Death Penalty for Companies

Throughout the world, under the Law, limited Companies are treated as if they were living entities separate from the people who manage them, work for them and the shareholders who own them.

But… Unlike other living entities they are immortal and not subject to normal moral and community constraints if they act in ways that negatively affect living people and the environment. They seem to be largely free from punishment regardless of the damage they might inflict beyond token punishment of executives and financial reparation from a massive pool of money.

Their executives and Boards of Directors are required to make decisions primarily in the interests of the sustainability of company value and the return on investment for shareholders.
To expect them to act in the interests of the community, the environment, or the World, as a primary objective is unreasonable.

Unless the PENALTY of non-compliance makes their behaviour as corporate citizens the number one priority!

The Death Penalty

Penalties under Criminal Law, with limited companies and partnerships which limit liability, treated as if they were living criminals.

The ultimate penalty would be the death of the organisation, something not in the interests of the organisation, executives, directors, or shareholders. And therefore, to be avoided in decision making.

This Should Involve...

Complete wind up with all shares de-valued to zero and all property / assets sold off … Worldwide! 

CEO’s and other decision makers could have their salaries and bonuses co-opted for the previous 12 months (minimum). Directors would be stripped of all other directorships and have to return any fees paid to them.

Outstanding accounts, outside the company’s shareholding businesses ownership would be paid and the balance retained to fund the program’s administration costs. Also, to compensate countries, individuals and other organisations that have suffered as a result of the activities.

The Death Penalty

  • Actual Criminal activity or condoning it.
  • Unethical behaviour.
  • Tax avoidance using “Tax Havens” rather than tax payment in location of business activity
  • Environmental damage or pollution
  • Bribery in any form particularly political / donations
  • Employment at unfair rates of pay (more than a minimum wage)
  • Insider trading
  • CO2 generation

Who Could Police This?

Some of these companies are bigger than many counties in terms of assets and power. They have an influence that extends Worldwide yet are not subject to the normal rules and restrictions of Democracies. They are in effect amoral dictatorships!

A mechanism for policing these organisations already exists, being the International Criminal Court, (ICC) set up to try individuals charged with crimes of concern to the international community. It is governed by an international treaty called the Rome Statute.

It would seem a relatively simple matter to extend the International Court’s remit and responsibility to include international limited companies, as “individuals” and to have that definition flow down to laws enforced in countries worldwide.

There is also a Trust Fund for Victims separate to the Court set up to address harms resulting from the crimes identified. Genocide, crimes of humanity, war crimes and aggression.

Summary

The idea of a death penalty or other consequences for companies and other organisations nationally and internationally, flows from the novel concept of including these entities in the criminal system.

The concept of limited liability that has been long enjoyed and abused by businesses has gone past its use-by date. The unreasonable power and undue influence they have nationally and internationally effectively blocks the influence of individuals in democratic nation states and in the support of environmental issues, climate change and peaceful outcomes of conflicts.

The International Criminal Court (ICC) has the mechanism for tackling just such a problem, and the member countries able to provide sufficient combined influence to make it happen.

I commend this novel concept to you, the reader, and look forward to hearing from you any way in which we could work together to make it happen.

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This is an original document and concept prepared by myself (Ian Godbold) Please contact me if You wish to Quote or Re-Print this article...

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