Class action law will be useful against corrupt corporate fat cats
Thailand's new class-action law, slated for introduction in December 2015, is progress indeed and a major link on the highway to greater transparency. The legislation is based around American class-action civil procedure laws and will enable the less priv
Meanwhile, in the US itself, separate class-action suits have been filed against Costco and Nestle. The two food giants have allegedly been linked to slave labour issues in the Thai seafood industry and are accused of acting contrary to advertised codes of behaviour with a view to misleading their own local and international customers.
Not before time, the ethical and operating codes of big companies are being placed under the worldwide regulatory microscope and “behaviour unbecoming” (a term recently used to describe the antics of the Thai Immigration Police) is now a major focus of attention. Difficult to detect or challenge, behaviour unbecoming is the new super virus gripping international corporations. Earlier this year the CEO of Barclays pointed out that “misconduct” is costing the bank billions of dollars in fines; Volkswagen is facing an even bigger figure.
Sadly, Thailand is a leading player in the cultivation and exporting of behaviour unbecoming. Foreign companies (sectors of the hospitality industry for example) have found it all too easy to step in line with Thailand’s example and play along. By operating covertly with their Thai partners under the SEC’s radar they are making themselves viable targets for legally-enabled and motivated international consumers, investors and regulators and the practice of hiding behind pathetically dishonest company rhetoric looks likely to become a corporate death trap.
So, as big business gets ever dirtier it is refreshing to see (at last) the Thai justice system poised to offer “the people” a small but significant window of opportunity to fight back. On a national basis Thailand must challenge the injustices created by its own behaviour unbecoming in order to help re-establish the country as a trustworthy market for investment. However, the world is now a very small place. Once an international legal precedent has been set (Costco or Nestle maybe?) lawyers the world over will have a field day challenging any corporations that do business with Thailand’s shady “big fat cats”. Just imagine, class-action lawsuits (both within and without Thailand) filed against multi-corporate-trading partners, creating a regulatory pincer action with which to squeeze out the pus of corruption in a legal and sustainable way. The price of vice. Oh bliss!
John Shepherd
