The Importance of Due Diligence Practices for the Future of Business Practices in Fragile States
European Company Law, Kluwer Law International, Special Issue on CSR and SRI, 2012, volume 9, issue 2, pp 125-132.
9 Pages Posted: 13 Jun 2012 Last revised: 24 Apr 2013
Date Written: June 13, 2012
The article reflects the results of research performed in preparation of the 'HiiL Expert Meeting on the Future of Business in Fragile States', and the fruitful discussion at the meeting (The Hague, November 2011). The aim of the meeting was to discuss best practices, and challenges and dilemmas of doing business in fragile states. The focus was on operations and due diligence (DD) practices within international networks of subsidiaries, joint ventures, and suppliers operating in fragile states in Africa and the Middle East, and in particular in the extractive, electronic and technical equipment sector, prominently featuring the hotly debated issue of conflict minerals. Participants included experts from the corporate world and government, academics and representatives of international CSR initiatives.
This article briefly sketches the landscape of emerging mechanisms for defining and upholding corporate responsibility norms related to human rights, when operating in fragile states, such as, for example, the Dodd-Frank Act and the OECD Guidance on DD. In this context, particular attention is paid to new developments in the area of DD and disclosure practices. The article also highlights the most important challenges when doing business in fragile states and ideas for possible solutions.
The Expert Meeting was organized by the 'Hague Institute for the Internationalization of Law' (HiiL). HiiL is an independent international think tank on the Rule of Law in a globalizing world. The Institute’s mission is to seek responses to the challenges which globalization poses for shaping the rule of law in an internationalized and intertwined legal landscape, by, among other ways, convening expert workshops and through independent research.
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