Corporate Social Responsibility and Corporate Liability for Environmental Damage

Abstract

This chapter analyses recent developments in tort law, namely in the English tort of negligence, which point towards increased liability of parent companies for damage caused by their subsidiaries. In particular, it discusses the relevance of CSR and environmental self-regulation and best practices for parent liability; which has been discussed controversially in English case law. The chapter shows that CSR instruments play an important role with regard to the assumption of responsibility in the individual case, resulting in a duty of care towards, for example, neighbours of a factory. Moreover, it demonstrates their influence on the determination of the required standard of care when it comes to more general corporation-wide (or supply chain-wide) duties of care.