Corporate accountability requires global watchdog
Corporate accountability requires global watchdog
The Jakarta Post, Nusa Dua, Bali
Reckless multinational companies cause havoc to the environment
and victims are unable to hold them responsible, according to a
Greenpeace report calling for a global body to monitor corporate
accountability and liability.
Greenpeace's Corporate Crimes report highlights 37 cases where
mostly multinational companies have caused accidents that have
damaged the environment but largely escaped responsibility in the
absence of a global corporate monitoring system.
Marcelo Furtado of Greenpeace International said on Tuesday
protecting the environment and its surrounding community from
companies' reckless business practices necessitated the
establishment of international legal measures for multinational
companies to comply with.
"Corporations need governments looking at these issues because
governments can set policies that will help clean industries to
rise," Furtado said in a press meeting on the sidelines of the
Fourth Preparatory Committee Meeting on Sustainable Development
in Bali.
The meeting is to draw up an action plan, to be known as the
Bali Commitment that world leaders will sign at the World Summit
on Sustainable Development (WSSD) in Johannesburg, South Africa,
later in August and September.
The Greenpeace report comes as delegates debate on whether or
not to tighten regulations around corporate actions to ensure
they comply with sustainable development principles.
Actions of corporations were behind a number of accidents
causing the loss of lives and environmental damage, Furtado said.
The report by Greenpeace covers cases involving chemicals,
pesticides, nuclear materials, and those in the genetic
engineering, mining, forestry and oil sectors as well as one ship
breaking incident.
Beginning its report with what Greenpeace called the worst
chemical disaster is the 1984 Bhopal accident in India.
Gas leaked from a plant owned by Union Carbide India Limited
in Bhopal, releasing a deadly amount of methyl isocyanate (MIC)
into the surrounding area and exposing 520,000 people to the
poisonous gas. In the first three days, 8,000 people died.
Eighteen years after, some 150,000 remain afflicted due to the
effects of the gas leak with reports of third generation victims
still suffering from various abnormalities.
In total the gas leak is believed to have killed about 20,000
people, with one dying every two days.
The Greenpeace report shows that behind this accident lies a
history of poor corporate decisions.
According to the report, Union Carbide stored massive amounts
of MIC in a densely populated area, ignoring its own safety
measures and exceeding the permitted limit in Europe by over 100
times.
To cut costs, Union Carbide stored the MIC in unsafe
conditions, reduced its staff and slashed the training programs
for the remaining few.
In 1989, the company paid US$470 million in compensation but
since its merger with Dow Chemicals, demands for further
compensation have been largely ignored. Dow Chemicals itself is
mentioned in three other chemical related accidents in the
Greenpeace report.
"Governments have to be aware of what's going on, and they
have to protect people because people have the right to a clean
and just environment," Furtado said.
Other non-governmental organizations have also been calling
for stricter control over corporate actions. The revised
Chairman's Text, now called the draft plan of implementation,
includes a phrase calling for an international framework for
transnational corporate accountability.
But as the phrase is in brackets, its fate depends on the
ongoing negotiations, with most developing countries in favor of
it.
A number of developed countries have reportedly rejected the
phrase, arguing that multinationals should be held accountable at
national levels only.
Greenpeace said in its press release that governments were
ultimately responsible for public welfare, and should force
corporations to uphold the law and become more accountable to the
public.
"Our calls for the governments to take this responsibility are
not bad for the industries. But the industries have a tendency of
not wanting any regulations, saying that they can run the world
as they see fit and the market will fix everything," Furtado
said.