Archived press release

Environmental Abuses Must Be Covered By New Company Law

10 June 2005

Thousands of people have contacted the Government to call for progressive environmental and social rules in Company Law, following a public consultation on draft proposals, which ends today (Friday 10^th June) [1]. The Government's Company Law Reform Bill, is due to be debated in the current Parliamentary session, but Friends of the Earth believes the Government must go further if it to address corporate abuse of the environment and human rights.

In the last week alone, more than 1000 people emailed Alan Johnson, the new Secretary of State for Trade and Industry with their responses to the consultation calling for progressive reform, and some 15,000 overall have written to the Government in recent months [2].

In the consultation paper, the Government argues that new laws are needed to stop corporate scandals from happening in the UK. Examples such as Enron, Parmalat and Worldcom led to huge losses for shareholders. But nowhere in its Company Law Reform White Paper paper does the Government properly address corporate scandals that have caused harm to people and the environment, such as Shell's activities in Nigeria or the Union Carbide disaster in Bhopal [3].

Campaigners are demanding the Government bring in laws that will force companies to improve their social and environmental behaviour and allow affected communities in the UK and abroad a right to compensation if they suffer damage as a result of a company's activities [4].

Friends of the Earth's corporate accountability campaigner Craig Bennett said:

"The Government clearly considers it is a scandal when rich people get hurt from corporate wrong-doing, and rightly sees tighter regulation as the way forward, but doesn't seem to be bothered when it's poorer people or the environment that suffer.It is high time the Government developed a progressive agenda about how to make UKplc fit for the 21^st century."

Notes

[1] www.dti.gov.uk/consultations/consultation-1472.html

[2] The emails were sent by activists that subscribe to Friends of the Earth's corporate_action email list. People can join the list at: www.bigbusinessexposed.com Over 8000 post cards were sent to the Prime Minister; 5000 were collected to send to Environment Minister Elliot Morley; 2000 emails have been sent to Alan Johnson since the election.

[3] For more information on corporate abuses of the environment and human rights see: www.foe.co.uk/campaigns/corporates/

[4] See www.corporate-responsibility.org

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust