A joint report by two committees of MPs welcomed the government's proposal to introduce a statutory offence of corporate manslaughter, and called for early legislation. But it said that a gap in the law would remain for large unincorporated bodies, such as partnerships of accounting and law firms.
Source: Draft Corporate Manslaughter Bill, First Joint Report (Session 2005-06), HC 540, House of Commons Home Affairs Select Committee and Work and Pensions Select Committee, TSO (0870 600 5522)
Links: Report | JUSTICE press release | CBI press release | IOSH press release | Guardian report
Date: 2005-Dec
A report examined the circumstances in which engagement activities by investors were most likely to be effective in contributing to corporate change on social, environmental and ethical issues.
Source: Cassandra Higgs, An Assessment of SRI Engagement: A study on supply chain labour standards, Just Pensions (020 7440 9712)
Links: Report
Date: 2005-Dec
A report proposed guidance for effective board action on corporate responsibility.
Source: Rewarding Virtue: Effective board action and corporate responsibility, Business in the Community (0870 600 2482), FTSE Group and Insight Investment
Links: Report | BiC press release
Date: 2005-Dec
The government announced that it was scrapping plans to implement the 'operating and financial review' - a requirement on stock market-listed companies to provide much more information to the public about the impact of their businesses on the environment and society.
Source: Speech by Gordon Brown MP (Chancellor of the Exchequer), 28 November 2005
Links: Text of speech | TUC press release | Friends of the Earth press release | Guardian report
Date: 2005-Nov
A Company Law Reform Bill was introduced, with the aim of simplifying regulation of companies. Directors' duties would be clarified, so that they had to act in the interests of shareholders, but needed to "pay regard to" the longer term, the interests of employees, suppliers, consumers, and the environment.
Source: Company Law Reform Bill [HL], Department of Trade and Industry, TSO (0870 600 5522)
Links: Text of Bill | Explanatory notes | DTI press release | Deloitte press release | Friends of the Earth press release
Date: 2005-Nov
A paper examined the relationship between executive cash compensation and company performance for a sample of large companies over the period 1994-2002. Overall there was little relationship between pay and performance.
Source: Paul Gregg, Sarah Jewell and Ian Tonks, Executive Pay and Performance in the UK 1994-2002, Working Paper 05/122, Centre for Market and Public Organisation/University of Bristol (0117 954 6943)
Links: Working paper (pdf)
Date: 2005-Jun
The government announced plans (in the Queen's speech) for a Company Law Reform Bill. The Bill would seek to encourage shareholder involvement and develop a long-term investment culture. It would also make it easier to set up and run a company.
Source: House of Commons Hansard, Debate 17 May 2005, columns 29-31, TSO (0870 600 5522)
Links: Hansard
Date: 2005-May
The government announced plans (in the Queen's speech) for a Corporate Manslaughter Bill. The Bill would create a new offence of corporate manslaughter, and make it easier for companies who had shown little or no regard for the safety of their workers or members of the public to be prosecuted.
Source: House of Commons Hansard, Debate 17 May 2005, columns 29-31, TSO (0870 600 5522)
Links: Hansard | CCA press release
Date: 2005-May
A think-tank report said that a group of 'ethical pioneers' was redefining business, by transforming markets and delivering positive social and environmental change.
Source: John Taylor, Ethical Business: How a new breed of business is changing the world, New Economics Foundation (020 7820 6300)
Links: Report (pdf) | Summary
Date: 2005-Apr
The government published draft legislation designed to make it easier to prosecute companies and organizations whose gross failure at senior management level resulted in a fatality.
Source: Corporate Manslaughter: The Government s Draft Bill for Reform, Cm 6497, Home Office, TSO (0870 600 5522) | House of Commons Hansard, Written Ministerial Statement 23 March 2005, columns 75-76WS, TSO (0870 600 5522)
Links: Draft legislation (pdf) | Hansard | Home Office press release | TUC press release | Railway Forum press release (pdf) | CCA press release | IOSH press release | Guardian report
Date: 2005-Mar
The government published a White Paper on company law reform. It said that although company directors had a duty to act in the interests of shareholders, they could also take due account of the interests of employees, suppliers, consumers and the environment. It also strengthened the law on auditor liability and audit quality.
Source: Company Law Reform, Cm 6456, Department of Trade and Industry, TSO (0870 600 5522)
Links: White Paper (pdf) | White Paper (pdf links) | DTI press release | KPMG press release | PIRC response (pdf)
Date: 2005-Mar
A paper explored the rationale and growth of corporate social responsibility by companies, and charted the development of the Charities Act 2005 - which for the first time would oblige charities and pension scheme trustees to include in their statement of investment principles a policy on socially responsible investment.
Source: Paul Palmer, Socially Responsible Investment by Trustees of Charities and Occupational Pension Funds (SRI), Working Paper 0504, Pensions Institute/City University (020 7040 8600)
Links: Working paper (pdf)
Date: 2005-Feb