Right corporate wrongs - new laws for trade justice

Corporates - what's the problem?
Multinational corporations are playing an increasingly large role in the international trading system. In fact, 70% of all global trade is carried out by companies. This makes them powerful players - more powerful than many democratically elected governments.

Quick facts » 51 of the 100 largest economies in the world are corporations.  » The numbers of people living on less than $US2 per day has increased by almost 50% since 1980. This has coincided with increasing liberalisation of trade.  » The EU is home to more than half of the world's largest multinational corporations. In Brussels, 70% of the professional lobbyists represent business but only 20% work for trade unions, environmental and social initiatives.

A small number of multinational companies now have global reach. Some of these companies have an annual turnover larger than the national income of many countries. 

At present, UK companies are only accountable to their shareholders for delivering profits. There is no requirement for them to take steps to protect the health, environment, and livelihoods of the poor communities around the world who are affected by their operations. 

Until now, companies have adopted a voluntary approach to protecting people and the environment - 'Corporate Social Responsibility' policies that promise they will do more to protect people and the environment. The UK Government has backed this voluntary approach, saying it goes far enough to tackle the problem. But many companies who have publicly said they are doing good work have continued to cause harm to poor people and the environment. We need laws to ensure all businesses respects the rights of communities, employees and the environment. 

Why campaign now?
The Company Law Reform Bill is currently passing through Parliament. This is a unique opportunity to ensure company directors act in the interests of employees, communities and the environment, rather than just delivering financial benefits to shareholders.

Trade justice and corporates - what's the connection?
Over 750,000 people in the UK have already cast their Vote for Trade Justice, which calls on the UK Government to make trade work for people and the planet, not just for the interests of big business. 70% of global trade is carried out by multinational corporations - so we cannot have trade justice without ensuring companies behave responsibly. 

Examples - how companies impact on people and the environment » Women fruit pickers in South Africa work for low wages, face increasing job insecurity and are exposed to dangerous pesticides to supply fruit to Tesco (ActionAid report 'Rotten Fruit', June 2005)  » The international trade in palm oil is driving deforestation and human rights abuses on a massive scale in South East Asia. Palm oil is found in 10% of supermarket products in Europe, yet Tesco claims it does not know where its palm oil is sourced from (Friends of the Earth report 'Greasy palms - palm oil, the environment and big business' 2004)

What can I do?
Now, in 2006, there is a real opportunity for the Government to deliver on its rhetoric about trade justice - by making laws that stop big business profiting at the expense of people and the environment. 

But we need your help to pressure the Government to act. 

Please email your MP NOW to ask them to support the campaign.

Want to know more?
» Download our briefing on righting corporate wrongs
» Corporate Responsibility coalition
» Ask your MP to take action to right corporate wrongs
» Lobby your MP to right corporate wrongs