Inter-American Elements for a Systemic Approach to State-Owned Enterprises’ Human Rights Obligations

This article addresses the lack of clarity regarding obligations of state-owned enterprises in the UN Guiding Principles on Business and Human Rights. Starting from the Inter-American Commission of Human Rights’ latest report on the topic, it develops the scope of human rights obligations for state-owned enterprises in the Americas, framing them in a systemic approach that calls for using both governance and regulatory tools to achieve respect for human rights. The article furthermore argues that there are good reasons for limiting the application of due diligence to the relationships with a company’s private business partners, excluding the relationship with its (public) owner where direct responsibility applies. Finally, the article spells out several specific issues that need to be addressed when assessing SOE human rights governance and shows that the enhanced human rights accountability of state-owned enterprises need not contradict a level playing field between public and private business.