Examining the role of human rights in enhancing corporate governance in private sector corporations in Kenya

Abstract

Corporations were viewed as property institutions whose main mandate was to make profits and maximize shareholder value. The separate legal personality of corporations meant that corporations could engage in business transactions and bear the potential risk of liability separately from its members or founders. Little or no attention was paid to human rights as a corporate responsibility since most of the accountability was towards shareholders. When undertaken without due regard for its potential impact on society, the corporate desire to maximize profit and minimize cost in the use of labor, land and services can lead to avoidable grievances.