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Rule of Law 2030

Why does the Rule of Law matter to Hogan Lovells, our clients and civil society?

In 2015, Hogan Lovells alongside the Bingham Centre for the Rule of Law and the Investment Treaty Forum at BICIL, the Economist Intelligence Unit and the British Institute of International Comparative Law published "Risk and Return: Foreign Direct Investment and the Rule of Law".  Risk and Return was based on a survey of over 300 senior decision makers at Forbes 2000 companies with global annual revenues of at least US$1 billion.  Risk and Return revealed that the strength of the Rule of Law ranks among the top three considerations when multinationals make decisions about where to locate foreign direct investment – above considerations such as the cost of doing business and access to national and regional markets.  Where investors experienced Rule of Law challenges (particularly political instability, arbitrary or discriminatory treatment and intellectual property violations), it also revealed that they are liable to reduce or even withdraw investment.    

Later in 2015, the UN Global Compact published the Business for the Rule of Law Framework which seeks to engage businesses to support the building and strengthening of legal frameworks and accountable institutions.  The Framework quotes the Risk and Return in support of its conclusion that: "For businesses, an operating environment which is governed by the rule of law, provides the basis for commercial certainty and creates the foundation for long term investment and growth, and sustainable development for all".  It also highlights the role of lawyers in helping businesses to achieve an optimal operating environment through strengthening the rule of law: "Lawyers who advise businesses […] are also key in realizing the significance of the rule of law in helping businesses to become more responsible and sustainable."

ROL 2030 builds on the empirical research presented in Risk and Return and takes on the challenge set out in the SDGs and UN Global Compact in the Business for Rule of Law Framework by forming strategic, sustainable partnerships with business and government to strengthen the Rule of Law.

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