The Impact of transnational corporations’ activities on local communities and populations can result in violations of human rights. There are compelling reasons to hold TNCs liable for human rights violations. The regulation of TNCs has become a global public good, and joint forces are needed to hold TNCs more accountable for their violations of human rights. Bilateral Investment Treaties, as a main component of international investment law regulating international investment activities, require urgent reform in this area. This article examines why and how BITs could be drafted or amended in order to enhance TNCs’ human rights accountability. After taking stock of existing legal institutions regulating TNCs, this article analyzes the difficulties and hurdles in subjecting TNCs to human rights liability. Finally, this article probes into potential advisable proposals on how BITs should be reformed, both in substance and procedure, to better respect human rights.

The nature of the UN Global Compact has been studied from the perspective of three frameworks. The first is the theory of norm. The UNGC involves the creation of a network beyond transnational advocacy, as a transnational norm. The network of the UNGC is a public space for dialogue among participants. The second is the theory of subject. In the process of Multi-Stakeholder Initiatives, ownership of various stakeholders and actors including companies are discussed. Furthermore, it attempts to draw the sense of ownership and commitment from those who cannot recognize their ownership. The third is the theory of responsibility. In the age of globalization, in association with increasing multilateral actors, the concept of ‘responsibility’ should be multilayered. The concept of ‘responsibility’ should be interpreted stereoscopically and it will be necessary to understand and conceptualize many related concepts concerning ‘accountability’ such as ‘responsibility,’ ‘charge’ and ‘commitment,’ with gradations.