1
POSITION AND RESPONSIBILITIES OF MULTI-NATIONAL
COMPANIES (MNCS) IN INTERNATIONAL LAW
Introduction
The subject of international law is the holder of direct rights and obligations under
international law. To qualify as a subject of international law, it is necessary to have legal
personality. This legal personality is needed to obtain legal validity as a subject and a
separate unit in international relations.1 In general, Multi-National Corporations (MNCs) are
categorized as legal persons that are equivalent to citizens of the country where the MNCs are
established. Thus, only the state has the authority to regulate the activities of MNCs.
However, in practice, the economic influence of MNCs makes governments in
developing countries tend to alleviate the legal responsibility of MNCs for fear of adversely
affecting the economic conditions in their countries. Facing this condition, International Law
seeks to provide a basis for the application of legal responsibility to MNCs by placing them
as subjects of international law. However, this raises the concern of countries if their position
is equal to MNCs because it is possible that MNCs can dispute against the state. The purpose
of this paper, in addition to knowing the status of MNCs in international law, is also to find
out how efforts to impose responsibility on MNCs.
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
2
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
3
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
4
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
5
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
6
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
7
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
8
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
9
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
1
0
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
1
1
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
1
2
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
1
3
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
1
4
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
1
5
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
1
6
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
1
7
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
1
8
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
1
9
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
2
0
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
2
1
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
2
2
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
2
3
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
2
4
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
2
5
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
2
6
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
2
7
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
2
8
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
2
9
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
3
0
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
3
1
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
3
2
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
3
3
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
3
4
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
3
5
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
3
6
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
3
7
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
3
8
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
3
9
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
4
0
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
4
1
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
4
2
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
4
3
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
4
4
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
4
5
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
4
6
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
4
7
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
4
8
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
4
9
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
5
0
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
5
1
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
5
2
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
5
3
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
5
4
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
5
5
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
5
6
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
5
7
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
5
8
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
5
9
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
6
0
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
6
1
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
6
2
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
6
3
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
6
4
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
6
5
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
6
6
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
6
7
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
6
8
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
6
9
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
7
0
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
7
1
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
7
2
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
7
3
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
7
4
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
7
5
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
7
6
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
7
7
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
7
8
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
7
9
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
8
0
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
8
1
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
8
2
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
8
3
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
8
4
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
8
5
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
8
6
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
8
7
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
8
8
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
8
9
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
9
0
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
9
1
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
9
2
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
9
3
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
9
4
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
9
5
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
9
6
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
9
7
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
9
8
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
9
9
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
1
0
0
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
1
0
1
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
1
0
2
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
1
0
3
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
1
0
4
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
1
0
5
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
1
0
6
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
1
0
7
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
1
0
8
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
1
0
9
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
1
1
0
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
1
1
1
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
1
1
2
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
1
1
3
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
1
1
4
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
1
1
5
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
1
1
6
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
1
1
7
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
1
1
8
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
1
1
9
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
1
2
0
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
1
2
1
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
1
2
2
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
1
2
3
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
1
2
4
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
1
2
5
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
1
2
6
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
1
2
7
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
1
2
8
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
1
2
9
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
1
3
0
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
1
3
1
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
1
3
2
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
1
3
3
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
1
3
4
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
1
3
5
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
1
3
6
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
1
3
7
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
1
3
8
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
1
3
9
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
1
4
0
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
1
4
1
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
1
4
2
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
1
4
3
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
1
4
4
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
1
4
5
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
1
4
6
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
1
4
7
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
1
4
8
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
1
4
9
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
1
5
0
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
1
5
1
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
1
5
2
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
1
5
3
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
1
5
4
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
1
5
5
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
1
5
6
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
1
5
7
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
1
5
8
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
1
5
9
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
1
6
0
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
1
6
1
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
1
6
2
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
1
6
3
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
1
6
4
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
1
6
5
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
1
6
6
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
1
6
7
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
1
6
8
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
1
6
9
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
1
7
0
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
1
7
1
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
1
7
2
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
1
7
3
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
1
7
4
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
1
7
5
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
1
7
6
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
1
7
7
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
1
7
8
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
1
7
9
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
1
8
0
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
1
8
1
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
1
8
2
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
1
8
3
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
1
8
4
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
1
8
5
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
1
8
6
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
1
8
7
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
1
8
8
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
1
8
9
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
1
9
0
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
1
9
1
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
1
9
2
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
1
9
3
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
1
9
4
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
1
9
5
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
1
9
6
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
1
9
7
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
1
9
8
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
1
9
9
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
2
0
0
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
2
0
1
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
2
0
2
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
2
0
3
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
2
0
4
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
2
0
5
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
2
0
6
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
2
0
7
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
2
0
8
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
2
0
9
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
2
1
0
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
2
1
1
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
2
1
2
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
2
1
3
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
2
1
4
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
2
1
5
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
2
1
6
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
2
1
7
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
2
1
8
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
2
1
9
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
2
2
0
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
2
2
1
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
2
2
2
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
2
2
3
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
2
2
4
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
2
2
5
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
2
2
6
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
2
2
7
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
2
2
8
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
2
2
9
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
2
3
0
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
2
3
1
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
2
3
2
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
2
3
3
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
2
3
4
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
2
3
5
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
2
3
6
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
2
3
7
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
2
3
8
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
2
3
9
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
2
4
0
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
2
4
1
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
2
4
2
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
2
4
3
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
2
4
4
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
2
4
5
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
2
4
6
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
2
4
7
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
2
4
8
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
2
4
9
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
2
5
0
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
2
5
1
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
2
5
2
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
2
5
3
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
2
5
4
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
2
5
5
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
2
5
6
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
2
5
7
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
2
5
8
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
2
5
9
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
2
6
0
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
2
6
1
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
2
6
2
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
2
6
3
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
2
6
4
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
2
6
5
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
2
6
6
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
2
6
7
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
2
6
8
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
2
6
9
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
2
7
0
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
2
7
1
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
2
7
2
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
2
7
3
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
2
7
4
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
2
7
5
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
2
7
6
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
2
7
7
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
2
7
8
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
2
7
9
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
2
8
0
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
2
8
1
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
2
8
2
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
2
8
3
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
2
8
4
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
2
8
5
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
2
8
6
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
2
8
7
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
2
8
8
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
2
8
9
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
2
9
0
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
2
9
1
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
2
9
2
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
2
9
3
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
2
9
4
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
2
9
5
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
2
9
6
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
2
9
7
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
2
9
8
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
2
9
9
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
3
0
0
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
3
0
1
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
3
0
2
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
3
0
3
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
3
0
4
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
3
0
5
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
3
0
6
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
3
0
7
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
3
0
8
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
3
0
9
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
3
1
0
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
3
1
1
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
3
1
2
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
3
1
3
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
3
1
4
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
3
1
5
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
3
1
6
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
3
1
7
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
3
1
8
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
3
1
9
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
3
2
0
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
3
2
1
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
3
2
2
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
3
2
3
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
3
2
4
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
3
2
5
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
3
2
6
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
3
2
7
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
3
2
8
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
3
2
9
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
3
3
0
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
3
3
1
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
3
3
2
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
3
3
3
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
3
3
4
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
3
3
5
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
3
3
6
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
3
3
7
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
3
3
8
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
3
3
9
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
3
4
0
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
3
4
1
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
3
4
2
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
3
4
3
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
3
4
4
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
3
4
5
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
3
4
6
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
3
4
7
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
3
4
8
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
3
4
9
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
3
5
0
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
3
5
1
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
3
5
2
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
3
5
3
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
3
5
4
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
3
5
5
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
3
5
6
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
3
5
7
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
3
5
8
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
3
5
9
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
3
6
0
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
3
6
1
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
3
6
2
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
3
6
3
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
3
6
4
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
3
6
5
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
3
6
6
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
3
6
7
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
3
6
8
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
3
6
9
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
3
7
0
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
3
7
1
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
3
7
2
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
3
7
3
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
3
7
4
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
3
7
5
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
3
7
6
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
3
7
7
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
3
7
8
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
3
7
9
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
3
8
0
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
3
8
1
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
3
8
2
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
3
8
3
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
3
8
4
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
3
8
5
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
3
8
6
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
3
8
7
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
3
8
8
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
3
8
9
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
3
9
0
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
3
9
1
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
3
9
2
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
3
9
3
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
3
9
4
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
3
9
5
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
3
9
6
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
3
9
7
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
3
9
8
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
3
9
9
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
4
0
0
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
4
0
1
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
4
0
2
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
4
0
3
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
4
0
4
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
4
0
5
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
4
0
6
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
4
0
7
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
4
0
8
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
4
0
9
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
4
1
0
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
4
1
1
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
4
1
2
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
4
1
3
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
4
1
4
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
4
1
5
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
4
1
6
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
4
1
7
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
4
1
8
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
4
1
9
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
4
2
0
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
4
2
1
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
4
2
2
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
4
2
3
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
4
2
4
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
4
2
5
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
4
2
6
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
4
2
7
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
Research Methods
The type of research used in this writing is normative legal research using a legal concept
analysis approach and a case approach. Because of normative legal research, the data source
is secondary data in the form of primary legal materials and secondary legal materials.
Results and Discussion
The Position of Multi-National Corporations (MNCs) in International Law
A Multi-National Company (MNC) is a company that has its headquarters in one country
and conducts its activities in the territory of many countries.3 The status owned by MNCs is a
private company and is a non-governmental entity and does not have the status of an
international legal person. MNCs generally do not have rights and obligations under
international law and do not have standing to litigate at the International Court of Justice
(ICJ) because, it is clearly regulated in Article 34 paragraph (1) of the ICJ Statute, which
states that only states can be parties to cases before the Court. However, in certain cases
MNCs can make agreements with the government of a country by applying the principle of
international law or common law principles for their transactions rather than being governed
by a country's national law.
4
2
8
Some MNCs do business through branches in developing countries. MNCs do business in
more favorable areas with the aim of expanding marketing areas, reducing production costs,
and obtaining labor with lower salaries.5 The economic influence of MNCs can build a
country's economy through investment funds, creating jobs, providing training education and
advanced technology. In addition, MNCs are also able to destroy the economy of a country,
especially small countries or developing countries. Like Lapindo Brantas, which is under the
MNC company Bakrie & Brother,6 has illustrated that MNCs on the one hand can also cause
great harm to the country and society in general. Indonesia through its national law has
proven to be less assertive in demanding responsibility for the Lapindo Company.
Related to the impact that MNCs can have, international law seeks to place MNCs as
subjects of international law with the aim that MNCs can be held responsible through the
implementation of an international legal instrument. When becoming a subject of
international law, MNCs will have legal capacity, so that they are able to file a lawsuit in the
event of a violation of international law, are able to enter into and make agreements, are able
to defend their property rights and have immunities and privileges. This indirectly places
MNCs on a par with the state which raises a state's concerns where such equality allows
MNCs to dispute against the legal rules of a state based on international law.7 Therefore, until
now, the proposal to place MNCs as subjects of international law is still being debated and
the MNCs should be considered as subjects of international law until now MNCs still have
the status of national legal subjects of the host country and home country.
Efforts to Impose Legal Liability on MNCs in International Law
The activities of multinational companies have led to extensive discussions that have
resulted in efforts to develop international regulations to govern their activities and set
requirements on their relations with the countries where they are established.
Code of conduct is a guideline for a company that contains a value system, business
ethics, work ethics, commitment and enforcement of company regulations for individuals in
carrying out business and other activities. The Code of Conduct has a binding force on MNCs
because of the MNC's interest as part of a business strategy to build a good image for their
business activities. Code of conduct as an international agreement regulates MNCs, one of
which is The Coalition for Environmentally Responsible Economics which formulates The
4
2
9
CERES principles.
In this agreement there are ten missions and ethics regarding the company's policy
towards the environment. The principles include the obligation to regularly report the results
of its environmental management activities as well as the commitment to immediately inform
the public about the company's business activities that may be harmful to human health or
safety and cause environmental damage.
International law also seeks to impose responsibility on MNCs through state authority
related to international treaty instruments which are the main legal sources in international
law. The nature of a treaty is generally binding and has a mechanismn sanctions and has a
compliance reporting mechanism. Thus the role of international legal provisions in regulating
MNCs will exist if the state has transformed them into national law. One form of
international treaty which is an international legal instrument related to MNCs is The
International Covenant on Economic Social and Cultural Rights (ICESCR) which has been
ratified in Indonesia through Law No.11 of 2005 concerning the Ratification of the
International Covenant on Economic, Social and Cultural Rights.
Conclusions
The economic influence that MNCs have on a country can build or damage a country's
economy. So strong rules are needed as a form of imposing responsibility on MNCs for their
business activities. Until now, the authority to impose MNC responsibility is only owned by
the state. The state's dependence on MNCs in the economic field makes the state actually
ease the responsibility of MNCs. The state's reluctance to be equalized with MNCs is the
reason why MNCs are not made the subject of international law. International law attempts
through the code of conduct, but this effort turns out to be less effective in imposing
responsibility on MNCs. The state through its authority should strive to provide firmness
against violations committed by MNCs
