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Related Experiment Videos

Audit-privilege laws: the right to know nothing?

R Dahl

    Environmental Health Perspectives
    |September 30, 1999
    PubMed
    Summary
    This summary is machine-generated.

    Environmental audit-privilege laws aim to protect companies reporting environmental issues. However, evidence suggests these laws do not increase audits or disclosures, and may shield polluters.

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    Area of Science:

    • Environmental Law
    • Environmental Policy
    • Corporate Environmental Management

    Background:

    • Environmental audit-privilege laws are intended to grant companies immunity for self-discovered environmental violations.
    • The goal is to encourage proactive environmental auditing and self-disclosure by reducing legal risks.
    • Supporters believe this fosters greater regulatory compliance and environmental protection.

    Purpose of the Study:

    • To evaluate the actual effectiveness of environmental audit-privilege laws.
    • To determine if these laws increase audit activity and regulatory violation disclosures.
    • To assess criticisms that these laws protect potential polluters.

    Main Methods:

    • Comparative analysis of audit activity and disclosure rates in states with and without audit-privilege laws.

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  • Examination of data on corporate environmental self-audits and reported violations.
  • Review of arguments from proponents, opponents, and regulatory bodies like the U.S. EPA.

    • Main Results:

    • Empirical data indicates no significant difference in audit activity between states with and without these laws.
    • Companies in states with audit-privilege laws are not more likely to disclose violations.
    • Concerns persist that certain audit-privilege laws may shield companies from accountability.

    Conclusions:

    • Environmental audit-privilege laws may not achieve their intended goals of increasing environmental audits and disclosures.
    • The effectiveness of these laws in promoting corporate environmental responsibility is questionable.
    • Policy revisions may be needed to ensure these laws do not inadvertently protect non-compliant entities.