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6 June 2006

"Business" calls for corporate irresponsibility to become law 

business protestSome 50 "businessmen", dressed in suits and bowler hats, protested at Parliament today with placards demanding "Down with rules for business" Profits not people" and "Exploit workers now". The lobby took place as MPs consider changes to company law. 

The businessmen called on Parliament to protect their interests and make sure new laws going through the House of Commons allow businesses to continue to violate human rights and damage the environment. They demanded that the Government ensure that corporate irresponsibility is protected by law. 

The spoof demonstration illustrated how some businesses and their lobby groups are opposing changes in the law to make companies properly accountable for their social and environmental impacts. Organised by the Corporate Responsibility (CORE) and Trade Justice Movement coalitions [1], the protest coincided with the Company Law Reform Bill having its second reading in the House of Commons. 

Campaigners say that unless the current Bill is amended, it will do little to prevent ongoing abuses of the rights of local people and the environment by UK companies. The groups point to examples such as the damage caused by many companies including household names such as Shell in Nigeria, on the Russian Island of Sakhalin and the US, as well as Tesco's treatment of workers in South Africa. 

Glen Tarman, Trade Justice Movement coordinator, said: 
"MPs have a great opportunity to shift the emphasis of company law to ensure that the role played by business meets the broader needs of society. But as the law stands, it will not do that, and in the long-run we will all pay the price. Business should not be afraid to put environmental protection and human rights at the heart of their operations - and MPs should not hesitate in ensuring that they do that. Optional good practice is no longer acceptable - we need trade justice principles enshrined in company law." 

Campaigners are calling on MPs to back amendments to the Bill to make companies report on environmental and social impacts, to strengthen directors' duties to minimise harmful impacts and to give communities overseas the right to seek redress through the UK courts. 

More than 100,000 supporters of the Corporate Responsibility (CORE) coalition and the Trade Justice Movement have already written to their MPs, urging them to call on the responsible minister to amend the Company Law Reform Bill to make company directors legally responsible for the impacts of their businesses on people and the environment. 

A poll carried out for ICM earlier this year found that nine out of ten people in Britain wanted the Government to bring in enforceable rules to ensure businesses minimise any harm from their operations, especially to poor communities and the environment [2]. 

Notes: 
[1] CORE (www.corporate-responsibility.org) and the Trade Justice Movement () are coalitions of development NGOs, environmental organisations, faith groups and trade unions that together represent over 9 million supporters. 
[2] ICM interviewed a random sample of 1001 adults aged 18+, by telephone between 24 and 26 March 2006. Interviews were conducted across the country and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules. Further information at www.icmresearch.co.uk

Media contacts: 
Friends of the Earth press office: /  
Hannah Ellis, CORE:
John Coventry, ActionAid UK:

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