More Laws
The idea of activating dormant laws holds huge potential for the CSR movement. Often, reformers get disheartened by the current state of affairs. They think that America’s corporate governance is so far gone that the only fix is a complete system overhaul. Realizing how huge and challenging of a task this is, they despair and even give up. Luckily, as I discussed in my last post, there ARE precedents for CSR in U.S. law. Recognizing these laws could provide a framework for change that comes from within the system. My most recent post focuses mainly on specific stakeholder statues. However, there are also broader laws which present solid grounds for reforming corporate behavior.
- Community Reinvestment Act: Although this law was passed in 1977, it was largely unused until about 20 years ago. During its first 15 years, commitments to lend to low- and moderate-income neighborhoods totaled less than $1 billion. In the early 1990s, after community groups combined to for the National Community Reinvestment Coalition, the act finally was called into use. From 1992-1997, these CRA agreements expanded to a whopping $353 billion.
- Alien Tort Claims Act: This law, passed in 1789, states that “the district courts shall have original jurisdiction of any civil action by an alien for a tort only, committed in violation of the law of nations or a treaty of the United States.” In 1998, Doe v. Unocal became the first Alien Tort Claims suit to proceed in U.S. court. Judge Richard Paez ruled it was legal to try Unocal for human rights abuses in Myanmar. The law was used again that year in Bowoto v. Chevron when Chevron was forced to account for its role in two deaths on an offshore oil rig in Nigeria.
corpaware 