4th December PR Newswire LEADING
AUTOMAKERS AND SUPPLIERS PROMOTE GLOBAL WORKING CONDITIONS
Several leading car manufacturers and their suppliers
have launched a collaborative, industry-wide project
to promote ethical working conditions for the millions
of workers throughout their supply chains who are involved
in the production of vehicles. Since October 2005, the
effort has been coordinated by the Automotive Industry
Action Group (AIAG), an industry organisation focused
on continuously improving business processes and practices
throughout the supply chain. AIAG executive director
J. Scot Sharland said "working through AIAG, these
companies are jointly exploring ways to offer a series
of country-specific training sessions in key sourcing
markets that will focus on educating suppliers on local
labour laws and shared expectations regarding working
conditions". http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/12-04-2006/0004484886&EDATE=
4th December
Financial Times CITIGROUP ROLLS OUT FINGERPRINT ATMS TO
TARGET INDIA'S POOR
Citigroup is to install a network of cash machines that
identify account holders' thumbprints instead of a personal
identification number, hoping to encourage those slum
dwellers who are 'unbanked' due to illiteracy, to begin
depositing money with them. Though India's population
is more than 1bn, Citigroup estimates that there are only
roughly 300m bank accounts in the country. It hopes to
expand the network in the poorest areas to 25-35 machines
within 18 months, to target a customer base of 50,000. http://www.ft.com/cms/s/3cedb2b0-81aa-11db-864e-0000779e2340.html
4th December
Guardian WORLD BANK PROJECT ENCOURAGES FAIR SPLIT OF GEM
BENEFITS
The Guardian reports on the World Bank's attempts to ensure
money from sapphire mining in Madagascar benefits the
local community. Sapphires mined locally are exported
after being cut, with their value once they reach shops
in Europe or North America having increased several times.
Madagascar however, will see nothing of this latter profit.
The World Bank project is encouraging some Madagasan's
to take six month courses in gemology, to develop local
expertise in the industry and give them more ownership
of what their country is able to produce. http://www.guardian.co.uk/international/story/0,,1963117,00.html
4th December
SocialFunds.com NON FINANCIAL REPORTS FAILING TO CAPTURE
'MOST IMPORTANT' BUSINESS RISKS
Research from Lloyds Register Quality Assurance (LRQA)
suggests that the majority of UK businesses surveyed believe
their non-financial reporting systems are failing to place
sufficient focus on the "most important" risks
facing their organisations. Only 36 percent of UK businesses
said their social, environmental and governance reporting
is focused on the "most important" risks. Of
the UK companies surveyed, 68 percent believed such reporting
is producing accurate data, whilst 64 percent say that
they report good and bad news in equal measure - raising
questions about the accuracy of non-financial reporting,
as well as its objectivity. Of those surveyed, 32 percent
agree that they currently report on too many issues, whilst
54 percent of companies believe their business had rigorous
processes for deciding what to report on. Deborah Evans,
head of corporate reporting and assurance at LRQA, has
said that the business community needs non-financial reporting
systems that are truly reflective of actual risks, yet
many investors are receiving "data dumps and greenwash"
instead. She praised BT Group for its progress in reporting
non-financial risks and has urged businesses to focus
on the materiality of their reporting. http://www.socialfunds.com/news/release.cgi/6976.html
5th
December Telegraph STORES ACCUSED OF UNDERMINING PORK
PLEDGE
Evidence from the Meat and Livestock Commission (MLC)
suggests that although supermarkets pledged that own-label
pork and bacon would only be sold if raised under UK standards,
some have been avoiding the problem by selling 'tertiary
brands'. Presenting evidence to the Competition Commission,
which is investigating the market for groceries, the MLC
reported an increase in prevalence of these brands, which
don't carry the retailer’s brand name, and are
used to sell imported products that are farmed under systems
which would be seen as illegal in the UK. http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/12/05/cnpork05.xml
5th December
BBC FIRMS CAN DO BETTER BY "DOING GOOD"
Marc Benioff, the founder and chief executive of Salesforce.com,
explains the importance that 'integrated philanthropy'
has played in his business. His 1-1-1 model means that
as the company has grown, so has their contributions to
the community, both in monetary terms and the amount of
time the workforce has given to community action. He says
that not only has it helped the community, but has also
played an important role in staff recruitment and retention,
adding "I have received the most remarkable opportunity
to lead an organisation that makes 'doing good' an integral
part of doing well". http://news.bbc.co.uk/1/hi/business/6207136.stm
5th December
Independent ECO-OPERA FOR CITY WORKERS
A 70 minute interactive opera entitled And While London
Burns, is the latest attempt to encourage those working
in the Square Mile to take the threat of global warming
seriously. The writers of the project, from environmental
arts organisation Platform, hope workers will download
the three-act work onto their MP3s from the dedicated
website, and use their lunch-hour to explore the area
by foot whilst listening to the performance, discovering
the link between big oil, the finance houses and climate
change. http://enjoyment.independent.co.uk/music/news/article2040156.ece
5th December
BBC POLLUTION 'REDUCING RICE HARVEST'
Air pollution from the burning of fossil fuels has contributed
to a decrease in the growth of India's rice harvests over
the past two decades, according to a team of researchers
writing in the Proceedings of the National Academy of
Sciences. The so-called atmospheric 'brown clouds' are
caused by pollution such as vehicle emissions, industrial
soot and the burning of wood and crops. The researchers
calculate that rice harvests would have been up to 10.6
percent higher in the absence of brown clouds and 14.4
percent higher if the detrimental effect of global warming
was also removed. The researchers have warned that India's
self-sufficiency in rice is under threat, prompting concerns
over potential food shortages in this densely populated
and poor country. http://news.bbc.co.uk/1/hi/sci/tech/6206766.stm
6th
December Financial Times SHAKE-UP OF PLANNING REGULATIONS
TO HIT GREEN-BELT
The Barker review, conducted by Kate Barker, a member
of the Bank of England' monetary policy committee, has
suggested that decisions on big infrastructure projects
should be passed to a national committee of experts. Business
groups welcomed the review, which had been a response
to their concerns that political interference and delays
in the planning system were damaging competitiveness,
and called for early action to implement the recommendations.
It is thought that the review proposal to increase the
amount of out-of town supermarkets and shopping centres
will also increase competitiveness amongst retailers.
However, environmental and rural groups showed their disapproval
for the proposals, which would lead to property developers
being allowed to build on green belt land. http://www.ft.com/cms/s/53f8652a-84e0-11db-87e0-0000779e2340.html
6th December BBC CHALLENGE OVER FORCED RETIREMENT
A challenge to a law that allows employers to force workers
into retirement at 65 has been referred to the European
Court of Justice. Anti-ageism campaigners asked the High
Court to look into the legality of mandatory retirement
ages. The action, launched by the Heyday organisation,
has now been referred to Europe for legal guidance. http://news.bbc.co.uk/1/hi/business/6212362.stm
7th December
Independent MARS FINED FOR BREACHING RULES ON CARBON TRADING
Michael Harrison reports that the food giant Mars was
fined yesterday by the Environment Agency for breaches
of European carbon trading rules, introduced to combat
global warming. Mars (UK) was one of four companies handed
penalties totalling more than €1m (£750,000)
after it failed to submit permits for the amount of carbon
it emitted in 2005, the first year of the scheme. http://news.independent.co.uk/business/news/article2054692.ece
7th December
Guardian BIG BUSINESS MAY FACE COMPULSORY CARBON QUOTAS
Proposals being drafted by ministers would force UK’s
big businesses, including banks, supermarkets, universities
and hotel chains, to sign up to a carbon trading scheme.
The plans have received initial support from some of the
companies and may be a central feature in the climate
change bill to be released in spring. All organisations
with annual electricity bills of more than £250,000
will be affected, amounting to collectively 15m tonnes
of carbon. David Miliband, environmental secretary, is
currently consulting on whether the scheme should be mandatory
or voluntary, although reports suggest Whitehall is leaning
towards a mandatory scheme. The government is also expected
to double air passenger duty on flights, in attempts to
tackle the issue of climate change as set out in the recent
Stern Review. Although it is not part of the pre-budget
report, the government hopes the UK carbon trading scheme
will be at the heart of the CSR agenda. http://business.guardian.co.uk/story/0,,1965153,00.html
7th December
various BROWN LIFTS TAXES TO PLUG GAPS IN FINANCES
Chancellor of the Exchequer, Gordon Brown, delivering
his pre-budget speech yesterday, announced a doubling
of air passenger duty and an increase on petrol by 1.25%.
However, this £1bn tax increase amounted to less
than 0.1% of GDP, nowhere near the 1% of GDP that the
Stern report said would be needed to control carbon emissions.
What's more, head of tax policy at Deloitte added that
the increase in tax would be unlikely to change consumer
behaviour and would "simply represent an additional
cost to motorists, including business, rather than leading
to a reduction in mileage" Airlines added to the
discontent surrounding the announcements, with the British
Air Transport Association saying the doubling of passenger
tax was "a mistake" and would not encourage
the industry to seek cleaner solutions for its engines.
BBC news, http://news.bbc.co.uk/1/hi/uk_politics/6215694.stm
The Independent pre-budget report supplement, http://news.independent.co.uk/environment/article2054637.ece
The Financial Times http://www.ft.com/cms/s/a75e977a-8459-11db-87e0-0000779e2340.html
The Guardian pre-budget report supplement, http://business.guardian.co.uk/prebudgetreport2006/story/0,,1966143,00.html
7th December
New York Times FANNIE MAE TO RESTATE RESULTS BY $6.3 BILLION
BECAUSE OF ACCOUNTING
Fannie Mae, the largest buyer of American mortgages, said
yesterday that it would reduce its earnings by $6.3 billion
to correct several years of accounting problems in one
of the nation's biggest financial scandals. The restatement
is one of the biggest for an American company, although
it falls short of the $11 billion charge taken by WorldCom
in 2002.
http://www.nytimes.com/2006/12/07/business/07fannie.html?th&emc=th
7th December Independent EXXON FUNDS EFFORTS TO DISPEL
CLIMATE CHANGE CONCERN
Exxon Mobil is continuing to spend millions to fund European
organisations seeking to cast doubts on the scientific
consensus on global warming, a Brussel-based watchdog,
the Corporate Europe Observatory, has revealed. It is
thought the US energy company is targeting Europe as the
EU has been the key driving force for action on climate
change. The report follows The Independent's revelation
last year that a US-based lobbying group seeking to develop
a Europe-wide network to act against anti-climate change
legislation, was receiving significant funding from Exxon.
http://news.independent.co.uk/europe/article2054654.ece
7th December
Financial Times TOUGHER PENALTIES FOR ROGUE EMPLOYERS
Tougher measures to deal with rogue employers who illegally
pay workers less than the minimum wage are to be introduced,
writes Andrew Taylor. Public funds to monitor companies
and enforce the rules will increase by 50 per cent to
£9m while penalties will be increased for the worst
offenders. The move, announced by the Treasury, was welcomed
by unions and small businesses, which face unfair competition
from rivals paying less for staff. http://www.ft.com/cms/s/bde1827e-8593-11db-b12c-0000779e2340.html
8th December
Guardian AN 80-HOUR WEEK FOR 5P AN HOUR: THE REAL PRICE
OF HIGH-STREET FASHION
Tesco, Primark, Asda criticised by War on Want for poor
labour standards Workers in Bangladesh are paid only 5p
an hour to make cheap clothes for high street retailers
such as Tesco, Primark and Asda despite pledges made by
the companies over the protection of labour rights. This
is according to a report by War on Want. The report, Fashion
Victims, is based on interviews with workers in six factories
that employ around 5,000 people in Dhaka, the capital
of Bangladesh. All three of the British companies have
vowed to investigate the claims, with Tesco insisting
that "all suppliers to Tesco must demonstrate that
they meet our ethical standards on worker welfare, which
are closely monitored". http://business.guardian.co.uk/story/0,,1967401,00.html
8th December
Guardian BP DISASTER SITE 'HELD TOGETHER WITH BAND AIDS'
The director responsible for running BP's Texas City oil
refinery has admitted that the site was held together
by "Band Aid" and "superglue" in the
years running up to the explosion that killed 15 people
last year. New documents have disclosed that the health
and safety culture at the American arm of the UK's largest
oil company was flawed before the tragedy. A drumful of
chemicals caught fire, which caused a massive explosion.
It was the worst industrial accident in the US in a decade.
http://business.guardian.co.uk/story/0,,1967236,00.html
8th December
New York Times H.P. WILL PAY $14.5 MILLION TO SETTLE SUIT
Hewlett-Packard said that it would pay $14.5 million to
settle a lawsuit by the California attorney general over
the company's use of private detectives to obtain private
phone records of board members and journalists. The company
is paying $650,000 in fines for "statutory damages,"
but the bulk of the money, $13.5 million, is going to
create a state-administered Privacy and Piracy Fund. The
fund is to finance the investigation of consumer privacy
violations and of intellectual-property theft, including
the copying of movies and music. http://www.nytimes.com/2006/12/08/technology/08hewlett.html?_r=1&th&emc=th&oref=slogin
10th December
Observer IF ONLY THEIR FIRMS GREW AS FAST AS THEIR PAY
PACKETS
Simon Caulkin writes that headlines about soaring directors'
pay have become so regular that we are suffering what
might be called fat-cat fatigue. http://observer.guardian.co.uk/business/story/0,,1968303,00.html
10th December
Sunday Times FOCUS: THE TRANSFORMERS
The Sunday Times lists its 10 contenders for Business
Person of the Year all of whom have transformed their
companies. It also lists The year's business 'villains'
- bosses who blundered:. Sir Digby Jones, Patrick Cryne,
Charles Dunstone, boss of Carphone Warehouse, Hank McKinnell
who was pushed out as chief executive of Pfizer, Michael
Jackson, who took a £1.5m signing-on fee for becoming
chairman of Party Gaming when it floated in the summer
of 2005, David Carruthers, the former chief executive
of Betonsports, Sir Clive Thompson, chairman of Farepak.
http://business.timesonline.co.uk/article/0,,8209-2496144,00.html
11th
December The Economist VOTING WITH YOUR TROLLEY
Claims that by shopping for organic, Fairtrade and local
food, consumers will change the world are misplaced, the
Economist has said this week. In its special report on
food, it examines some of the myths surrounding 'ethical
shopping'. "The idea of saving the world by shopping
is appealing; but tackling climate change, boosting development
and reforming the global trade system will require difficult
political choices."
http://www.economist.com/world/international/displayStory.cfm?story_id=8380592
11th December
Times SET-BACK AS AIRLINES PULL OUT OF CARBON-OFFSET TALKS
Britain's leading airlines have dropped out of negotiations
on a carbon-offsetting scheme put together by Defra. The
decision came soon after the Chancellor, Gordon Brown's
Pre-Budget Report announced that passenger duty would
be doubled. It will be a setback for the government's
plans to help consumers and businesses to take responsibility
for the amount of pollution they create. Defra officials
are meeting today to discuss the proposals further. http://business.timesonline.co.uk/article/0,,9067-2497600,00.html
11th December
AWARDS RECOGNISE ENERGY EFFICIENCY CHAMPIONS
The winners of the National Energy Efficiency Awards 2006
were announced last week, sponsored by EDF Energy. Categories
included large business category, won by BSkyB and products
and services category, won by Aircon Saver (conditionaire
Ltd.), while Ballymena Borough Council was the public
sector winner. Ian Pearson MP, Minister for Climate Change
and the Environment, added: "The awards are a chance
to recognise innovation and best practice." http://www.energyawards.co.uk/index.php
11th December
Financial Times INTERNATIONAL BEAUTY GROUP TO TRAIN HAIRDRESSERS
TO GIVE AIDS ADVICE
A programme by L'Oreal to educate hairdressers about basic
facts on HIV/Aids is to be rolled out internationally.
With 30,000 staff training 400,000 hairdressers every
year across the world, the company recognised its potential
to spread the educational message of HIV to its customers.
In South Africa where the programme originated three years
ago, they also held a "one man, one blade" campaign
to ensure the sterilised razor blades are used in order
to limit the transmission of the virus between clients.
http://www.ft.com/cms/s/181a005e-871a-11db-9ad5-0000779e2340.html
11th December
Times STARBUCKS GLOBAL AMBITION
Oxfam says that Starbucks has blocked the Ethiopian Government's
efforts to take greater control of coffee exports by applying
for US trademarks for three regional coffee brands, a
move that could boost the growers' annual income by £47
million. "We have to earn the right to be a big company,"
Jim Donald, chief executive of Starbucks insists. "We
have to give back to the communities in which we operate,
whether they are farms or whether they are neighbourhoods
or suppliers that we buy from. Our customers expect it
and they should expect it." http://www.timesonline.co.uk/article/0,,630-2497586.html
11th December
Ethical Corporation SUPPLY CHAIN MANAGEMENT - HOW DAVID
AND GOLIATH CAN GET ALONG
When a small firm supplies a giant, the imbalance of power
can lead to bullying. But there are ways to manage such
asymmetric relations to the advantage of both parties,
says Simon Webley http://www.ethicalcorp.com/content.asp?ContentID=4762
12th December Guardian ADS BLAMED FOR CHILDHOOD STRESS
Children are being groomed for a lifetime of consumerism
by marketing that targets them directly and puts pressure
on them to keep up with images of how they should look
and what they should own, resulting in stress, depression
and low self-esteem, a report by the left-leaning thinktank
Compass warns. Lucy Ward writes that Marketing experts
and branding gurus have devised "ever more ingenious
ways of infiltrating children's worlds". http://www.guardian.co.uk/uk_news/story/0,,1969866,00.html
12th December
The Independent NO 10 GREEN BUSINESS SUMMIT
Executives from some of Britain's biggest firms, with
a combined total of 250 million customers, met at 10 Downing
Street yesterday to work out a combined plan for a new
range of "green" products, to be launched in
the new year, writes Andy McSmith. Companies such as Tesco,
Marks & Spencer, HSBC, BSkyB, B&Q, O2 and The
Carphone Warehouse have committed themselves to "accelerating
the roll-out of practical, simple solutions" to help
consumers reduce carbon emissions. http://news.independent.co.uk/environment/article2067575.ece
12th December
Financial Times OFT CALLS FOR PROBE INTO BAA
The Office of Fair Trading in the UK has proposed to refer
BAA to the Competition Commission after evidence of "poor
customer satisfaction" and concerns regarding the
airport operator's investment plans, especially those
in south-east England. BAA operates seven UK airports,
including Heathrow, Gatwick and Stansted, and they last
year accounted for 63% of all UK air passengers. The referral
to the Commission had been expected, with the BA chief
executive, Willie Walsh, saying in August that Heathrow
and Stansted should not be owned by the same company.
http://www.ft.com/cms/s/96d1b26c-89bc-11db-ae27-0000779e2340.html
12th December
Guardian ENVIRONMENTALISTS HIT AT GOVERNMENT OVER HEATHROW
EXPANSION
Opponents of the proposed Heathrow expansion accused the
government of undermining the fight against climate change
yesterday as environmental campaigners warned of a massive
increase in pollution if a third runway gets the go-ahead.
Dan Milmo adds that the government is expected to reaffirm
plans on Thursday to expand one of the world's busiest
airports. http://environment.guardian.co.uk/travel/story/0,,1970196,00.html
12th December
Independent LLOYDS TSB TO NET £125M BONUS IN ANTI-AGE
DISCRIMINATION LAWS
Lloyds TSB said yesterday that it was set to net a £125m
bonus as a result of the Government's laws against age
discrimination. The bank said the laws meant it would
no longer be able to top up the pensions of people taking
early retirement. Previously, had a worker retired at,
for example, 55, the bank would usually treat them as
if they had retired at 60 for the purposes of their pension.
http://as1.emv2.com/I?a=A9X7CqmbntnN8S1xOqLfp8jkZA
13th December
Guardian FAIRTRADE FOUNDATION RESPONDS TO RECENT CRITICISM
Following recent media scepticism about the need for and
effectiveness of ethical consumption, the deputy director
of the Fairtrade Foundation, Ian Bretman, defends the
role that consumer behaviour plays on the well-being of
the farmers who produce the products. He argues that those
who claim consumers pay over the odds for organic or Fairtrade
produce - only a small percentage of which the producers
receive - ignore the reality that the differentials are
rapidly disappearing. With moves by Marks & Spencer
to only sell tea and coffee that is Fairtrade, and Waitrose
and Sainsbury's selling only Fairtrade bananas, he points
out how the initiatives are moving more into the mainstream
and stresses the importance of shoppers asking themselves
the question "what can I do?" in light of international
poverty. http://environment.guardian.co.uk/ethicalliving/story/0,,1970832,00.html
13th December
Guardian POOR COMMUNITIES GET FREE-TO-USE CASH MACHINES
Following pressure from MPs, banks and building societies
have pledged to fund 600 non-charging cash machines in
poor areas around the country. A taskforce, set up following
the government-hosted ATM Summit, has brokered the deal.
It will also see banks and building
societies paying 30-50% per transaction to ATM operators
that deploy the machines, in order to compensate them
for the lower usage in those areas. For those pay-to-use
cash machines that remain, the group called for "crystal
clear" signs placed prominently on each cash machine
to show customers how much they would be charged when
they make a withdrawal. http://business.guardian.co.uk/story/0,,1970689,00.html
13th December
BBC ARE PENALTY CHARGES BANK ROBBERY?
The BBC Money Programme has been investigating the reasons
why campaigners are challenging the legality of bank penalty
charges, which amounted to 4.5bn for the top six high
street banks last year. Some customers argue that, under
the Unfair Terms in Consumer Contracts Regulations 1999,
the penalty charges must truly reflect the cost of administering
them and must not be a profit-making enterprise for any
business. The key point is that the banks are refusing
to reveal the real administration costs for the charges.
The Office of Fair Trading (OFT) has opened an investigation
to establish what the real cost of current account penalties
are, after previously forcing banks to charge a maximum
£12 on credit card penalties. http://news.bbc.co.uk/1/hi/business/6169539.stm
13th December
Financial Times US EASES THE RULES ON CORPORATE CONFIDENTIALITY
Some of the tough tactics the US Justice Department have
used to fight corporate corruption post-Enron were formally
abandoned yesterday. However, business groups worry the
moves were not enough to restore balance between federal
prosecutors and those corporations
being investigated. The moves, announced by deputy attorney-general
Paul McNulty, will mean governments will be less able
to force companies to disclose confidential communication
with lawyers. However, an influential group of in-house
lawyers, the Association of Corporate Counsel, called
the changes "a day late and a dollar
short". http://www.ft.com/cms/s/2fe575d8-8a4e-11db-ae27-0000779e2340.html
13th December
Independent SALMONELLA COSTS HIGHER THAN FORECAST FOR
CADBURY
Cadbury Schweppes yesterday revealed that the cost of
the summer salmonella scare was 50 per cent higher than
it had initially forecast. The cost of recall, cleaning
factories and installing new systems was underestimated.
http://news.independent.co.uk/business/news/article2070271.ece
13th December
Independent MAN JAILED IN US INSIDER TRADING CASE
A former New Jersey postal worker was jailed for 33 months
yesterday for giving friends secret information he learned
while serving on a grand jury investigating accounting
fraud at the drug firm Bristol-Myers Squibb. Jason Smith,
30, is the first person to be sent to prison since investigators
uncovered a $6.7m (£3.4m) insider-trading ring allegedly
run by two whizzkids at Goldman Sachs in New York. http://news.independent.co.uk/business/news/article2070267.ece
12th
December CSRwire.com CEOS ARE HANDCUFFED; ETHICS MAY NOT
BE
2006 is already a banner year for CEO turnover, according
to a report by Challenger, Gray & Christmas, a New
York-based outplacement firm.
Through November, 1,347 CEOs resigned or were given the
boot at businesses across the country, surpassing last
year's year-end total of 1,322, the report says.
Behind those numbers is yet another corporate scandal
that has already claimed 15 CEOs, and several more senior
executives, in the past two months alone -- employee stock
option backdating. Since the start of the year, more than
100 companies have undergone federal investigations into
backdating, a way of boosting the value of options grants
used as compensation by issuing them retroactively on
days when company stocks were trading low, the Securities
and Exchange Commission says. The worst offenders could
be charged with securities fraud, and, if found guilty,
face hefty fines and up to 15 years in jail. All told,
Challenger, Gray & Christmas has tracked 54 executive
departures related to backdating, including 17 CEOs, 11
CFOs and eight general counsels. http://www.csrwire.com/PressRelease.php?id=7054
13th December
Financial Times ELECTRICAL GOODS MAKERS FACE £400M
BILL TO RECYCLE PRODUCTS
Businesses making electrical appliances will have to pay
up to £400m a year to recycle used products under
regulations unveiled yesterday - just a day after Tony
Blair promised to cut red tape costs by £2bn a year.
Malcolm Wicks, the science minister said "on a whole
range of issues to do with the environment we have to
impose responsibility - on the government, on consumers,
and on producers, this directive puts responsibility for
recycling on producers." http://www.ft.com/cms/s/63ddf0a4-8a4e-11db-ae27-0000779e2340.html
14th December
Independent PWC RECEIVES £1.5M PENALTY FOR TRANSTEC
PwC has been fined with the second highest set of penalties
in history against an accountancy firm. The firm was fined
because of audit failures that were linked to the collapse
of TransTec in 1999. The engineering business failed due
to accounting fraud. The Accountants' Joint Disciplinary
Scheme fined PwC and Coopers & Lybrand £495,000
as well as ordering them to pay £1m legal cost.
Coopers & Lybrand is a predecessor of PwC.
http://news.independent.co.uk/business/news/article2073081.ece
14th December
Financial Times REVIEW CASTS SPOTLIGHT ON DTI'S FUTURE
The prospect of the Department of Trade and Industry being
reformed or even scrapped strengthened yesterday as a
Whitehall review called for a strategic debate on its
future. The review said persistent speculation the chancellor
will scrap the DTI when he takes over from Tony Blair
next year is forcing it to operate under a cloud of "political
uncertainty". http://www.ft.com/cms/s/cb950370-8b18-11db-8940-0000779e2340.html
14th December
Financial Times INVESTOR BODIES IN ETHICS VOW
Saskia Scholtes reports that a group of 12 financial trade
associations round the world yesterday issued an unprecedented
joint statement asserting their commitment to ethical
trading practices in handling private or insider information.
This shift is putting confidential corporate information
into the hands of many more investors. http://www.ft.com/cms/s/7b24b170-8b17-11db-8940-0000779e2340.html
14th December
Financial Times BP FACES US FUTURES TRADING CHARGES
BP has come under scrutiny from the Commodity Futures
Trading Commission (CFTC) in the US over alleged price
manipulation in unleaded petrol futures trading on the
New York Mercantile Exchange. The regulator has warned
BP that it could face civil charges. The warning follows
a number of problems the oil giant has faced in the past
months including the explosion at its Texas City refinery,
and oil spill in Alaska and delays in the opening of the
company's Thunder Horse project in the Gulf of Mexico. http://www.ft.com/cms/s/bbe42bd4-8b01-11db-8940-0000779e2340.html
14th December
Guardian NEWSPAPERS THAT USED ILLEGAL INFORMATION LISTED
Associated Newspapers' Daily Mail has come top in a league
table of newspapers and magazines that have paid private
detectives for information about celebrities and other
people. The report was compiled from evidence found after
a raid on a private detective who was working under cover
for a number of newspapers and magazines. He had sold
information he obtained from the police national computer
and was convicted last year. Other newspapers and magazines
on the list include the Daily Mirror, Best magazine, Evening
Standard and The Observer. http://www.guardian.co.uk/uk_news/story/0,,1971407,00.html
14th December
Times OFCOM TO FINE BROADBAND COMPANIES THAT OBSTRUCT
SWITCHING
Broadband companies will be heavily fined if they try
and stop consumers from switching to a new provider. The
new regulations will be introduced by Ofcom in February
and ill include sanctions and fines of up to 10% of annual
turnover. Consumer groups have, however, complained that
the rules are not strict enough. The new regulation has
been brought about due to thousands of complaints from
customers to the regulator. http://business.timesonline.co.uk/article/0,,9076-2502722,00.html
15th December
various ARMS CORRUPTION INQUIRY HALTED BY "NATIONAL
INTEREST"
The Attorney General, Lord Goldsmith, yesterday announced
that a major criminal investigation into alleged corruption
by the arms company BAE systems and its executives is
to be stopped. The Serious Fraud Office's (SFO) enquiry
into the 1980s deal with Saudi Arabia has been brought
to an end as it was decided that it was in 'the wider
public interest', which must be balanced against the rule
of law, Lord Goldsmith added. Opposition politicians attacked
the decision, with Liberal Democrat MP Norman Lamb, saying:
"How on earth can we lecture the developing world
on good governance when we interfere with and block a
criminal investigation in this way".
BBC news, http://news.bbc.co.uk/1/hi/business/6181977.stm
Guardian http://business.guardian.co.uk/story/0,,1972961,00.html
Independent http://news.independent.co.uk/business/news/article2076183.ece
Financial Times http://www.ft.com/cms/s/0ff015e8-8b99-11db-a61f-0000779e2340.html
15th December
Independent ABI WARNS AGAINST UNDESERVED DIRECTOR BONUSES
The Association of British Insurers (ABI) has said the
number of directors who receive bonuses bearing little
or no resemblance to their company's performance remains
unacceptably high. Introducing a new set of guidelines
for executive remuneration panels, the ABI encouraged
longer-term share incentive packages to be put in place
and warned remuneration committees not to award large
pension payments to directors when they are leaving the
company, especially when departing as a result of poor
performance. http://news.independent.co.uk/business/news/article2076169.ece
15th December
Guardian OUTSOURCING TO MUMBAI BY TV LICENCE FIRM GATHERS
PACE
The company which runs dozens of public sector contracts
such as the London congestion charge and the television
licence is increasingly outsourcing its work from Britain
to India in an effort to improve margins writes Terry
Macalister. Capita employed barely 300 staff at its one
Mumbai office at the start of 2006 but this has doubled
over the year and is expected to have grown to 1,500 by
the end of next year. http://business.guardian.co.uk/story/0,,1972680,00.html
15th December
Guardian AGE LAWS MAY FORCE FIRMS TO PAY FOR BOSSES' FAILURE
Age discrimination legislation could allow executives
who are sacked for poor performance to extract huge severance
payments from companies on the grounds that they have
been targeted because they are getting older reports Katherine
Griffiths. http://business.guardian.co.uk/story/0,,1972508,00.html
15th December
Financial Times PRISONERS TO BE USED TO FILL SKILLS GAPS
Skills shortages are so acute in some areas that businesses
are being encouraged to find trained workers in the nation's
prisons John Boone reports. Alan Johnson, education secretary,
said the measures were designed to create a "win-win
situation for employers and offenders while also protecting
the public by cutting crime". http://www.ft.com/cms/s/1c394abc-8b18-11db-8940-0000779e2340.html
16th December
BBC GM POTATO FARMER 'FEELS UNSAFE'
A farmer who agreed to grow genetically modified potatoes
for a scientific trial has withdrawn because he fears
for his safety. http://news.bbc.co.uk/1/hi/sci/tech/6185129.stm
17th December
Observer POLITICIANS SLAM 'OBSCENE' PAYOUTS AT GOLDMANS
Vince Cable, the Liberal Democrat Treasury spokesman,
has attacked the huge bonuses paid to Goldman Sachs bankers,
saying they highlight 'the gross levels of inequality
in human wellbeing up and down Britain'. Goldman Sachs
last week reported the most profitable year ever for a
Wall Street investment banking institution, with total
revenues of $33bn, around half that amount set aside for
pay and benefits to staff. High-fliers will receive between
£3m and £10m; one or two are rumoured to be
in line for £50m. http://observer.guardian.co.uk/business/story/0,,1973578,00.html
17th December
Independent OFFICE PARTY? BEWARE, YOU'RE ON YOUTUBE...
According to a survey by T-Mobile, 1.4 million people
would now use their phone to video colleagues at Christmas
parties and upload scenes to the internet. Another survey,
to be published by the venue-finding service Conferences
UK, found that as many as 7 per cent of office parties
led to a warning or dismissal for an employee, with "improper
sexual conduct" reported at a further 4 per cent.
Hundreds of compromising scenes from Christmas parties
have already been uploaded to YouTube. The digital television
channel, Fame TV, which was launched last month and performs
a similar function, has been swamped with clips. http://news.independent.co.uk/uk/this_britain/article2081651.ece
16/17 December
Financial Times INDIA PUSHES FOR JUNK FOOD BAN IN SCHOOLS
In a big setback for PepsiCo, Coca-Cola, and other soft
drinks groups, the Indian government is pushing for a
ban on coals and soft drink in universities and schools
across the country. It is a further blow for those companies
attempting to rebuild their image after the soft-drink
pesticide scare earlier in the year. The planned ban extended
to junk food, blamed for increasing levels of heart disease,
diabetes and obesity across the country. India's health
minister, Ambumani Ramadoss told reporters on the sidelines
of a conference on nutrition in New Delhi: "Colas
with or without pesticides are harmful for health and
should not be consumed. We want all forms of junk food
like pizzas, chips, samosas and burgers banned from canteens."
http://www.ft.com/cms/s/bfbd9458-8cae-11db-9684-0000779e2340.html
18th
December Financial Times BRITAIN ARGUES RIGHT TO STRIKE
IS NOT PROTECTED
The British government is to argue that striking is not
a fundamental and overriding right protected by European
Community Law, in the so-called Viking Line case to be
heard in the European Court of Justice next month. The
case emerged when the Finnish shipping company Viking
Line, made efforts to prevent the unionised work-force
from striking or staging boycotts. It pits workers' rights
under EU law against employers' freedom to set up businesses
where they want. http://www.ft.com/cms/s/3d0ca4f6-8e3c-11db-ae0e-0000779e2340.html
18th December
Guardian GREEN LIGHT FOR WORLD'S BIGGEST WINDFARM
The UK government has approved a £2 billion project
for construction of the world's largest offshore wind
farm. The London Array wind farm will be built by a consortium
including Shell and German power conglomerate E.ON. It
will comprise of 341 turbines located 12 miles offshore
and is to be built by 2011. An onshore power substation
will be built in Swale, Kent. The Department of Trade
and Industry also approved a second scheme for a £500
million wind farm in the Thames estuary, to be built in
Thanet. The Royal Society for the Protection of Birds
(RSPB) has dropped its objection to the scheme after plans
were modified to protect an endangered bird, the red-throated
diver. The government set a target in its energy review
of a 500 percent increase in UK renewable energy resources
by 2020 and estimates that a third of the UK's electricity
could one day be generated offshore. http://environment.guardian.co.uk/energy/story/0,,1974690,00.html
19th December
Guardian MANDELSON URGES FREE TRADE TO FIGHT CLIMATE CHANGE
Europe's trade commissioner Peter Mandelson, yesterday
said the most effective way to cut carbon emissions and
tackle climate change would be to open markets for investment
in environmental technology. This would be an alternative
to taxing countries which refused to cut greenhouse gases
under the Kyoto treaty, such as the US. However, although
Mandelson is to write to the head of the World Trade Organisation,
Pascal Lamy, about this proposed new agenda, he may not
have official commission backing for his ideas as yet.
http://business.guardian.co.uk/story/0,,1974889,00.html
19th December
Independent CELEBRITY RESTAURANT FINED FOR ORGANIC SWINDLE
Julie's, the London restaurant frequented by stars such
as Kate Moss and Kylie Minogue, has been found by health
officials to have used cheap meat in dishes that were
displayed on the menu as organic. At West London Magistrates
Court last Tuesday, the managing partner of Julie's, Johnny
Ekperigin, was fined £7,500 and ordered to pay the
council's costs of £4,297 after breaching the Food
Safety Act of 1990. Fiona Buxton, a councillor responsible
for public health said she hoped the fine would be a "stark
warning" to other restaurants thinking of saving
money by doing the same. http://enjoyment.independent.co.uk/food_and_drink/news/article2086683.ece
19th December
The Lawyer LOOK GIFT HORSES IN THE MOUTH
Simon Webley discusses the pitfalls of gifts and hospitality.
Plenty of day-to-day business is conducted over a meal.
There is also little doubt that the giving and receiving
of gifts is seen by most as a normal part of developing
good relations with customers and suppliers. This is particularly
pertinent at Christmas. http://www.thelawyer.com/cgi-bin/item.cgi?id=123548&d=122&h=24&f=46
19th December
Independent BP INSISTS SENIOR EXECUTIVE'S OUTBURST IS
NOT A VEILED ATTACK ON LORD BROWNE
James Moore report on how BP yesterday denied reports
that a series of stinging criticisms of the company's
management, culture and cost-cutting were meant as an
attack on Lord Browne by a leading candidate to replace
him. Tony Hayward, chief executive for exploration and
production worldwide, whipped up a storm after giving
a brutally candid view of the company's failings before
thousands of employees at the company's operations in
Houston, Texas. He said: "We have a leadership style
that probably is too directive and doesn't listen sufficiently
well. The top of the organisation doesn't listen hard
enough to what the bottom of the organisation is saying."
The problems, in his view, could be corrected by "behavioural
changes" that would have to "start at the top
of the organisation". http://news.independent.co.uk/business/news/article2086752.ece
19th December
Financial Times CITIBANK SUED FOLLOWING DISAPPEARANCE
OF SWISS FUNDS
Lawyers for the reclusive German millionaire Peter Mikutta,
who moved to Switzerland after selling his data communication
group, have filed papers claiming SFr44m (£18m)
in damages against Citibank for dereliction of its fiduciary
duties. Lawyers say it is the biggest alleged fraud in
Swiss private banking history. The case, which is linked
to another criminal case in Zurich, involving a former
Citibank employee who went to work for Mikutta, will come
before the courts next year. It is expected to generate
wide interest as Switzerland holds about one-third of
global total offshore assets. http://www.ft.com/cms/s/11995a5c-8f05-11db-a7b2-0000779e2340.html
20th December
Independent INCREASING ELECTRICAL GOOD DEMAND WILL WORSEN
CARBON THREAT
Research by the government funded Energy Saving Trust
has forecast that 30m electrical goods will enter homes
in the next six months, with many regarding bread-makers
and juicers as essential items. It found that although
household appliances have improved in terms of energy
efficiency by 2% every year, this has been outstripped
by the significant increase in number of products in households.
The Energy Saving Trust chief executive, Philip Sellwood,
warned that the country's increasing need for gadgets
would have a "significant impact" on both energy
bills and the environment. The company suggests that consumers
should look for Energy Recommended labels on white products
and when buying a television they should choose an integrated
digital appliance which uses less energy than separate
units. http://news.independent.co.uk/uk/this_britain/article2087552.ece
20th December
Guardian THE YEAR THE WORLD WOKE UP
John Vidal reviews 2006 as being the year that saw temperatures
rise and rainfall records tumble as unseasonal and intense
heatwaves, droughts and floods struck globally. Local
and national politicians scrambled to formulate their
green policies and credentials; businesses found they
could make money from trading carbon, and a broad-based
global social and ecological movement emerged, linking
climate change to social justice, as well as to poverty
and lifestyles. http://environment.guardian.co.uk/climatechange/story/0,,1975381,00.html
21st December
Independent MORGAN STANLEY ACCUSED OF FALSELY CLAIMING
E-MAILS WERE LOST IN 9/11
Morgan Stanley could face hundreds of millions of dollars
of claims from aggrieved clients after being accused of
pretending that e-mail evidence against the bank was destroyed
in the 11 September 2001 terrorist attacks. The company
has been charged by securities regulators for repeatedly
refusing to hand over important e-mail messages to the
independent arbitrators who examine complaints from clients
of its retail stockbroking arm. The National Association
of Securities Dealers (NASD) says that the bank claimed
millions of e-mails had been lost when the servers and
archives of its Dean Witter business at the World Trade
Centre were destroyed. In fact they were available on
back-up tapes or on computers elsewhere within the company.
The NASD says many of those pre-2001 e-mails were later
wiped when they should have been kept, and it wants compensation
paid to an estimated 1,200 clients whose arbitration rulings
have now been called into question. Lawyers say it may
be possible to reopen cases which previously had been
settled, opening Morgan Stanley up to hundreds of millions
of dollars of new claims. http://news.independent.co.uk/business/news/article2091903.ece
21st December
International Herald Tribune QUESTIONS ARISE OVER INTERNATIONAL
EMISSIONS STRATEGY
A United Nations backed scheme encouraging wealthier nations
to reduce pollution in poorer ones has revealed hidden
problems. As part of the Kyoto Protocol, the programme
allows nations such as Europe and Japan to stay within
their government limits on greenhouse gases, by helping
less developed countries to produce cleaner emissions
themselves. However, although the scheme is generating
substantial profits for the poorer nation's companies,
as it is less expensive than them cleaning up their own
operations, critics suggest the generated wealth is unfairly
distributed. Some complain it mostly benefits a few bankers,
consultants and factory owners, whilst other workers see
little of the gains. They worry this will lead to the
lure of short term fixes for quick profit, rather than
long-run, fundamental solutions. http://www.iht.com/articles/2006/12/21/business/web.1221pollute.php
21st December
Financial Times REGULATOR WARNS OF MIS-SELLING CRACK-DOWN
The regulator Ofcom yesterday announced stricter rules
against abuses, such as mis-selling, in the telephone
and broadband market. The new chief executive, Ed Richards,
acknowledging consumer confidence had been damaged following
the settlement with BT which opened the network to rivals,
he said it was his priority to increase public trust in
the sector. He also hampered ITV's ability to increase
revenue by focusing on popular daytime TV output, by ruling
out the broadcaster's proposed reduction of its television
programming for children. http://www.ft.com/cms/s/855deb7c-906f-11db-a4b9-0000779e2340.html
21st December
New York Times DISPARITY EMERGES IN LILLY DATA ON SCHIZOPHRENIA
DRUG
Eli Lilly is said to have provided information about the
risks of its drug Zyprexa that did not match data that
the company circulated internally reports Alex Berenson.
For at least a year, Eli Lilly provided information to
doctors about the blood-sugar risks of its drug Zyprexa
that did not match data that the company circulated internally
when it first reviewed its clinical trial results, according
to company documents. The original results showed that
patients on Zyprexa, Lilly's pill for schizophrenia, were
3.5 times as likely to experience high blood sugar levels
as those taking a placebo, according to a February 2000
memo sent to top Lilly scientists. The memo is one of
hundreds of internal Lilly documents provided to The New
York Times by a lawyer in Alaska who represents mentally
ill patients. http://www.nytimes.com/2006/12/21/business/21drug.html?ex=1167973200&en=e8826c1d91ead951&ei=5070
22nd December
Guardian INVESTOR TRUST HIT BY ENVIRONMENT WATCHDOG, SAYS
MINING BOSS
Investor trust in Peter Hambro Mining (PHM) has been damaged
due to allegations over the gold miner's licences to operate
in Russia, says the company's executive chairman.
Peter Hambro, executive chairman of Peter Hambro Mining,
believes that the company's confrontation with Russia's
environmental watchdog has caused investor trust to "collapse"
and that "it's a question of going back and rebuilding
investor trust again. It will take a very long time."
Shares worth £300m were lost after Oleg Mitvol,
deputy head of Russia's environmental watchdog, said he
was seeking to revoke five of the company's mining licences
in western Siberia. PHM does not understand why it was
attacked by Mitvol in the first place. http://business.guardian.co.uk/story/0,,1977428,00.html
22nd December
Financial Times DREAMING OF A GREEN CHRISTMAS
Consumers are being urged to have a green festive season
this year. Recycling wrapping paper, Christmas cards and
buying food with less packaging as well as buying environmentally
friendly gifts are encouraged. Companies are also joining
in. Ikea said it was giving its 9,000 workers folding
bicycles to encourage them to cycle to work. Staff will
also be eligible for a 15% subsidy for public transport.
Ben Bradshaw, environment minister, said: "More companies
should follow their lead and encourage staff to cycle
to and from work." http://www.ft.com/cms/s/c68962c4-9160-11db-b71a-0000779e2340.html
22nd December
HBOS £11M SEX DISCRIMINATION AND BULLYING CLAIMS
WITHDRAWN
The biggest sex discrimination claim ever filed with a
UK tribunal was withdrawn yesterday. Claire Bright, the
former head of asset and liability management in the treasury
department as HBOS, withdrew her £11m claim from
the banking group. She filed for sex discrimination and
victimisation in December 2005. She will receive no payout.
She had claimed that she was suspended from working at
HBOS in October 2005 when she made a complaint about her
boss Cliff Pattenden after a confrontation over her working
from home. She stated that she was then prevented from
returning to work in January 2006. http://news.independent.co.uk/business/news/article2094705.ece
22nd December
New York Times BRISTOL SAYS U.S. INQUIRY IS SETTLED
Bristol-Myers Squibb has agreed to pay $499 million to
settle a federal investigation into illegal sales and
marketing activities from the late 1990s through 2005. http://www.nytimes.com/2006/12/22/business/22bristol.html?th&emc=th
22nd December
Financial Times SIEMENS BRIBERY SCANDAL RAISES FURTHER
QUESTIONS
An isolated criminal enterprise or a wider culture of
corruption? That is increasingly the central question
in the investigation into an alleged €420m ($553m)
bribery scandal at Siemens, the German industrial group.
The suspects, according to several of their lawyers, are
taking the line that paying bribes out of slush funds
was just part of the ordinary way of doing business at
Siemens' telecommunications division. In so doing, they
are attempting to push knowledge and responsibility for
the alleged bribes as far up the organisation as they
can. http://www.ft.com/cms/s/b9c46ca0-9160-11db-b71a-0000779e2340.html
22nd December
Financial Times EX-CEO MCKINNELL TO LEAVE PFIZER WITH
$200M
Hank McKinnell, who was replaced as chief executive of
Pfizer earlier this year, will walk away with potentially
more than $200m in compensation when he officially leaves
the US drugmaker in February. This comes despite an almost
40 per cent fall in Pfizer's share price since Mr McKinnell
became chief executive in 2001. http://www.ft.com/cms/s/3ae3c074-914d-11db-b71a-0000779e2340.html
27th December
New York Times S.E.C. CHANGES REPORTING RULE ON BOSSES'
PAY
Securities and Exchange Commission, in move announced
Dec 24, reversed decision it had made in July and adopted
rule that would allow many companies to report significantly
lower total compensation for top executives; change in
way grants of stock options are to be explained to investors
is victory for corporations that had opposed rule when
it was issued in July, and defeat for institutional investors
that had backed SEC's original rule; SEC chairman Christopher
Cox says he views decision as 'relative technicality'
that improved rule; adds new disclosure requirements will
be easier for companies to prepare and for investors to
understand http://www.nytimes.com/2006/12/27/business/27place.html?th&emc=th
28th December
Financial Times FEW TOP COMPANIES FOLLOW CODE ON CORPORATE
GOVERNANCE
A new report released today by Grant Thornton is highly
critical of the role of non-executive directors and their
alleged failure to challenge company boards over lapses
in corporate governance. The report urges non-executive
directors to 'take a stand and challenge' members of company
boards over departures from corporate governance best
practice. http://www.ft.com/cms/s/767e461c-9617-11db-9976-0000779e2340.html
28th December
Seattle Times THAT LOW-PRICED CASHMERE SWEATER HAS A HIDDEN
COST
The increasing demand for cashmere products is threatening
the lifestyle of nomadic herders in the Alashan Plateau
in China, according to the Seattle times. For centuries,
pastoral nomads in the Alashan Plateau have raised goats,
roaming to let the land recover. In less than a decade,
however, China's increasing herds of cashmere-producing
goats have radically reduced the price of cashmere products
and transformed a centuries-old industry. The US, for
example bought 10.5 million cashmere sweaters from China
last year, 15 times as many as a decade ago. Goats are
expert foragers and have intensively grazed China's largest
prairies which are rapidly becoming desertified. Without
grass and shrubs to stabilise the dunes, the deserts in
the Alashan Plateau are expanding by nearly 400 square
miles a year. The quality and the quantity of cashmere
have also begun to decline; hungry goats are producing
shorter, coarser, less valuable fleece and the animals'
birthrate is decreasing. http://seattletimes.nwsource.com/html/nationworld/2003498352_cashmere282.html
30th December
Guardian FACE TO FAITH
Ethics must shape our global economy, says John Sentamu
as he discusses the questions surrounding business and
corporate ethics. Economic justice on a global scale is
the key to solving so many of our political and social
problems. And our business ethics, as with our individual
personal ethics, are a vital contributory aspect of this
whole picture. All will benefit from a truly ethical approach
to every aspect of our life. http://www.guardian.co.uk/commentisfree/story/0,,1980179,00.html
30th December
Daily Telegraph PARTYGAMING CHIEF SEES £19M RAISE
PartyGaming's senior management will share a cash and
shares jackpot of more than £40m in the next three
years under a new remuneration policy unveiled yesterday.
The company insisted yesterday that there were 'no corporate
governance concerns' over the large pay packages. http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/12/30/cnparty30.xml
30th December
Financial Times EXECUTIVE COMPENSATION
Executive compensation in the form of stock options has
come under increased scrutiny in the US, where implementation
of a code of corporate governance standards such as that
used in the UK may be an ideal solution to increase transparency.
http://www.ft.com/cms/s/df92c586-97a9-11db-a680-0000779e2340.html
