K33 - International LawReturn

There is no doubt about an impact of corporate and business operations on human rights, both positive and negative. Growing influence of corporations, power shift between business and states, as well as the complex nature of corporate governance and transnational operations require international regulations. International community undertook numerous initiatives, the most significant and recent being the United Nations Guiding Principles on Business and Human Rights [2011], embraced by States, corporations and civil society as a "milestone" in business and human rights agenda. While being a useful comprehensive set of guidelines, Principles are lacking the legally binding force and any monitoring or complaints mechanism. Therefore, there are growing calls for a legally binding treaty to stipulate clearly human rights obligations of States/businesses vis-à-vis human rights and fill the protection gap for victims of corporate abuses. A newly established working group by the Human Rights Council has started to negotiate terms of reference of such a treaty in June 2015. However, meaningful negotiations are threatened by many factors, including the negative approach of US, EU and other developed States along with the corporate sector advocating for stronger implementation of Principles instead. This article aims to describe efforts of international community to prevent and eliminate a negative impact of corporate activities on human rights. It shows different approaches and highlights some challenges and dilemmas. It concludes that parallel efforts should be undertaken - to implement the Principles and to negotiate an international treaty - in order to improve protection against an adverse impact of corporate operations on human rights. As for the Czech Republic, it is suggested to embark on the elaboration of the National Action Plan, thus providing for an opportunity to discuss implementation of the Principles among all the relevant stakeholders.

The article emphasizes the meaning of good faith and traditional institutes of civil law - prescription and preclusion. This publication proposes to contribute to the illumination of exception of prescription against principles of good faith. A number of Court decisions are dedicated to this aspect; however, complex analysis is required. All legal relationships exist within a certain time frame. One of the key tasks of the general civil law is to define formal and substantive concepts of the Rule of Law. Time also plays an important role in defining the time period within which the participants in a trial have the right or are obliged to take certain procedural steps. Any law specifies the period of time within which legal action must be brought. Expiration of the time period causes loss of a legal right or entitlement. An exception of prescription in general is consistent with principles of good faith. However, under certain assumptions, exception of prescription establishes enforcement against the principles of good faith.

The article emphasizes the underlying problem of good faith in business law. This is a crucial topic widely discussed in the EU, but implementation of common tools is limited. Business practices in the Czech Republic were under the pressure of socialism for more than 40 years; therefore, Czech business culture has not been cultivated enough since the First Republic. The current tendencies in the decisions of Czech courts show a shift in the right direction. An analysis of legal regulations of good faith in different EU countries gives an overview of common similarities and differences.