7 June 2024
Yesterday, I began to explain why the usual approach to business regulation is unlikely to alleviate the climate crisis. Today, I will expand on those thoughts before turning in future posts to discuss how changing the goal of corporate directors should be an easier, and more effective, way to protect the environment from severe harm.
Part of the reason it is so difficult to regulate business is that the law tells directors it is their duty to act in the company’s best interests. This encourages, if not requires, them to oppose new laws which would result in higher costs or write-offs of company assets.
Photo by Richard Miller
At this, they have become very proficient. Working with the lobbying industry, they make it very difficult for under resourced climate activists and other groups to protect the public interest.
Their ability to frustrate new legislation is the major reason that their goal to act in their company’s best interests must be restrained.
But if big business can frustrate business regulation at almost every turn, its necessary to understand why they won’t also frustrate attempts to make corporate directors more responsible for the environment and other elements of the public interest?
That we’ll discuss next time.
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