An Overview Analysis of Financial Stability in the South African Multi-National Enterprises and Supply Chains: Reflections on Difficulties with the Enforcement of Workers' Rights

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The issue of human and labour rights violations in global supply chains has gained significant attention in contemporary society, making it essential for international organisations, governments and businesses to address this critical concern. Multi-national enterprises (MNEs) offer well-documented benefits to their host nations, such as improving residents' standards of living by fostering economic growth and facilitating the transfer of skills and technology to their host nations. These advantages create competitive pressure among nations striving to attract MNEs. Consequently, MNEs have the option to relocate their operations to countries with lower human and labour rights standards to maximise profits, potentially incentivising governments to lower their human and labour rights standards as well. Compounding this issue is the fact that MNEs are not governments and, therefore, cannot be members of the ILO. This exclusion means there is currently no legally recognised mechanism to hold MNEs accountable for human and labour rights violations, despite substantial evidence of such abuses in global supply chains. The primary shortcoming of the existing legal framework is the absence of a legally recognised dispute resolution forum through which workers who experience violations can seek remedies against MNEs. This gap has resulted in a reliance on self-regulation by MNEs through codes of conduct and other mechanisms implemented by non-governmental organisations. However, the self-regulation system faces criticism because it relies on voluntary compliance, meaning its decisions are not legally binding. This contribution examines the challenges faced by employees whose human and labour rights have been violated by MNEs. It also recommends regulatory reforms that would empower the ILO to set labour standards that MNEs must adhere to and to provide effective remedies for workers when violations

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