Legal Design Lab

A New Global Minimum Tax on Corporations and Human Rights Implications

A New Global Minimum Tax on Corporations and Human Rights Implications

This year, states will begin implementing a global minimum tax rate of fifteen percent on multinational corporations with more than €750 million (about $810 million) in revenues. If these tax reforms succeed in increasing tax revenues across the approximately 140 implementing countries as they intend, these additional funds could be used to advance the social and economic rights of their citizens, especially for the most vulnerable populations, including those whose rights have been abused by corporations historically. However, the coming tax reforms are still so riddled with gray areas regarding form and function that it is too early to call the initiative a victory in corporate accountability.  

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Shell to face constitutional claims for violating the right to a clean environment

Shell to face constitutional claims for violating the right to a clean environment

On November 22, 2023, the United Kingdom’s (UK) High Court found that 13,000 Nigerian fisherman and farmers from the Ogale and Bille communities in the Niger Delta can bring landmark human rights claims against Shell for breaches of the communities’ right to a clean environment. Shell, a British-Dutch company, first began extracting oil from the biodiverse Niger Delta in the late 1950s under a joint venture it established with the Nigerian government just four years before Nigeria gained independence from Great Britain.

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Lundin Corporate Executives Face Prosecution for Aiding and Abetting War Crimes

Lundin Corporate Executives Face Prosecution for Aiding and Abetting War Crimes

In October 2023, a landmark war crimes trial began in Sweden: the first prosecution in Swedish history of corporate executives for aiding and abetting war crimes. The trial opened to intense public interest – likely to intensify as it unfolds over the next two years.  And for good reason. In many ways, this trial is legally unusual. The two corporate executives, Chairman Ian Lundin and former CEO Alex Schneiter, worked for the Swedish oil giant, Lundin Energy – previously known as Lundin Petroleum and Lundin Oil.

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CAL Sues over Sustainability Marketing for Açaí Likely Produced with Hazardous Child Labor

CAL Sues over Sustainability Marketing for Açaí Likely Produced with Hazardous Child Labor

Açaí-harvesting  communities in the Brazilian Amazon are demanding that companies like Sambazon address head-on the major risks associated with sourcing açaí, and that they restructure sourcing practices to maximize benefits to communities – not pretend that human rights risks are not present. Sambazon should put its money where its mouth is and make sustainability a reality in its supply chain – or, at least, ditch the misleading marketing. When businesses sell products that are likely made with hazardous child labor, they should not be able to paint a rose-colored image of sustainability to consumers. 

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CAL’s Consumer Protection Suit Against Rainforest Alliance Dismissed on Procedural Grounds; Case Proceeds Against Hershey

CAL’s Consumer Protection Suit Against Rainforest Alliance Dismissed on Procedural Grounds; Case Proceeds Against Hershey

On June 20, the Washington D.C. Superior Court dismissed Corporate Accountability Lab’s (CAL) consumer protection suit against The Rainforest Alliance, Inc. (Rainforest Alliance), an eco-social certifier, for lack of personal jurisdiction. In the same order, the judge refused to grant The Hershey Company’s (Hershey) motion to dismiss the case against them as co-defendants. This post discusses the mixed decision and the significance of the dismissal of claims against Rainforest Alliance. 

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Thirty Years Later: The Resilience of the Ogoni

Thirty Years Later: The Resilience of the Ogoni

Thirty years ago, the Ogoni people of the Niger Delta in Nigeria drove the multinational oil company Royal Dutch Shell (Shell) out of their territory. This nonviolent movement, led by the Movement for the Survival of the Ogoni People (MOSOP), was extraordinarily powerful. Yet, as CAL staff members saw on a visit to Ogoni in early March 2023, the struggle is far from over. The harm the oil industry wrought on this community in the 1990s runs the gamut from environmental devastation, to political oppression, to rape and murder. The dilapidated oil infrastructure in Ogoni appears to still be leaking oil into the environment, children and adults still suffer health impacts, and the fish (traditionally a major source of protein for the Ogoni population) remain scarce. But the joy and spirit of resistance is also still alive.

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Shell Agrees to Pay $15 million Euros to Nigerian Farmers and Fishermen

Shell Agrees to Pay $15 million Euros to Nigerian Farmers and Fishermen

For decades, Shell allowed oil to leak into the Niger Delta, destroying fields, making water undrinkable, and harming local populations. Over the years, there have been numerous cases filed against Shell, related to different aspects of Shell’s destruction of the Niger Delta and associated human rights abuses. (See here, here, and here.)  In December 2022, Shell settled one of these cases – for 15 million Euros – after a Dutch appeals court ordered the company to compensate victims harmed by Shell’s subsidiary, Shell Petroleum Development Company of Nigeria (SPDC). This blog post first describes the environmental and human rights abuses Shell has caused in the Niger Delta. It then explains Shell’s settlement and discusses the importance of this historic case and the settlement.

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DOJ settlements and fines against Glencore and Lafarge won’t compensate victims of bribery practices and terrorist financing abroad, but it’s a start

DOJ settlements and fines against Glencore and Lafarge won’t compensate victims of bribery practices and terrorist financing abroad, but it’s a start

Last month, Glencore and Lafarge, two well-known multinationals, made international headlines after their guilty pleas for criminal conduct abroad led to multimillion dollar settlements and gave rise to civil claims. This post discusses the Glencore and Lafarge cases and their recent guilty pleas for bribery and for financing foreign terrorist organizations, respectively. These cases are discussed through the lens of the DOJ’s new strategy to prosecute corporate misconduct. This blog considers how these cases could be a starting point for corporate accountability and access to remedy, rather than as the gold standard.

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Two Years On: Corporate Power Yields to Nothing, Not Even Democracy

Two Years On: Corporate Power Yields to Nothing, Not Even Democracy

Two years ago, US democracy was threatened when election-denying citizens and militias stormed the US Capitol, demanding that federal representatives overturn the results of a valid election. This insurrection, while ultimately unsuccessful, cost lives and called into stark question the future of American democratic institutions. In the wake of this deadly attack, companies across the United States, including many of the largest, pledged not to support members of Congress who fueled the insurrection and voted — in the early morning of January 7, 2021, mere hours after Capitol windows were smashed and Capitol police were beaten — to abandon the winner of an election that was unambiguously fair and free.

A year ago today, on the first anniversary of this anti-democratic attack, we wrote about the scores of Fortune 500 companies that funded election-denying members of Congress, even after making — and, no doubt, profiting from — public vows not to. At that time, we said that better politics and stronger democratic institutions depended on reimagining corporate power. Consider this our progress report.

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TO FULFILL U.S. OBLIGATIONS & HOLD CORPORATIONS ACCOUNTABLE FOR AIDING AND ABETTING WAR CRIMES, CONGRESS MUST AMEND THE WAR CRIMES ACT

TO FULFILL U.S. OBLIGATIONS & HOLD CORPORATIONS ACCOUNTABLE FOR AIDING AND ABETTING WAR CRIMES, CONGRESS MUST AMEND THE WAR CRIMES ACT

Despite passage of the War Crimes Act (WCA) in 1996 and amendment in 1997, the United States criminal code does not—outside narrowly defined circumstances—allow the government to prosecute war criminals in federal courts. But widespread accusations of war crimes committed by Russian soldiers in Ukraine has spurred a bipartisan effort in Congress to breathe new life into this “dead letter” statute. If passed, the Justice for Victims of War Crimes Act of 2022—a recently introduced amendment to the WCA—would bring the United States more in-line with its duties under the Geneva Convention and more in-step with allies abroad…. The new bill would also create an important mechanism for holding corporations accountable for aiding and abetting war crimes. For this reason, CAL urges Congress to swiftly enact the proposed amendment.

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FIFTY YEARS OF CORPORATE EXPLOITATION: ENVIRONMENTAL, LABOR, & HUMAN RIGHTS ABUSES BY US MINING GIANT FREEPORT (PART II)

FIFTY YEARS OF CORPORATE EXPLOITATION: ENVIRONMENTAL, LABOR, & HUMAN RIGHTS ABUSES BY US MINING GIANT FREEPORT (PART II)

In our first post of this three-part series, we outlined Papua’s violent colonial history, the ongoing Free West Papua movement, and the inextricable connection between this history, present-day struggles, and Freeport’s operations in the region. In this post, we’ll dive into the specific harm experienced by mine workers, surrounding Indigenous communities, and the unique Papuan ecosystem– and, we’ll describe Freeport’s alleged role in all of it. For over fifty years, Papuans have suffered for the sake of a foreign company’s profits. Freeport’s initial investment, made in the throes of colonialism, is a critical part of this story, and the company’s dominance over Papua’s economy and institutions continues today, making accountability very difficult to achieve.

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Recent Corporate Accountability Legislation, Part II: The Fashioning Accountability and Building Real Institutional Change (FABRIC) Act

Recent Corporate Accountability Legislation, Part II: The Fashioning Accountability and Building Real Institutional Change (FABRIC) Act

The Fashioning Accountability and Building Real Institutional Change Act (FABRIC Act) has been described as world-leading and labeled a “landmark” bill, the “first-ever” of its kind, and transformative and groundbreaking. We’ve heard this type of rhetoric before about other federal and state legislative proposals purporting to revolutionize protections for supply chain workers — and we’ve been quick to counter that those bills, while disguised as human rights legislation, failed to deliver systemic change, did not provide for victim agency, and ultimately perpetuated the status quo of corporate impunity.

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Recent Corporate Accountability Legislation, Part I: The European Commission’s Directive on Corporate Sustainability Due Diligence

Recent Corporate Accountability Legislation, Part I: The European Commission’s Directive on Corporate Sustainability Due Diligence

It is far too easy for multinational corporations to evade liability for human rights and environmental harms, especially when the companies – which are often based in the European Union (EU) or in the United States (US) – commit those harms in the Global South. We have seen this again and again, from Shell’s extensive pollution in the Niger Delta to the chocolate industries’ reliance on forced labor and hazardous child labor. To address this crisis of impunity, we must pass stronger legislation – legislation that makes companies accountable for their entire supply chains – across the Global North.

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CAL Condemns Russia's War of Aggression & Urges Businesses to Do More—in Ukraine & Elsewhere—for Human Rights

CAL Condemns Russia's War of Aggression & Urges Businesses to Do More—in Ukraine & Elsewhere—for Human Rights

In this post, we examine the swift implementation and shift in the global order that took place since Russia’s invasion, just three weeks ago, on February 24, 2022. We look at how companies have responded and compare the widespread exit from the Russian economy with how companies respond to other human rights violations and humanitarian disasters.

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FIFTY YEARS OF CORPORATE EXPLOITATION: THE STORY OF US MINING GIANT FREEPORT & PAPUA’S STOLEN SOVEREIGNTY (PART I)

FIFTY YEARS OF CORPORATE EXPLOITATION: THE STORY OF US MINING GIANT FREEPORT & PAPUA’S STOLEN SOVEREIGNTY (PART I)

The Grasberg Copper and Gold Mine, the largest in the world of its kind, is carved out of a mountaintop 14,000 feet above sea-level in the highlands of Papua, Indonesia. In fact, the open-pit mine is so large that the crater can be seen by astronauts in the International Space Station. It is estimated to contain $108 billion worth of minerals, but before the mountaintop was carved up for its wealth, it was the sacred mother of the Amungme indigenous community. They and many other indigenous communities have since been driven from their home by the American mining company and operator of the Grasberg mine, Freeport McMoRan.

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Environmental Litigation and Beyond: Lessons for Challenging the Status Quo

Environmental Litigation and Beyond: Lessons for Challenging the Status Quo

Environmental litigation in national courts is increasingly pointing the way toward novel approaches that can be useful in challenging the status quo on behalf of people and the planet. In formulating strategy, activists should consider the factors driving the litigation outcomes, the characteristics of the emerging legal landscape, and the contours of appropriate government regulation and corporate compliance frameworks, taking into account these developments. Although in this blog we focus on lessons from lawsuits in Australia, Germany, the Netherlands, and the United States, lawsuits in the Global South are also instructive strategically.

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The Fashion Sustainability & Social Accountability Act: Nothing More than a Consumer Awareness Bill

The Fashion Sustainability & Social Accountability Act: Nothing More than a Consumer Awareness Bill

In January 2022, the New York Assembly unveiled the Fashion Sustainability and Social Accountability Act (FSSAA), a law that purports to change the fashion industry and its role in perpetuating human rights and environmental harm. Such a law is certainly needed; the fashion industry is a massive polluter, accounting for between 2-8 percent of global emissions. The industry employs 75 million people, including workers in all parts of the supply chain and in countries throughout the world – many of whom are vulnerable and exploited.

But is this law really as powerful and “historic” as the New York Times claimed? No. After careful analysis, we believe that while we would rather see it pass than fail, there are some major flaws that weaken it. This law will not be a game-changer; at best, it will provide a little bit more transparency in supply chains, a positive but small step in the right direction. At worst, it will stop other pushes for legislation that would actually provide remedy to workers and incentivize changes in supply chains beyond disclosure.

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Corporate America's Empty Promise to Defend Democracy

Corporate America's Empty Promise to Defend Democracy

One year ago today, on January 6, 2021, after thousands of deceived Americans violently overtook the U.S. Capitol and delayed a critical procedural step in the peaceful transition of power, waves of corporations issued statements condemning the violence and promising to “reevaluate” their political alliances by ending donations to leaders of the insurrection. Many of these public pledges were then broken in less than 3 months.

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Enbridge and the Dangers of Extractive Industry-Police Alliances

Enbridge and the Dangers of Extractive Industry-Police Alliances

Last month, The Guardian revealed that Canadian pipeline company Enbridge has paid Minnesota police more than two and a half million dollars for services including the surveillance and arrest of Water Protectors resisting the company’s construction of a new Line 3 pipeline. This post situates the Enbridge-police agreement in Minnesota and violent crackdown against Water Protectors at Line 3 within a disturbing global context rooted in colonialism.

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Illegal Timber from the Amazon Rainforest: What the US Got Right and How to Do Better

Illegal Timber from the Amazon Rainforest: What the US Got Right and How to Do Better

Beautiful cabinets and fancy doors made of timber from the Peruvian Amazon decorate the homes of people in 35 countries. This timber likely comes from illegal deforestation of the Amazon rainforest, which in turn impacts the environmental crisis. For nearly a decade, 130 forest authorities signed more than 1,000 forest management plans that included false information to circumvent the law and extract timber from prohibited forests, national parks, and indigenous community protected lands in Peru.

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