What is the Corporate Manslaughter and Corporate Homicide Act 2007, and how does it affect UK Manufacturers?
The Corporate Manslaughter and Corporate Homicide Act 2007 holds companies criminally liable for gross management failures leading to a person’s death. Managing this exposure is fundamental to safeguarding operations and maximising business value. As part of our Leading from the Top series, this article provides the strategic legal steps your business needs to take to mitigate this risk.
At White & Black, we know that running a business means facing risks every day. Corporate risk management is fundamental to safeguarding your operations and maximising business value. Our experts will work alongside you and take a fully tailored and strategic approach to helping you manage risk, anticipating how your business might be affected down the line.
Mitigating Your Risk Under the Corporate Manslaughter and Corporate Homicide Act 2007
Corporate manslaughter is a criminal offence where an organisation’s gross management failures lead to a person’s death.
Many manufacturers assume that corporate manslaughter charges are reserved for extreme cases, but the threshold for prosecution is lower than you might think. Senior managers are often at the heart of the decision to prosecute, and most convictions to date have involved SMEs whose systems failed to protect life. Manufacturers are at risk if they fail to act properly to prevent avoidable deaths. In the wake of high-profile inquiries like the Grenfell Tower Inquiry, there is keen pressure on manufacturers to ensure the safety of their products.
The Corporate Manslaughter Act 2007: What are the Key Legal Elements?
The Corporate Manslaughter and Corporate Homicide Act 2007 holds companies criminally liable when gross breaches of duty of care by senior management lead to death. The offence contains the following mandatory elements:
- Duty of Care to the Deceased: Manufacturers owe a duty of care to people who can reasonably be expected to make use of their products.
- Gross Breach of that Duty: Conduct has to be so far below what might be reasonably expected of the organisation in the circumstances as to be a severe failure.
- Arising from Senior Management’s Organisation or Management: The definition of “senior management” extends beyond the board or senior leadership team to those playing a significant role in making decisions about how the whole or a substantial part of the organisation’s activities are organised.
- Substantially Attributable to Senior Management Decisions or Omissions: Management failures need not be the sole cause of deaths, but only a cause (although intervening acts may break the chain of causation).
Where is a UK Manufacturer Most Vulnerable to a Corporate Manslaughter Charge?
Manufacturers are particularly vulnerable to corporate manslaughter charges for the following reasons:
- Complex Supply Chains and Subcontracting: In complex supply chains, it can be unclear who is responsible for key elements. Manufacturers could become liable when decisions on product selection are made poorly by others.
- High-Risk Environments: Workplaces often involve dangerous machinery or hazardous materials.
- Pressure to Reduce Costs: Exercises such as value engineering and cost cutting can lead to inadequate consideration of products selected, putting participants under pressure to use cheaper, less effective materials.
Failures that can stem from senior management decisions or omissions include:
- Inadequate safety systems.
- Poor communication between departments, or participants, or lack of goal alignment between functions.
- Lack of board-level oversight.
What Lessons Can UK Manufacturers Learn from Recent Prosecutions?
Recent cases show how deregulation and fragmented accountability can lead to catastrophe. While not every failure leads to prosecution, the reputational and financial damage can be immense.
Strategic Steps to Mitigate Corporate Manslaughter Risk (The Proactive Checklist)
Manufacturers can significantly reduce exposure to risks in the following ways:
- Conduct Regular Legal and Safety Audits: Thoroughly document and store all decisions and risk assessments. This should include a review of supplier processes.
- Conduct Rigorous Product Testing and Maintain Documentation: Ensure compliance with all applicable safety standards. Make sure you understand the limitations of testing regimes; passing a test may not be the same as offering a product that is safe for all uses.
- Ensure Clear Customer/User Guidance: Ensure that customers and users know how to use the product safely and in compliance with applicable safety standards. Consider whether you should tell customers about risks or control the way they use your product (e.g., through clear labelling). Do not rely on other parties in the supply chain to ensure safe use of your product.
- Establish Clear Lines of Accountability: Embed a safety culture from the boardroom to the factory floor and empower employees to notify risks.
Conclusion
Corporate manslaughter charges are mercifully rare. But when they arise, they are devastating. Your strategic focus must be on proactive risk management, transparency, and effective safety leadership to protect lives and maximise business value.
To discuss how our experts can provide a fully tailored and strategic approach to managing regulatory compliance obligations, litigation, and cyber threats, contact us today.
Author
Roxanne specialises in resolving commercial disputes, providing straightforward, strategic legal advice to help clients navigate risks, including corporate liability, and find solutions to the challenges of running a business.