Vol. I (2020), No. 2
THE IMPACT OF CORPORATE RESPECT FOR HUMAN RIGHTS ON THE COMPETITIVENESS AND LONG-TERM BUSINESS STABILITY
Ana Certanec https://orcid.org/0000-0001-7676-6983
University of Ljubljana, Slovenia
Original scientific article
DOI: https://doi.org/10.47954/ijcbe.1.2.2
JEL Classification: K38, L25, M14
Abstract
Business enterprises operate in a constantly changing business environment. If they are to be successful in the long term they need to be constantly adapting to new situations and seeking new ways of improving their competitiveness. While the classic theories argue that businesses only have economic goals, modern ones emphasise the importance of broader social goals, such as ensuring long-term stability and protecting the interests of all stakeholders. This also involves respecting human rights but enterprises too often neglect this responsibility, seeing it as an unnecessary financial burden. In this paper the author will argue that long-term respect for human rights has a positive impact on competitiveness and long-term business stability. The author will first define the basic terms before presenting the theoretical foundations for a positive correlation between corporate respect for human rights and competitiveness and long-term business stability. Finally, the author will present the results of her own empirical study.
Key words: human rights law, business, competitiveness, corporate respect for human rights, long-term business stability, corporate social responsibility
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