(Published in The Observer on 27 october 2002).
A furious row has erupted between Britain’s most influential think-tank and the Institute of Directors (IoD) over a report which questions the commitment of business to corporate social responsibility (CSR).
The IoD, which paid for an NOP survey of 500 businesses, on which the report is based, is refusing to give permission to the Institute for Public Policy Research (IPPR) to publish its report on the findings on Tuesday, saying the study is not a fair reflection of the views expressed.
But the IPPR, a left-leaning body with links to Tony Blair, says its interpretation has been endorsed by NOP, and is seeking legal advice over whether it can release the paper. The argument focuses on key findings in the jointly commissioned report, a copy of which The Observer has obtained. IPPR author Ella Joseph says these show ‘hypocrisy’ by business and a gulf between the supportive rhetoric on CSR and reality.
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(Published in the IHT).
Ruth Meza-Orozco, 23, works six days a week in a Taiwanese clothing factory in Managua’s Free Trade Zone. On Sundays, she studies. “My salary doesn’t help me with anything,” said Meza-Orozco, who has been working in the Free Trade Zone since she was 18. “I don’t even have a house.”
The average hourly wage of apparel workers in Nicaragua is about 27 cents. Meza-Orozco would like to do something else, but in Nicaragua, there is little else to do. “In this country, the Free Trade Zone is the only kind of work,” she said.
In the last decade, Meza-Orozco’s problems have become a topic of conversation in even the highest echelons of the fashion industry. “The company asks me regularly to discuss these issues,” said Christophe Girard, director of fashion strategy at LVMH and deputy mayor for culture of Paris. “I think it has become a more common debate.”
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Investor Responsibility Research Center (IRRC) has released its second annual report on the fees public companies pay to their auditors. Audit versus Non-Audit Fees: What U.S. and U.K. Companies Pay Their Auditors indicates that increasing audit failures and corporate scandals had some, but not much, impact on how and how much companies paid their auditors in 2001 and early 2002.
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The Global Compact Office today (15 October 2002) announced the launch of a powerful Internet portal that is designed to promote on-line learning, dialogue and collaboration among global actors dedicated to advancing good corporate citizenship and responsible globalisation.
-This is the first portal of its kind for the United Nations”, said Georg Kell of the Executive Office of the Secretary-General. -This establishes a powerful technology infrastructure to encourage the creation and sharing of critical content and information that is decentralized, thereby offering Global Compact participants from all over the world an opportunity to share activities and learn from others. For the national and local Global Compact networks that are springing up around the globe, this technology will give them a window on the world”.
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A multi-stakeholder, pan-European initiative to create a common understanding of corporate social responsibility, and enhance its credibility and effectiveness in helping to achieve EU economic, social and environmental aims, will be launched in Brussels today. The European Multi-Stakeholder Forum on Corporate Social Responsibility (CSR EMS Forum), chaired by the European Commission, will bring together enterprises and other stakeholders, including trade unions, NGOs, investors and consumers, to promote innovation, convergence, and transparency in existing CSR practices and tools (such as codes of conduct, labels, reports, and management instruments). The Forum’s mandate (objectives, membership and working methods), will be approved at the launch. CSR EMS Forum round tables will exchange good practices and assess the appropriateness of establishing common guiding principles for CSR practices and instruments. Further high level meetings will take place in 2003 and 2004 to take stock of progress, and findings and conclusions are to be presented to the Commission by mid-2004. The CSR EMS Forum is the centrepiece of the Commission strategy for promoting CSR and sustainable development, as set out in the CSR Communication of July 2002.
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Control Risks Group launched its 3rd survey and report into corruption and its impact on business globally with a joint event in conjunction with the International Chamber of Commerce. The survey was carried out amongst 250 business leaders in the UK, US, Netherlands, Germany, Singapore and Hong Kong.
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California Ruling Means Nike Will Not Release Annual Corporate Responsibility Report
Nike, Inc. today (14/10) asked the U.S. Supreme Court to review an unprecedented California Supreme Court ruling that effectively does away with First Amendment protection for companies and organizations that speak out on public issues related to their business.
In papers filed today with the U.S. Supreme Court, Nike argued that “Not since New York Times Co. v. Sullivan has [the U.S. Supreme] Court been confronted with a lower court ruling as profoundly destructive of free speech” as the decision in this case.
Harvard University’s noted Constitutional scholar and leading Supreme Court advocate, Laurence Tribe, and former acting Solicitor General Walter Dellinger, head of the Supreme Court practice at O’Melveny & Myers, LLP, prepared today’s filing.
The company’s petition in Nike v. Kasky stems from a 4-3 ruling of the California Supreme Court sharply reducing the free speech rights of businesses and other groups, as well as the general public who want to hear about those operations. Today, Nike argued that the California ruling ignores decades of First Amendment decisions by the U.S. Supreme Court, which has noted that free speech and debate must have “breathing space” if the freedoms of expression are to survive.
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A new report from the Rose Foundation for Communities & Environment titled “The Environmental Fiduciary: The Case for Incorporating Environmental Factors into Portfolio Management Practices” documents how environmental risk and liabilities can be a drag on shareholder value, while positive environmental management can lead to improved shareholder value. The Rose Foundation joined other institutional investors in petitioning the SEC to adopt better environmental disclosure guidelines.
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As companies pursue the concept of sustainability (the process of driving economic, environmental, and social performance) they are trying to address these concerns as part of their business strategy and decision making process.
Traditionally, the accounting profession has looked at a company’s financials. However, in this new model, companies must link nonfinancial performance with financial goals and reflect this in their overall performance.
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Companies that are good corporate citizens are more likely to be better financial performers, according to a new study by AGSM’s Dr Marc Orlitzky to be published soon.
The wide-ranging study to be published in the international journal Organization Studies is the first rigorous meta-analysis to show a strong positive link between an organisation’s socially responsible behaviour and its financial bottom line.
The quantitative study, which analysed over 30 years’ worth of corporate data of nearly 34,000 observations, confirms a positive link between corporate social responsibility (CSR) and financial performance.
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Corporate environmental and social reports are playing an increasingly vital role in building trust between companies and their stakeholders. ERM’s latest survey reveals that leading firms are beginning to question what they really want from verification.
In the absence of agreed standards on what their reports should contain, senior managers are looking to verification to sharpen internal performance – particularly on ‘softer’ social issues – not just to provide a stamp of approval.
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(Published om Monday September 30, 2002
The Guardian)
Human rights campaigners, fresh from their apparent success in forcing Premier Oil to withdraw from Burma, are targeting accountancy firm PricewaterhouseCoopers and the Kuoni Travel business in Britain.
The Burma Campaign said these were two of a number of companies that would be put on a “dirty list” to be published this autumn as part of a wider campaign against those who do business with the military-run country.
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