Abstract

MEYER, Yolandi. The effectiveness of market-based initiatives for regulating development projects by multinational corporations in Africa with regard to human rights and environmental abuses. Afr. hum. rights law j. [online]. 2019, vol.19, n.1, pp.126-150. ISSN 1996-2096.  http://dx.doi.org/10.17159/1996-2096/2019/v19n1a7.

This article analyses market-based initiatives for ensuring compliance by multinationals in Africa with specific standards, such as standards established by international financial institutions such as the International Finance Corporation, the World Bank as well as the Equator Principles and self-regulatory standards incorporated by multinationals into their operations. These initiatives are described as market-related initiatives because non-compliance could have a direct effect on a corporation's social licence to operate or its economic position in the international market. In other words, in general these initiatives involve measures that are voluntary and, strictly speaking, are not legally required, but which are complied with by corporations because of possible negative consequences associated with non-compliance. The initiatives discussed in this article include voluntary corporate social responsibility standards. The article further demonstrates how these initiatives possibly could be more effective in regulating multinational corporate activities on the continent as corporations generally seem more willing to comply with standards where non-compliance has a negative impact on the corporation's social and economic position.

Keywords : market-based initiatives; International Finance Corporation; World Bank; Africa; development.

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