Enforcing business responsibility.

In the ideology of capitalism and the free market idea, it is seen as economically justified and efficient provided that external costs be absent or made an internalised cost on the enterprise. There must be no externalities. The externalised costs of the small tinkers, tailors, cobblers, etc were never great. A bit of local social pressure could take care of it. But nowadays the externalised costs on the public who are not benefitting from the industry can be enormous. This is so when we have such large and remote corporations having such a large influence on economics. We only have to think of the Bhopal disaster and the evasion of responsibility to recognise this. In obvious doubtful situations we are encouraged to take a precautionary approach. I see a need for the public that might be on the receiving end of significant externalities to have some influence in avoiding it. I conceive of an option a bit like legal injunctions but without the high legal cost. People should be able to put the business that is seen to avoid taking care of such externality on a formal notice that they are responsible for the foreseen problem. Then the managers will not be able to avoid being labeled as reckless and be individually responsible for damaging consequences. There should then be no escape for being responsible for the consequences.

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