Every large corporation has an actuarial function, deciding how much harm and death is tolerable. Constructing a building could be 100% safe, but the cost would not be tolerable. It would take such a huge chunk of GDP for construction that the economy would collapse. How much should the mine spend on environmental safety when it comes directly from profits? We must make these choices, but somehow when the corporation blows it, they rarely suffer losses more than the profit they made, creating the moral hazard.
I cheered when Arthur Anderson Inc was basically given corporate capital punishment for enabling Enron’s misdeeds. There needs to be that fear, and it’s not currently there. No banker in the US thinks he’d better be careful, since no banker was sent to jail for the rampant crimes that led to the housing collapse. I doubt the recent arrest of the VW exec would have taken place if he were of an American corp.