Business and Human Rights in Regional Economic Integration: A Comparative Analysis of the European Union and ASEAN

Abstract

Regional organisations such as the European Union (EU) and the Association of Southeast Asian Nations (ASEAN) have established free trade agreements among their member states, necessitating a legal and regulatory framework for cross-border business. As economic integration deepens, there is a growing recognition that businesses must not only pursue profit but also uphold human rights standards. This shift is reflected in the United Nations (UN) Framework on Business and Human Rights, which is built upon the three core principles of Protect, Respect, and Remedy, as well as the UN Guiding Principles on Business and Human Rights (UNGPs). These principles emphasize the responsibilities of states and businesses to prevent human rights violations and provide effective remedies for those affected. This paper conducts a comparative analysis of how the EU and ASEAN regulate business and human rights within their respective regions, with a particular focus on their adoption and implementation of the UN Framework and UNGPs. The EU has developed a robust legal framework, including mandatory human rights due diligence laws and corporate accountability mechanisms, while ASEAN's approach remains largely voluntary and cooperative, relying on national policies and regional guidelines.