Extraterritorial Attempts at Addressing Challenges to Sustainability

In Beate Sjåfjell and Christopher M. Bruner (eds), Cambridge Handbook of Corporate Law, Corporate Governance and Sustainability (Cambridge University Press, Forthcoming).

University of Oslo Faculty of Law Research Paper No. 2019-08

Posted: 8 May 2019

Date Written: May 6, 2019

Abstract

Multinational enterprises operate in an increasingly international environment and their operations are subject to a variety of rules from both hard and soft law. They take advantage of weak accountability systems and poor law enforcement in developing countries, necessitating a better understanding of the most appropriate hard-law approach to regulate them and address business sustainability challenges. Despite the division between the hard and soft legislative approaches used to address extraterritorial challenges, current efforts have been criticised primarily regarding their impact and enforceability. This chapter explores possible approaches for better extraterritorial regulation of corporate sustainability, including more detailed and extended directorial duties, together with enforcement measures driven by the state. Such efforts may direct board members’ attitudes towards more active involvement with extraterritorial corporate sustainability challenges.

Keywords: MNEs, extraterritorial responsibility, multinational enterprise, directors’ duties, public enforcement

Suggested Citation

Zhao, Jingchen, Extraterritorial Attempts at Addressing Challenges to Sustainability (May 6, 2019). In Beate Sjåfjell and Christopher M. Bruner (eds), Cambridge Handbook of Corporate Law, Corporate Governance and Sustainability (Cambridge University Press, Forthcoming).; University of Oslo Faculty of Law Research Paper No. 2019-08. Available at SSRN: https://ssrn.com/abstract=3383391

Jingchen Zhao (Contact Author)

Nottingham Law School ( email )

Belgrave Centre
Chauser Street
Nottingham, NG1 5LP
United Kingdom

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