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Transnational Corporations (TNCs; multinational enterprises MNEs) dominate the global economy, and regulation at the international level needs to take account of their growing power. Activity of such corporations have significant impacts outside of their home states (including on environmental degradation and climate change), and do not necessarily contribute to the economic development of the host states and their communities. The conflicting interests of host countries and multinational corporations have led to differing views on the need for regulation. The imbalances in the transnational legal order are most visible in the contrast between the strong protections afforded to foreign investors and the comparatively weak safeguards against corporate-related human rights abuses and environmental harms. Recent regulatory developments in the areas of human rights and environmental due diligence in global value chains aim to improve the current situation, in which binding international law affords significant protection to foreign companies, while victims of harmful corporate activities often must rely on voluntary standards.
This course will provide students with a basic understanding of the regulatory landscape governing TNCs and global value chains, while reflecting on current challenges related to climate change and the shift toward sustainable business practices. It will particularly focus on two areas of regulation: (i) the intersection of human rights, environmental protection, and the activities of TNCs; and (ii) the relationship between international investment arbitration and climate-related regulation. Poslední úprava: Šicnerová Barbora, Mgr. (13.05.2025)
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The assessment (final grade) consists of three parts: attendance and activity during the lectures (25%), fulfilment of assignments (short presentation of assigned topic (35%) and a written research paper on the presented topic (40%). Class attendance, participation, and engagement count for 20% of the final grade. All students are expected to have read the reading assignments prior to class and to engage in an informed discussion during class. 35% of the final grade can be earned by completing assignments in preparation for the class (15 min presentation). Each student will submit a written research paper on the topic presented in the class worth 40% of the final grade. The research paper will address the presented case and will apply knowledge gained during the class; it intends to develop both analytical and practical legal skills. It will be submitted at the end of the course (approx. 3,000 words including footnotes and excluding bibliography) and be the final assessment. Grades: A – Excellent, B – Very good, C – Good, D – Satisfactory, E – Sufficient, F – Fail. Poslední úprava: Šicnerová Barbora, Mgr. (13.05.2025)
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The course primarily the following topics: TNCs as actors on the international scene – general introduction International regulation of TNCs International corporate sustainability due diligence of enterprises National regulation of international human rights responsibilities of business Supply chain due diligence regulation in EU law Supply chain import regulations in the EU law Access to remedy for human rights violations by business enterprises Non-governmental grievance mechanism and international oversight Climate corporate responsibility Climate corporate litigation Protection of foreign investors in international law and sustainability Responsibilization of investment under international investment treaties
Poslední úprava: Šicnerová Barbora, Mgr. (13.05.2025)
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Basic literature: McCorquodale, R. Business and human rights. Oxford University Press, 2024 Muchlinski, P. T. Multinational Enterprises and the Law. Oxford International Law Library, 3rd edition, 2021 De Jong, E. (ed.) Corporate Accountability and Liability for Climate Change. Edward Elgar Publishing, 2024 Other literature: Feigerlová, M. Enhancing Corporate Climate Responsibility: The Intersection of Mandatory Sustainability Due Diligence Laws and International Investment Agreements. In Baroncini, E. et al (eds). Sustainable Development as Fundamental Pillar of Economic Governance and Public Affairs. The EU Approach and International and Domestic Perspectives. Bologna University Press, 2025, str. 111-133. ISBN: 979-12-5477-597-4 Feigerlová, M. Contribution of a National Human Rights Body to Uncovering Climate-Related Corporate Responsibility: Extraterritoriality and Human Rights Due Diligence. In D'Alessandro, E., Castagno, D. (eds) Reports & Essays on Climate Change Litigation. Università degli Studi di Torino, 2024, ISBN: 9788875902940, s. 133-160 Basic legislation (always in wording in force and effect as on the date of examination): United Nations Guiding Principles on Business and Human Rights OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (2023 edition) Directive (EU) 2024/1760 of the European Parliament and of the Council of 13 June 2024 on corporate sustainability due diligence and amending Directive (EU) 2019/1937 and Regulation (EU) 2023/2859 Omnibus package [COMCOM(2025)80; COM(2025)81] Regulation (EU) 2023/1115 of the European Parliament and of the Council of 31 May 2023 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010 Paris Agreement on climate change (2015) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (recast) European Union (EU) Model BIT Clauses (2023) Other legal regulations (always in wording in force and effect as on the date of examination): LOI n° 2017-399 du 27 mars 2017 relative au devoir de vigilance des sociétés mères et des entreprises donneuses d'ordre Gesetz über die unternehmerischen Sorgfaltspflichten zur Vermeidung von Menschenrechtsverletzungen in Lieferketten Canada-European Union Comprehensive Economic and Trade Agreement (CETA) Poslední úprava: Šicnerová Barbora, Mgr. (13.05.2025)
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