The Rule of Law and Corporate Actors: Measuring Influence

Abstract

AbstractThis article proposes an approach for conceptualizing and assessing the extent to which corporate actors impact the rule of law environment in different societies. To achieve this, the methodology for the Corporate Actors and the Rule of Law Index is developed based on a reimagined methodology derived from the Rule of Law Index by the World Justice Project, originally conceived in a state-centric manner. The methodology proposed in this article includes the following factors: preventing corporate capture and corporate contribution to structural inequality, corporate integrity and transparency, meaningful stakeholder engagement; order and security; impact on the regulatory sphere; corporate accountability for human rights abuses; access to grievance mechanisms. Measuring the influence of corporate actors on the rule of law and indicating the dynamic of this influence significantly contributes to the overall understanding of the rule of law environment. The absence of such measurement distorts the comprehension of the balance of power in a society, impedes the development of legal regulation, obstructs the identification of problematic issues in ensuring the rule of law, and hinders efforts to address them.