Archived press release

Unethical businesses escape regulation as Government kills bill

30 January 2004

Legislation which could have ensured UK businesses behave in an ethical and socially responsible way has today (Fri 30) been blocked by the Government.

The bill on corporate responsibility was tabled by Labour MP Andy King and the call for it to be debated at committee stage was backed by a coalition of more than 300 MPs, UK businesses including B&Q and Co-op, environment and human rights groups and trade unions. However it was "talked out" by the Government at its second reading.

Had it been successful the Bill would have led to companies being obliged to publish annual reports explaining their social, environmental and economic impact. It would have also made company directors legally responsible for taking into account the environmental, social and economic impact of their activities and the interests of all stakeholders rather than just shareholders.

The Bill was supported by the CORE Coalition, which includes Friends of the Earth, Amnesty International, Christian Aid, the New Economics Foundation and Traidcraft, and is supported by more than 100 other national organisations.

The Performance of Companies and Government Departments (Reporting) Bill was largely (95%) based on the Government's own White Paper on Modernising Company Law.

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

"I am extremely disappointed that the chance to firm up rules on companies' ethical behaviour and end the current`pick-and-mix' voluntary approach to corporate social responsibility has been rejected. People arereally concerned by the growing social and environmental impacts businesses have on their lives. The Government has ignored this."

Craig Bennett, Corporate Accountability Campaigner for Friends of the Earth said:

"From now on, when people hear about UK companies putting profits before people and the planet, they should blame the Government just as much as the fat cats. Today the Government had a clear opportunity to improve the way UK plc behaves both here and abroad, but they didn't even allow the proposals to be subject to the parliamentary scrutiny that committee stage would have allowed."

Background info on: www.corporate-responsibility.org

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Published by Friends of the Earth Trust