Reputation, reputation, reputation

If the latest proposals by the Sentencing Advisory Panel are adopted as currently seems likely, organisations convicted of corporate manslaughter after 6 April 2008 could face a potential PR disaster. They will have to publicise the sentence in newspapers (national and local), trade journals as well as on television and radio. Organisations could also be obliged to advertise the conviction in letters to shareholders, customers and suppliers as well as on their own website. That is only the starting point. They could also face the prospect of crippling fines, potentially up to 10% of average annual turnover.

For breaches of health and safety law that result in death, the financial consequences are likely to be equally severe. Although the court has no power to make a publicity order (the Health and Safety Executive website does have a 'name and shame' list however), it has been proposed that sentencing for an offence under the Health and Safety at Work etc Act 1974 may be as much as 7.5% of average annual turnover.

Read an analysis of the legal issues and take note of any action points that will help you and your organisation.