Transnational Companies' Social Responsibility in the Framework of Human Rights; from Authority to Obligation

Over the years, increasing the investment in less developed countries has caused actions against human rights standards by transnational companies. Following the development of communication and the growth of human rights activities, the protection of the rights of the company's stakeholders was emphasized. The theory of "Corporate Social Responsibility" emphasizes the need to clarify the actions of transnational companies in the field of human rights. In the present study, the role of this theory in the observance of human rights standards by transnational companies is investigated. Totally, international law documents as well as corporate codes and national laws all express the principles of corporate social responsibility including human rights obligations. Transnational companies insist on voluntary form of obligations in the field of social responsibility. However, the World Bank emphasizes the active duty of social responsibility and obliges multinational companies to take necessary measures to achieve social goals. The World Bank and its members, including MIGA, monitor the application and implementation of social responsibility through practical policies, lending and insurance mechanisms.