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The Editorial


									Ethical Insight
Fortnightly digest of corporate responsibility news, publications and events

Issue 24, 24 August 2005

The Editorial                                                    Contents
Welcome to Ethical Insight, a definitive source of accurate      Main news ................................................................. 2
and up-to-date corporate responsibility news, publications       UN urges action on food crisis in southern Africa ................ 2
and events prepared by Maplecroft. Ethical Insight includes      WFP Niger operation receives corporate support ................ 2
summaries of stories gathered from publicly available            International Youth Day reviews commitments .................... 2
                                                                 Civil society launches UN World Summit website ................ 2
information appearing on websites in the two weeks prior         Forum announces 2005 China Business Summit ................ 2
to publication, selected on the basis of interest and            FTSE4Good opens consultation on bribery criteria.............. 3
relevance to corporate responsibility.                           Maplecroft news ....................................................... 3
The first of our main stories this Digest refers to food         Environment ............................................................. 3
shortages in African countries. UN Secretary-General Kofi        UN report urges energy access for poor .............................. 3
Annan has written to world leaders and development               Canada to create a market for emission reductions............. 3
agencies urging them to step up their food donations and         India to promote increased use of gas-run vehicles............. 3
                                                                 Malaysian calls smog emergency ........................................ 4
cash pledges to help reverse unfolding crises in several
                                                                 Researchers issue climate warning as Siberia melts ........... 4
African nations that have not yet attracted the media            WWF reports rising temperatures in EU cities ..................... 4
spotlight. According to the UN, food shortages in Malawi,        Coca-Cola plant closed for polluting in India ........................ 4
Lesotho, Mozambique, Swaziland, Zambia and Zimbabwe              FedEx unveils corporate solar-power installation................. 4
are reminiscent of the humanitarian tragedy that recently        HSBC requests proposals for carbon offsets ....................... 4
came to a head in Niger and is widely believed could have        KfW study calls for urgent action on climate change ........... 5
been averted had the international community responded           Shell to construct first commercial biofuel facility ................. 5
earlier. Following on from last week’s Digest, our second        Weyerhaeuser in the spotlight for environment.................... 5
story highlights the proactive response of many companies        Greenpeace finds toxic e-waste recycling............................ 5
in helping to feed the 2.5 million people who are starving       Governance............................................................... 5
                                                                 Brazilian protestors march against corruption ...................... 5
as a result of severe food shortages in Niger. Private
                                                                 Iceland begins fraud trial against Baugur ............................. 5
donors such as TNT, Veolia, Petronas, the International          Commerzbank CEO under investigation .............................. 6
Rugby Board (IRB), SAP and the Dubai Chamber of                  UK regulators probe Deloitte over MG Rover role................ 6
Commerce and Industry are providing airlifts, food and           JP Morgan and Canadian bank settle Enron lawsuit ........... 6
cash. Case studies of corporate engagement in the Niger          Merck found liable over Vioxx-related death ........................ 6
crisis have recently been added to Maplecroft’s continually      Ex-WorldCom CFO receives five year sentence.................. 6
up-dated ‘Global map of hunger’, developed in partnership        Conflict and political risk......................................... 6
with the World Food Programme and TNT.                           Aceh rebels sign peace deal to end insurgency................... 6
                                                                 Ecuador oil protesters negotiate agreement ........................ 7
Other main stories this Digest refer to the upcoming UN          Peruvian mining industry sees rise in violence..................... 7
World Summit, which will take place at UN headquarters in        US set to resume antipersonnel mines’ production.............. 7
New York from 14–16 September. Marking the UN’s 60th             Organic Bouquet partners against landmines ...................... 7
anniversary, world leaders will gather to discuss progress       Socially responsible investment............................. 7
towards the 2015 Millennium Development Goals. UN                CalSTRS launches new diversity initiative ........................... 7
Secretary-General Kofi Annan has described the event as          Report informs pension trustees on climate risk .................. 8
a ‘once in a generation opportunity’ to forge a global           ICCR calls for stricter video-game guidelines ...................... 8
consensus on development, security, human rights and UN          UC Berkeley Business School to host SRI award................ 8
renewal. One month in advance of the Summit, civil society       Labour and human rights ........................................ 8
groups working with the UN Department of Public                  Canadian extractives face high risk of complicity................. 8
                                                                 UN investigates work conditions for DRC miners................. 8
Information have launched a website to voice their views         UAE construction industry causes 880 deaths..................... 9
on how to strengthen the UN as it confronts the challenges       Alcoa receives Safety Achievement Award.......................... 9
of extreme poverty and global security.                          BP panel to review US refinery safety procedures............... 9
Finally, FTSE Group has launched a public consultation on        Footwear supplier in China hides labour abuses ................. 9
its proposed criteria on Countering Bribery & Corruption         HK Disneyland suppliers found exploiting workers .............. 9
                                                                 ERI alleges Chevron complicit in rights’ abuses ................ 10
which companies will have to meet to be included in the
                                                                 Korean factory owner jailed for trafficking & slavery .......... 10
FTSE4Good index. The criteria have been drafted with the         Study finds long hours increase health risks ...................... 10
help of Transparency International and a range of stake-         Development........................................................... 10
holders and will be finalised following the consultation.        GCAP organise White Band Day 2 ahead of Summit ........ 10
We also review HSBC’s Corporate Social Responsibility            Alcatel recognised for promoting child rights...................... 10
Report 2004 and provide a round-up of upcoming events.           BT supports Niger Crisis Appeal ........................................ 11
                                                                 HSBC partners for education in the US.............................. 11
                                                                 Pepsi-Cola supports school vending policy in US.............. 11
 Maplecroft works with companies to address their                Roche plans to donate Tamiflu drug to WHO..................... 11
 social, environmental, economic and ethical                     Tata plans relief measures after Mumbai floods ................ 11
 responsibilities – through research, capacity-building          TNT airlifts food to Niger on behalf of WFP........................ 11
                                                                 TNT installs water pump in Mozambique school................ 12
 and the development of innovative communication
                                                                 Global AIDS Fund pulls funds from Myanmar .................... 12
 and management tools. Please address all                        New report projects food security in Africa to 2025............ 12
 comments and suggestions of future news items to                Sustainability and reporting.................................. 12                                  Upcoming events ................................................... 13
Back issues available online at
Issue 24, 24 August 2005

Main news                                                       Addressing world youth in a message to mark the
                                                                occasion, UN Secretary-General Kofi Annan urged,
                                                                ‘Make sure your voices are heard. Make sure your
UN urges action on food crisis in southern Africa
                                                                generation is the one to defeat poverty’. The year 2005
Warning that more than 10 million people in southern
                                                                is important for youth at the United Nations, not only
Africa will need humanitarian aid over the coming year,
                                                                because the achievements of the World Programme of
UN Secretary-General Kofi Annan has written to world
                                                                Action on Youth (WPAY) will be assessed, but also
leaders and development agencies urging them to step
                                                                because the UN General Assembly will hold special
up their food donations and cash pledges to help turn
                                                                meetings on youth issues in October, after world
back an unfolding crisis that has not yet attracted the
                                                                leaders have met for the 2005 World Summit at the
media spotlight. According to the UN, the situation is
                                                                United Nations in September.
reminiscent of the current humanitarian tragedy in Niger
which is widely believed could have been averted had
the international community responded earlier. Malawi           Civil society launches UN World Summit website
is currently facing its worst harvest since 1992, and with      With some 170 heads of state and government
the late arrival of seeds and fertilizer impacting              expected in New York in less than a month for the UN
agricultural production in Lesotho, Mozambique,                 World Summit 2005, civil society groups working with
Swaziland, Zambia and Zimbabwe, Mr Annan wrote                  the UN Department of Public Information (DPI) have
that urgent and focused support would be needed to              launched a website to voice their views on how to
avert a catastrophe in a few months time. Expressing            strengthen the world body as it confronts the challenges
concern that hunger was forcing children to drop out of         of extreme poverty and global security. The website
school and causing some women to turn to prostitution           features an interactive discussion area, which went live
to survive, Mr Annan asked the world leaders to do              on 15 August, to debate issues that will be addressed at
everything in their power to ensure that Southern Africa        the 58th Annual DPI/NGO Conference, ‘Our Challenge:
did not become another crisis that could have been              Voices for Peace, Partnerships and Renewal,’
prevented.                                    scheduled to take place at UN Headquarters in New
                                                                York from 7–9 September. The event takes place one
                                                                week in advance of the 2005 World Summit from 14–16
WFP Niger operation receives corporate support
                                                                September, where world leaders will attempt to realise
The United Nations World Food Programme (WFP) has
                                                                what Secretary-General Kofi Annan has called a ‘once
moved into the most critical phase of its emergency
                                                                in a generation opportunity’ to forge a global consensus
operation to feed 2.65 million people suffering severe
                                                                on development, security, human rights and UN
food shortages in Niger. By 23 August, a total of 950
tonnes of highly nutritious corn soya blend will be
airlifted aboard chartered airplanes from Italy to Niger’s
capital, Niamey, where WFP's Humanitarian Response              Forum announces 2005 China Business Summit
Depot (UNHRD) is based. WFP is working closely with             The World Economic Forum announced on 10 August
the government, NGO and corporate partners to reach             that its China Business Summit will take place in Beijing
all those in need of food aid identified by the                 from 9-10 September 2005. For over 25 years, the
government's National Early Warning System. In July,            China Business Summit, which is held in cooperation
more than 100 tonnes of high-energy biscuits were               with the China Enterprise Confederation, has been the
airlifted into Niger by WFP and its corporate partner,          premier annual gathering of local and foreign business
TPG/TNT. Numerous private donors have again shown               leaders in China. The Summit will bring together over
their commitment and capacity to react quickly,                 400 participants from global and regional business,
including TNT, Veolia, Petronas, the International              together with a number of senior and rising provincial
Rugby Board (IRB), SAP and the Dubai Chamber of                 government officials, members of academia, media
Commerce and Industry which are providing invaluable            leaders and experts from China and abroad. Under the
support such as airlifts, food and cash.                        central theme ‘China’s Next Phase of Modernization:                                              Creating Scientific and Sustainable Solutions’, the
                                                                Summit will examine the business implications of
                                                                current government efforts to accelerate institutional
International Youth Day reviews commitments
                                                                innovation, reform state-owned enterprises, promote
The fifth International Youth Day was observed by the
                                                                environment-friendly industries and develop the western
UN on 12 August under the theme ‘Making
                                                                provinces. Specifically, the programme will focus on the
Commitments Matter: Reviewing Ten Years of the
                                                                following core themes: developing business strategies
World Programme of Action on Youth (WPAY)’. The
                                                                aligned with policy priorities and new reforms; managing
WPAY is an international strategy adopted by the UN in
                                                                emerging challenges linked to China’s rapid growth;
1995 to address the problems of young people more
                                                                building the Chinese multinational corporation; and
effectively and to increase opportunities for their
                                                                setting the industry agenda in key competitive sectors.
participation in society. The Programme’s overall
themes are participation, development and peace.

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                           2
Issue 24, 24 August 2005

FTSE4Good opens consultation on bribery criteria                Environment
FTSE Group has launched a public consultation on its
proposed criteria on Countering Bribery & Corruption
                                                                UN report urges energy access for poor
which companies will have to meet to be included in the
                                                                In a report to the UN General Assembly, UN Secretary-
FTSE4Good index. The ‘Market Consultation
                                                                General Kofi Annan has called for intensified efforts to
Document’ which can be downloaded from the
                                                                promote access to new and renewable energy sources
FTSE4Good website contains background information,
                                                                for the poor. Some 1.6 billion people in developing
the proposed criteria, and the questions on which
                                                                countries still lacking access to electricity, and about 2.4
feedback is sought which are estimated to take 20-30
                                                                billion still relying on fuel-wood and crop and animal
minutes to complete. The criteria have been drafted
                                                                residues for cooking and heating. The report identifies
with the help of Transparency International and a range
                                                                persistent ‘energy poverty’ as a serious impediment to
of stakeholders including companies, investors, relevant
                                                                socio-economic development, particularly in sub-
NGOs and other experts in the area. The objective of
                                                                Saharan Africa and in countries in South Asia. Among
the consultation is to ensure that the criteria reflect the
                                                                numerous benefits, accelerated development and
consensus of opinion within the investment and
                                                                increased use of new and renewable energy sources
corporate responsibility communities on what
                                                                can provide modern energy services to the poor,
constitutes good corporate practice in this area.
                                                                contribute to meeting the increasing global energy
                                                                demand, reduce air pollution, mitigate climate change
                                                                and delay the eventual fossil-fuel depletion. The report
Maplecroft news                                                 concludes the UN’s follow-up to the World Solar
                                                                Programme 1996–2005 initiated by the UNESCO World
Maplecroft seeks partners for map of education                  Solar Summit in Zimbabwe.
Maplecroft is seeking partners for the upcoming 'Global
map of education' which will consider the role of               Canada to create a market for emission reductions
education in sustainable development, focusing                  The government of Canada proposed on 11 August a
particularly on the contribution and impact of the private      set of rules for a domestic offset credit system to help
sector. The 'Global map of education' is of particular          honour the country’s Kyoto commitment by providing
relevance in the context of the UN Decade of Education          incentives to reduce GHG emissions. The proposed
for Sustainable Development, and the upcoming UN                system will encourage innovative Canadian projects
World Summit in September when world leaders will               that use new practices and technologies that help lower
discuss progress on the Millennium Development                  GHG emissions. Companies, governments,
Goals, including the Goals of universal primary                 organisations or citizens undertaking such projects will
education and gender equality. The ‘Global map of               be awarded credits, which in turn may be sold to
education' is just one of a wide range of issues included       Canadian companies in the ‘Large Final Emitters’
in Maplecroft maps – a unique awareness-raising and             category, the Climate Fund or other interested parties.
risk management tool, providing a framework for                 The government issued a consultation paper setting out
monitoring and analysing social, environmental and              the system’s proposed rules. Following consultations
political and other issues that impact on society and the       with provinces, territories, industry and Aboriginal
goals of business. The maps describe the role of                groups, the system will begin operating early in 2006.
business and feature case-studies of how proactive              Other public comments on the consultation document
companies are engaging through partnerships to                  are invited until 30 September 2005.
address these issues. If  
you are interested in submitting case studies for this
map or being a partner or sponsor, or in buying hard            India to promote increased use of gas-run vehicles
copies, please contact                      India plans to increase the use of compressed natural
                                                                gas (CNG) in vehicles to reduce pollution from petrol
Company report review – HSBC                                    and diesel fumes, reports Reuters. Domestic sales of
Each fortnight we review a company sustainability               CNG, which is cheaper than the liquid fuels it replaces,
report, providing our own comment and a star rating.            rose to 17 million tonnes in June from 13.6 million
Our review of the HSBC Corporate Social Responsibility          tonnes a year ago, but sales are currently limited to only
Report 2004 is available at:         a few cities as India has a shortage of natural gas.
                                                                Subject to availability of natural gas and necessary
The report itself is available at:      infrastructure, CNG is proposed to be introduced in
                                                                various cities in the country in a phased manner. An
Recruitment at Maplecroft                                       estimated 94,000 vehicles in Delhi and 154,000
Opportunities for researchers and software engineers to         vehicles in Bombay run on CNG, while a smaller
contribute to Maplecroft maps         number of automobiles use the fuel in Gujarat and
                                                                Andhra Pradesh. CNG use is expected to hit diesel and
                                                                petrol sales, particularly once domestic availability

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                           3
Issue 24, 24 August 2005

increases when two large gas fields begin production in         global warming. It emphasises that the power sector
the next five years.                   has fuelled a major part of this rise in temperatures,
                                                                being responsible for 37% of man-made CO2 emissions
Malaysian calls smog emergency                                  from burning fossil fuels, mainly coal.
Malaysia announced on 11 August a state of            
emergency, which was subsequently lifted on 13
August, in two towns after air pollution reached                Coca-Cola plant closed for polluting in India
dangerous levels, reports BBC News. Air quality                 The pollution control head of India's southern Kerala
readings taken in the two towns showed pollution                state announced on 19 August that it has ordered Coca-
markers to be above the emergency level of 500. The             Cola to close one of its largest bottling plants in the
pollution is attributed to fires lit to clear land in           country for failing to comply with environmental
neighbouring Indonesia, seriously affecting air quality         regulations. The state's Pollution Control Board told the
and visibility across the Malacca Strait. The haze              Coca-Cola plant in Plachimada, a village in the southern
prompted hundreds of schools to shut, as well as                part of the state, to shut down immediately because of
disrupting airports and busy shipping lanes. The New            pollution problems. Specifically, the Board reported that
Straits Times newspaper reported that up to seven               the plant does not have an adequate waste treatment
people may have died from the effects of the haze.              system and pollution from the plant is affecting the
Malaysian and Indonesian officials met to discuss the           drinking water in adjacent villages. The factory, which
fires, which are an annual problem as poor farmers on           bottles mineral water and soft drinks, is one of the
Sumatra use fire to clear land for planting. However,           largest of Coca-Cola's 27 plants in India. The Kerala
this year's haze is the worst since 1998, when Malaysia         plant has long faced protests from the local Plachimada
was affected for weeks, causing severe economic                 village council, which has accused it of depleting local
losses. and         groundwater and refused to renew its license.
Researchers issue climate warning as Siberia melts
Russian researchers have reported the sudden melting            FedEx unveils corporate solar-power installation
of the world's largest frozen peat bog, an area                 FedEx officially inaugurated California's largest
stretching for a million square kilometres across the           corporate solar-power installation on 9 August. The
permafrost of western Siberia. As the ground melts, the         solar-power installation will fuel 80% of the hub facility's
area is turning into a mass of shallow lakes, releasing         energy needs, substituting the sun for fossil fuel and
billions of tonnes of methane, a potent GHG, into the           other sources of electricity. At peak output, the system
atmosphere. The news of the dramatic transformation of          will produce the equivalent of power used by more than
one of the world's least visited landscapes comes from          900 homes during the daytime. In addition to generating
Sergei Kirpotin, a botanist at Tomsk State University,          electricity, the solar panels will help insulate the
Russia, and Judith Marquand at the University of Oxford         buildings, reducing heating and cooling costs. The
who believe that some unknown critical threshold has            system will reduce demand on the utility grid and will
been crossed, triggering the melting. Western Siberia           serve as an additional source of power capacity for the
has warmed faster than almost anywhere else on the              benefit of businesses and Californian residents. During
planet, with an increase in average temperatures of             periods when the energy generated by the system is
some 3°C in the last 40 years. The warming is believed          greater than is needed to power the facility, the surplus
to be a combination of man-made climate change, a               energy will be transferred into the utility grid for general
cyclical change in atmospheric circulation known as the         use. The solar project is one of many environmental
Arctic oscillation, as well as feedbacks caused by              initiatives FedEx has rolled out in recent years.
melting ice.              

WWF reports rising temperatures in EU cities                    HSBC requests proposals for carbon offsets
A new report from WWF analysing summer temperature              HSBC has sent a Request for Proposal (RFP) to a
data from 16 EU cities shows the continent’s capitals           number of potential suppliers of carbon offsets which
are up to 2°C warmer than 30 years ago. ‘Europe feels           will help it to develop the systems and processes
the heat – extreme weather and the power sector’                required to become a carbon neutral organisation.
identifies London as the city where average maximum             HSBC became the first bank in the world to commit
summer temperature increased the most, up 2°C over              itself in December 2004 to the goal of carbon neutrality
the last 30 years, followed by Athens and Lisbon                across all its operations by 2006, with an estimated cost
(1.9ºC), Warsaw (1.3ºC) and Berlin (1.2ºC). In the last         of up to $7 million in the first year. The bank aims to test
five years, average summer temperatures in 13 of the            the new systems in the three months between October
16 cities examined were at least 1ºC higher than during         and the end of December 2005. According to the bank’s
the first five years of the 1970s. WWF’s report highlights      Carbon Management Plan, various methods will be
the likelihood of more frequent and intense heat waves,         used to achieve carbon neutrality including reduced
droughts and rainstorms as average temperatures                 energy consumption, renewable electricity and carbon
increase, the kind of events expected as a result of            allowances and offsets. The bank has introduced a

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                            4
Issue 24, 24 August 2005

system of measuring, managing and reporting direct              New organisation to provide carbon offsets
emissions including electricity, natural gas, fuel oil and      A new non-profit organisation is helping individuals and
business travel. For further information on HSBC’s              businesses buy C02 credits to help offset the GHG
sustainability activities, please refer to the current          emissions associated with their daily activities.
Ethical Insight report review.     purchases C02 credits supporting a
                                                                variety of offset projects around the world, including
KfW study calls for urgent action on climate change             energy efficiency, wind, solar, biomass and others. The
A recent study conducted by KfW Bankengruppe (KfW               credits are permanently retired, reducing the total
banking group), focusing on the impacts of the Kyoto            amount of GHGs that can be emitted. Businesses may
Protocol on the reduction of C02 emissions and                  donate credits they already have to for
additional steps to mitigate climate change, concludes          permanent retirement and tax benefits. The
that the industrialised countries must commit to a              organisation also develops joint fundraising and carbon
substantial, absolute reduction in their GHG emissions.         offset programmes with other non-profits.
The study, entitled ‘Possibilities of setting up a post-
Kyoto regime’, argues that the developing and
industrialising countries should take significant steps         Greenpeace finds toxic e-waste recycling
since the growth rates of GHG emissions increased               Greenpeace released on 17 August a report of its
fastest in these countries during the past few years.           scientific investigations into the hazardous chemicals
However, the study concludes that all relevant GHG              found in scrap yards where electronic waste is recycled
emitters need to work together – as China, India and            in China and India. The results from analysing dust from
the US alone account for approximately 40% of global            workshops, as well as wastewater, soil and sediment
C02 emissions, any agreements in which they did not             from local rivers, conclusively show that all stages in
take part would be ineffectual.               processing the e-waste enable toxic chemicals,
                                                                including heavy metals, to be released into the
Shell to construct first commercial biofuel facility            workplace and into the surrounding environment. The
Shell Deutschland Oil has acquired a minority equity            release of the report, ‘Toxic Tech: Recycling of
stake in CHOREN Industries, a step towards the                  electronic wastes in China and India: workplace and
construction of the world’s first commercial facility to        environmental contamination’, comes a few days after
convert biomass into high-quality synthetic bio-fuel,           the European Directive on Waste from Electrical and
already marketed by CHOREN as SunFuel. A 15,000                 Electronics Equipment (WEEE) came into effect.
t/a plant is planned for the production of SunFuel.             Despite an EU ban on exports of hazardous waste,
SunFuel is supported by carmakers such as                       including e-waste, to developing countries, Greenpeace
Volkswagen and DaimlerChrysler because it can be                says there is increasing evidence of e-waste being
used without modification in any diesel engine, does not        illegally sent to Asia from the US and Europe.
compromise performance and substantially reduces      
harmful emissions. Shell’s stake in CHOREN is still
subject to approval by the German cartel authorities.            Governance
                                                                Brazilian protestors march against corruption
Weyerhaeuser in the spotlight for environment                   Some 10,000 to 15,000 Brazilian students and trade
Weyerhaeuser – an integrated forest products’                   union members marched through Brasilia, the capital of
company – has joined The Nature Conservancy,                    Brazil, on 16 August calling for changes in government
Conservation International and other corporations in an         policy and punishment for those involved in a recent
alliance to conserve forests using carbon markets. The          corruption scandal, reports BBC News. Accusations
primary purpose of the so-called Climate, Community             were made in June this year that President Lula da
and Biodiversity Alliance (CCBA) is to create a set of          Silva’s Workers' Party paid allies to support them in
standards for evaluating projects that will help mitigate       Congress and used undisclosed campaign funds,
climate change, while benefiting local communities and          deepening divisions in Brazil's once united left wing.
protecting or restoring biodiversity. In another story,         This was the first large-scale public demonstration since
investigations by local residents within the                    the corruption scandal broke but in spite of calls for
Saskatchewan Environmental Society and campaigning              change, protestors expressed their continued support
group, Rainforest Action Network, allege that                   for President Lula da Silva. While opinion polls show
Weyerhaeuser is illegally logging in Canada’s boreal            Lula's popularity has suffered, they also indicate that
forests to make plywood and copy paper for Xerox and            most Brazilians do not want to see him impeached.
other US corporations. The Canadian conservation      
community is calling on Weyerhaeuser customers such
as Xerox to suspend purchases until the company                 Iceland begins fraud trial against Baugur
attains Forest Stewardship Council (FSC) certification          Jon Asgeir Johannesson, the CEO of Baugur and one
for all of its operations.;         of the UK's most successful retail investors, faced on 17                                              August formal charges of fraud, embezzlement and

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                         5
Issue 24, 24 August 2005

breach of trust against the Icelandic company he co-            include former Enron employees and vendors.
founded with his father 13 years ago, reports The     
Independent. Mr Johannesson pleaded not guilty to 40
charges ranging from embezzling company funds for               Merck found liable over Vioxx-related death
buying a yacht to defrauding fellow investors. His five         Merck was found liable on 19 August for the death of
co-defendants, who include his father and sister, all also      Robert Ernst, who died in May 2001 after taking Vioxx,
protested their innocence. Their lawyers have a                 a painkiller made by the company, reports the
reprieve before the court sits again on 20 October to           International Herald Tribune. The jury ordered that Mr
hear whether the defence team has managed to                    Ernst’s widow should be awarded $253.5 million. Jurors
reinforce its case before the hearings start.                   said they had concluded from the testimony and                                   documents presented that Merck was long aware of
                                                                Vioxx's potential heart risks but hid those risks from
Commerzbank CEO under investigation                             patients. The jury broke down the damage award as:
Klaus-Peter Müller, CEO of Commerzbank, is under                $450,000 in economic damages – Robert Ernst's lost
investigation by public prosecutors in an alleged money-        pay as a Wal-Mart produce manager; $24 million for
laundering scandal at Germany's third-largest listed            mental anguish and loss of companionship; and $229
bank, reports the Financial Times. Mr Müller, the board         million in punitive damages. The case, heard in Texas,
member responsible for Russia and Eastern Europe                was the first Vioxx lawsuit to reach trial but 4,200 other
until 1999, has been drawn into the investigation over          suits have already been filed. In the UK, BBC News
allegations that about €170 million of cash and                 reports that thousands of Britons who suffered ill effects
hundreds of millions more of Russian                            after using painkiller Vioxx may also take legal action
telecommunications assets were diverted to private              against Merck. Merck has said that it plans to take
companies. . At the centre of the affair is the controlling     every suit to court rather than offer settlements.
stake held by Commerzbank from 1996-2002 in           ;
Telecominvest (TCI), a Russian mobile operator which
may have been involved in the money laundering.                 Ex-WorldCom CFO receives five year sentence
Investigations have already resulted in the resignation         Former WorldCom finance executive Scott Sullivan was
last month of Mr Müller's successor in the eastern              sentenced on 11 August to five years in prison, having
Europe job, Andreas de Maizière              pleaded guilty in the largest accounting fraud in US
                                                                history. Sullivan became the fifth of the WorldCom
UK regulators probe Deloitte over MG Rover role                 executives to be sentenced to prison in the $11 billion
The Accountancy Investigation and Discipline Board              scandal. His sentence is exceeded only by that of ex-
(AIDB) launched a probe on 17 August into the conduct           CEO Bernard Ebbers, who was sentenced to 25 years.
of accountant Deloitte in the run-up to the collapse of         Sullivan was the star witness at Ebbers' trial earlier this
carmaker MG Rover, which it audited and advised,                year, testifying the CEO repeatedly instructed him to ‘hit
reports the Financial Times. The regulatory body said it        the numbers’, or adjust WorldCom's books to meet Wall
would focus on the latest set of accounts and advice            Street expectations. WorldCom collapsed in 2002 when
Deloitte gave Rover. The AIDB has the power to levy             the fraud came to light. The company emerged from
unlimited fines and to ban individuals from working as          bankruptcy in 2004 and now operates as MCI.
accountants. Rover's collapse is already being        
examined by independent inspectors appointed by the
Department of Trade and Industry. Deloitte denied any            Conflict and political risk
wrongdoing and said the investigation had been
triggered only because of the scale of Rover's failure,         Aceh rebels sign peace deal to end insurgency
the newspaper reported.                   Separatists in the Indonesian province of Aceh signed a
                                                                peace deal with the Jakarta government on 15 August,
JP Morgan and Canadian bank settle Enron lawsuit                ending a 29-year insurgency, reports The Guardian.
JP Morgan Chase agreed on 16 August to pay $350                 Under the agreement, signed in Helsinki and
million in cash to settle claims for the role it played in      transmitted live across Indonesia, the Free Aceh
the accounting fraud that led to the energy company's           Movement (Gam) renounces its claim to independence
collapse in 2001, reports the New York Times. The               and will surrender the weapons of its estimated 3,000
bank also agreed to drop claims it filed as part of             fighters. In return, it will receive an amnesty for its
Enron's bankruptcy valued at $660 million. In addition,         forces, the right to form a political party and more than
Toronto-Dominion Bank of Canada agreed to pay Enron             half of the 53,000 Indonesian security forces in Aceh
$70 million in cash and another $60 million for the right       will be withdrawn from the region which was among the
to transfer to other parties some of its claims for money       most badly affected by last year’s tsunami. Both sides
owed by Enron. This lawsuit, which Enron called its             admit that there would have been no peace without the
‘Megaclaims’ litigation, is the current Enron board's           disaster, which left 132,000 people in Aceh dead or
effort to generate money that the bankrupt Enron estate         missing. Aceh is also granted greater political autonomy
can then use to pay the company's creditors, which              and guaranteed 70% of the receipts from its rich natural

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                           6
Issue 24, 24 August 2005

resources. A truth and reconciliation commission is to          briefing paper by Human Rights Watch (HRW) released
be established to help heal the wounds of the conflict, in      3 August. The US, which has not manufactured
which some 12,000 people were killed.                           antipersonnel mines since 1997, will make a decision in                                       December whether to begin production of a new
                                                                antipersonnel mine called Spider. The Pentagon has
Ecuador oil protesters negotiate agreement                      also requested a total of $1.3 billion for development
Demonstrators in Ecuador's oil-rich Amazonian region –          and production activities for another new antipersonnel
the fifth biggest oil producer in South America – have          mine called the Intelligent Munitions System, with a full
negotiated a peace agreement with government,                   production decision expected in 2008. HRW said that
following days of protests that have halted production,         these developments are the result of the Bush
reports BBC News. The government declared a state of            administration’s landmine policy announced in February
emergency on 17 August, following four days of                  2004 under which the US abandoned its long-held
protests in the provinces of Sucumbios and Orellana.            objective of joining the 1997 Mine Ban Treaty, which
Demonstrators want more of the country's oil wealth to          comprehensively prohibits the use, production, trade or
be spent on infrastructure and new jobs and have                stockpiling of antipersonnel mines. This issue will be
formed a delegation which is preparing to travel to the         highlighted in a forthcoming ‘Global map of landmine
capital Quito for talks, according to reports. The army         risk’, part of the Maplecroft maps series.
moved to regain control after hundreds of protestors
occupied oil installations and airports. Venezuela has          London business seeks more security advice
agreed to loan Ecuador oil until its industry stabilises.       The London bombings last month have prompted a                                           significant increase in inquiries from businesses about
                                                                security and how to remain trading in the event of a
Peruvian mining industry sees rise in violence                  terrorist attack, reports the Financial Times. Requests
Rising violence directed at mining and exploration              for information and advice have risen by 75% since 1
companies in Peru is threatening to alienate the foreign        August at Continuity Forum, an independent agency
investors, reports the Financial Times. The latest target       offering guidance on contingency planning in the UK. In
is Monterrico Metals, a British resource development            a survey of business responses to the 7 July attacks,
company that is developing Rio Blanco, situated 880 km          the Business Continuity Institute told the FT that as well
north-west of Lima in a farming region on the                   as problems over mobile phone access, the attacks
Ecuadorean border. The project is expected to become            revealed difficulties businesses had in accounting for
Peru's second biggest copper mine when it opens in              employees and directing them to safety. The City of
2008. However, the site has come under attack in                London Police has also reported an increase in inquiries
recent weeks from protesters who say mining will                following comments last week by its commissioner,
contaminate water supplies to farms. One demonstrator           James Hart, that an attack on the UK financial district
is reported to have died in clashes with police and             was inevitable.
farmers kidnapped three of Monterrico's Peruvian
employees in the area. The conflict at Rio Blanco               Organic Bouquet partners against landmines
follows several other similar confrontations with other         Organic Bouquet, an online organic florist, announced a
mining companies recently, such as BHP Billiton and             newly formed cause marketing partnership with Adopt-
Newmont.                                     A-Minefield – a campaign of the United Nations
                                                                Association of the USA. Adopt-A-Minefield will promote
South Africa's poor form coalition to tackle ANC                Organic Bouquet flowers on its website
More than 70 religious and civic groups in South Africa         ( and to its membership through
have formed a coalition to challenge the ANC                    web advertisements, newsletters and e-mail
government's economic policies, reports BBC News.               communications. In return, Organic Bouquet will donate
The group called the Western Province Coalition for             15% of its sales made through these channels. Organic
Jobs and Against Poverty has been organised by the              Bouquet and Adopt-A-Minefield will also work together
country's main trade union body, Cosatu. The coalition          to create various fundraising campaigns. Landmines will
brings together left wing political pressure groups,            be explored in a forthcoming ‘Global map of landmine
HIV/AIDS campaigners and church representatives. Its            risk’, part of the Maplecroft maps series.
launch comes after several months of strikes and      
protests across the country related to economic issues.
The red banners outlined campaigners’ aims, namely a             Socially responsible investment
minimum state benefit for all, increased spending on
health, transport and education, and a greater emphasis         CalSTRS launches new diversity initiative
on public services.                       The California State Teachers' Retirement System
                                                                (CalSTRS) recently announced the launch of a unique
US set to resume antipersonnel mines’ production                initiative to examine ways that investment decisions can
The Bush Administration appears poised to resume the            integrate diversity to yield good investment returns. The
production of antipersonnel mines, according to a new           aim of the initiative is to expand the diversity of ideas

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                         7
Issue 24, 24 August 2005

and people throughout CalSTRS’ $129 billion                     recognising outstanding quantitative work on socially
investment portfolio. Consulting firm Altura Capital will       responsible investing (SRI) – will come under the
assist CalSTRS with the research and development of a           umbrella of the school’s Center for Responsible
database of emerging financial services providers, as           Business. The annual prize was launched in 1996 by
well as investment strategy assessment and                      the Social Investment Forum, the national trade
recommendations for policy changes. Currently                   association for the SRI industry in the US, to recognise
CalSTRS has more than $2.5 billion managed by                   the best quantitative study of SRI. The Social
nineteen minority firms in its domestic stock portfolio         Investment Forum will continue to serve as a consultant
and $35 million in its alternative investment portfolio.        in prize awards. The prize will retain its name, but will                                          become part of a larger research effort known as the
                                                                Moskowitz Research Programme within the Center for
Report informs pension trustees on climate risk                 Responsible Business. The programme will include
Pension trustees have a duty to address the financial           publishing abstracts of key studies in the field via the
risk posed by climate change as part of their fiduciary online database and hosting the
role, according to a new report by the Carbon Trust – ‘A        SRINotes blog, a discussion forum for leading thinkers
Climate for Change: A Trustee’s Guide to                        in the field of SRI.
Understanding and Addressing Climate Risk’. The
report, prepared for the Carbon Trust and the                    Labour and human rights
Institutional Investors Group on Climate Change
(IIGCC) by Mercer Investment Consulting, is designed            Canadian extractives face high risk of complicity
to raise awareness of the relevance of climate change           A new report by The Ethical Funds Company finds that
as a fiduciary issue and to demonstrate the                     at least 20 Canadian energy and mining companies
opportunities that exist for pension trustees to take           operating in countries with high-risk of human rights’
action. According to the report, virtually all classes of       violations face potentially vastly increased financial
pension assets have the potential to be affected by             liabilities because of the companies’ lack of effective
climate change, either directly or through policy-driven        human rights policies. The report, entitled ‘Canadian
strategies to mitigate climate change, such as in the           Energy and Mining Companies: Navigating International
energy and automotive industries. Pension trustees              Humanitarian Law in the 21st Century’, suggests the
have been slow relative to research analysts and                growing importance of international human rights’ law is
investment managers in becoming aware of the                    outpacing the policies of companies that could be
potential impact of climate change on investment                directly affected. According to the report, crimes against
performance.                    humanity, war crimes and genocide represent the most
                                                                significant human rights-related legal liabilities today.
ICCR calls for stricter video-game guidelines                   The report includes recommended strategies for
The Interfaith Center on Corporate Responsibility               companies to improve their operations to mitigate the
(ICCR), a coalition of faith-based institutional investors,     risk.
has expressed concern over damage to the credibility
and effectiveness of current video-gaming industry              UN investigates work conditions for DRC miners
guidelines caused by the public release of the highly           A mysterious illness sweeping through a remote town at
criticised ‘Grand Theft Auto: San Andreas’ video-game           the centre of a diamond rush in Democratic Republic of
For the past two years, the coalition’s members have            Congo (DRC) has killed more than 20 miners and
encouraged retailers, game developers and marketers             infected nearly 1,000, a UN aid worker told Reuters on
to follow and implement internal codes and guidelines           10 August. UN agencies, aid workers and government
developed by the interactive game industry to restrict          health officials are making their way to Libayakuyasuka
access by youths to games with graphic violence and             in the Maniema province, where 10,000 miners are
strong sexual content. ICCR has proposed the creation           digging in a new mine, to investigate. The UN Office for
of a video games ratings process that is: inclusive of all      the Coordination of Humanitarian Affairs told Reuters
stakeholders – parents, teachers, the public health             that it suspects that this is a pulmonary infection caused
community, retailers, game developers and investors;            by people working in terrible conditions in the diamond
transparent; and accountable to stakeholders through            rush. The infection is not contagious but the large
public disclosure. Such steps will better protect               number of infections is thought to be caused by
companies in ICCR’s portfolios from risks to                    thousands of miners searching for diamonds in the bush
shareholder value, while at the same time protect               without proper equipment or healthcare. The diamond
children from inappropriate video games.                        rush began several months ago but the first recorded                                             case of a miner falling ill was on 25 July. There are
                                                                hundreds of thousands of small-scale miners in the
UC Berkeley Business School to host SRI award                   DRC, a country rich in natural resources.
UC Berkeley’s Haas School of Business, in partnership 
with the Social Investment Forum, recently announced
that the Moskowitz Prize – the only global award

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                          8
Issue 24, 24 August 2005

UAE construction industry causes 880 deaths                     employees whose work does not require their presence
An estimated 880 workers died on building sites in the          at the refinery.;
United Arab Emirates (UAE) in 2004, according to a
report in regional trade magazine ‘Construction Week’.          Footwear supplier in China hides labour abuses
According to the magazine, which surveyed a number              The International Textile, Garment and Leather
of organisations and embassies, only a minority of the          Workers’ Federation (ITGLWF) has requested footwear
deaths were the direct result of accidents. Many                retailers Clarks and Skechers to address labour rights
workers died as a result of diseases such as                    violations at a Taiwanese-owned footwear supplier in
tuberculosis, a common condition among migrant                  Guangdong, China where 7,000 workers are employed..
building workers who often live in poor conditions.             According to the ITGLWF, there are reports the supplier
Dozens of others died from other 'natural' causes. The          systematically hides safety and other violations from
figures, which work out an average of more than two             independent monitors by, coaching workers on how to
deaths each day, have led to calls for construction             speak to compliance teams or monitoring staff who visit
companies and contractors to improve standards of               the facility and threatening to fire workers who speak
health and safety and to follow the UAE’s standards and         out. ITGLWF general secretary Neil Kearney said
regulations which protect building workers. The issue of        violations at the plant included excessive hours of work,
health and safety will be explored in a forthcoming             abuses of laws on overtime pay, harassment and
‘Global map of health and safety’, part of the Maplecroft       intimidation, intrusive body searches, lack of maternity
maps series.                                protection, the failure to grant leave and holidays, and
                                                                appalling health and safety conditions. The ITGLWF
Alcoa receives Safety Achievement Award                         called on the Chinese government and the multinational
Alcoa announced on 8 August that for the third                  footwear retailers to take 'urgent action'.
consecutive year its Lafayette operations in Indiana, 
producing aerospace components and aluminium
extrusions and tubes for customers worldwide, received          HK Disneyland suppliers found exploiting workers
a safety achievement award in the owner's category for          Chinese factories making souvenirs and toys for
efforts toward ensuring the safety of contractor                Disney's new park in Hong Kong were found to be
employees. The award was given by the Metro                     underpaying their workers and to have poor working
Indianapolis Coalition for Construction Safety (MICCS),         conditions, according to a study by labour activists,
one of the largest contractor safety coalitions in the US.      reports AFX News. The study by ‘Students and
Lafayette is the only industrial facility in Indiana to         Scholars Against Corporate Misbehaviour’ finds that
receive the award in the past three years. MICCS is a           employees are forced to work through the night during
non-profit organisation dedicated to achieving zero             peak seasons, sometimes for 30 hours at a time, but
injury on construction job sites. It represents more than       are paid as little as 400 yuan (£27) a month with little
900 owner and contractor companies throughout                   compensation for overtime. Accidents that leave
Indiana.                                   workers with maimed limbs are common. The study was
                                                                based on interviews with 120 workers at five factories in
BP panel to review US refinery safety procedures                southern China's manufacturing cities of Zhongshan,
BP is to appoint an independent panel to review the             Dongguan and Shenzhen between May and August
safety management systems and corporate safety                  2005. The group urged Disney to demand that its
culture of BP Products North America. The move is a             suppliers provide proper training for workers and set up
response to a recommendation made on 17 August by               monitoring committees to protect workers' legal rights,
the US Chemical Safety and Hazard Investigation                 health, safety and welfare.
Board (CSB) which is investigating the 23 March
explosion at the company’s Texas City refinery. BP’s
CEO John Browne said the panel would be headed by
an external chairperson and would include outside
safety experts and BP staff representatives. The panel’s
findings will also be made public, he said. The explosion
at the Texas City refinery was the worst in BP’s recent
history, causing the deaths of 15 workers in nearby
trailers and an estimated 170 injuries. It was caused by
a sudden release of flammable hydrocarbon liquid and
vapour from an atmospheric vent stack in the refinery’s
isomerisation unit. BP has agreed to halt the venting of
heavier-than-air hydrocarbon vapours from blow-down
drums and stacks in the refinery. The company has also
prohibited the occupancy of office trailers within 500
feet of blow down stacks and flares and has leased a
building in downtown Texas City to provide offices for

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                        9
Issue 24, 24 August 2005

Ikea plans to increase number of female managers                launching itself as ‘UNI global union’ at its World
Swedish home-furnishing chain Ikea is to hire more              Congress in Chicago (22–25 August) where it will also
women managers in Germany, according to a BBC                   unveil plans for a global initiative to help national unions
interview with Werner Weber, head of Ikea in Germany.           reverse membership declines and establish unions for
Ikea plans to increase the proportion of women in senior        workers in the new economy, such as call centres and
management positions from 30% to above 50% in two               mobile phone companies. Unions in well organised
or three years. Senior management positions include             countries will take the lead to help organise workers in
jobs such as chief of logistics, head of sales or               the same company in other countries. http://www.union-
administration, or manager of a local store. About 70%
of Ikea's German shoppers are women and the retailer
believes female managers will understand their needs            Study finds long hours increase health risks
better. Ikea is currently expanding in Germany, despite         A recent research paper explores new evidence from
the current economic climate, and plans five new                the US on ‘The impact of overtime and long work hours
megastores by spring 2007.                on occupational injuries and illnesses.’ Researchers
                                                                studied the job records of almost 90,000 people in
ERI alleges Chevron complicit in rights’ abuses                 different industries from 1987-2000, focusing on job-
The human rights group EarthRights International (ERI)          related injury and illness rates including musculo-
has made allegations that Chevron's Nigerian                    skeletal problems such as back pain, cuts and bruises,
subsidiary made payments to Nigerian soldiers who               fractures and other occupational diseases such as skin
attacked the Nigerian villages of Opia and Ikenyan,             complaints or respiratory conditions. The research
killing several people and burning the villages to the          concludes that working long hours or overtime greatly
ground. The new evidence comes as Chevron moves to              increases the risk of job-related illnesses and injuries.
take over Unocal, whose Yadana pipeline project in              Those who work overtime are 61% more likely to suffer
Burma has been the subject of similar human rights’             occupational injuries. Working 70 hours per week is
lawsuits. ‘This evidence proves Chevron's responsibility        linked to a 38% increased risk of injury, and a minimum
for these brutal human rights abuses,’ said Marco               60-hour week is associated with a 23% greater chance
Simons, legal director for ERI, which is part of a team of      of being hurt at work. Injuries were particularly likely
lawyers representing the villagers in their federal lawsuit     towards the end of long shifts due to fatigue and stress.
against Chevron. Chevron has for years denied any role          Even when the statistics were adjusted to factor out the
in the attacks. ERI filed a similar human rights suit           increased hazards of certain jobs compared to others,
against Unocal over abuses related to its Yadana                the risk associated with longer hours and overtime
pipeline in Burma, which Unocal settled earlier this year       remained.
after the court rejected Unocal's attempts to avoid a jury
trial.                                    Development
Korean factory owner jailed for trafficking & slavery           GCAP organise White Band Day 2 ahead of Summit
A South Korean former garment factory owner was                 On 10 September, the Global Call to Action against
sentenced to 40 years in prison and ordered to pay $1.8         Poverty (GCAP) is organising White Band Day 2 – the
million in restitution to about 300 Vietnamese and              second in a series of large-scale international
Chinese workers for involuntary servitude and trafficking       mobilisations. GCAP aims to put pressure on world
in the US territory of American Samoa. The                      leaders meeting 14–16 September to discuss progress
International Textile, Garment and Leather Workers’             on the MDGs at the UN World Summit (MDG +5
Federation (ITGLWF) said workers paid up to $8,000              Summit). To date, efforts to reach the MDGs have fallen
per person to the Vietnamese labour offices for the             short of what is needed to achieve them. The GCAP
opportunity of a well-paid job at the factory on the South      International Facilitation Group met last month in
Pacific island. Instead, they were paid starvation wages        Bangkok and put together a range of messages and
and endured abuse, threats, confinement, unsanitary             actions focusing on the UN Summit. At an international
and squalid dormitories. All risked punishment at home          level the GCAP will demand that rich countries and
if deported back to their countries.         international institutions change trade rules, give more                                                      and better aid and debt relief. At a national level, GCAP
                                                                national coalitions will press for the specific changes
UNI global union targets global corporations                    that are most urgently needed to progress towards the
Union Network International (UNI) plans to enrol 900            MDGs and policies to eradicate poverty in their country.
unions worldwide into a programme to put pressure on  
global corporations to improve their corporate social
responsibility. The Union aims to persuade                      Alcatel recognised for promoting child rights
multinationals to sign an agreement to observe labour           Alcatel announced on 9 August that Foundation Abrinq
and other rights wherever they operate in the world. UNI        – an NGO which runs programmes in Brazil dedicated
is the world's biggest grouping of individual trade unions      to child health, rights, education, literacy and welfare –
and covers the skills and services sector. UNI is               has recognised it as a ‘Child Friendly Company’ due to

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                          10
Issue 24, 24 August 2005

its adherence to the promotion and defence of the rights        beverages to middle school students. No full-calorie soft
of children and teenagers. Alcatel has fulfilled the            drinks or full-calorie juice drinks with 5% or less juice
commitments established by the ‘Company Friend of               provided until after school hours; provide a variety of
Child Program’ by developing actions to prevent child           beverage choices to high school students. No more
labour, guaranteeing health and education to                    than 50% of the vending selections will be soft drinks.
employees’ children and investing in social actions,            PepsiCo is also supporting numerous physical activity
which improve children and teenagers’ quality of life.          initiatives across the country to encourage people to be
The concession to use the ‘Company Friend of Child’             more active.
Stamp is annually renewed after an objective monitoring
of a company’s actions, in accord with procedures               Roche plans to donate Tamiflu drug to WHO
established by the programme.            Roche, the Swiss pharmaceuticals group, is close to
                                                                agreeing a donation of up to 3 million doses of its
BT supports Niger Crisis Appeal                                 antiviral drug Tamiflu to the World Health Organisation
BT is playing a vital role in the Disasters Emergency           in an effort to limit the effects of any bird flu pandemic,
Committee’s (DEC’s) Niger Crisis Appeal by providing            reports the Financial Times. The action would help
telephony and call centre support to allow as many calls        provide rapid treatment and protection against the
as possible to be taken and by helping to publicise the         H5N1 virus in the poorer countries in south-east Asia
appeal. As 2.5 million people in Niger struggle to              most likely to be initially affected, and prevent the
survive in the face of acute food shortages, the UK’s           spread of the virus around the world. Individuals close
best known charities joined forces to appeal to the             to the discussions told the FT a contract could be
public for help. Money raised by the appeal will enable         signed in early September, and the company would
agencies to deliver aid where it is needed most in the          deliver an initial 1 million doses to the WHO by the end
region. Current DEC figures show that £17 million will          of this year. Further significant deliveries would follow in
be raised, which will ensure that member charities can          the months to come. Tamiflu is one of only two drugs
continue to expand their emergency work in Niger, Mali,         shown to be effective in treating flu by limiting the
Mauritania and Burkina Faso. As the only corporate              spread of the virus, and demand has risen sharply in
supporter of the DEC appeal, BT has helped to raise             recent months as more than 25 richer governments
millions of pounds for disaster appeals over the years.         have ordered stockpiles as part of pandemic;                     preparation plans. Roche has already donated 125,000
                                                                doses of the medicine to the WHO.
HSBC partners for education in the US
HSCB-North America and the Society for Financial                Tata plans relief measures after Mumbai floods
Education and Professional Development (SFEPD) on               In response to the heavy rains and the ensuing floods
16 August announced a $750,000 multi-year                       that took place on 26 July in Mumbai, the Tata Group
partnership through which HSBC will fund credit and             entrusted The Sir Dorabji Tata Trust (SDTT) and a core
personal money management training for more than                group of Tata companies based in Mumbai with the task
20,000 students in the next three years at historically         of conducting relief and rehabilitation activities in the
black colleges and universities nationwide. SFEPD will          affected areas. Accordingly, a meeting was convened
administer the training sessions, with the curriculum           on 2 August to discuss immediate relief measures and a
focusing on credit management, savings and                      plan of action. Having assessed the extent of the
investments, budgeting, establishing financial goals and        damage, a designated team has begun to set up relief
other personal finance topics. HSBC’s giving to                 centres in the affected areas, in collaboration with local
educational initiatives represents 60% of the firm’s total      organisations. 22 employees from Tata Power
giving in the US this year. Initiatives supported include       volunteered to join mobile clinics and run the relief
adult financial education programmes, college                   centre. The team’s future plans include cleaning
scholarship and internship programmes for women and             schools to provide a safe environment for children.
minorities, and business and economics education for  
students in primary and secondary schools.                                          TNT airlifts food to Niger on behalf of WFP
                                                                TNT Airways carried out on 6 August its third airlift of
Pepsi-Cola supports school vending policy in US                 the year for the United Nations World Food Programme
Pepsi-Cola North America and other leading members              (WFP) in support of the Niger food crisis. Leaving from
of Pepsi's bottling system announced on 16 August their         Liege, Belgium, the Airbus 300 flew to the UN
support of the American Beverage Association's new              Humanitarian Depot in Brindisi, Italy, where it picked up
school vending policy, which recommends limiting the            35 tonnes of high-energy biscuits to transport to Niger’s
availability of soft drinks in schools across the US.           capital, Niamey. WFP emergency operations in Niger
Pepsi will work closely with parents, community leaders         are struggling to feed 1.2 million people who are in
and school officials to achieve the following objectives:       urgent need of food assistance after severe drought and
provide only bottled water and 100% juice to elementary         locust infestations wiped out crops and livestock herds.
school students; provide nutritious and/or lower calorie        The TNT airlift is part of WFP’s efforts to provide 23,000

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                          11
Issue 24, 24 August 2005

tonnes of food to mothers and malnourished children.            these areas, however, can strengthen food security and
WFP uses high-energy biscuits to help keep hungry               reduce child malnutrition significantly across the
people alive until proper food supplies of pulses, cereals      continent. The report provides a reality check and policy
and vegetable oil can reach crisis areas. Earlier this          options for African policymakers and the international
year, TNT Airways carried out airlifts to Sri Lanka and         donor community as they gather at the Millennium+5
Djibouti for WFP.                          Summit in New York City next month to assess
                                                                progress on the MDGs.
TNT installs water pump in Mozambique school
A TPG Post employee, Karl Riesebosch, opened the                 Sustainability and reporting
first roundabout ‘playpump’ of the Flourishing Schools’
project at the Intaca School in Mozambique on 9                 Aylesford Newsprint publishes HSE report
August. The playpump, which the children operate by             Aylesford Newsprint has announced it has entered a
spinning each other around on a playground                      second decade of CSR reporting with the release of its
roundabout, is the first of 60 being installed at               11th report entitled 'Moving Forward', covering safety,
elementary schools in Mozambique to provide children            health, environment and fire prevention for 2004.
with access to clean water. The Flourishing Schools’            Aylesford Newsprint recycles one in seven of the
project was launched by the United Nations World Food           magazines and newspapers produced in Britain each
Programme (WFP) and TNT in September 2004. It                   year, turning them into high quality Renaissance
started with a promise by TNT’s TPG Post division to            newsprint for use by daily newspapers. The company's
supply €500,000 and four project managers. UNICEF               ability to divert material from landfill is integral to
and the International Finance Corporation (part of the          fulfilling a wide range of UK companies' environmental
World Bank) have since joined the project. Riesebosch           commitments, from waste minimisation to energy
is the last TNT project manager to spend three months           efficiency and CO2 emissions reduction. Each year,
working in Mozambique on the project. He will hand              around 400,000 tonnes of Renaissance newsprint are
over the project management to one of the other                 produced from 100% recovered newspapers and
partners in October.                       magazines at Aylesford Newsprint's single site in Kent.
                                                                Production increased by 7.8% in 2004.
Global AIDS Fund pulls funds from Myanmar             
The Global Fund to Fight AIDS, Tuberculosis and
Malaria has withdrawn its funding for programmes in             Carbon Trust report shows business savings
Myanmar, blaming travel and other restrictions imposed          The Carbon Trust has released its Annual Report
by the junta, reports Reuters. The Fund, which agreed           2004/5, in which figures suggest the organisation has
in August 2004 to spend nearly $100 million over 5              helped British businesses and public sector
years fighting all three diseases in Myanmar, said its          organisations save up to £200 million in the past year
decision was regrettable given the serious epidemics            by fighting climate change. This equates to 2.7 million
threatening the impoverished country. Myanmar, ruled            tonnes of identified annual CO2 savings – enough to fill
by the military since 1962 and receiving little Western         18 of the world’s largest ocean liners. Other key
aid after decades of sanctions, has up to 610,000               achievements for the Carbon Trust in 2004–2005
people living with HIV/AIDS and one of the highest rates        include: providing over £5 million in interest free loans
of tuberculosis in the world. But new travel restrictions       to help SMEs make energy saving investments;
imposed in July on UN staff overseeing Fund-financed            investing £11.5 million and committing an additional
programmes and bureaucratic hurdles to procuring                £3.5 million to the development of low carbon
medical supplies had violated the agreement.                    technologies; acquiring a total of six companies in its and         venture capital investment portfolio and completing its
                                                                first IPO; supporting 21 early stage companies through
New report projects food security in Africa to 2025             its incubator network, with four projects now underway
The number of hungry children in Africa will increase by        to accelerate emerging low carbon technology sectors;
3.3 million by 2025 if current policy and investment            and co-funding the opening of the European Marine
trends continue, according to a new report by the               Energy Centre.
International Food Policy Research Institute (IFPRI).
The report, entitled ‘Looking Ahead: Long-Term                  Chevron issues 2004 CR Report
Prospects for Africa’s Agricultural Development and             Chevron issued on 17 August its Corporate
Food Security’, argues that more proactive measures             Responsibility Report detailing its 2004 socioeconomic
must be taken now to reverse the current acceleration           and environmental performance. Highlights under key
of child malnutrition in Africa and meet the MDG to cut         headings are as follows: HIV/AIDS global policy –
child malnutrition in half by 2015. Poor governance,            Chevron finalised and began deployment of its global
inadequate infrastructure, limited access to markets and        HIV/AIDS policy; community engagement – investments
low investment in agriculture are found to contribute to        of nearly $64 million were dedicated to community
the underperformance of Africa’s agricultural sector.           projects around the world; health and safety – 2004 was
Sound policies and increased investments targeted to            Chevron’s safest year on record for its global

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                        12
Issue 24, 24 August 2005

operations; environment and efficiency – Chevron                 Upcoming events
reduced its GHG emissions by more than 1 million
metric tonnes of C02 equivalent, meeting its corporate          New events appear in red
wide emissions goal in 2004; employee survey –
results of Chevron’s 2004 Global Employee Survey                World Water Week
indicated that 89% of employees think the company               A series of seminars and work-shops on a variety of
acts responsibly in relation to the environment, 86%            water-related themes, ranging from corporate
think Chevron operates responsibly in society and the           sustainable development and transboundary water
communities in which it operates, and 82% say they              management to financial mechanisms for water
are treated with dignity and respect.           solutions
                                                                •    Organiser: World Economic Forum Water Initiative,
DaimlerChrysler launches Sustainability Profile                      Stockholm International Water Institute (SIWI),
DaimlerChrysler recently launched its ‘Sustainability                UNEP Finance Initiative (UNEP FI), World
Profile 2005’, the first report in which the car                     Business Council on Sustainable Development
manufacturer provides comprehensive documentation                    (WBCSD) and DRM World Institute on Disaster
of how it puts sustainable development into practice.                Reduction.
The Sustainability Profile is to be published annually          •    Date/Location: 21–27 August, Stockholm, Sweden
and extends DaimlerChrysler’s reporting in the complex          •    Website:
field of sustainability, which until now has been
addressed in an Annual Report, the Corporate Social             4th Annual Asian Forum on CSR
Responsibility Report and the Environmental Report.             This year’s theme is ‘Exploring CSR Strategies for
Concurrently, DaimlerChrysler also presented its ‘360           Business: How the right strategy for CSR can make
DEGREES – Environmental Report 2005 – All Forces                business more effective.’ The two-day conference will
That Move Us’. ‘Sustainability Profile 2005’ is based on        feature the integration of: plenary sessions addressed
the internationally recognised guidelines of the Global         by keynote speakers; special interest sessions that
Reporting Initiative.            focus on specific dynamics, learning and best practices
                                                                of companies; an expo/trade show featuring specific
E.ON UK publishes 2004 CSR Report                               company CSR programmes; and optional field visits to
E.ON UK, an integrated energy company, has                      innovative CSR programme sites in and around the host
announced the publication of its Corporate Social               city.
Responsibility Report 2004, 'It's within our power',            •     Organiser: Asian Institute of Management
covering performance in the areas of marketplace,               •     Date/Location: 8–9 September, Jakarta, Indonesia
workplace, environment and community. E.ON UK                   •     Website:
views CSR as its contribution to sustainable
development. The company is in the process of                   Co-existence', contamination and GM-free zones –
developing a CSR strategy and management                        Jeopardising consumer choice?
framework that reflects its vision to be the UK leader in       The challenges posed by the 'co-existence' of GM crops
its industry. The report opens with a list of CSR               with conventional and organic crops will be examined
successes and disappointments in 2004 and is                    and debated by panels of speakers including scientists,
independently assured.                    consumer representatives, industry and other GM
UK MoD publishes Sustainable Development Report                 •    Organiser: Consumers International; Regione
The UK Ministry of Defence's (MoD) has produced its                  Emilia-Romagna
first stand-alone Sustainable Development Report, in            •    Date/Location: 9 September, Bologna, Italy
line with the UK government's policy to integrate               •    Website:
sustainable development into all government
processes. The report covers the MoD’s sustainability           China Business Summit 2005
vision and strategy, stakeholder engagement,                    ‘China's Next Phase of Modernization: Creating
governance and management systems and identifies                Scientific and Sustainable Solutions’ will highlight the
five performance themes: environmental management               main growth and policy trends, helping participants
in defence; environmental protection in defence;                understand how China’s evolution as a market economy
employee-related issues; investment in the community;           affects its competitiveness and growth and how in turn
and economic impact. Key elements of the                        this influences foreign and domestic firms. The Summit
department’s programme for the coming years include             is a platform where multinational companies, private
improved data collection systems, the roll out of an            business entrepreneurs and leading state-owned
environmental management system and the continued               enterprises can engage to influence the business
integration of sustainable development considerations           agenda.
into procurement. The report is independently assured.          •     Organiser: World Economic Forum                                               •     Date/Location: 9–10 September, Beijing, China
                                                                •     Website:

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                      13
Issue 24, 24 August 2005

Business and the Millennium Development Goals:                  Global Compact Annual Networks Meeting
An Active Role for Globally Responsible Companies               The III Annual Networks Conference in Barcelona will
The 10th International Business Forum invites leaders           focus primarily on the Local Network governance,
from business, civil society, governments and                   although it will take into account the global governance
international organisations to share experiences and            restructuring process which takes place in parallel. The
lessons learned regarding the business contribution to          overall objective of this conference is to stimulate
the MDGs.                                                       network growth and competition so that the Local
•    Organiser: InWEnt; World Bank Institute; Instituto         Networks can advance the GC goals in their respective
     Ethos; UN Global Compact                                   cultural and linguistic settings.
•    Date/Location: 10–11 September, New York, US               •    Organiser: UN Global Compact
•    Website:                    •    Date/Location: 22–23 September, Barcelona,
2005 World Summit                                               •    Website:
This high-level plenary meeting is expected to bring
together more than 170 Heads of State and                       Responsible Consumption
Government – the largest gathering of world leaders in          This conference will bring together representatives from
history. It is a once-in-a-generation opportunity to take       the European Commission, national governments,
bold decisions in the areas of development, security,           business, trade-unions, civil society and the media to
human rights and reform of the UN. The agenda is                promote responsible consumption.
based on an achievable set of proposals outlined in             •    Organiser: European Commission; Alternatives
March by Secretary-General Kofi Annan in his report ‘In              Economiques
Larger Freedom’.                                                •    Date/Location: 26 September, Brussels, Belgium
•    Organiser: United Nations                                  •    Website:
•    Date/Location: 14–16 September, New York, US
•    Website:                                 Masterclass on CSR and Humanitarianism
                                                                Masterclass to address what part companies can play in
Corporate Responsibility and Sustainability                     humanitarian interventions. Top corporates and most
This one-day conference of three roundtables aims to            humanitarian international agencies in Geneva will
give useful direction and context to help businesspeople        attend.
navigate the sea of codes, indices, pressures and               •    Organiser: MHCi
networks in the CSR field.                                      •    Date/Location: 27 September, Geneva,
•    Organiser: Tremlant                                             Switzerland
•    Date/Location: 15 September, Quebec, Canada                •    Website:
•    Website:
                                                                CSR in Food and Agri- Business
Business, Government and CSR: Re-Defining                       The emphasis at the conference which is being
Boundaries and Responsibilities                                 supported by the Prince of Wales International Business
The third annual ICCSR symposium will focus on CSR              Leaders Forum (IBLF) and Business in the Community
and the implications of changing boundaries and                 (BITC) will be on interactive discussion. The conference
responsibilities between corporations, governments and          is an opportunity to network with CSR executives in the
civil society.                                                  food industry.
•      Organiser: International Centre for Corporate            •    Organiser: Agra Informa
       Social Responsibility, Nottingham University             •    Date/Location: 29–30 September, London, UK
       Business School                                          •    Website:
•      Date/Location: 16 September, Nottingham, UK
•      Website:                     Art of Good Business: Adding Value through CSR
                                                                Invited presenters include Romano Prodi, Bianca
Beyond Compliance: Innovative Strategies for                    Jagger, Professor Johny Johansson, Anita Roddick,
Responsible Sourcing                                            Jonathan Porritt and Giles Chitty. The programme
The SAI Conference will focus on the latest                     features reports from major Italian corporations, while
developments where supply chain management and                  local Tuscan firms offer study visits.
workplace accountability intersect. It will bring together      •     Organiser: The Social Venture Network
companies, NGOs, trade unions and academic                      •     Date/Location: 29 September – 1 October, Lucca,
institutions.                                                         Italy
•     Organiser: SAI                                            •     Website:
•     Date/Location: 19 September, New York, US
•     Website:                           Accountability 21
                                                                AccountAbility’s 10th anniversary conference will be the
                                                                culmination of a new programme of international multi-
                                                                stakeholder dialogue.

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                       14
Issue 24, 24 August 2005

•    Organiser: AccountAbility                                  Reinventing the Game: The Role of Socially
•    Date/Location: 3–5 October, London, UK                     Responsible Business
•    Website:                  This four-day event will feature speakers from socially
                                                                responsible business, numerous networking
Climate Change and Business                                     opportunities and time for real collaboration between
The conference will bring together investors and project        leaders of social purpose enterprises.
developers, technology providers and potential project          •    Organiser: Social Venture Network
hosts to discuss JI opportunities in Ukraine and learn          •    Date/Location: 20–23 October, Tucson, US
from the industry's most distinguished experts.                 •    Website:
•    Organiser: Scientific Engineering Center ‘Biomass’;
     Point Carbon; Institute of Engineering                     ILO – Fair Globalisation
     Thermophysics of the National Academy of                   High-level speakers and 300 expected participants will
     Sciences of Ukraine; Institute of Engineering              discuss new methods and strategies to tackle the
     Ecology                                                    challenges of a globalised world of work in the 21st
•    Date/Location: 3–5 October, Kiev, Ukraine                  century.
•    Website:                        •    Organiser: ILO
                                                                •    Date/Location: 24–26 October, Düsseldorf,
Ethical Sourcing Forum 2005: Your Roadmap to                         Germany
CSR Supply Chain Sustainability                                 •    Website:
Ethical Sourcing Forum 2005 is an international
conference and exhibition dedicated to the promotion of         UNEP FI 2005 Global Roundtable
practical solutions for corporate responsibility and            This year’s Roundtable will focus on the issues of
sustainability in global supply chains. This annual             carbon and responsible investment, under the theme of
leadership forum delivers new strategies and practices          environmental risks and opportunities for financial
to address the latest social and environmental                  institutions.
challenges facing global supply chain professionals and         •     Organiser: UNEP Finance Initiative
stakeholders.                                                   •     Date/Location: 25–26 October, New York, US
•    Organiser: Intertek                                        •     Website:
•    Date/Location: 13–14 October, Paris, France
•    Website:             CSR and the Media
                                                                Masterclass will cover responsibility of the media to
Asian Business Dialogue on Corporate Governance                 their public and responsibility within the media itself.
•   Organiser: Asian Corporate Governance                       •     Organiser: MHCi
    Association                                                 •     Date/Location: 26 October, London, UK
•   Date/Location: 14 October, Singapore                        •     Website:
•   Website:

The new role for business in developing countries
The following strategic issues will be covered at the
two-day conference: why poverty is rising as a key
strategic challenge for business; the growing pressures
face by companies; the emerging role of large
corporations in the developing world; how far
companies should go in addressing social and
environmental issues; G8 and MDG outcomes.
•    Organiser: Ethical Corporation
•    Date/Location: 18–19 October, London, UK
•    Website:

Sustainable Procurement in the Public Sector
This conference will help drive forward your
organisation’s strategy and provide a framework for
using economic power in ways that benefit society as
well as serve the aims of sustainable development.
•    Organiser: Defra; OGC;
•    Date/Location: 19 October, London, UK
•    Website:

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                            15
Issue 24, 24 August 2005

Governance and Social Responsibility Conference                 Global Compact Summit: China
This inaugural annual conference will explore the               About 800 corporate leaders, policy-makers and civil
increasing integration of national and international            society are expected. Discussions will focus on
standards of governance and social responsibility.              sustainable business and development; the challenges
•    Organiser: Monash Governance Research Unit,                and opportunities of corporate citizenship and the
     King's College London                                      Global Compact; alliances and tools for implementing
•    Date/Location: 1 November, London, UK                      the Global Compact principles in different sectors.
•    Website:                   •    Organiser: UN Global Compact
                                                                •    Date/Location: 30 November – 1 December,
Questioning Assumptions – Changing Frameworks                        Shanghai, China
The Business for Social Responsibility (BSR) 2005               •    Website:
Annual Conference will focus its attention on content
that will revisit some of the assumptions underpinning          Investing in the Future: A European Conference on
general trends in CSR.                                          CSR and the Finance Sector
•    Organiser: BSR                                             The conference will focus on the role the finance sector
•    Date/Location: 1–4 November, Washington, DC,               can play in driving CSR and the opportunities and
     US                                                         challenges faced by mainstream financial institutions in
•    Website:                                becoming more actively engaged in adopting CSR
Triple Bottom Line Investing Conference                         •    Organiser: UK Government; European
During the two-day event, the latest developments on                 Commission
screening, auditing, reporting, SRI analysis, corporate         •    Date/Location: 1–2 December, London, UK
citizenship, indexes and research will be covered.              •    Website:
•     Organiser: Brooklyn Bridge
•     Date/Location: 2–4 November, Frankfurt, Germany           CR and Competitiveness
•     Website:                                     The European Academy of Business in Society’s
                                                                (EABIS) 4th Annual Colloquium will explore corporate
The Supply Chain Talks Back                                     responsibility, competitiveness and the development of
This conference aims to provide a forum for                     knowledge, skills and mindsets for current and future
representatives from the supply chain and other                 managers and leaders. There will also be a marketplace
interested parties to speak about CSR and related               / learning exchange for education and training
issues from on the ground. It will be highly practical with     experiences and innovations.
a focus on tackling real problems encountered by                •     Organiser: EABIS
companies wanting to do CSR in Asia.                            •     Date/Location: 5–6 December, Warsaw, Poland
•    Organiser: CSR Asia                                        •     Website:
•    Date/Location: 21–22 November, Shenzhen, China
•    Website:                           2005 Business and Human Rights Seminar
                                                                The seminar will focus this year on how business can
India Economic Summit 2005                                      guard against accusations of complicity in human rights
The Summit will help participants understand how                abuses and the related responsibilities this might entail.
India’s evolution as a market economy affects its               The Seminar aims to understand the legal, moral and
competitiveness and growth and how in turn this                 pragmatic definitions and considerations and then apply
influences foreign and domestic firms. The Summit is a          these to specific dilemmas around the world and
platform where multinational companies, Indian                  highlight the tools and procedures available for
corporations, family-owned businesses and state-                business to use.
owned enterprises can engage to influence the                   •    Organiser: The seminar is organised by the
business agenda.                                                     Business and Human Rights Seminar on behalf of
•     Organiser: World Economic Forum                                the seminar steering group of which Amnesty
•     Date/Location: 27–29 November, New Delhi, India                International UK, Business Leaders Initiative on
•     Website:                                Human Rights, One World Trust, The Prince of
                                                                     Wales International Business Leaders Forum,
                                                                     Respect , and Twenty Fifty Limited
                                                                •    Date/Location: 8 December, London, UK
                                                                •    Website:

Ethical Insight: a fortnightly digest of corporate responsibility news, publications and events                        16

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