The rule of law is a major issue in the modern business world but it is rarely openly referred to in the boardroom as a broad area of risk which should be addressed.  This is strange because all large companies hold risk registers.  Those risk registers will refer to a number of risks which are rule of law issues.  These might include contractual enforceability, level playing fields in regulation and trade, supply chain integrity and bribery and corruption.  Most risk registers, however, contain few mitigating actions designed to counter these risks. There would appear to be a disconnect between the identification of risk and the mitigation of that risk when it comes to rule of law based issues. Most companies will say that they lack the power to counter these risks. Interestingly, this used to be what companies said about environmental issues or about cyber security issues.

Related articles and references

• The Tragedy of the Corporate Commons – argues that a new collaborative approach is the only way in which the problem can be addressed.
  
  
• Insert title and link
  explains why risk registers are important tools for company boards which wonder what the rule of law has to do with them.
  
  
• Bingham Centre short video, which I scripted – designed to show why rule of law issues and company risk registers are closely interlinked.
  
  

The Bingham Centre is one of the few institutions globally which is entirely devoted to the understanding and promotion of the rule of law.  I declare a close interest as Co-Chair of its Development Board.

The Bingham Centre has launched a Business Network which we believe to be the first active collaboration amongst major companies who seek to build rule of law capacity and to promote understanding of rule of law risks. I hope that the Business Network will grow to a point where it is a collaborative attempt by a wide cross section of the business world to build rule of law capacity across the world.

Read article by Anthony Hilton of the Evening Standard which summarises well the need for the Business Network.