| Dangerous leaks in legal safeguards around extractive industries |
|
2 June 2010 | Press release Today the US administration announced that it was launching a ‘criminal probe’ into the Deepwater Horizon oil spill. Criminal sanctions cannot provide the answer to corporate negligence. Ben Bundock, company law expert at public interest law organisation ClientEarth, says: "Criminal prosecutions under existing law will not stop events such as the Deepwater Horizon disaster from happening in the future. The problems that allowed this spill to happen are systemic: they go beyond the decisions or actions of any one individual in the company, and specific individual actions that contribute to these kinds of disasters are often outside of the reach of the criminal law. “Criminal punishment imposed after disasters can play a role in moulding and regulating corporate behaviour to avoid events like these in the future, but today’s announcement can’t hide the fact that there has been a fundamental failure to enforce already weak regulation. This has been the case in the United States’ jurisdiction: it is also the case in many more jurisdictions across the globe, where criminal liability holds even less dissuasive power. “There is a lack of regulation and accountability in the extractive industries. But even if sufficient regulations are in place, terrible risks will continue to be taken if they are not rigorously enforced. The disparity between regulation and enforcement is real, and it’s very significant. The enforcement gap needs to be closed in the day-to-day monitoring of these companies. “We also need to find other ways to improve how companies manage risks, not least by looking at the laws that determine how companies communicate their environmental and social impacts and risks to shareholders and investors." ClientEarth ClientEarth is a non-profit environmental law organisation. Our company law work looks at company transparency, and is about showing that environmental and social issues are business issues. To treat them as separate or secondary is unsustainable not only for the earth but for business returns. There are few clearer demonstrations of this than the £44 billion wiped off BP’s market value since the Deepwater Horizon disaster began. -Ends- For further information contact Mike Haines - communications officer 0207 749 5978 | +44 (0)7538 418 460 | This e-mail address is being protected from spambots. You need JavaScript enabled to view it |
