Relation between Business and Human Rights A Legal Discourse from the Perspective of Indian Companies

Abstract

The ten largest economies of the world as per GDP is concerned are: USA, China, Japan, newlineGermany, India, United Kingdom, France, Italy, Canada and South Korea as per the report of newline2021.1 From this data I can say with confidence that the development in trade and business has newlinemade these countries economy prosperous and developed. Almost all the largest companies of newlinethe world are from these ten countries. These companies earn huge profits and also played an newlineimportant role in the development of the respective countries. But amongst these glossy pictures newlinewe have also witnessed various human rights violations and environment hazards which are newlinecaused by various companies all over the world. Some of these are Bhopal Gas Tragedy case newline(Union Carbide Corporation), Baby Milk case, Araya case, Vedanta case etc. India is no newlineexception to this race of development and it is neglecting the human rights of the common newlinepeople at various occasions. India has also witnessed the rapid growth and development in terms newlineof business and trade in last 30 years. But this development has come with a price of violation of newlinehuman rights of people. The country has witnessed many incidents of violations of human rights newlinecarried by various companies. These incidents of violation of human rights by the companies set newlinean alarm for the government to control such incidents. Looking into this alarming situation it has newlinebecome necessary to establish a relation between the business and human rights in the corporate newlinesector. newlineCompany is an artificially created legal person. Law creates a company comes to an end through newlinethe law only. Company has a separate corporate personality. In Salomon v. Salomon2 case the newlineHouse of Lord held that, on registration the company comes into existence and attains maturity newlineon its birth, the company is at law a different person altogether from the subscribers of the newlinememorandum; and though it may be that after incorporation the business is precisely the same newlineas before, the same persons are manager and the same hands receives the profit