Companies Bill - movement towards corporate responsibility?
We need more good "red tape" | 19.10.2006 21:50
The Trade Justice Movement - the coalition that campaigns for fundamental changes to the unjust rules and institutions governing international trade - has been mobilising the public on a massive scale to right corporate wrongs. Its focus on the Companies Bill as an opportunity to make laws that stop big business profiting at the expense of people and the environment has resulted in some social justice gains despite the opposition of big business lobbies.
Changes to the Companies Bill, announced by the Government in the House of Commons could improve the accountability of UK companies, campaigners said this week. But members of the Trade Justice Movement and the Corporate Responsibility (CORE) Coalition said that although the new moves were welcome, much more is needed to ensure people and the environment are protected from corporate abuses.
The Companies Bill - which heads back to the Lords next week ahead of royal assent - will now require some companies to report on their environmental and social impacts and on employee and supplier issues. In addition, company directors will have a duty, not only to maximise profit, but also to consider the impacts of their business on people and the environment.
These changes follow a huge public campaign involving human rights, development and enviroment campaigners as well as trade unions and church groups. Over 750, 000 people in Britain supported the campaign with more than 100, 000 UK voters contacting their MP directly.
The Corporate Responsibility Coalition and the Trade Justice Movement believe the provisions now in the Companies Bill will not go far enough in ensuring UK business always behaves responsibly and will continue to campaign for strengthening of the environmental and social provisions of the Bill whilst the Lords considers it again.
The Government has given a commitment to review, within two years, whether or not voluntary reporting standards had resulted in meaningful reports and to consult with NGOs as well as business in this assessment. If not, the Government has undertaken to use the powers it will have within the Bill to introduce mandatory reporting standards.
Hannah Ellis, Coordinator of the Corporate Responsibility Coalition said:
“The Corporate Responsibility Coalition welcomes the new legislation outlined in the Companies Bill – this is one step forward in ensuring British business does not legally operate at the expense of people and the environment. However this is only the first step – Britain still has a long way to go to be an international leader in responsible business.”
Glen Tarman, Coordinator of the Trade Justice Movement, said:
“The Trade Justice Movement welcomes the Government’s recognition that regulation is needed to empower communities and protect the environment yet the Companies Bill could have gone a lot further. People power and public pressure have already made a massive difference. Our campaigning to ensure that British businesses are responsible and accountable, no matter where in the world they operate, will continue until we have all the rules in place to right corporate wrongs and make poverty history.”
Whilst CORE and the Trade Justice Movement welcome the measures in the Bill to take account of social and environmental impacts, they call for the Bill - the largest shake up in UK company law in over a century – to be further strengthened to make UK companies international leaders in responsible and competitive business.
Campaigners have been calling for further provisions that would require companies to comprehensively report on their environmental and social impacts, that company directors be legally accountable for these impacts, and that the Government examine barriers which prevent UK companies for being liable for abuses committed overseas.
[ A comprehensive summary of all the Corporate Responsibility (CORE) Coalition and the Trade Justice Movement proposals for reforming the Companies Bill, ‘Companies Bill: Making Corporate Irresponsibility History’ is available here www.tjm.org.uk/corporates/briefingOct06.pdf ]
The Companies Bill - which heads back to the Lords next week ahead of royal assent - will now require some companies to report on their environmental and social impacts and on employee and supplier issues. In addition, company directors will have a duty, not only to maximise profit, but also to consider the impacts of their business on people and the environment.
These changes follow a huge public campaign involving human rights, development and enviroment campaigners as well as trade unions and church groups. Over 750, 000 people in Britain supported the campaign with more than 100, 000 UK voters contacting their MP directly.
The Corporate Responsibility Coalition and the Trade Justice Movement believe the provisions now in the Companies Bill will not go far enough in ensuring UK business always behaves responsibly and will continue to campaign for strengthening of the environmental and social provisions of the Bill whilst the Lords considers it again.
The Government has given a commitment to review, within two years, whether or not voluntary reporting standards had resulted in meaningful reports and to consult with NGOs as well as business in this assessment. If not, the Government has undertaken to use the powers it will have within the Bill to introduce mandatory reporting standards.
Hannah Ellis, Coordinator of the Corporate Responsibility Coalition said:
“The Corporate Responsibility Coalition welcomes the new legislation outlined in the Companies Bill – this is one step forward in ensuring British business does not legally operate at the expense of people and the environment. However this is only the first step – Britain still has a long way to go to be an international leader in responsible business.”
Glen Tarman, Coordinator of the Trade Justice Movement, said:
“The Trade Justice Movement welcomes the Government’s recognition that regulation is needed to empower communities and protect the environment yet the Companies Bill could have gone a lot further. People power and public pressure have already made a massive difference. Our campaigning to ensure that British businesses are responsible and accountable, no matter where in the world they operate, will continue until we have all the rules in place to right corporate wrongs and make poverty history.”
Whilst CORE and the Trade Justice Movement welcome the measures in the Bill to take account of social and environmental impacts, they call for the Bill - the largest shake up in UK company law in over a century – to be further strengthened to make UK companies international leaders in responsible and competitive business.
Campaigners have been calling for further provisions that would require companies to comprehensively report on their environmental and social impacts, that company directors be legally accountable for these impacts, and that the Government examine barriers which prevent UK companies for being liable for abuses committed overseas.
[ A comprehensive summary of all the Corporate Responsibility (CORE) Coalition and the Trade Justice Movement proposals for reforming the Companies Bill, ‘Companies Bill: Making Corporate Irresponsibility History’ is available here www.tjm.org.uk/corporates/briefingOct06.pdf ]
We need more good "red tape"
