Samenvatting

Multinational Enterprises (MNE) have various motivations for complying with human rights. Those motivations can be categorized into two distinct categories. The first of these entails benefits to the company, and are thus economic motivations. This group includes issues such as a stable business environment, satisfying stakeholders, as well as creating business opportunities and complying with international agreements. The second category is moral obligation. This type entails issues in which MNEs recognize their responsibility, and execute projects which primarily are considered a state issue.
Although China is trying hard to improve the standard of living, via the 'putting people first principle', it is still facing many difficulties in terms of health care, social security and equal treatment of workers. Due to the Hukou system, especially (unregistered) migrant workers are subject to discrimination and face harsher living conditions than their peers who are registered in the city in which they live.
The education system is also subject to various changes necessary to improve both the school attendance rate and the quality of education. Although China is doing well in terms of combating illiteracy and increasing the average level of education, again the Hukou system is a source of discrimination which often causes mal-education or denial of education of children of migrant workers.
To improve the standard of living adequate for health and well being and the situation of its education system, China has allocated responsibility to the role of businesses. The social security system has been opened up, and businesses are allowed to establish annuities for their employees. In order to improve the level and availability of education, China allows the establishment of non-governmental
schools. Moreover, the Chinese government is promoting interaction between businesses and universities.
The case studies of Philips and Volvo show that MNEs have implemented various programs that help to improve human rights. Those programs are based on both economic factors as well as moral obligation. It is interesting to see that projects based on moral obligation are indeed helping the Chinese government to reach its goals of increasing the level of education, the school attendance rate as well improving as people's standard of living.