Fundamental rights of legal entities: an unresolved matter
Recent judicial criteria on the scope of rights available to legal entities raise relevant implications for organizations and companies that incorporate ESG objectives into their strategy.
In 2021, the Eighteenth Collegiate Court in Mexico City held that legal entities cannot defend certain rights in court, such as the right to a healthy environment or cultural rights, on the basis that these rights belong exclusively to natural persons.
These criteria arose from an amparo proceeding filed by the Mexican Academy of Environmental Law and raise questions regarding the scope of rights available to legal entities, particularly when their corporate purpose includes environmental, social or cultural objectives.
The discussion is particularly relevant for companies incorporating ESG considerations into their strategy, as the ability to pursue objectives beyond generating economic value also depends on legal recognition of the rights necessary to protect them. Against this backdrop, the debate around corporate responsibility, stakeholder interests and sustainable development will continue to have significant implications for corporate activity in Mexico.
