Archived press release

Pressure on Government to Support Corporate Responsibility

29 January 2004

Friends of the Earth is today delivering more than 40,000 signed postcards to Patricia Hewitt, Secretary of State for Trade and Industry, urging her to support the Performance of Companies and Government Departments (Reporting) Bill. Government sources have indicated that it will block the Bill on corporate responsibility, which is being taken forward by Labour MP Andy King, at its Second Reading tomorrow.

The Bill was put forward by the CORE Coalition, which includes Friends of the Earth, Amnesty International, Christian Aid, the New Economics Foundation and Traidcraft, and which is supported by more than 100 other national organisations. The Coalition is campaigning for UK corporate accountability legislation and has published a `Charter' to demonstrate the support for a full debate on the Bill.

Companies, charities, organisations and more than 300 MPs have already backed the Charter and the coalition is calling on the Government not to block the Bill at the Second Reading, but to allow it to pass through to the Committee stage for a full debate.

The Performance of Companies and Government Departments (Reporting) Bill is based on the Government's own White Paper on Modernising Company Law and would provide for:

• Mandatory reporting: Companies will be required to publish annual reports explaining the significant social, environmental and economic impacts of their activities;

• Directors' duties: Expands the present duties of company directors from just considering the financial success of a company to require them to also consider environmental, social and economic impacts of their activities, as well as the interests of all their stakeholders (not just shareholders).

Andy King, Labour MP for Rugby & Kenilworth, said:

"I want to firm up rules on companies' ethical behaviour and end the current `pick-and-mix' voluntary approach to corporate social responsibility. More than 300 MPs have expressed their support for more comprehensive laws in this area, and the weight of opinion in the UK means the Governments must act. People are concerned by the growing social and environmental impacts businesses have on their lives. The Government must recognise this."

Friends of the Earth Parliamentary Campaigner Martyn Williams said:

"Patricia Hewitt must understand the massive support behind this Bill. Companies, constituents and MPs are all calling for this basic legislation. What other incentive does the Government need? The fact that it is so intent on blocking a Bill that contains around 95% of its own policy wording just adds further madness to this mayhem."

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Published by Friends of the Earth Trust