INTRODUCTION

By the end of the 1970s India had acquired a reputation as one of the most protected and heavily regulated economies in the world. Although, some positive steps were taken in the mid-1970s and then later in the 1980s, the full fledged transformation only took place in 1991. The government's main objective in liberalising the economy in 1991 was to reduce the public debt and stabilising the economy. These paths of reducing the fiscal deficit resulted in pruning down the expenditure in social sectors and in the longer run have affected the development and growth of the social sector by curtailing its new infrastructure and other resources. This reform led to remarkable change in the Indian economy, which deviated from the traditional values held since independence in 1947, such as self-reliance and socialist policies of economic development. India is widely afflicted with disturbing economic disparity among urban, semi-urban and rural populations. This disparity has further been widened after globalisation largely because of transnational corporations (TNCs). The emerging business culture of profit and competition has had a serious impact on various social welfare issues such as health, education and social security for the vulnerable sections of society.

BUSINESS AND HUMAN RIGHTS

International human rights law places the primary responsibility for implementing and ensuring protection of human rights on the States. When non-State actors commit acts that are harmful to human rights, States are obliged under international law to take action to prevent and stop the violations and to provide victims with appropriate remedies and relief. States therefore have a duty to ensure that private corporations respect human rights. They must create the legal and institutional framework to enforce this obligation. The treaty bodies are the main international accountability and monitoring mechanism for the implementation of the treaties. Businesses are increasingly focused on the impact they have on individuals, communities and the environment. It is clear that one of the central measures of a company's social responsibility is its respect for human rights. And while most companies recognise the moral imperative to operate consistently with human rights principles, recognition is growing that respect for human rights also can be a tool for improving business performance. The increasing attention businesses have shown to States ‘regulation and adjudication of corporate acts is an important and welcome development.