Victims received less compensation than shareholders in the company behind its flammable cladding. Parliament must make corporations pay for harm causedThere is something profoundly wrong when the company behind Grenfell Tower’s flammable cladding paid more compensation to its shareholders than to victims of the disaster. Of Arconic’s £86m in Grenfell-related settlements, all but £1.5m was covered by insurers. Hardly enough to make a multinational think again. The company whose product the inquiry found was the “primary cause” of the fire’s rapid spread has ended up paying only a fraction of the wider social cost, while the multibillion-pound bill for making hundreds of buildings safe falls largely on the state. In June 2017, 72 people – including 18 children – died in London’s Grenfell Tower fire. Almost a decade later, nobody has been criminally charged over its causes. It’s hard to conclude anything but that Britain’s system of corporate accountability is rotten.A new report by the thinktank Common Wealth and the financial investigations group FIND suggests putting right this state of affairs in England and Wales by adopting two changes that parliament could enact quickly. The first is a “failure to prevent” law that would make companies responsible for having adequate systems to prevent foreseeable serious harm. The second is to adopt a “punitive damages” approach. Rather than compensating victims for their loss, punitive damages ask what a company should pay for its conduct. Such an award against Arconic could have been used to meet the costs of remediation, the report says, “at no public cost”. Continue reading...