ARBITRATION & INVESTOR-STATE DISPUTE SETTLEMENT (ISDS)

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Arbitration is a form of alternative dispute resolution in which private parties agree to settle civil disputes outside of public judicial channels. Investor-state dispute settlement (ISDS) is an alternative dispute resolution mechanism generally agreed to as part of bilateral and multilateral trade agreements and investment agreements between governments and companies. Both private arbitration and ISDS are often mandated by companies. Historically, mandatory arbitration and ISDS have discouraged workers and affected communities from bringing suit. In cases where they have, outcomes generally favor corporate interests and leave affected workers and communities without justice. While the human rights and corporate accountability community fights against the negative impacts of ISDS and mandatory arbitration, there are certain circumstances in which these mechanisms can be used to hold corporations accountable.