The duty to prevent corporate harms: a normative analysis

Drawing from contractualist moral philosophy, this article argues in favour of extensive liability in negligence for persons associated with a corporation in connection with harms for which the corporation itself is primarily liable. These persons include not only parent companies but also natural persons who are controlling shareholders, the directors of liable companies and independent companies in the supply chain of the company that causes the harm. Doctrinal legal analysis is complemented by critically interrogating the case law from the perspective of Scanlon's contractualist theory of morality, which is utilised to build a compelling case for law reform. The article advocates holding broader classes of third parties liable to the extent that they, in fact, exercise control of the relevant activities of the primarily liable company. This would require courts to adopt broad interpretations of the established legal concepts of ‘creating a source of danger' and ‘assumption of responsibility’.