Campaign update

As the Companies Bill was debated in the House of Commons for the final time, last minute changes announced by the Government could improve the accountability of UK companies.

The Companies Bill will now require some companies to report on their environmental and social impacts and on employee and supplier issues. In addition, company directors will have a duty, not only to maximise profit, but also to consider the impacts of their business on people and the environment.

These changes follow a huge public campaign - which ActionAid has played a leading role in - and this was acknowledged in parliamentary debate.

The Government also gave a commitment to review, within two years, whether or not voluntary reporting standards had resulted in meaningful reports. If not, the Government has undertaken to use the powers it will have within the Bill to introduce legal reporting standards.

But these provisions do not go far enough in ensuring that UK business will always behave responsibly. ActionAid will continue to campaign to strengthen the environmental and social provisions within the Companies Bill as it goes for final approval in the House of Lords later this month.

Jenny Ricks, ActionAid’s corporates campaigner said:
 "Finally the government has shifted out of neutral on the journey toward corporate accountability. Pressure from thousands of campaigners has made them hit first gear - but we're a long way from the chequered flag."

photo : ©Marcus Rose/ Insight/ ActionAid