European Business Law Review
Volume 35, Issue 3/4 (2024) pp. 453 – 480

https://doi.org/10.54648/eulr2024027

Abstract

Academics and policymakers have increasingly focused on the issue of liability for human rights abuses in global supply chains. However, there is still a lack of systematic analysis regarding the legal consequences of well-known human rights scandals involving supply chains. To address this gap, the article conducted a quantitative review of various cases, examining elements such as the sectors involved, the locations of the abuses, and the parties engaged as plaintiffs. Notably, these plaintiffs range from victims in the Global South to companies questioning fines imposed upon them. Subsequently, a qualitative review was performed, involving an in-depth examination of 15 selected cases spanning more than five jurisdictions. A variety of litigation strategies was identified, including some consumers claims often overlooked by the literature. In terms of legal outcomes, only two cases held the lead company liable on the merits, both in Brazil. Most cases, particularly in the Global North courts, failed on procedural grounds due to factors such as statute of limitations, lack of traceability, and insufficient evidence. Further investigation is necessary to grasp the apparent variations in legal outcomes linked to public enforcement and the influence of international organizations, such as the International Labor Organization (ILO), in facilitating compensation for victims. The evolving legal landscape, particularly in Europe, and the increasing influence of the Global South, hold promise for addressing these legal challenges in the future.

Extract

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