UK MPs Seek Tougher Corporate Responsibility Laws For Multinationals

by Jason Gorringe, for LawAndTax-News.com, London

03 June 2003

MPS in the United Kingdom are seeking to introduce new legislation on corporate responsibility in an attempt to make British multinationals more accountable for their actions overseas, according to reports.

The proposal, which is set to be tabled in a revised Private Member's Bill, would allow foreign employees of UK-based multinationals to sue in the British courts over wrongdoing on the part of the parent company.

The original Corporate Responsibility Bill - which would have obliged companies to report on social and environmental issues, and would also have made directors liable for social and environmental impacts which occurred as a result of negligence - was brought before Parliament in the summer of 2002, but despite the strong support of many members, did not receive parliamentary time.

Speaking to the Independent this week, however, head of policy at the Institute of Directors, Ruth Lea expressed 'deep disquiet' over the proposed legislation, explaining that: 'I think it would be a huge mistake and put a brake on overseas investment.'

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