Corporate Responsibility for Environmental Protection with Reference to the Companies Act No 07 of 2007 of Sri Lanka

Abstract

With the increasing emphasis placed on the necessity of protecting the environment, the traditional perceptions of development have now been replaced with the concept of sustainable development. According to the Brundtland Commission"s report sustainable development is the development which meets the needs of present generations without compromising the ability of future generations to meet their own needs. Irrespective of the growing consensus on the need to develop sustainably, it is sceptical whether the corporations in the contemporary world operate with due regard to the environment. The present research aims to ascertain whether the present Companies Act in Sri Lanka; Act No 07 of 2007 imposes a duty on the companies towards the environment, which will uphold sustainable development. The study further aims to analyse the lessons that Sri Lanka can learn from the Company legislations in the United Kingdom (UK) and Australia in making the companies accountable towards the environment. The research was carried out using the black letter approach of research using relevant legislations and judicial decisions as primary sources and books with critical analysis, journals, theses and electronic resources as secondary sources. The study concludes that Companies Act No 07 of 2007 does not expressly impose a duty on Sri Lankan companies towards environmental protection and therefore inadequate in ensuring sustainable development