of their own countries because of international nature of tort. Thus the matter was referred to the international tribunal. This case has become a good reference and example for the lawyers dealing with international law for environment or corporate laws. The illustrations given in this case regarding issues of stack are very clear and straight.

In fact the transnational multinational or corporations have very uneasy and longstanding relationships with the environment and with the society. Any private law, particularly the law of tort or law of civil liabilities are being used an instrument by the litigants to address their environmental and personal remedies regarding corporate acts.

Social Environment Justice:

The international and national human rights and activities have become more sophisticated but it is difficult to regulate the conduct of multinational corporations without building a concept of ‘Social Environment Justice’.

The limitations given in the privet international law of tort are a very useful instrument for meeting the regulatory challenges regarding the environment and multinational corporations. The approach which is commonly followed in the cases of this relevant law of tort is actually an integrated approach. It is essential before addressing this approach it is important to view the basic conceptual topography by which the multinational corporations operate..

The term transnational corporations or multinational corporation[2] is meant for the companies both, controlled or owned by any one person or by any joint enterprise, from one country but operating across the international boundaries or which are controlled or owned by persons or enterprises from different countries.

A conference of United Nations on the environment was held in Bali on 3^rd to14th December 2007 with the participation of 180 countries to replace “Koyoto Protocol”[3] which was coming to end in 2012.  On the very first day Saudi Arabia, America and Canada were given awards of “Fossil-of-the-day-award”, a bag of coal as a symbol of their negative activities which are damaging the global climate. The bags were including flags of all participant countries.

Another protocol namely “Earth Summit” was also enacted by world Health Organization in 1921 to check global warming and to reduce the impacts of greenhouse gases. The KYOTO Protocol is an amendment to the United Nations Framework Convention on Climate Change which is an international treaty on global warming. The countries which have rectified this protocol have committed to reducing their spreading the carbon dioxide and five other greenhouse gases. Totally 141 countries had rectified this agreement.

Australia and the United States America did not ratify the agreement. The reason given by the United States for not ratifying was that exemption of large emitters of greenhouse gases from the developing courtiers like India and China.

Different countries have enacted their own Legal Obstacles in Regulating the Activities:

However different countries have enacted their own legislation. In Canada to regulate the pollution, there are many organizations depending upon the nature and location of pollution. Federal Government at the level of the entire territory, provincial governments and municipal committees all three levels equally share in the responsibilities, monitoring and correction of pollution…