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The Company Law Reform Bill

Companies contribute to prosperity and well-being. But the drive to make a profit means that too often companies can also exploit workers, communities and the environment.

Photo: Jim Loring/Tearfund
Governments and multinational companies both have a part to play in bringing about trade justice.

The Companies Bill passed through parliament this year, providing us with a historic opportunity to change the law to ensure business is held accountable for its actions.

More than 100,000 campaigners in the UK got involved, sending postcards to MPs and writing letters to ministers in one of the biggest campaign actions of the year.

A step forward

Thanks to your campaigning, some amendments were included in the Bill which are a step towards greater corporate responsibility.  

This includes a clause requiring public-listed companies to report on the social and environmental impact of their business, and a clause which requires directors to consider their impact on people and the environment.

It's not everything that we wanted, and the UK Government needs to go further to ensure that business will work for people and planet, but what we've achieved shows campaigning can make a difference.

 
What did we call for? 

We believe that UK company law should take into account not only the interests of shareholders, but also all those affected by the behaviour of British-based companies. This includes the interests of local communities, employees, consumers and the environment.

 

Tearfund, as a member of the Trade Justice Movement and the Corporate Responsibility Coalition, joined with others to call on MPs to back amendments to the Company Law Reform bill so that:
 

  • companies are legally required to report on their social and environmental impact
  • directors are legally obliged to minimise any damage their company does to local communities and the environment
  • people overseas who are harmed by the activities of a UK company are able to take action against them in a UK court

For a more detailed briefing click here.

Please continue to pray 
  • give thanks for the amendments that have been made
  • give thanks that speaking out has helped to make a difference
  • for all those affected by the actions of UK companies around the world.

This page was last updated on 21 November 2006

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We are Christians passionate about the local church bringing justice and transforming lives - overcoming global poverty.
So our ten-year vision is to see 50 million people released from material and spiritual poverty through a worldwide network of 100,000 local churches.

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