Vedanta and Okpabi: A Step Forward in Corporate Group Accountability?

Abstract

This paper examines the evolving landscape of corporate group accountability, with a focus on recent pivotal judgments by the UK Supreme Court in Vedanta v. Lungowe and Okpabi v. Shell. These landmark cases have highlighted the potential for parent companies to be held liable for the actions of their overseas subsidiaries, based on the duty of care under tort law. The paper delves into the broader implications of these decisions, including their significance in piercing the transnational corporate veil and their unintended consequences. It also explores the debate surrounding whether these rulings encourage or deter multinational corporations (MNCs) from disclosing corporate-wide policies and conducting human rights due diligence in their subsidiaries, impacting corporate social responsibility and international standards. The paper concludes by offering insights into potential solutions to address the complex issue of the ‘perverse incentive’ created by Vedanta and Okpabi. duty of care, corporate group accountability, transnational corporate veil, parental corporate liability, Shell, Vedanta