Corporate Accountability

Feature story - October 13, 2003
BANGALORE, India — Scandals related to the appalling practices of multinational corporations like Union Carbide (now DOW), Enron, Coke, Cadbury, and others may have shocked the nation and the world in the recent past, but the media rarely highlights corporate crimes that extend to murders, destroying habitats, threatening indigenous cultures, causing disease, contaminating the planet’s food supply, poisoning our groundwater and even destroying the very air we breathe.

Greenpeace campaigners protest against Monsanto's patenting of Indian wheat, in Germany.

You think this is an exaggeration? Well consider this.

In Bhopal, India more than 8,000 people died in the first three days after 40 tonnes of lethal gas spilled out from Union Carbide's pesticide factory in December 1984. People woke in their homes to fits of coughing, their lungs filling with fluid. 520,000 people were exposed to poisonous gases. 150,000 victims are chronically ill, and even now one person dies every two days. Union Carbide merged with Dow Chemical Corporation two years ago and has ceased to exist as an entity while the present owners Dow refuse to accept any pending liabilities in Bhopal including clean-up of the abandoned site.

In Kodaikanal, India, Hindustan Lever, a subsidiary of Unilever Plc, an Anglo-Dutch multinational dumped mercury waste from its thermometer factory in the surrounding forests and on an innocent local community. When the scandal was exposed, first the company denied that there was a problem and later fudged facts and figures until the Indian authorities forced them to come clean. Since then Unilever has retrieved and sent back to USA some of the waste for disposal but are shying away from compensating affected workers and further environmental remediation measures.

Monsanto, one of the world's largest pesticide companies, continues to sell its genetically engineered seeds to farmers around the world despite growing evidence of failure of crops like Bt cotton, that has reduced once well-to-do farmers in the developing world to penury and poverty while the threat of contamination of indigenous species by GE seeds increases everyday.

Bayer AG, a German transnational continues to manufacture and sell phased out pesticides like Methyl Parathion (brand name Folidol/Metacid) in Asia despite an assurance to their European investors and stake holders that they would stop manufacturing these organo-phosphate poisons.

Ship-owning companies (and indeed, their countries) like Bergesen (Norway), and Chandris (Greece) meanwhile, regularly violate international and national laws and dump their hazardous wastes at ship-breaking yards in India, Pakistan, China, Turkey and Bangladesh. The voluntary guidelines issued by International Marine Organisation are not enough and it is imperative that these guidelines are made mandatory to make the ship-owners liable and responsible.

In the era of globalization, multinational companies increasingly move around assets, products and wastes on a global chessboard to maximize their profits and minimize their costs. These companies are using differences and loopholes in national environmental and health laws for example to export pesticides and destructive technologies to poorer countries to the detriment of local communities. What international body oversees them, or sets rules for their behaviour, or holds them accountable when they transgress?

It is no longer just the conspiracy theorists who believe our world is increasingly ruled and ruined by large multinational corporations.

The World Trade Organisation has supplanted environmental treaties and regulations. Corporations have become accountable only under the rules of a free market, free trade and a free for all on human rights and the environment.

The state of our environment has not improved, in fact it has deteriorated. The gap between the world's rich and poor has widened. Instead of providing developing countries with the tools for sustainable development, corporations have pushed their dirty technologies and polluting industries on to some of the world's poorest countries. A recent UN report revealed that Exxon, with $63 billion, is worth more than Peru or New Zealand. General Electric more than Kuwait. Shell is worth more than Morocco or Cuba.

In the past ten years, corporations have not only resisted environmental challenges, they have lobbied to water down international treaties and even succeeded in getting countries to pull out of environmental agreements altogether. They have maintained their unsustainable practices in all sectors. It is apparent that more than just voluntary measures are needed to control these corporations.

A recent report by WWF states that if we continue at current levels of consumption we will use up all of the Earth's resources within 50 years, and we will need two more planets to meet our resource needs. We either take urgent action to save the planet, or we get off.

The UN Environmental Programme agrees that "the state of the planet is getting worse." They say "there is a growing gap between the efforts of business and industry to reduce their impact on the environment and the worsening state of the planet."

At the root of our environmental problems are the unsustainable practices of the corporations that shape our economies. But what is the good of a short-term healthy economy if we can't drink the water, eat the foods in the fields or breathe the air?

Current systems of governance in Asia (as elsewhere) are proving to be deficient against the activities of abusive multinational corporations. To roll back the excessive powers of corporations and to pressure governments to check corporate abuse and prosecute corporate crimes, greater public participation is a must. The Rainbow Warrior's Corporate Accountability Tour of India is part of a global movement to change the climate of opinion against abusive corporations and to turn the tide in favour of fundamental human rights.

Corporations need to be held accountable for their actions that are destroying the planet, destroying people's lives around the globe.

There is only one answer. We must stand up to the corporations. Our governments must agree on international, legally binding rules for corporate responsibility, accountability and liability: a set of rules that business must follow, and governments must enforce.

The list of rules is long, but so are the crimes.

The world needs corporations to be held accountable to the following laws - no matter where they operate in the world. Greenpeace is calling upon the Indian Government to endorse the Bhopal Principles on Corporate Responsibility, which call on Multinational Corporations to:

· Accept liability for environmental damage and compensate victims of pollution;

· Accept liability for the damage, no matter when it happens, what the cause or who in the corporation is responsible;

· Accept responsibility for damage and injury beyond national borders including accidents in the oceans and atmosphere;

· Ensure that they do not infringe upon basic human rights;

· Disclose all information regarding releases into the environment to the public;

· Protect human and social rights including the highest standards for rights to health care and a clean environment;

· Avoid influence over governments, combat bribery and practice transparency;

· Allow states to maintain their sovereignty over their own food supply;

· Implement a precautionary principle and take preventative action before environmental damages or health effects are incurred; and

· Promote and practice clean and sustainable development