Corporate Environmental Responsibility in Investor-State Dispute Settlement : The Unexhausted Potential of Current Mechanisms

This book explores the potential of the current investor-state dispute settlement (ISDS) mechanism to materialise the responsibility of foreign investors through the states' counterclaims and defences at the jurisdictional, merits, and quantum phases. In doing so, it seeks to incorporate the recent developments of ISDS in both international and domestic laws of certain jurisdictions on corporate responsibility, including the parent company's due diligence and legal effects of corporations' voluntary commitments. The book also reflects the interests and perspectives of the victims who suffered loss and injury due to investors' conduct. The author demonstrates that the current system does have the inherent potential to advance responsible investment, even though reforms are needed to overcome its limitations. Fully utilising this potential to reflect investor responsibility in IIA-based dispute settlement mechanisms will help to develop practices based on greater due diligence and responsible business conduct. "Transnational corporations (TNCs) are dominant driving forces in the global economy. By the early 1970s, they 'had come to play a central role in the world economy', and currently occupy roughly one-third of world GDP. The number of TNCs has dramatically increased due to the internationalisation of small and medium-sized enterprises' (SMEs) business activities since the late 1970s. Meanwhile, large-scale TNCs have assumed as much economic and political power as many states. TNCs have thus become predominant providers of foreign direct investment (FDI). While sharply contrasting views exist on the relationship between FDI and economic growth in capital-importing countries, it remains a fact that FDI has become the second largest external source of capital for developing countries, following personal remittances"-- Provided by publisher Explores the 'unexhausted' potential in current investor-state dispute settlement mechanisms to advance investors' responsibility for their conduct