ABSTRACT

This paper examines the prospects of implementing corporate social responsibility in the bilateral investment agreements of Georgia. The traditional understanding of BITs is characterized by asymmetry. They establish the rights of foreign investors in the host country but often fail to regulate their social, environmental, and human rights responsibilities. However, recent tendencies clearly show that this approach is gradually shifting toward establishing higher standards of responsible business conduct. The first major step taken by Georgia in line with this global trend was the introduction of the Hungary-Georgia BIT. In that treaty, there is an explicit emphasis on CSR, which represents a significant step forward. Given all that, this article analyses why it is important to have a balanced model of CSR regulations in BITs and how this goal might best be achieved.

Keywords: Bilateral Investment Treaties, Corporate Social Responsibility, Foreign Investors’ Responsibility, International Investment Law

REFERENCES

BOOKS, MONOGRAPHY

Kryvoi, Y. (2020). Three Dimensions of Inequality in International Investment Law. British Institute of International and Comparative Law.

Dolzer, R., Schreuer, C. (2012). Principles of International Investment Law (2nd ed., OUP).

ARTICLES

Crow, K., Lorenzoni Escobar, L. (2023). International corporate obligations, human rights, and the Urbaser standard: Breaking new ground? Beiträge zum Transnationalen Wirtschaftsrecht.

Gaukrodger, D. (2021). „Business Responsibilities and Investment Treaties“. OECD Working Papers on International Investment, №2021/02, OECD Publishing.

Bueno, N., Yilmaz Vastardis, A., Ngueuleu Djeuga, I. (2023). ‘Investor Human Rights and Environmental Obligations: The Need to Redesign Corporate Social Responsibility Clauses’. Journal of World Investment & Trade, 24.

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LEGAL DOCUMENTS

Government of Georgia, Georgian National Human Rights Strategy for 2022-2030.

Organic Law of Georgia _ Labour Code of Georgia.

Law of Georgia on Environmental Protection.

Law of Georgia on Accounting, Reporting and Audit.

Reciprocal Investment Promotion and Protection Agreement Between the Government of the Kingdom of Morocco and the Government of the Federal Republic of Nigeria (2016).

Netherlands Model Investment Agreement (22 March 2019).

UN Human Rights Council. (2011). Guiding Principles on Business and Human Rights: Implementing the United Nations „Protect, Respect and Remedy“ Framework.

Supplementary Act A/SA.3/12/08 Adopting Community Rules on Investment and the Modalities for Their Implementation within the Economic Community of West African States (2008).

Free Trade Agreement Between Canada and the Republic of Peru (2009).

Comprehensive Economic and Trade Agreement Between Canada and the European Union and Its Member States (2017).

Protocol Between the Republic of Estonia and Georgia to Amend the Agreement Between the Republic of Estonia and Georgia on the Promotion and Reciprocal Protection of Investments (2016).

Agreement Between the Czech Republic and Georgia for the Promotion and Reciprocal Protection of Investments (2009).

Agreement Between the Government of the Republic of Belarus and the Government of Georgia on the Promotion and Reciprocal Protection of Investments (2017).

Agreement Between the Government of Hungary and the Government of Georgia for the Promotion and Reciprocal Protection of Investments (2024).

Agreement Between the Government of the Republic of Turkey and the Government of Georgia Concerning the Reciprocal Promotion and Protection of Investments (2016).

Agreement Between the Swiss Confederation and Georgia on the Promotion and Reciprocal Protection of Investments (2014).

Agreement Between the Government of Georgia and the Government of the United Arab Emirates on the Promotion and Reciprocal Protection of Investments (2017).

Bulgaria Model Investment Agreement (18 January 2023).

United States Model BIT (1 January 2012).

French Duty of Vigilance Law (Loi n° 2017-399 du 27 mars 2017 relative au devoir de vigilance des sociétés mères et des entreprises donneuses d'ordre). (2017).

German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz, LkSG) (2023).

OECD, OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (2023), (Council Decision).

CASE LAW

Urbaser S.A. and Consorcio de Aguas Bilbao Bizkaia v. The Argentine Republic, ICSID Case №ARB/07/26, Award (8 December 2016).

Copper Mesa Mining Corporation v. Republic of Ecuador, UNCITRAL, PCA Case №2012-2, Award (15 March 2016).

Bear Creek Mining Corporation v. Republic of Peru, ICSID Case №ARB/14/21, Award (30 November 2017).

WEB-RESOURCES

UNCTAD (25 November 2025). International Investment Agreements Navigator. https://investmentpolicy.unctad.org/international-investment-agreements.