title: Transnational business and human rights disputes: a court-centric framework of analysis
Creators: name: Rungthongkhamkul, Sathien
Publisher: name: University of Glasgow
Year: 2025

description: This thesis explores the role of domestic courts in addressing human rights due diligence in resolving transnational business and human rights (“BHR”) disputes within the context of parent-subsidiary relationships. Specifically, it investigates how courts in the home state interpret and apply established legal frameworks, encompassing international law, national corporate law, and tort law, to resolve disputes where subsidiary activities in compliance with host state law result in human rights impacts. The study addresses two legal issues: the conflict of human rights standards between home and host states; and the responsibility of parent corporations for human rights impacts resulting from their subsidiaries’ operations.

Firstly, corporations often find themselves obliged to adhere to host state laws even when they conflict with the human rights standards of the home state. This legal issue primarily concerns the negative aspect of human rights due diligence, which requires courts to address applicable human rights standards before determining whether human rights, as asserted by victims, have been violated.

Secondly, corporate structures often involve establishing subsidiaries in foreign jurisdictions to benefit from an entity shield against liability risks. This practice prompts an examination of how courts can impose a due diligence duty on parent corporations to prevent human rights impacts resulting from their subsidiaries’ operations. Unlike the first issue, this legal question entails a positive duty that does not correspond directly to substantive human rights. Consequently, courts must seek positive rules when establishing this duty and emphasise the conduct of a duty-bearer rather than the outcome of human rights impacts.

The thesis applies the analytical framework – termed the “court-centric” framework – to examine the two legal issues through the lens of domestic courts in the home state. The primary focus of this framework is on the interplay between different areas of laws surrounding BHR disputes and the balance of the interests of all parties concerned. This framework is distinct from the UN Guiding Principles on Business and Human Rights, which appear to prioritise human rights over other interests.

Addressing the first issue, the framework examines the interconnection of human rights balancing by national courts and international relations. It offers a nuanced understanding of the challenges in balancing human rights with other interests on an international scale. Through the proposed refinement, the framework paves the way for guided cooperation and understanding between states in resolving challenges in the BHR context.

Turning to the second legal issue concerning corporate responsibility for human rights impacts from subsidiary operations, this framework emphasises the role of national courts in applying and interpreting corporate and tort law. It offers a pragmatic avenue by which to establish a positive duty of due diligence for parent corporations to ensure the protection of human rights.

The court-centric framework of analysis contributes to the evolving BHR studies by offering a nuanced perspective on the role of national courts in addressing transnational disputes. It promotes corporate accountability and advances the implementation of human rights due diligence in business practices.