2.1 |
Focusing
Attention on Directors: In our view, it is
crucial that public policy in this area focuses
upon assessing and influencing the conduct of
directors. It is often forgotten in discussions
about safety and "corporate accountability"
that company directors control companies, they
decide what companies can and cannot do, and it
is their conduct that ultimately determines whether
or not a company operates safely. In our view,
although the accountability of "companies"
is important, public policy demands that criminal
sanctions should be primarily directed at the
criminal conduct of company directors. |
2.2 |
The
Home Office consultation document, however,
has instead concentrated on making it easier
to prosecute companies. Although we support
many of the changes proposed in relation to
the accountability of "companies",
the government has failed to give sufficient
thought and attention to the accountability
of company directors. It sometimes appears from
the consultation document that the government
believes that dangerous systems of safety management
within companies take place "spontaneously"
- rather than more often than not being the
result of conduct on the part of their directors.
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2.3 |
Directors
and the proposed Individual Offences: A
fundamental concern about the current law is
that it allows company directors to escape prosecution
for manslaughter. There are two obstacles in
the way of prosecuting even the most culpable
directors. The law requires, first, that there
must be a civil law 'duty of care' between the
director and the person who has died. Such a
personal 'duty of care' on the part of directors
however will not exist except in the most exceptional
circumstances and will be particularly rare
in the context of a director of a large company.
It is companies, not their directors, who have
the 'duty of care' towards their employees or
others affected by the company's activities.
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2.4 |
The
second obstacle is the requirement that no 'omission'
or 'failure to act' on the part of an individual
can form the basis of criminal liability, unless
there is a positive legal duty on the part of
the individual to have acted. This rule is very
significant in relation to directors because
most allegations against them relate to their
failures and omissions (not their actions),
and company directors have no legal duties to
act in relation to the safety of their company.
These two rules have meant that although hundreds
of people are killed each year as a result of
corporate activities, only three directors have
ever been successfully prosecuted for manslaughter.
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2.5 |
The
new individual homicide offences are a step
forward. Crucially, it would no longer be required
to prove that a "duty of care" existed
between the accused and the person who died.
This is an important change.
|
2.6 |
However,
the Home Office, and indeed the Law Commission
reports upon which Government's proposals were
based, failed to consider how the requirement
to find a positive 'duty to act' affected directors
whose failures were in all other respoects seriously
culpable, and requiring conviction. It is not
our view that the rule itself on omissions should
change. The Home Office, however, should have
recognised that this rule seriously impeded
the accountability of directors and that imposing
safety duties upon them was the only way to
ensure successful prosecutions.
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2.7 |
It
is our view, that the Home Office must immediately
enact its new individual homicide offences and
at the same time impose statutory safety duties
upon directors. Unless both these reforms are
made, company directors will continue to escape
accountability for 'manslaughter'.
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2.8 |
Directors
and the offence of 'corporate killing':
The government proposals suggest that company
directors should be able to be disqualified
if it is found that their conduct has "contributed"
to the company committing the offence of Corporate
Killing. The Government also says it "would
welcome comments" on whether company directors
should be able to be prosecuted for such conduct.
It is our view that company directors should
be able to be prosecuted for these "secondary"
offences, and on conviction face the possibility
of imprisonment. Disqualification is not sufficient
a penalty. But company directors should not
be prosecuted for these offences when, in fact,
it is their primary conduct which has resulted
in the company operating dangerously and is
a cause of the death. In this situation company
directors should be prosecuted for one of the
individual homicide offences.
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2.9 |
Companies:
Our view on company directors does not mean that
we think that "corporate" accountability
is unimportant. It is wrong that the only way
in which a company can be convicted of manslaughter
is through the conviction of the company director
or senior manager. There will be many situations
where a death has been caused by a company's management
systems operating dangerously and no director
is either to blame or to blame sufficiently to
allow a manslaughter prosecution. In such a situation
it is important that the courts can assess whether
the company itself should be prosecuted for a
manslaughter offence. |
2.10 |
That
is why we are in support of the new proposed
offence of "corporate killing". However,
a company should only be prosecuted for this
offence when culpability on the part of company
directors has been ruled out, or where the company
is being prosecuted in addition to a company
director. Prosecutions against companies for
"corporate killing" should not be
used as an excuse not to prosecute company directors.
|
2.11 |
Parent
Companies: We support the Home Office proposals
that parent companies should be able to be prosecuted
for the offence of corporate killing when their
own serious management failures have been a
cause of deaths through the activities of a
subsidiary company. However, this could have
very little impact as parent companies have
no legal safety duties in relation to the activities
of their subsidiary companies. The Government
must therefore look at what safety duties need
to be imposed upon parent companies.
|
2.12 |
Other
Organisations: We also support the Home
Office's proposal to extend the application
of the offence of corporate killing to a far
wider range of organisations than simply "companies".
It is our view that schools, hospitals and other
non-corporate bodies should be able to be prosecuted
for this offence
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2.13 |
Crown
Bodies: We do not however support the Government's
proposals to allow Crown Bodies immunity from
prosecution for the offence of corporate killing.
It is our view that all government bodies should,
in principle, be able to be prosecuted for this
offence. Individual ministers and civil servants
can under current law be prosecuted for manslaughter
offences and it is difficult to see what can
be the justification for protecting Government
bodies - like prisons - from prosecution when
very serious management failures on their part
have resulted in deaths. It is just as important
to deter central government organisations from
placing people at serious risk of injury or
death as it is to deter local government authorities
(which are not crown bodies) or private companies
and other organisations
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2.14 |
Jurisdiction:
We also critical of the Government's proposals
concerning jurisdiction. Whilst the government
is proposing that British citizens who cause
the death of a person outside Britain should
be able to be prosecuted in Britain for the
new manslaughter offences, it is proposing that
English/Welsh companies that cause death abroad
should be able to escape prosecution. It is
our view that companies (and other organisations)
should be treated no differently from individuals.
It seems extraordinary that the whilst the Home
Office is proposing that British companies that
commit corruption offences abroad should be
able to be prosecuted in Britain, companies
that commit homicide abroad should escape accountability.
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2.15 |
Workers:
Another concern about the current law is the
way it fails to protect "junior employees"
from manslaughter prosecution, even when their
failures, or the consequences of their failures,
are simply the result of them having been part
of an unsafe system of work of which they had
no control. The manner in which companies operate
means that the immediate cause of many
deaths resulting from corporate activities is
the actions or failures of "junior employees"
- the people who work near the bottom of a company's
hierarchy. It is not company directors who have
to close the bow doors, but the assistant boson,
and he may not be able to perform this task
- or his failure to do so may have calamitous
consequences - simply as a result of unsafe
systems of work established or sanctioned by
the company's board of directors. Whilst there
may well be circumstances where it is appropriate
for these employees to be prosecuted for manslaughter,
it is our view that the law needs to give them
a degree of protection. The Government proposals
fail to consider this issue at all.
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2.16 |
Investigation
and Prosecution: Our final concern relates
to the Home Office proposals concerning the
investigation and prosecution of the new homicide
offences. Although as noted above, the law makes
it very difficult to prosecute company directors,
this is exacerbated by current practices that
do not ensure that deaths resulting from corporate
activities are subject to rigorous investigation.
The police have not been given adequate training
and there is insufficient collaboration between
the police and the appropriate regulatory agencies
like the Health and Safety Executive. This means
that prosecutors are often in no position to
make informed decisions about whether there
is sufficient evidence to prosecute. In addition
to this, it is also our experience that the
Crown Prosecution Service (CPS) often takes
a unreasonably conservative view when deciding
whether to prosecute companies and their senior
officers for manslaughter.
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2.17 |
Although
reform is clearly needed in this area, the Home
Office proposals fall far short of the solution.
It is suggesting that the investigative and
prosecution responsibilities - currently in
the hands of the police and the CPS - should
be given to regulatory agencies like the HSE.
This would in our view result in less rigorous
investigation, even fewer prosecutions against
company directors, and send entirely the wrong
message to companies. In our view it is crucial
that the police and the CPS should continue
to be responsible for all homicide investigations
and prosecutions and that deaths resulting from
corporate activities should not be hived off
to under-funded regulatory agencies with little
experience in the investigation and prosecution
of serious crimes.
|
2.18 |
It
is our view that reform is however required
to the way in which deaths resulting from corporate
activities are investigated. In particular,
police forces must establish specialised units
to investigate these deaths.
|
2.19 |
Sentencing:
The Home Office has failed to give any proper
consideration to how to sentence companies and
other organisations convicted of the proposed
homicide offences. Unless, courts can impose
proper punitive sentences that will deter recidivism,
the new corporate killing offence may well have
little impact. It is our view that the Home
Office should establish a tough sentencing regime
for companies. This would include allowing the
courts to impose fines pegged to the profits
or turnover of a company or organisation, and
sentence public companies to 'equity' fines.
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