At last night's green awards in London, Asda, WalMart's UK arm, was up for an award for sustainable advertising. The "best use of copy" award was sponsored by no less than the virulently activist anti-Wal-mart anti big company campaigning magazine, The Ecologist.
Asda didn't win, but many attendees chortled into their fair trade ice cream at the irony. Surely red faces all around at the Ecologist if Asda had won?
"Greenwasher"
Thursday, November 30, 2006
Wednesday, November 29, 2006
China's pollution - apparently it's all relative
Lang Lang on Pollution - apparently it's all relative
I'm in Chengdu, Sichuan Province, for a few days and on first glance the city seems to have made a remarkable turn around in the few years since I last visited.
The air appears cleaner, the traffic running a little smoother and the streets are pristine clean for a Chinese city.
The government has also been greening like mad with little parks and trees
and the whole place, while not architecturally stunning or anything, looks far more liveable than it once did.
Some conversations last night in the new Chengdu Bookworm, a English language library, cafe and bar, with some locals and long term foreign residents reinforced this view.
Anyway, hopefully more on Chengdu later. Of interest this week was the fact that 24 year old Mainland Chinese pianist Lang Lang became the first successful applicant for residency in Hong Kong under the government's Quality Migrant Admission Scheme - basically a way to get talented people to live in Hong Kong.
Lang Lang was of course delighted but of interest was the fact that when asked whether or not he thought the notoriously dirty air of Hong Kong would be a problem he replied, "I think the Hong Kong air is clean. I come from the north."
By this Lang Lang meant that he comes from industrial Shenyang in Liaoning Province which is famously polluted. I see his point but isn't it a bit like saying I don't mind the cold in Iceland as I come from Greenland!
Paul French, China Editor
I'm in Chengdu, Sichuan Province, for a few days and on first glance the city seems to have made a remarkable turn around in the few years since I last visited.
The air appears cleaner, the traffic running a little smoother and the streets are pristine clean for a Chinese city.
The government has also been greening like mad with little parks and trees
and the whole place, while not architecturally stunning or anything, looks far more liveable than it once did.
Some conversations last night in the new Chengdu Bookworm, a English language library, cafe and bar, with some locals and long term foreign residents reinforced this view.
Anyway, hopefully more on Chengdu later. Of interest this week was the fact that 24 year old Mainland Chinese pianist Lang Lang became the first successful applicant for residency in Hong Kong under the government's Quality Migrant Admission Scheme - basically a way to get talented people to live in Hong Kong.
Lang Lang was of course delighted but of interest was the fact that when asked whether or not he thought the notoriously dirty air of Hong Kong would be a problem he replied, "I think the Hong Kong air is clean. I come from the north."
By this Lang Lang meant that he comes from industrial Shenyang in Liaoning Province which is famously polluted. I see his point but isn't it a bit like saying I don't mind the cold in Iceland as I come from Greenland!
Paul French, China Editor
Tuesday, November 28, 2006
Slow moves on Aids in India
I read a shocking piece of news today in the Times of India. I was struck with disbelief to the point I had to read the piece again to confirm I had read it right.
It was an article about the state of Maharashtra in western India being the first in the country to draft a bill that aims to ensure equal treatment of Aids patients at the workplace. This is a workplace policy that will be implemented across government departments after it gets the nod from the state cabinet. State health minister Vimal Mundada said: "As per the new policy, all facilities available for a normal healthy employee would be provided for an Aids patient employed by the government as well, till he is medically declared unfit. There would be no discrimination in recruitment and promotions."
I found this shocking because I didnt know such a basic policy wasnt in place already. What took the government so long to form such a policy? And to think of it, Maharashtra is still the first state government to propose such a policy.
I know that much of India still isnt broad-minded in its treatment of HIV/Aids victims, but you would think that the government would be progressive enough in not just calling for a supportive environment for these victims but also leading the way in setting up such an environment?
5.7 million Aids patients in India and the country still seems to be lagging behind in protecting them in the professional set-up, a place where the law can mandate anti-discriminatory behaviour unlike in the social milieu where its hands are tied to an extent.
Poulomi Saha, India Editor
It was an article about the state of Maharashtra in western India being the first in the country to draft a bill that aims to ensure equal treatment of Aids patients at the workplace. This is a workplace policy that will be implemented across government departments after it gets the nod from the state cabinet. State health minister Vimal Mundada said: "As per the new policy, all facilities available for a normal healthy employee would be provided for an Aids patient employed by the government as well, till he is medically declared unfit. There would be no discrimination in recruitment and promotions."
I found this shocking because I didnt know such a basic policy wasnt in place already. What took the government so long to form such a policy? And to think of it, Maharashtra is still the first state government to propose such a policy.
I know that much of India still isnt broad-minded in its treatment of HIV/Aids victims, but you would think that the government would be progressive enough in not just calling for a supportive environment for these victims but also leading the way in setting up such an environment?
5.7 million Aids patients in India and the country still seems to be lagging behind in protecting them in the professional set-up, a place where the law can mandate anti-discriminatory behaviour unlike in the social milieu where its hands are tied to an extent.
Poulomi Saha, India Editor
Wal-Mart has a breakthrough in Indian retail
The word is finally out. Putting an end to months of speculation, Bharti Enterprises chairman Sunil Mittal (not related to Lakshmi Mittal) has finally announced a partnership with the world's biggest retailer Wal-Mart to jointly open supermarkets across India. As per the agreement, Bharti Group will manage the front-end of the retail business while Wal-Mart will look into logistics, the supply chain etc. In other words, Bharti will be Wal-Mart's India franchisee.
This partnerhsip is a huge achievement for the US behemoth that has outdone UK's Tesco and France's Carrefour in a race to break into one of the world's biggest consumer markets. Both Tesco and Carrefour were also in talks with Bharti, since direct entry into the multi-brand retail sector in India is not yet open to foreign players.
Now Bharti has a challenge on its hands. Being the visible partner of the two in the Indian market, it will have to bear the direct impacts of any consumer action against possible mismanagement of supply chain issues by Wal-Mart that get public. Not only will then the retail stores bear the brunt of consumer rage, Bharti's other products (Bharti Airtel is one of the biggest players in the Indian telecommunications market) could also face diminishing consumer loyalty.
On the other hand, in case of any supply chain related scandal with regard to Wal-Mart, Indians may not be quick to relate the company as being associated with Bharti due to its lack of visibility in the partnership. This is not to say of course that Wal-Mart's many critics have succeeded in translating all the lack of health programme, absence of unions, lack of fair wages issues into depreciating sales for the company in the US or elsewhere, but making such an assumption wouldnt be pushing it too far either.
So, the partnership can work either way for Bharti. For now it needs to take each step very cautiously - the international press is watching already (http://www.ft.com/cms/s/4a4dcbbc-7dee-11db-84bb-0000779e2340.html). This partnership has brought Bharti under the media spotlight in a way none of its other global ventures have done.
Bharti and Wal-Mart plan to roll out their first stores in August 2007.
Poulomi Saha, India Editor
This partnerhsip is a huge achievement for the US behemoth that has outdone UK's Tesco and France's Carrefour in a race to break into one of the world's biggest consumer markets. Both Tesco and Carrefour were also in talks with Bharti, since direct entry into the multi-brand retail sector in India is not yet open to foreign players.
Now Bharti has a challenge on its hands. Being the visible partner of the two in the Indian market, it will have to bear the direct impacts of any consumer action against possible mismanagement of supply chain issues by Wal-Mart that get public. Not only will then the retail stores bear the brunt of consumer rage, Bharti's other products (Bharti Airtel is one of the biggest players in the Indian telecommunications market) could also face diminishing consumer loyalty.
On the other hand, in case of any supply chain related scandal with regard to Wal-Mart, Indians may not be quick to relate the company as being associated with Bharti due to its lack of visibility in the partnership. This is not to say of course that Wal-Mart's many critics have succeeded in translating all the lack of health programme, absence of unions, lack of fair wages issues into depreciating sales for the company in the US or elsewhere, but making such an assumption wouldnt be pushing it too far either.
So, the partnership can work either way for Bharti. For now it needs to take each step very cautiously - the international press is watching already (http://www.ft.com/cms/s/4a4dcbbc-7dee-11db-84bb-0000779e2340.html). This partnership has brought Bharti under the media spotlight in a way none of its other global ventures have done.
Bharti and Wal-Mart plan to roll out their first stores in August 2007.
Poulomi Saha, India Editor
Friday, November 24, 2006
UK retail: Are you a hotty?
Browsing Oxford Street this week for some pre-Christmas shopping, I ducked into smart-casual fashion outlet River Island. Just to look, of course. In the downstairs men’s section I was struck by something. And it wasn’t the reasonably-priced, yawningly-conventional clothing. It was a pint glass. Or what looked like a pint glass, just bigger. Inspecting the display I saw it was a giant two-and-a-half pints glass, dubbed, appropriately, “The Big One: Are you man enough?” Surprised, I turned to the next item on display. A hand clicker. The sort wielded by bouncers and air-hostesses to take head counts, and recently glamorised in adverts for male body sprays. Or in the words of the packet: “Totty Clicker: Tally the totty to find out if you’re a hotty.” I turned then to the third item on display, a car sign aimed at “The Demon Driver”, complete with cartoon of an adrenaline-high bloke burning rubber.
Ok, I know it’s nearly Christmas and people are at a loss for stocking-fillers. And I realise men do like booze, birds and fast cars. But would a progressive company promote its brand in this way? I’m not so sure.
John Russell, deputy editor
Ok, I know it’s nearly Christmas and people are at a loss for stocking-fillers. And I realise men do like booze, birds and fast cars. But would a progressive company promote its brand in this way? I’m not so sure.
John Russell, deputy editor
Climate change is on the agenda
Ethical Corporation has just launched our new climate change conference. Check out the agenda at this link.
Put together with some heavyweight speakers It is very focused on business and communications around climate change. Looks set to be a big conference for March next year.
Our sustainable finance event is next week, with a fun line up of big banks and some critical NGOs.
We'll be doing more on both subjects next year. Much more fun than classic CSR conferences, which I for one am bored stiff by.
Toby Webb, Editor
Put together with some heavyweight speakers It is very focused on business and communications around climate change. Looks set to be a big conference for March next year.
Our sustainable finance event is next week, with a fun line up of big banks and some critical NGOs.
We'll be doing more on both subjects next year. Much more fun than classic CSR conferences, which I for one am bored stiff by.
Toby Webb, Editor
Ethical branding all the rage
This week Ethical Corporation held its annual comms/branding conference in London.
It was a great mix of big brands and niche ethical players talking about how they communicate and the tips and tricks that work.
As usual there was a fair amount of PR around but also some solid information. The agenda is at this link
Toyota, as always, gave a good presentation on their work. I've had Toyota speaking at conferences I have been involved with since 1999 and they always do a really excellent job. Graham Smith, their EVP external affairs, was up the mark this time too. In the past I have managed to get Akio Toyoda, the big cheese in Japan, to a similar size conference. You have to admire Toyota's humbleness. Unlike GM and Ford they are always prepared to send high level execs to smallish events, without an attitude problem. Perhaps that lack of arrogance is one of the reasons they are kicking the American's behinds in the global marketplace, I'd like to think so.
One thing that did become apparent is just how far green cars have to go. Even Toyota, as the big leader on hydbrids, has only sold around 5000 so far in the UK. Smith from Toyota also talked about the Low Carbon Vechicle Partnership as a way forward.
Are hybrids, with their main benefit only being higher miles per gallon, the answer?
Toby Webb, Editor
It was a great mix of big brands and niche ethical players talking about how they communicate and the tips and tricks that work.
As usual there was a fair amount of PR around but also some solid information. The agenda is at this link
Toyota, as always, gave a good presentation on their work. I've had Toyota speaking at conferences I have been involved with since 1999 and they always do a really excellent job. Graham Smith, their EVP external affairs, was up the mark this time too. In the past I have managed to get Akio Toyoda, the big cheese in Japan, to a similar size conference. You have to admire Toyota's humbleness. Unlike GM and Ford they are always prepared to send high level execs to smallish events, without an attitude problem. Perhaps that lack of arrogance is one of the reasons they are kicking the American's behinds in the global marketplace, I'd like to think so.
One thing that did become apparent is just how far green cars have to go. Even Toyota, as the big leader on hydbrids, has only sold around 5000 so far in the UK. Smith from Toyota also talked about the Low Carbon Vechicle Partnership as a way forward.
Are hybrids, with their main benefit only being higher miles per gallon, the answer?
Toby Webb, Editor
Tuesday, November 21, 2006
Pushing the agricultural frontier
In Tres Isletas, the bulldozers prefer to work at night. Workers in the rural Argentine town say it is too hot during the day. Local residents have another explanation. They argue that by operating under cover of darkness, the machines can continue cutting down the forest without being disturbed.
I’ve travelled to this rustic corner of northern Argentina with a team from Greenpeace Argentina. They have recently published a report highlighting the illegal deforestation of the Gran Chaco, a semi-arid forest stretching 700,000 hectares.
Greenpeace had hired two helicopters for the week. One was used to winch down banner-holding activists. The other chopper was employed to follow the first and film whatever it got up to. Press-hungry companies could do worse than hire these radical environmentalists. Within ten seconds of taking their footage, it was on the internet and being winged around the world.
The choppers were also used to scout out bulldozers at work deforesting the region’s native forest. We followed in a car, communicating with the choppers via “walkie talkies” (referred to as “handies” by my activist guides) and Global Satellite Positioning gismos.
They had got a tip off that one of the farms on the edge of Tres Isletas was busy cutting down trees to sow soya, Argentina’s new “wonder crop” (if you’ve ever eaten a McDonald’s chickenburger in the UK, the original chicken was probably fed on imported GM soyabeans from Argentina).
On arriving at the small town, we met with Oswaldo Maldonado (see photo). He had eight children and had worked as a farm-hand all his life. The large, mechanised soya farms don’t offer much work for the likes of Oswaldo. Most of his neighbours have already sold up, adding to the general shift to the cities. “They are destroying our forest. These large companies leave nothing but smoke and ashes”, 48-year-old Oswaldo told me.
There is no doubt that the life of Oswaldo and those like him are changing irreversibly. The agricultural frontier is pushing ever northwards into provinces like Corrientes, Salta, Chaco and Santiago del Estero. The resource-strapped governments in these provinces are only too happy to accommodate new investors. Forest land doesn’t pay, so they’re only too happy to see that be used to turn a profit as well.
Where that leaves the natural forest habitat and the tens of thousands of rural workers who rely on the land for their livelihoods is unclear. Greenpeace would have them ban the expansion of agriculture any further. With crops like maize, wheat and soya among Argentina’s largest export earners, that’s unlikely to happen any time soon. Some sort of compromise needs to be found, however. If it isn’t, Argentina can wave goodbye both to its forests and its rural heritage.
Oliver Balch, Latin America Editor
I’ve travelled to this rustic corner of northern Argentina with a team from Greenpeace Argentina. They have recently published a report highlighting the illegal deforestation of the Gran Chaco, a semi-arid forest stretching 700,000 hectares.
Greenpeace had hired two helicopters for the week. One was used to winch down banner-holding activists. The other chopper was employed to follow the first and film whatever it got up to. Press-hungry companies could do worse than hire these radical environmentalists. Within ten seconds of taking their footage, it was on the internet and being winged around the world.
The choppers were also used to scout out bulldozers at work deforesting the region’s native forest. We followed in a car, communicating with the choppers via “walkie talkies” (referred to as “handies” by my activist guides) and Global Satellite Positioning gismos.
They had got a tip off that one of the farms on the edge of Tres Isletas was busy cutting down trees to sow soya, Argentina’s new “wonder crop” (if you’ve ever eaten a McDonald’s chickenburger in the UK, the original chicken was probably fed on imported GM soyabeans from Argentina).
On arriving at the small town, we met with Oswaldo Maldonado (see photo). He had eight children and had worked as a farm-hand all his life. The large, mechanised soya farms don’t offer much work for the likes of Oswaldo. Most of his neighbours have already sold up, adding to the general shift to the cities. “They are destroying our forest. These large companies leave nothing but smoke and ashes”, 48-year-old Oswaldo told me.
There is no doubt that the life of Oswaldo and those like him are changing irreversibly. The agricultural frontier is pushing ever northwards into provinces like Corrientes, Salta, Chaco and Santiago del Estero. The resource-strapped governments in these provinces are only too happy to accommodate new investors. Forest land doesn’t pay, so they’re only too happy to see that be used to turn a profit as well.
Where that leaves the natural forest habitat and the tens of thousands of rural workers who rely on the land for their livelihoods is unclear. Greenpeace would have them ban the expansion of agriculture any further. With crops like maize, wheat and soya among Argentina’s largest export earners, that’s unlikely to happen any time soon. Some sort of compromise needs to be found, however. If it isn’t, Argentina can wave goodbye both to its forests and its rural heritage.
Oliver Balch, Latin America Editor
Saturday, November 18, 2006
BusinessWeek cover story reveals the real challenge of ethical sourcing - its all about the margins
BusinessWeek's current cover is on sweatshops and the harsh realities of compliance with corporate codes of conduct. See:
http://www.businessweek.com/magazine/content/06_48/b4011001.htm?campaign_id=nws_insdr_nov18&link_position=link1
The story highlights how codes imposed by companies doesn't mean the suppliers actually treat workers any better. Mainly this is an economic issue, but also workers just want to work longer hours in many cases.
For once, an article produced by US journalists actually has the gumption to state an opinion at the end, and the businessweek one is a neat summary of the situation:
"Ultimately, the economics of global outsourcing may trump any system of oversight that Western companies attempt. And these harsh economic realities could make it exceedingly difficult to achieve both the low prices and the humane working conditions that U.S. consumers have been promised."
China has been exporting deflation to the West since 1997. With rising inflation in the west, and potentially growing consumer credit squeeze, how much longer can this continue? Surely not forever, particularly with the Democrats now in the US set to give the Chinese a harder time about the RMB exchange rate. Alongside this Chinese factory margins are going down and down, from very thin to razor thing. When will be the tipping point, and what will happen then, bearing in mind the Chinese need to ensure social stability? Will we simply pay more over here in the West?
Answers on a postcard...or post a comment.
Toby Webb, Editor
http://www.businessweek.com/magazine/content/06_48/b4011001.htm?campaign_id=nws_insdr_nov18&link_position=link1
The story highlights how codes imposed by companies doesn't mean the suppliers actually treat workers any better. Mainly this is an economic issue, but also workers just want to work longer hours in many cases.
For once, an article produced by US journalists actually has the gumption to state an opinion at the end, and the businessweek one is a neat summary of the situation:
"Ultimately, the economics of global outsourcing may trump any system of oversight that Western companies attempt. And these harsh economic realities could make it exceedingly difficult to achieve both the low prices and the humane working conditions that U.S. consumers have been promised."
China has been exporting deflation to the West since 1997. With rising inflation in the west, and potentially growing consumer credit squeeze, how much longer can this continue? Surely not forever, particularly with the Democrats now in the US set to give the Chinese a harder time about the RMB exchange rate. Alongside this Chinese factory margins are going down and down, from very thin to razor thing. When will be the tipping point, and what will happen then, bearing in mind the Chinese need to ensure social stability? Will we simply pay more over here in the West?
Answers on a postcard...or post a comment.
Toby Webb, Editor
Friday, November 17, 2006
Ethics Czech - Is North Korea the New Philippines?
For several decades now the Philippines has kept afloat largely thanks to the remittances sent back by all those maids, nurses, seaman, construction workers and others who go abroad to work. Is North Korea following the same strategy?
For some time now the North has been sending workers abroad – to Russia, Libya, Kuwait, Romania, China and Mongolia among other destinations. They usually do hard and tough work, live isolated lives in compounds in remote regions and send back their remittances to help their families with the government taking a nice cut. In some cases it has been due to the need for cheap labour, or a shortage of local workers or to pay off the North’s long standing debts to its old ‘friends’.
Now 400 North Korean women have popped up in the Czech Republic working mostly as seamstresses on three to four year contracts. A row has started in Prague with some calling this state-imposed forced labour. However, usually in the past North Koreans have been well out of the public eye – now they are in the Czech Republic, a member of the European Union, and are reportedly sewing headrests and armrests for BMWs, Mercedes, Renaults and other cars sold in Western Europe.
Actually it seems they are paid OK – often above the Czech minimum wage.
However at least 55% is skimmed from the top of their salaries as a "voluntary" contribution to Pyongyang and, according to the international press, after additional deductions for accommodation and items like birthday gifts for the North Korean leader, Kim Jong-Il the women are left with around US$20 to US$30 a month. This of course gets people a bit angry – how many of you working abroad would be willing to have your wages skimmed to buy birthday presents for Dear Leaders Tony Blair or George Bush?
Paul French, China Editor
For some time now the North has been sending workers abroad – to Russia, Libya, Kuwait, Romania, China and Mongolia among other destinations. They usually do hard and tough work, live isolated lives in compounds in remote regions and send back their remittances to help their families with the government taking a nice cut. In some cases it has been due to the need for cheap labour, or a shortage of local workers or to pay off the North’s long standing debts to its old ‘friends’.
Now 400 North Korean women have popped up in the Czech Republic working mostly as seamstresses on three to four year contracts. A row has started in Prague with some calling this state-imposed forced labour. However, usually in the past North Koreans have been well out of the public eye – now they are in the Czech Republic, a member of the European Union, and are reportedly sewing headrests and armrests for BMWs, Mercedes, Renaults and other cars sold in Western Europe.
Actually it seems they are paid OK – often above the Czech minimum wage.
However at least 55% is skimmed from the top of their salaries as a "voluntary" contribution to Pyongyang and, according to the international press, after additional deductions for accommodation and items like birthday gifts for the North Korean leader, Kim Jong-Il the women are left with around US$20 to US$30 a month. This of course gets people a bit angry – how many of you working abroad would be willing to have your wages skimmed to buy birthday presents for Dear Leaders Tony Blair or George Bush?
Paul French, China Editor
Obesity in China, and McDonald's
The Fat, And Well, The More Fat Actually
Two press events last week worth covering in Shanghai:
Event 1: Pan Beilei, a deputy director with the State Food and Nutrition Consultant Committee announces that 60 million Chinese (equal to the population of France – but presumably somewhat heavier) are now officially obese;
Event 2: Gary Rosen, chief marketing officer for McDonald's China, announces that McD’s (the Kings of Fat) are stepping up efforts to attract mothers with young children in China, because they are a group that has been ignored by marketers in China. Rosen said there "…is a huge opportunity here with women, with mothers, to start talking to mothers here on their level.... That's not something that's been done historically."
Now, before anyone says that McD’s aren’t doing anything but selling fat, that’s not quite true. Of course, fat is mostly what they sell, and there maybe not be salads on the menu as in Europe and the US, but there has been the introduction of a steamed corn cup and grilled chicken sandwich to the usual fatty beef obsessed menu.
The fat giant also plans to test new playgrounds called "Ronald Gyms," so that its young customers can be more physically active at its restaurants – though just a month or so ago, all the McD’s talk in China was about drive-thrus, which don’t really encourage exercise that much, except of the vocal chords shouting at the intercom.
Additionally, despite there being no laws requiring it, McDonald's says it will begin printing the nutritional content of its foods on wrappers and other packaging this month.
But how come the Ronald Gyms are only for kids?
From the lads at AccessAsia, see the latest newsletter for more. Link at the top.
Two press events last week worth covering in Shanghai:
Event 1: Pan Beilei, a deputy director with the State Food and Nutrition Consultant Committee announces that 60 million Chinese (equal to the population of France – but presumably somewhat heavier) are now officially obese;
Event 2: Gary Rosen, chief marketing officer for McDonald's China, announces that McD’s (the Kings of Fat) are stepping up efforts to attract mothers with young children in China, because they are a group that has been ignored by marketers in China. Rosen said there "…is a huge opportunity here with women, with mothers, to start talking to mothers here on their level.... That's not something that's been done historically."
Now, before anyone says that McD’s aren’t doing anything but selling fat, that’s not quite true. Of course, fat is mostly what they sell, and there maybe not be salads on the menu as in Europe and the US, but there has been the introduction of a steamed corn cup and grilled chicken sandwich to the usual fatty beef obsessed menu.
The fat giant also plans to test new playgrounds called "Ronald Gyms," so that its young customers can be more physically active at its restaurants – though just a month or so ago, all the McD’s talk in China was about drive-thrus, which don’t really encourage exercise that much, except of the vocal chords shouting at the intercom.
Additionally, despite there being no laws requiring it, McDonald's says it will begin printing the nutritional content of its foods on wrappers and other packaging this month.
But how come the Ronald Gyms are only for kids?
From the lads at AccessAsia, see the latest newsletter for more. Link at the top.
Corporate accountability 2.0 - Shell in Ireland and Rossport
The potential of YouTube for corporate campaigning? Take a look at this short video:
http://www.youtube.com/watch?v=pLpDmh4BU8w
Its a damning report on the Rossport gas project and Shell. Janus hasn't verified the stats in this video himself, but tactics like this must the future of things to come with regard to protest and big companies.
Will Shell post a response on YouTube? Now that would be interesting...
"Janus"
http://www.youtube.com/watch?v=pLpDmh4BU8w
Its a damning report on the Rossport gas project and Shell. Janus hasn't verified the stats in this video himself, but tactics like this must the future of things to come with regard to protest and big companies.
Will Shell post a response on YouTube? Now that would be interesting...
"Janus"
Milton Friedman, death of a social responsibility critic
According to Wikipedia today: "Milton Friedman died at the age of 94 on 16 November 2006 of heart failure, after being taken to hospital near his home in San Francisco. He is survived by his wife and two children." For background on Friedman, see:
http://en.wikipedia.org/wiki/Milton_Friedman
One of the most well known critics of the 1970's social responsibility movement, Friedman's now-legendary essay: "The Social Responsibility of Business is to Increase its Profits" is probably the most quoted attack on notions of business taking on social responsibility:
http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html
Friedman did the 'CSR world' a huge favour early on by forcing the movement to consider his attacks, add (some) more rigour to its approaches and justify itself from relatively early on.
However, some might say he also did the movement some harm, too, since his almost unrivalled reputation as an economist (monetarism etc) carried so much weight his views have influenced generations of sceptical business folks, many carrying MBAs.
Friedman called business and social responsibility a "fundamentally subversive doctrine" in a free society, and said that in such a society, "there is one and only one social responsibility of business–to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud."
The most interesting piece of this last line is the reference to "the rules of the game". Readers are invited to comment on these, what they were in 1970, how they have changed since, and on Friedman's legacy, specifically to ethical business, or generally.
Toby Webb, Editor
http://en.wikipedia.org/wiki/Milton_Friedman
One of the most well known critics of the 1970's social responsibility movement, Friedman's now-legendary essay: "The Social Responsibility of Business is to Increase its Profits" is probably the most quoted attack on notions of business taking on social responsibility:
http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html
Friedman did the 'CSR world' a huge favour early on by forcing the movement to consider his attacks, add (some) more rigour to its approaches and justify itself from relatively early on.
However, some might say he also did the movement some harm, too, since his almost unrivalled reputation as an economist (monetarism etc) carried so much weight his views have influenced generations of sceptical business folks, many carrying MBAs.
Friedman called business and social responsibility a "fundamentally subversive doctrine" in a free society, and said that in such a society, "there is one and only one social responsibility of business–to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud."
The most interesting piece of this last line is the reference to "the rules of the game". Readers are invited to comment on these, what they were in 1970, how they have changed since, and on Friedman's legacy, specifically to ethical business, or generally.
Toby Webb, Editor
Wednesday, November 15, 2006
Tesco, trouble at an eastern mill
Trouble brewing at Tesco's retailing venture in China - the Taiwanese operated Hymall hypermarket chain. As Tesco has taken a more upfront role in the operation so the division of labour appears to be Englishman doing strategy (with little knowledge of China); Taiwanese doing local management (with little knowledge of management) and Mainland Chinese staffing the stores (with little experience of service sector work).
The problem is building racial resentment at worst and some serious cross-cultural cock ups at best - the Taiwanese think the English don't know what they're doing in China (correct); the Mainland Chinese staff think the Taiwanese managers look down on them (correct); the English think the Taiwanese are bad managers (correct). The whole thing appears to be a recipe for disaster for the state-controlled union hovering in the wings to create a PR disaster for Hymall (and consequently Tesco) with highhanded foreigners exploiting Chinese workers.
"Greenwasher"
The problem is building racial resentment at worst and some serious cross-cultural cock ups at best - the Taiwanese think the English don't know what they're doing in China (correct); the Mainland Chinese staff think the Taiwanese managers look down on them (correct); the English think the Taiwanese are bad managers (correct). The whole thing appears to be a recipe for disaster for the state-controlled union hovering in the wings to create a PR disaster for Hymall (and consequently Tesco) with highhanded foreigners exploiting Chinese workers.
"Greenwasher"
Tuesday, November 14, 2006
A fatal story of irresponsible behaviour
Few would be quick to associate the deaths of six pavement dwellers in Mumbai on Sunday night as having anything to do with the Tatas. But India's much revered family-owned conglomerate is directly or indirectly, call it whatever you like, involved in the incident where six youngsters, in a drunken state, drove over six individuals sleeping on a pavement killing them while injuring nine others.
The five boys and one girl were returning from a party thrown by a liquor company at the Taj Land's End, a five-star hotel from the house of Tatas. Though the Taj group of hotels do not share the famous 'Tata' forename with their sister concerns such as Tata steel or Tata chemicals, they are a prominent part of the parent group's businesses, with 57 hotels across India and 18 more around the globe.
The six youngsters, between the ages of 18-21, reported positive on the breath analyser test and were found in possession of alcohol that they had bought at the Land's End. The police now will be questioning the staff at the hotel, as it is illegal of a hotel to sell alcohol to anyone without checking them for a liquor license. The hotel staff clearly lapsed in their duty, that has lead to six innocent individuals being killed in their sleep.
Now there is also another angle to this story. The six killed and the others injured in this tragic incident were migrant labourers from other states in India, mostly from southern Tamil Nadu. They were in Mumbai to lay sewage pipes. The police are searching for the contractor who brought these labourers to the city but didnt provide them with suitable accomodation facilities, leaving them to build makeshift shanties on the pavements and sleeping there that ultimately caused their deaths.
So, a lapse there has been on two counts. If care had been taken on either account, this incident may not have taken place. We now have to see how the investigation progresses. None of the media reports have yet mentioned who the labour contractor was working for.
Poulomi Saha, India Editor
The five boys and one girl were returning from a party thrown by a liquor company at the Taj Land's End, a five-star hotel from the house of Tatas. Though the Taj group of hotels do not share the famous 'Tata' forename with their sister concerns such as Tata steel or Tata chemicals, they are a prominent part of the parent group's businesses, with 57 hotels across India and 18 more around the globe.
The six youngsters, between the ages of 18-21, reported positive on the breath analyser test and were found in possession of alcohol that they had bought at the Land's End. The police now will be questioning the staff at the hotel, as it is illegal of a hotel to sell alcohol to anyone without checking them for a liquor license. The hotel staff clearly lapsed in their duty, that has lead to six innocent individuals being killed in their sleep.
Now there is also another angle to this story. The six killed and the others injured in this tragic incident were migrant labourers from other states in India, mostly from southern Tamil Nadu. They were in Mumbai to lay sewage pipes. The police are searching for the contractor who brought these labourers to the city but didnt provide them with suitable accomodation facilities, leaving them to build makeshift shanties on the pavements and sleeping there that ultimately caused their deaths.
So, a lapse there has been on two counts. If care had been taken on either account, this incident may not have taken place. We now have to see how the investigation progresses. None of the media reports have yet mentioned who the labour contractor was working for.
Poulomi Saha, India Editor
Friday, November 10, 2006
Do Neo Cons wear North Korean clothes? Could well be..
What Some Brands Don’t Know about North Korea
A recent trip down to the DPRK yielded some interesting observations backed up by others just returned from a trade mission in the country (no trade really, but a good excuse for a look at the weirdness on the company account). The North Koreans were eager to show that life was going on despite the imposition of tighter sanctions recently.
Particularly of note are the 250 or so Chinese-DPRK joint ventures. Much less is known about most of these than the more high profile South Korean investments corralled in Kaesong down near the DMZ.
The Chinese-DPRK JVs range across the country but there are clusters up along the PRC-DPRK border along the Yalu River and particularly around border towns such as Sinuiju. Many of these Chinese-North Korean ventures exist in name only – either the funding has never come through, negotiations are stalled or the power/spare parts/equipment/necessary permits/technical know all (and usually a combination of several of these factors) has never materialised.
However, there are a number of textiles operations up and running and guess what despite the boycott and official ban on DPRK made products being exported to or sold in the USA there are factories producing garments for the American market. This means that any number of Americans – maybe even hawkish types in Washington – are strolling around wearing DPRK-made duds.
How can this happen – prettily easily actually. US brands contracting to Chinese manufacturers just don’t know that some of that work is being sub-contracted across the border – of course when it is shipped the label reads ‘Made in China’. Brands beware.
Paul French, China Editor, and author of "North Korea: The Paranoid Peninsula, A Modern History" (hyperlinked above)
A recent trip down to the DPRK yielded some interesting observations backed up by others just returned from a trade mission in the country (no trade really, but a good excuse for a look at the weirdness on the company account). The North Koreans were eager to show that life was going on despite the imposition of tighter sanctions recently.
Particularly of note are the 250 or so Chinese-DPRK joint ventures. Much less is known about most of these than the more high profile South Korean investments corralled in Kaesong down near the DMZ.
The Chinese-DPRK JVs range across the country but there are clusters up along the PRC-DPRK border along the Yalu River and particularly around border towns such as Sinuiju. Many of these Chinese-North Korean ventures exist in name only – either the funding has never come through, negotiations are stalled or the power/spare parts/equipment/necessary permits/technical know all (and usually a combination of several of these factors) has never materialised.
However, there are a number of textiles operations up and running and guess what despite the boycott and official ban on DPRK made products being exported to or sold in the USA there are factories producing garments for the American market. This means that any number of Americans – maybe even hawkish types in Washington – are strolling around wearing DPRK-made duds.
How can this happen – prettily easily actually. US brands contracting to Chinese manufacturers just don’t know that some of that work is being sub-contracted across the border – of course when it is shipped the label reads ‘Made in China’. Brands beware.
Paul French, China Editor, and author of "North Korea: The Paranoid Peninsula, A Modern History" (hyperlinked above)
The pin-striped trousered philanthropists
“Something extraordinary is happening – the rich are getting generous.” Or so management guru Charles Handy declared last night, as he addressed a select group of corporate do-gooders in London.
Handy entertained the crowd with anecdotes lifted from his latest book, The New Philanthropists: The New Generosity, which profiles 23 individuals who have decided to invest their wealth in so-called ‘good causes’.
For the first time since the Victorian age, argues Handy, philanthropy is back in fashion. The caricature philanthropist – A bald old man, trying to smile, while his conscience picks his pocket – is outdated. The New Philanthropists, he argues, are not donors. They are business people looking for social opportunities in which to invest their hard-earned cash.
There may be some truth in this. But the admiration Handy lavishes on these nice rich people does itself seem a little Victorian.
It is hard, for example, to match his enthusiasm for an entrepreneur who is not only building houses in Africa, but showing Africans how to build “proper houses”. Or for a Maltese millionaire whose foundation offers inner-city kids the privilege of using private school playing fields – and in so doing helps those venerable institutions preserve their debatable “charitable” status.
John Russell, deputy editor
Handy entertained the crowd with anecdotes lifted from his latest book, The New Philanthropists: The New Generosity, which profiles 23 individuals who have decided to invest their wealth in so-called ‘good causes’.
For the first time since the Victorian age, argues Handy, philanthropy is back in fashion. The caricature philanthropist – A bald old man, trying to smile, while his conscience picks his pocket – is outdated. The New Philanthropists, he argues, are not donors. They are business people looking for social opportunities in which to invest their hard-earned cash.
There may be some truth in this. But the admiration Handy lavishes on these nice rich people does itself seem a little Victorian.
It is hard, for example, to match his enthusiasm for an entrepreneur who is not only building houses in Africa, but showing Africans how to build “proper houses”. Or for a Maltese millionaire whose foundation offers inner-city kids the privilege of using private school playing fields – and in so doing helps those venerable institutions preserve their debatable “charitable” status.
John Russell, deputy editor
Thursday, November 09, 2006
China’s green shelves and conscious consumers
In Europe and North America, “ethical” consumption is all the rage at supermarkets. From Fairtrade to organic food retailers, such as the UK’s Planet Organic and America’s Whole Foods, sales are up.
In the UK alone, Fairtrade says sales are up 62% over the last four years, while it is estimated that the UK’s ethical food market will top US$3.7 billion this year (though, by way of contrast, Britain’s total grocery market is worth US$223 billion).
In the West, the drive towards ethical, organic and green foods seems to be driven by rising incomes and the adoption of more ethical lifestyles by the middle classes.
The supermarket chains are getting in on the act in a big way – Tesco, Sainsbury’s, Wal-Mart and ASDA have all launched organic food lines, tried to reduce unnecessary packaging and offer environmentally friendly shopping bags. The greenness and “organic-ness” of some of their products are questionable, but the move is in the right direction.
With the news that Anhui-based green retailer Guoqi Green Supermarket is expanding into Shanghai, what can we make of the market (real and potential) for green foods and ethical shopping in China? True, a small number of people may be shopping with an environmental conscience, but the main driver (according to surveys) is more likely to be worries over poor hygiene, the rash of recent food contamination scares and tainted produce.
Either way, generally good news, and if consumers are increasingly willing to pay a little more for green or organic foods then hopefully this can both raise incomes somewhat in the countryside, and also improve farming techniques and practises.
Nothing has improved rural production techniques and standards more than the little payments or incentives for produce offered by the man from the food ministry being replaced by the Japanese supermarket chain buyers offering high margins for high quality produce.
Still there’s a long way to go. Companies selling refrigeration and farm-to-fork logistics equipment and technology still report that sales are hard to find, and funding for upgrading production in the rural areas scarce.
This brings us to the thorny issue of green and organic standards in China – or rather the confusion over these standards.
At the moment “green” certificates are being issued by a range of government and quasi-government institutions, including the China Green Food Development Centre (CGFDC) in Beijing, and the Organic Tea Research and Development Centre (OTRDC), as well as a growing number of foreign certifiers setting up shop in China, such as ECOCERT International and Bio Control Systems (BCS) from Germany; the Institute for Marketecology of Switzerland; the Soil Association of the UK; and the Organic Crop Improvement Association (OCIA) from the USA.
If the consumer is not to become bewildered by this mass of certification some order will be required.
Pinched from Paul and Matt's Access Asia newsletter. Both also write for Ethical Corporation, hence the copy theft for the blog.
In the UK alone, Fairtrade says sales are up 62% over the last four years, while it is estimated that the UK’s ethical food market will top US$3.7 billion this year (though, by way of contrast, Britain’s total grocery market is worth US$223 billion).
In the West, the drive towards ethical, organic and green foods seems to be driven by rising incomes and the adoption of more ethical lifestyles by the middle classes.
The supermarket chains are getting in on the act in a big way – Tesco, Sainsbury’s, Wal-Mart and ASDA have all launched organic food lines, tried to reduce unnecessary packaging and offer environmentally friendly shopping bags. The greenness and “organic-ness” of some of their products are questionable, but the move is in the right direction.
With the news that Anhui-based green retailer Guoqi Green Supermarket is expanding into Shanghai, what can we make of the market (real and potential) for green foods and ethical shopping in China? True, a small number of people may be shopping with an environmental conscience, but the main driver (according to surveys) is more likely to be worries over poor hygiene, the rash of recent food contamination scares and tainted produce.
Either way, generally good news, and if consumers are increasingly willing to pay a little more for green or organic foods then hopefully this can both raise incomes somewhat in the countryside, and also improve farming techniques and practises.
Nothing has improved rural production techniques and standards more than the little payments or incentives for produce offered by the man from the food ministry being replaced by the Japanese supermarket chain buyers offering high margins for high quality produce.
Still there’s a long way to go. Companies selling refrigeration and farm-to-fork logistics equipment and technology still report that sales are hard to find, and funding for upgrading production in the rural areas scarce.
This brings us to the thorny issue of green and organic standards in China – or rather the confusion over these standards.
At the moment “green” certificates are being issued by a range of government and quasi-government institutions, including the China Green Food Development Centre (CGFDC) in Beijing, and the Organic Tea Research and Development Centre (OTRDC), as well as a growing number of foreign certifiers setting up shop in China, such as ECOCERT International and Bio Control Systems (BCS) from Germany; the Institute for Marketecology of Switzerland; the Soil Association of the UK; and the Organic Crop Improvement Association (OCIA) from the USA.
If the consumer is not to become bewildered by this mass of certification some order will be required.
Pinched from Paul and Matt's Access Asia newsletter. Both also write for Ethical Corporation, hence the copy theft for the blog.
Wednesday, November 08, 2006
On the road in Paraguay, home of smugglers, and a dark trade in children
Ciudad del Este makes its way into few guide books. It is overlooked for good reason. I arrived earlier this week in the Paraguayan border town in a torrential deluge. The lashing rain and muddy streets confirmed the image I had of gritty frontier life.
Located on the border with Brazil and Argentina, Ciudad del Este acts as the staging post for a fair percentage of the region’s flow of contraband. After drugs and guns, human trafficking is now the third most profitable criminal activity in the world. The United Nations estimates that the trade in people – for work, sexual exploitation or the sale of organs – is worth around $20 billion per year.
I had come to Ciudad del Este to try and understand a little more about this gruesome industry. My first port of call was the regional office of the UN-backed International Organisation for Migration (IOM).
In a freshly painted office rented from the municipal government on the edge of the town I met with Cynthia Bendlin, IOM’s new director for the area. She filled me in on the situation: “The border is very permeable. There is very little control. Unless you are carrying a package of some kind, you won’t be stopped. You can cross with a child and no-one will ask a thing”
The sexual exploitation of minors in the Triple Frontera – the name given to the trans-border no-man’s land between Ciudad del Este and the border towns of Foz del Iguazú in Brazil and Puerto Iguazú in Argentina – persists thanks to slack border control.
The factors driving the trade in human trafficking are more complex. However, international tourism is known to play a big part. The region is home to the largest waterfalls in the world, attracting hundreds of thousands of visitors every year.
“The Triple Frontera is the Bangkok of Latin America”, Cynthia explains, “After the Tsunami, many sex tourists started coming here instead of Asia.”
Local tour operators have done little to stop the trade. Indeed, non-profits groups working to combat the exploitation of at-risk children claim travel agencies incorporate the option of sexual services into the packages they offer. The hotels are equally complicit.
On the global stage, some leading businesses are working to help stamp out the trade in illegal trafficking. Over 300 companies have so far signed up to the Athens Ethical Principles [www.gcwdp.org].
Agreed earlier this year, the accord commits signatories to agree to seven management principles. These include: contributing to awareness raising, sharing information on best practice, lobbying governments and demonstrating their own “zero tolerance” to the trade.
As many as 3,500 children are believed to be involved in, or at risk of, the cross-border trafficking trade in the Triple Frontera. Most are exploited locally, but some end up being trafficked through Argentina and then to Europe and the US.
The police and local government clearly need to tighten control. But if the tour operators and hotel chains were to take initiatives like the Athens Ethical Principles seriously, it would dramatically reduce the number of trafficked children over night.
Oliver Balch, Latin America Editor
Located on the border with Brazil and Argentina, Ciudad del Este acts as the staging post for a fair percentage of the region’s flow of contraband. After drugs and guns, human trafficking is now the third most profitable criminal activity in the world. The United Nations estimates that the trade in people – for work, sexual exploitation or the sale of organs – is worth around $20 billion per year.
I had come to Ciudad del Este to try and understand a little more about this gruesome industry. My first port of call was the regional office of the UN-backed International Organisation for Migration (IOM).
In a freshly painted office rented from the municipal government on the edge of the town I met with Cynthia Bendlin, IOM’s new director for the area. She filled me in on the situation: “The border is very permeable. There is very little control. Unless you are carrying a package of some kind, you won’t be stopped. You can cross with a child and no-one will ask a thing”
The sexual exploitation of minors in the Triple Frontera – the name given to the trans-border no-man’s land between Ciudad del Este and the border towns of Foz del Iguazú in Brazil and Puerto Iguazú in Argentina – persists thanks to slack border control.
The factors driving the trade in human trafficking are more complex. However, international tourism is known to play a big part. The region is home to the largest waterfalls in the world, attracting hundreds of thousands of visitors every year.
“The Triple Frontera is the Bangkok of Latin America”, Cynthia explains, “After the Tsunami, many sex tourists started coming here instead of Asia.”
Local tour operators have done little to stop the trade. Indeed, non-profits groups working to combat the exploitation of at-risk children claim travel agencies incorporate the option of sexual services into the packages they offer. The hotels are equally complicit.
On the global stage, some leading businesses are working to help stamp out the trade in illegal trafficking. Over 300 companies have so far signed up to the Athens Ethical Principles [www.gcwdp.org].
Agreed earlier this year, the accord commits signatories to agree to seven management principles. These include: contributing to awareness raising, sharing information on best practice, lobbying governments and demonstrating their own “zero tolerance” to the trade.
As many as 3,500 children are believed to be involved in, or at risk of, the cross-border trafficking trade in the Triple Frontera. Most are exploited locally, but some end up being trafficked through Argentina and then to Europe and the US.
The police and local government clearly need to tighten control. But if the tour operators and hotel chains were to take initiatives like the Athens Ethical Principles seriously, it would dramatically reduce the number of trafficked children over night.
Oliver Balch, Latin America Editor
Tuesday, November 07, 2006
Guide to ethical blogging
For all fellow bloggers out there: The Word of Mouth Marketing Association (never head of them, but then I'm not a marketing expert) has issues guidelines for ethical blogging. This must be partly following the Edelman 'flog' fiasco in the US, when that ethical PR company was caught paying for blogs to support Wal-Mart. That's taking stakeholder engagement a little too far.
The objectives are to:
Help marketers work honestly and ethically within the blogosphere.
Promote disclosure by marketers within blogs.
Protect consumers by establishing ethical standards for marketing to and within blogs.
Protect marketers' reputations from the damage that unethical behavior will cause.
Website magazine points out that:
"Some of the guidelines include full disclosure as to who the blogger is and who they work for and guidelines for communicating with minors. WOMMA is clear when stating that the guidelines are intended solely for marketers and does not cover internal blogs or how to blog in general. This announcement also come on the heels of WOMMA's ethics assesment tool - questions for brands, clients and agencies when planning a campaign."
http://www.websitemagazine.com/content/blogs/posts/archive/2006/11/06/WOMMA_guidelines.aspx
Read the new '10 commandments of ethical blogging' at:
http://www.womma.org/blogger/read
The objectives are to:
Help marketers work honestly and ethically within the blogosphere.
Promote disclosure by marketers within blogs.
Protect consumers by establishing ethical standards for marketing to and within blogs.
Protect marketers' reputations from the damage that unethical behavior will cause.
Website magazine points out that:
"Some of the guidelines include full disclosure as to who the blogger is and who they work for and guidelines for communicating with minors. WOMMA is clear when stating that the guidelines are intended solely for marketers and does not cover internal blogs or how to blog in general. This announcement also come on the heels of WOMMA's ethics assesment tool - questions for brands, clients and agencies when planning a campaign."
http://www.websitemagazine.com/content/blogs/posts/archive/2006/11/06/WOMMA_guidelines.aspx
Read the new '10 commandments of ethical blogging' at:
http://www.womma.org/blogger/read
You gotta love sustainable warships...
We just reviewed the UK Ministry of Defence's sustainability report.
See http://www.ethicalcorp.com/content.asp?ContentID=4636 for the full review, its free.
As the excellent author of the review, Deborah Smith, point out:
"Analyses of the long term social, cultural and environmental legacies of war and conflict are absent, nor is there any mention of economic costs.
Yes, this would be difficult, but it brings us back to the same basic problem – whether the MOD has had to resort to a degree of tokenism and diversionary tactics to fulfil a very difficult brief from central government: produce a sustainable development strategy, to a set format, like every other department … or else."
You read Deborah's other articles for EC in the past at:
http://www.ethicalcorp.com/author.asp?AuthorID=1073 She'll be writing a regular report review piece for us once a month now. Toby, Editor.
See http://www.ethicalcorp.com/content.asp?ContentID=4636 for the full review, its free.
As the excellent author of the review, Deborah Smith, point out:
"Analyses of the long term social, cultural and environmental legacies of war and conflict are absent, nor is there any mention of economic costs.
Yes, this would be difficult, but it brings us back to the same basic problem – whether the MOD has had to resort to a degree of tokenism and diversionary tactics to fulfil a very difficult brief from central government: produce a sustainable development strategy, to a set format, like every other department … or else."
You read Deborah's other articles for EC in the past at:
http://www.ethicalcorp.com/author.asp?AuthorID=1073 She'll be writing a regular report review piece for us once a month now. Toby, Editor.
Guardian report on sustainable business
The Guardian newspaper here in the UK ran a great supplement yesterday on sustainable business. Covering climate, renewables investments (Shell have fallen way behind Chevron!), ethical trade, consumerism, china and india and various other aspects, its a really good read. Shame you can't find the articles in any easy way on the website. Says something about how seriously the web is still taken even at the Guardian.
One of the most interesting stories is on oil and renewables investment, as mentioned above. See:
http://society.guardian.co.uk/givinglist/story/0,,1938749,00.html and Jonathon Porritt's excellent piece: http://society.guardian.co.uk/givinglist/story/0,,1938749,00.html One of the most interesting quotes here is this:
"Greenpeace calculated the net contribution of ExxonMobil to climate change over its lifetime: "from 1882 to 2002, ExxonMobil's emissions of CO2 totalled an estimated 20.3 billion tonnes of carbon - or between 4.7% and 5.3% of global CO2 emissions." It was looking ahead to the possibility of future legal action against ExxonMobil on the part of those whose lives are destroyed by rising sea levels or climate-related disasters - on the same sort of basis as tobacco companies have been sued by people whose health has been destroyed by smoking.
Oil companies hate any analogy between themselves and tobacco companies as dealers in death and destruction. Indeed, they're astonished at the hypocrisy of people who enjoy the benefits of their products (in terms of driving, flying and so on), but also reckon it's the oil companies that should be held responsible for all the costs.
I sympathise with that; it's far too easy for us to dump our own responsibilities on those wicked multinationals. However, there is a massive mismatch between a "socially responsible" fossil-fuels company, on the one hand, and a genuinely sustainable energy company on the other. BP and Shell (usually considered to be the most socially responsible oil companies today) continue to talk blandly of oil and gas remaining dominant sources of energy through to 2050. By contrast, the emerging scientific consensus on climate change is that we have a far shorter period of time to wean ourselves off our dependency on fossil fuels if we are to avoid runaway climate change - perhaps no more than 10 or 15 years."
Interesting stuff, the whole report is worth a look. Most of it is linked on the left hand side of the site itself. Toby, Editor
One of the most interesting stories is on oil and renewables investment, as mentioned above. See:
http://society.guardian.co.uk/givinglist/story/0,,1938749,00.html and Jonathon Porritt's excellent piece: http://society.guardian.co.uk/givinglist/story/0,,1938749,00.html One of the most interesting quotes here is this:
"Greenpeace calculated the net contribution of ExxonMobil to climate change over its lifetime: "from 1882 to 2002, ExxonMobil's emissions of CO2 totalled an estimated 20.3 billion tonnes of carbon - or between 4.7% and 5.3% of global CO2 emissions." It was looking ahead to the possibility of future legal action against ExxonMobil on the part of those whose lives are destroyed by rising sea levels or climate-related disasters - on the same sort of basis as tobacco companies have been sued by people whose health has been destroyed by smoking.
Oil companies hate any analogy between themselves and tobacco companies as dealers in death and destruction. Indeed, they're astonished at the hypocrisy of people who enjoy the benefits of their products (in terms of driving, flying and so on), but also reckon it's the oil companies that should be held responsible for all the costs.
I sympathise with that; it's far too easy for us to dump our own responsibilities on those wicked multinationals. However, there is a massive mismatch between a "socially responsible" fossil-fuels company, on the one hand, and a genuinely sustainable energy company on the other. BP and Shell (usually considered to be the most socially responsible oil companies today) continue to talk blandly of oil and gas remaining dominant sources of energy through to 2050. By contrast, the emerging scientific consensus on climate change is that we have a far shorter period of time to wean ourselves off our dependency on fossil fuels if we are to avoid runaway climate change - perhaps no more than 10 or 15 years."
Interesting stuff, the whole report is worth a look. Most of it is linked on the left hand side of the site itself. Toby, Editor
Friday, November 03, 2006
Ben & Jerry's: an ethical dilemma
It’s amazing how quickly companies can react when they get a mention in the pages, online or printed, of Ethical Corporation. Webcombing software, in particular, means that companies can and will respond quickly if they don’t like what they read.
Jon Entine’s column in the October issue was a case in point. It examined the problems Ben & Jerry’s franchisees have been experiencing in the US (see http://www.ethicalcorp.com/content.asp?ContentID=4550&ContTypeID=52).
Ben & Jerry’s were, understandably, keen to have a right to reply. This we have published on the web and in the November print edition http://www.ethicalcorp.com/content.asp?ContentID=4622.
The issues around Ben & Jerry’s and their franchisees raised some interesting questions. What happens when a generally praiseworthy company needs a nudge back into place (whether or not Ben & Jerry’s is such a company)? How should we, Ethical Corporation, react to criticism from a company regarding one column when the same company has had a great deal of positive coverage elsewhere?
These are what we were asking ourselves in the light of Jon’s column and the response from Ben & Jerry’s.
And, to a degree, these questions remain hanging. Thankfully, for me, the role of the readers’ editor is only to maintain balance, and not establish any other policy. And hopefully that is what was achieved in this case. Let me know if you disagree.
Ian Welsh
Readers’ Editor
Jon Entine’s column in the October issue was a case in point. It examined the problems Ben & Jerry’s franchisees have been experiencing in the US (see http://www.ethicalcorp.com/content.asp?ContentID=4550&ContTypeID=52).
Ben & Jerry’s were, understandably, keen to have a right to reply. This we have published on the web and in the November print edition http://www.ethicalcorp.com/content.asp?ContentID=4622.
The issues around Ben & Jerry’s and their franchisees raised some interesting questions. What happens when a generally praiseworthy company needs a nudge back into place (whether or not Ben & Jerry’s is such a company)? How should we, Ethical Corporation, react to criticism from a company regarding one column when the same company has had a great deal of positive coverage elsewhere?
These are what we were asking ourselves in the light of Jon’s column and the response from Ben & Jerry’s.
And, to a degree, these questions remain hanging. Thankfully, for me, the role of the readers’ editor is only to maintain balance, and not establish any other policy. And hopefully that is what was achieved in this case. Let me know if you disagree.
Ian Welsh
Readers’ Editor
Fishing stocks
According to a new report, global fish and seafood stocks will collapse by 2048 unless humans halt overfishing and destruction of the ocean's habitat.
http://news.bbc.co.uk/1/hi/sci/tech/6108414.stm
Seeing as most rapacious fishing takes place outside national waters, this raise the big issue, like climate change does, as to when and how nations will come together to tackle this issue. Russian Mafia trawlers are out in force in the far north - can a global fishing treaty have teeth?
"Greenwasher" may have some comments...
http://news.bbc.co.uk/1/hi/sci/tech/6108414.stm
Seeing as most rapacious fishing takes place outside national waters, this raise the big issue, like climate change does, as to when and how nations will come together to tackle this issue. Russian Mafia trawlers are out in force in the far north - can a global fishing treaty have teeth?
"Greenwasher" may have some comments...
Rapu Rapu, and Wal-Mart in the Philippines
From our Philippines writer:
Rapu-rapu is an island down south of Manila that hosts an Australian mining company, Lafayette Mining. Two cyanide spills and the succeeding inadequate risk and reputation management have made it a test case for the country's mining law. The courts just recently allowed foreigners to exploit mineral resources, which the country has a lot of since it's within the "ring of fire." Lafayette was the first to be given a license, so the cyanide spills all the more gave the anti-mining advocates -- led by the very politically influential Catholic Church -- a reason to call for the repeal of the mining law again.
It's a story with all the ingredients - politics, environmentalists, capitalists, the church, you name it.
So far, it seems that the mining industry players have won this round. They have been aggressively trying to attract foreign investors. The fact-finding report commissioned by the Philippine president -- and prepared by a team led by a Catholic bishop -- has been set aside. To pacify them, the environment minister has been making pronouncements that they will only give mining permits to foreign investors who will practice CSR. Hmm.
On Wal-Mart, there is a campaign being run by the International Labor Rights Fund against a supplier site run by a Korean company suppling Wal-Mart. The campaign claims:
"On September 25, 2006, the United Workers of Chong Won in the Philippines declared a strike demanding that factory management immediately begin to negotiate with their trade union. The management of garment factory Chong Won Fashion Inc. has violated workers’ freedom of association, forced workers to take on 24 hour shifts, and does not allow workers to drink water or go to the bathroom during work hours. As the primary buyer from the factory, Wal-Mart is responsible for protecting the human rights of workers at factories like Chong Won."
But all is not what it seems, according to our expert on the ground:
"Chon Won, as I gathered, is a Korean-owned company in an export processing zone a few kilometers south of Manila. Just like other investors in garments, i bet this Korean company has been around since the 80's, when having a garments business in the Philippines was still hot. Low labor costs beckoned. With it came labor unions which became the springboard for militant (sometimes, undercover terrorist) groups who loathed capitalists. The right to organize, especially in the garments industry, has been abused to negotiate for irrationally high wages and eventually push companies to close, leaving thousands unemployed, whle the union leaders enjoy their big houses and lofty lifestyle. I've seen this over and over again.
Most garment companies have CSR standards imposed on them by Western buyers, like Wal Mart. But with a militant union hanging around, there's always tendency to wash dirty linens in public. And if the noise doesnt stop, Wal Mart will just not source from them anymore. So much for poverty reduction efforts in developing countries."
Rapu-rapu is an island down south of Manila that hosts an Australian mining company, Lafayette Mining. Two cyanide spills and the succeeding inadequate risk and reputation management have made it a test case for the country's mining law. The courts just recently allowed foreigners to exploit mineral resources, which the country has a lot of since it's within the "ring of fire." Lafayette was the first to be given a license, so the cyanide spills all the more gave the anti-mining advocates -- led by the very politically influential Catholic Church -- a reason to call for the repeal of the mining law again.
It's a story with all the ingredients - politics, environmentalists, capitalists, the church, you name it.
So far, it seems that the mining industry players have won this round. They have been aggressively trying to attract foreign investors. The fact-finding report commissioned by the Philippine president -- and prepared by a team led by a Catholic bishop -- has been set aside. To pacify them, the environment minister has been making pronouncements that they will only give mining permits to foreign investors who will practice CSR. Hmm.
On Wal-Mart, there is a campaign being run by the International Labor Rights Fund against a supplier site run by a Korean company suppling Wal-Mart. The campaign claims:
"On September 25, 2006, the United Workers of Chong Won in the Philippines declared a strike demanding that factory management immediately begin to negotiate with their trade union. The management of garment factory Chong Won Fashion Inc. has violated workers’ freedom of association, forced workers to take on 24 hour shifts, and does not allow workers to drink water or go to the bathroom during work hours. As the primary buyer from the factory, Wal-Mart is responsible for protecting the human rights of workers at factories like Chong Won."
But all is not what it seems, according to our expert on the ground:
"Chon Won, as I gathered, is a Korean-owned company in an export processing zone a few kilometers south of Manila. Just like other investors in garments, i bet this Korean company has been around since the 80's, when having a garments business in the Philippines was still hot. Low labor costs beckoned. With it came labor unions which became the springboard for militant (sometimes, undercover terrorist) groups who loathed capitalists. The right to organize, especially in the garments industry, has been abused to negotiate for irrationally high wages and eventually push companies to close, leaving thousands unemployed, whle the union leaders enjoy their big houses and lofty lifestyle. I've seen this over and over again.
Most garment companies have CSR standards imposed on them by Western buyers, like Wal Mart. But with a militant union hanging around, there's always tendency to wash dirty linens in public. And if the noise doesnt stop, Wal Mart will just not source from them anymore. So much for poverty reduction efforts in developing countries."
Thursday, November 02, 2006
Climate and population, and wayward madmen
Following the Stern review on climate change, an interesting letter in one of papers yesterday here in the UK. The writer pointed out that the predictions failed to take note of the world's rising population, apparently scheduled to level out at around 9 billion in 2050, from some 6 billion now. I must admit not to having read the whole Stern report yet, but if this is accurate, it seems an omission few others have picked up on. How could such a major mistake be made? Astonishing.
On the same subject, former Conservative chancellor Nigel Lawson made a speech last night at the Centre for Policy Studies accusing the government of being alarmist about climate change and "scaremongering". Saying the science was "highly uncertain" he went on to suggest that if the planet needed cooling, we could "blast aerosols into the stratsphere so as to impede the sun's rays".
Hmm, thanks Nigel, the world will get back to you.
Toby Webb, Editor
On the same subject, former Conservative chancellor Nigel Lawson made a speech last night at the Centre for Policy Studies accusing the government of being alarmist about climate change and "scaremongering". Saying the science was "highly uncertain" he went on to suggest that if the planet needed cooling, we could "blast aerosols into the stratsphere so as to impede the sun's rays".
Hmm, thanks Nigel, the world will get back to you.
Toby Webb, Editor
Wednesday, November 01, 2006
Time to ask that all important question again
This is big news. Senior policy counsel for Microsoft Fred Tipson told the audience at the Internet Governance Forum that the IT giant would consider moving out of China if things didnt improve there in terms of human rights protection. Microsoft, along with counterparts like Yahoo and Google, has received a lot of flak for 'colluding' with the Chinese government in suppressing freedom of speech.
But Microsoft's announcement about its intention to pull out of China if the country didnt check its repressive behaviour, warrants another question - would that be the right corporate response? I know it appears like the most sensible and possibly even the right thing to do in the current situation rather than get pushed into censoring bloggers. Human rights activits may rejoice at the announcement. But isnt there something to be said in favour of staying in and collectively (along with other corporations in a similar situation) trying to resolve the situation. Agreed a few MNCs (American predominantly) may not change Chinese government operations overnight, but collectively they may be able to cause a stir. They could lobby the government in favour of greater freedom of speech and then only when all doors seem to have closed, try threatening an exit.
We called for a similar approach in Burma in one of our issues last year and it raised quite a few eyebrows. But before you do the same in this case as well, maybe a thought or two on the following would be helpful:
There are 120 million people online in China today as opposed to 80,000 in 1994. Taking Microsoft away from them would be equal to depriving them of the opportunity to blog at all. Given the opportunity, they could do it in a way that isnt too offensive to the 'authorities' but is also a thought expressed and relayed worldwide.
Poulomi Saha
But Microsoft's announcement about its intention to pull out of China if the country didnt check its repressive behaviour, warrants another question - would that be the right corporate response? I know it appears like the most sensible and possibly even the right thing to do in the current situation rather than get pushed into censoring bloggers. Human rights activits may rejoice at the announcement. But isnt there something to be said in favour of staying in and collectively (along with other corporations in a similar situation) trying to resolve the situation. Agreed a few MNCs (American predominantly) may not change Chinese government operations overnight, but collectively they may be able to cause a stir. They could lobby the government in favour of greater freedom of speech and then only when all doors seem to have closed, try threatening an exit.
We called for a similar approach in Burma in one of our issues last year and it raised quite a few eyebrows. But before you do the same in this case as well, maybe a thought or two on the following would be helpful:
There are 120 million people online in China today as opposed to 80,000 in 1994. Taking Microsoft away from them would be equal to depriving them of the opportunity to blog at all. Given the opportunity, they could do it in a way that isnt too offensive to the 'authorities' but is also a thought expressed and relayed worldwide.
Poulomi Saha
What do North Koreans really need right now?
Ask yourself a question: you’re North Korean, you’re pretty hungry, you haven’t got much money, your electricity keeps cutting out and your drinking water is scarce – what do you really need?
Well, according to Able C&C, a South Korean cosmetics company, the answer to all your problems is lipstick. Able has decided to send US$451,000-worth of lippy, eye shadow and other make up to the cosmetically challenged women (at least we assume the recipients will all be women – though Kim Jong-il is known to be a man of the theatre) of the DPRK. “Cosmetics are not luxury goods, but daily necessities”, said Able’s CEO Yang Soon-ho. Well, maybe in New York or London women need make-up, but in the DPRK? “We thought the North Koreans would really need them”, said Yang. Thanks mate.
From the hilarious Access Asia newsletter, run by Paul French (our China Editor) and Matt Crabbe, who has also just started writing for us. Sign up to their weekly newsletter at: www.accessasia.co.uk
Well, according to Able C&C, a South Korean cosmetics company, the answer to all your problems is lipstick. Able has decided to send US$451,000-worth of lippy, eye shadow and other make up to the cosmetically challenged women (at least we assume the recipients will all be women – though Kim Jong-il is known to be a man of the theatre) of the DPRK. “Cosmetics are not luxury goods, but daily necessities”, said Able’s CEO Yang Soon-ho. Well, maybe in New York or London women need make-up, but in the DPRK? “We thought the North Koreans would really need them”, said Yang. Thanks mate.
From the hilarious Access Asia newsletter, run by Paul French (our China Editor) and Matt Crabbe, who has also just started writing for us. Sign up to their weekly newsletter at: www.accessasia.co.uk
Sustainable finance sector report
Anyone interested in sustainable finance should really take a look at this report, just published by Ethical Corporation as a supplement:
http://www.ethicalcorp.com/fsr
Its a 40 page or so 20,000 word survey of the state of sustainable and ethical finance.
We spent about 9 months producing this, and its really worth a read.
Toby, Editor
http://www.ethicalcorp.com/fsr
Its a 40 page or so 20,000 word survey of the state of sustainable and ethical finance.
We spent about 9 months producing this, and its really worth a read.
Toby, Editor
Journalism and sustainable paper
Here's a potentially fascinating story which we are looking into.
Among others Gannett, the biggest US newpaper chain, and the New York Times, are now sourcing their newsprint paper from China, due to cost. The troubled LA Times, still making good money but with governance fights going on internally, will also source Chinese paper to save some bucks. This is according to the FT:http://www.ft.com/cms/s/89640b28-6885-11db-90ac-0000779e2340.html
But China has few trees, and probably not many to spare. So where will this 'Chinese' paper actually come from? Likely it will be illegally harvested in Burma (payoff for peace between ethic groups and the government is lots of logging and wood shipping into Yunnan and other provinces over the land border) or Indonesia, where a combination of wood demand world-wide and growth in the palm oil market means continued widespread illegal deforestation while the resource strapped government stands by.
So, will America's finest journalism now be printed on unsustainable and illegal paper? We're looking into it and will keep you posted on the site and on the blog.
Lisa Roner, our North America Editor, will be asking the questions.
Toby, Editor
P.S. In case you are wondering, we do have our own house in order, all Ethical Corporation magazines and brochures are printed on sustainable paper. (Greencoat plus).
p.p.s see this link for interesting history and predictions on the future of news media: http://www.ft.com/cms/s/f345f3fe-6901-11db-b4c2-0000779e2340.html
Among others Gannett, the biggest US newpaper chain, and the New York Times, are now sourcing their newsprint paper from China, due to cost. The troubled LA Times, still making good money but with governance fights going on internally, will also source Chinese paper to save some bucks. This is according to the FT:http://www.ft.com/cms/s/89640b28-6885-11db-90ac-0000779e2340.html
But China has few trees, and probably not many to spare. So where will this 'Chinese' paper actually come from? Likely it will be illegally harvested in Burma (payoff for peace between ethic groups and the government is lots of logging and wood shipping into Yunnan and other provinces over the land border) or Indonesia, where a combination of wood demand world-wide and growth in the palm oil market means continued widespread illegal deforestation while the resource strapped government stands by.
So, will America's finest journalism now be printed on unsustainable and illegal paper? We're looking into it and will keep you posted on the site and on the blog.
Lisa Roner, our North America Editor, will be asking the questions.
Toby, Editor
P.S. In case you are wondering, we do have our own house in order, all Ethical Corporation magazines and brochures are printed on sustainable paper. (Greencoat plus).
p.p.s see this link for interesting history and predictions on the future of news media: http://www.ft.com/cms/s/f345f3fe-6901-11db-b4c2-0000779e2340.html
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