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The Forum > General Discussion > Is James Hardie Australia's Worst Corporate Citizen?

Is James Hardie Australia's Worst Corporate Citizen?

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Profound thanks to everybody who's responded - I'm sincerely heartened that I've raised an issue about which many of us are clearly concerned.

I confess that I used the term "corporate citizen" with little thought, but I did have in mind the hopeful notion that corporations have legal and social rights and responsibilities to all the actual people who not only comprise them, but also their customers and those who are affected by the activities in which they engage.

Having said that, the notion of 'corporate citizenship' or 'corporate social responsibility' [ http://en.wikipedia.org/wiki/Corporate_social_responsibility ] is indeed questionable - especially in the context of globalisation.

For example, I understand that James Hardie is now domiciled in the Netherlands in order to avoid any liabilities and obligations it might have under Australian law. Clearly, the actions of this corporation continue to be unconscionable and designed to avoid responsibility for the consequences of its activities.

[continues shortly]
Posted by CJ Morgan, Friday, 24 April 2009 10:01:05 PM
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[continued]

palimpsest: << Morgan, the JH case is one where the unions involved deserve kudos >>

Absolutely. I couldn't agree more. In fact, the behaviour of James Hardie is a good example of why unions are still as relevant as ever - which is why I'm sure Belly would have something to contribute here.

I also take the points of those who suggest that JH is probably no worse than any number of corporations that will employ any number of underhand, unscrupulous and/or illegal efforts to maximise profits and avoid responsibility for the damagae they cause. I guess I raised JH because it's topical and also because its directors look like being held to account for a change. I agree with suggestions that shareholders should also be forced to take some responsibility as well.

One fascinating aspect of this case is the differential treatment it's attracted in the press - notably the different approaches by Fairfax and Murdoch. From yesterday's Crikey e-mail:

<< This was a huge story for corporate Australia which spans everything from social justice to industrial relations, political regulation and corporate governance.

Never before has a major Australian company attempted such a deceitful dodge of its liabilities and never before has the corporate plod successfully sued an entire blue-chip board...

...Whilst The AFR, The Age and The SMH all ran the story on page one and produced multiple angles, the Herald Sun, Australia’s biggest selling paper, could only manage one story starting on page 41. >>

The Courier-Mail also had the story buried in the business section. It's fascinating to note that the guy who is now Murdoch's chief spin doctor in Australia formerly performed the same role for James Hardie.

Woulfe - I take your point, and all the best.
Posted by CJ Morgan, Saturday, 25 April 2009 11:26:17 AM
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Hopefully CJ the example of James Hardie will resonate within the corporate sector in relation to ethical and moral obligations. The relevance of unions are indeed emphasised by such cases. I won't repeat some of the already excellent comments in the thread.

I am reminded of the underhanded actions of some tobacco companies. After being legislated (in the Western world) to reduce the amount of nicotine in cigarettes due to proven health risks, went on to actively increase the amount in cigarettes sold to the developing world ie. where legislation was non-existent or at best, weak.

Countries like Nepal where cigarette smoking and uptake was high experienced a much bigger problem with addiction due to the content in those cigarettes.

I am not sure how Nepal is dealing with this issue in more modern times, but these examples show a real need for some regulatory control. How anyone can argue for self-assessment or self-regulation in this sector beggars belief.
Posted by pelican, Sunday, 26 April 2009 11:27:53 AM
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Although "corporate citizen" sounds like the product of a PR department, in some jurisdictions it's a literal description.

In "The Long Emergency", James Kunstler explains the process which led, in the 19th century, to the US supreme court granting corporations the same rights and freedoms as human beings. As Kunstler says, a US corporation is essentially a pile of money with full human rights and the sole ambition of becoming a larger pile of money.
Posted by Sancho, Sunday, 26 April 2009 12:35:57 PM
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Pelican

The following links rather confirms what a couple of my addicted friends have declared recently - that nicotine levels in cigarettes, available for purchase in Western countries, have also increased:

http://www.washingtonpost.com/wp-dyn/content/article/2006/08/30/AR2006083001418.html

http://www.bio-medicine.org/medicine-news/11-Percent-Increase-of-Addictive-Nicotine-in-Cigarettes-3A-Report-17502-1/

http://www.ashaust.org.au/mediareleases/060831.htm
Posted by Protagoras, Sunday, 26 April 2009 1:21:23 PM
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Sancho

What you say is true. A shame that all the responsibilities of being a citizen did not accompany the rights so blithely handed over.

Protagoras, those links are so disturbing. One of the mental tricks I used when I stopped smoking was to remind myself that every pack I bought lined the coffers of a bunch of cynical parasites.

Now. Where is Belly when you need him?
Posted by Fractelle, Sunday, 26 April 2009 2:43:04 PM
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