Is Litigation before National Courts the Best Response to Purported Human Rights Violations involving Multinational Corporations in Developing Countries?

This paper will explore the various types of alternative dispute resolution (ADR) tools which could be employed by corporations to address such issues, with a particular focus on multinational corporations operating in developing countries. The advantages and drawbacks of such ADR mechanisms as against domestic human rights litigation against the relevant corporation will be explored. It will be argued that, due, inter alia, to the costly, long-winded and uncertain nature of litigation, alternatives avenues may better serve the victims' thirst for justice in such cases. The perceived advantages of ADR methods are linked to the swifter, cheaper and more cooperative procedure involved, as well as the possibility of more closely tailoring the relevant ADR procedures to the particular nature of the alleged human rights violations and to the circumstances of the developing country in which they are suspected to have taken place. The potential drawbacks of such alternative grievance mechanisms, including their lack of transparency and foreseeability, will also be considered. The UN Guiding Principles on Business and Human Rights, specific industry guidance and practice, with a particular focus on the extractive and energy industries, on handling local grievances, will assist in assessing the effectiveness of such ADR approaches. Finally, the paper will also briefly address remediation with respect to human rights violations where crimes are alleged.