Much of the debate regarding human rights and business has focused on examples where multinational corporations have been accused of being directly responsible for or being complicit in human rights abuses. Multinational companies come under particular scrutiny because of their perceived power and the reach of their global supply networks. Legitimate concerns are raised over the extent to which weak or impoverished governments may be willing or able to hold corporations to account for any corporate misconduct. In short, should human rights abuses occur, there is a concern as to how corporate accountability can best be ensured. States are required to protect individuals against human rights abuses by third parties, including corporations. This is usually done through domestic laws. Thus, while most international human rights standards are not directly legally binding on companies, businesses can infringe on human rights by breaching the domestic laws in place to protect those rights. Recently, the Supreme Court of India has taken a strong stand against companies which have not been respecting the basic human rights of people living in areas of industrial projects.

The non-state actors, especially companies, are often praised for bringing in the needed investment and technology. It is increasingly recognized, however, that the operations of these non-state actors can also have negative impacts on human rights, especially access to land, rights to food, water, healthcare, housing, cultural rights, and labor rights. Furthermore, those who undertake the difficult task of defending the human rights violated by companies often find their civil and political rights threatened. This paper offers a glimpse of the complex relationship that is taking shape in the Indian legal sphere between human rights and the non-state actors.

The economic policies have a notable effect on the state of human rights. With the increasing spread of transnational corporations, the State plays a major role in setting ethical and moral standards for the quality of life in the State, where corporations do business. Scrutiny of State practices in this area will help the community at large in its quest for new answers to the challenge of transnational corporate human rights abuse.

Law Review Journal, Non-State Actors, Liability, Human Rights, Indian Penal Code (IPC), State Action, Supreme Court of India.