Since the early 1900s, legal constraints on the purpose, lifespan and location of companies have been...

 

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Since the early 1900s, legal constraints on the purpose, lifespan and location of companies have been progressively loosened, leading to the proliferation of multi- national enterprises (MNEs). In the book chapter by Amanda Perry-Kessaris (2010), the author argues that the complex business arrangements of MNEs make it very difficult to hold them to account for any non-compliance of environmental laws or for otherwise causing environmental harm in the countries where they operate. The statements below articulate different aspects of this argument. One statement is however not accurate. From the list below, choose the one statement that does not align with Perry-Kessaris' argument. a. The concepts of limited liability and separate legal personality also apply within a corporate group. Where a parent company is a shareholder of another entity within the group, the parent company's assets are generally protected from any liability for environmental harm caused by the other entity. This makes it very complex and difficult to hold the parent company to account for environmental harm, unless it can be established that they have substantial managerial control over the other entity. b. In many countries where MNEs operate, regulators don't have the resources to monitor company activities, nor the regulatory powers to set stringent standards and enforce breaches. Further, local victims of environmental harm are unlikely to have easy access to legal avenues to seek compensation for harm. c. It is impossible to hold parent companies liable for causing environmental harm in countries in which they do business via subsidiaries and other business arrangements. d. MNEs can have a very significant impact on the environment because they are often engaged in industry sectors which cause environmental harm (e.g. mining and manufacturing) and their activities are often large in scale and undertaken in developing countries which have weaker systems of environmental protection. On the flip side, their size and resources may allow them to develop and implement environmentally friendly practices in host countries that go beyond what may be required by local laws. Since the early 1900s, legal constraints on the purpose, lifespan and location of companies have been progressively loosened, leading to the proliferation of multi- national enterprises (MNEs). In the book chapter by Amanda Perry-Kessaris (2010), the author argues that the complex business arrangements of MNEs make it very difficult to hold them to account for any non-compliance of environmental laws or for otherwise causing environmental harm in the countries where they operate. The statements below articulate different aspects of this argument. One statement is however not accurate. From the list below, choose the one statement that does not align with Perry-Kessaris' argument. a. The concepts of limited liability and separate legal personality also apply within a corporate group. Where a parent company is a shareholder of another entity within the group, the parent company's assets are generally protected from any liability for environmental harm caused by the other entity. This makes it very complex and difficult to hold the parent company to account for environmental harm, unless it can be established that they have substantial managerial control over the other entity. b. In many countries where MNEs operate, regulators don't have the resources to monitor company activities, nor the regulatory powers to set stringent standards and enforce breaches. Further, local victims of environmental harm are unlikely to have easy access to legal avenues to seek compensation for harm. c. It is impossible to hold parent companies liable for causing environmental harm in countries in which they do business via subsidiaries and other business arrangements. d. MNEs can have a very significant impact on the environment because they are often engaged in industry sectors which cause environmental harm (e.g. mining and manufacturing) and their activities are often large in scale and undertaken in developing countries which have weaker systems of environmental protection. On the flip side, their size and resources may allow them to develop and implement environmentally friendly practices in host countries that go beyond what may be required by local laws.

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