Archived press release

Business Let Off the Hook on Environmental and Social Reporting

6 August 2004

The Government must tighten up proposed regulations for business, campaign groups and charities said today (Friday 6^th August), as the consultation period closes on the controversial draft regulations for business, known as the Operating and Financial Review (OFR) [1]. In a written submission, members of the Corporate Responsibility Coalition (CORE) [2] called on the Government to require company directors to publish details of their social and environmental impacts, as well as financial performance.

CORE, which represents 120 organisations and trade unions, including Action Aid, Amnesty International (UK), Christian Aid, Friends of the Earth, UNISON and the Women's Institute, says that the Department of Trade and Industry proposals for the new regulations are a backward step from the recommendations made in the Company Law Review, six years ago.

The proposals pay little attention to the social and environmental responsibilities of business, focusing only on shareholder interests. CORE says this overlooks the importance of environmental and social responsibility as part of a company's overall performance.

Businesses that give consideration to stakeholders through better transparency and performance are more likely to add value back to shareholders, the coalition says.

CORE co-ordinator Brian Shaad said:

"Under the current proposals, the market will continue to reward companies for their negative impacts and ignore their long-term sustainability. Does the Government really think that business has no role to play in improving the Britain's performance in sustainable development? Shouldn't companies be obliged to face up to their responsibilities in these areas? We want to see business improving its game across the field - and mandatory regulations would make this happen."

Notes

[1] For more information on the Operating and Financial Review, see www.dti.gov.uk/cld/pdfs/pn177.pdf (PDF format)

[2] For more information on CORE, see www.corporate-responsibility.org

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Published by Friends of the Earth Trust