This chapter considers the relatively recent but large-scale expansion of investment into foreign, especially developing. countries by China. This expansion (if not controlled and sustainably managed) has implications, potentially negative, both for the conservation of forest biodiversity and for the reputation of the enterprises responsible for negative consequences. The rise of the concept of corporate social responsibility is considered. Suggestions are made as to how such investment initiatives might be sustainably managed through requirements that environmental consideration be made a compulsory part of the investment process – and through the strengthening of corporate social responsibility and corporate accountability, and the adoption of socially (and environmentally) responsible business practices. It is concluded that the emergence of multinationals as a political force, the advent of the new international economic order, and growing concerns about the environment and biodiversity currently provide international law with an opportunity to evolve to suit global needs. Finally, it is suggested that, as an important partner and stakeholder in global environmental governance, China could be a central force in adopting resolutions and establishing codes of conduct.
María Augusta León Moreta and Bingyu Liu
This chapter aims to demonstrate how alternative forums that TNCs have to uphold their rights prevent the effective enforcement of environmental decisions at the national and international levels. The chapter addresses the class action lawsuit against Texaco filed by Ecuadorian villagers and indigenous communities in US federal courts, the suit against Chevron-Texaco before Ecuadorian courts, the development of legal procedures before Argentinian and Canadian courts, the impossibility to enforce Ecuadorian judgment in foreign jurisdictions, and the arbitration proceedings instituted by Chevron Corporation and Texaco Oil Company against Ecuador before international courts.