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2008-08-05 13:50

Should the directors of multinational firms be liable for environmental abuses by their companies?

Because it is cheaper to produce goods in the developing world, developed countries have transferred much of their production abroad. While this is allowing the developing world to grow economically, the production economy brings with it more pollution. Is it fair that the developed world is transferring its pollution to the developed world? Can pollution be slowed or even halted with intervention at the corporate level? These questions are part of today's debate: Should the directors of multinational companies be personally liable for environmental abuses committed by their companies in the developing world?

YES
* Consequence. If a director knows that he or she will be held personally liable, it will result in better oversight of company operations. The chance to make a great salary will mean nothing when compared to forfeiting all your money and being sent to jail.
* Benefit. The effort to shore up pollution has to start somewhere and why not with the leaders of multinationals? By "going green" these corporations have a chance to make even more money. Those companies that provide more efficient alternative energy will profit.

NO
* Unfair. Unless local companies are held to the same standards it won't matter. Large corporations could still outsource environmentally hazardous production to subcontractors. If a large automaker needs to make an especially dangerous part, it can simply find companies that will sell that part. Then, the larger corporation is only buying the part from another company, not producing it directly.
* Jurisdiction. Most CEO's of multinationals live and work in developed nations. These nations are not going to extradite their richest citizens that lead companies that propel their economies. Without the possibility of extradition, liability is a moot point.

COUNTERS
* Consequence? As previously stated, multinationals will simply outsource their production to other companies.
* Benefit? Why can't governments be responsible for environments? Businesses don't foster peace, governments do. Why are multinationals being tasked with being saviors?
* Unfair? We must start somewhere. As developed nations are leading the way in capitalism and democracy, they should lead the way in environmentalism.
* Jurisdiction? If a person steals millions of dollars and escapes to another country, extradition is possible. If extradition can happen for money, it can happen for environmental destruction.

Next week: Should the permanent membership of the UN Security Council be expanded?

Roger Hatridge coaches debate at Leaders Academy and can be reached at Hatridge@gmail.com.




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