Top Stories

August 15, 2013

Consumers

Google tells US court: Gmail users can’t expect privacy

The US multinational company Google has said in a submission to a US court that users of Google’s email service Gmail should have “no legitimate expectation of privacy” in information they voluntarily turn over to third parties.  Google’s statement was in response to a lawsuit which accused the internet company of breaking US laws when it scans emails in order to target adverts to users.  Google, which has more than 425 million Gmail users worldwide, said that the lawsuit was “an attempt to criminalise ordinary business practices” that had been part of Gmail’s service since its introduction. Google cited the US internet company Yahoo in its defence that the “automated scanning of emails to deliver advertising is a common industry practice not limited to Gmail.” The US advocacy organisation Consumer Watchdog, said Google’s statement was a “stunning admission” of the extent to which internet users’ privacy is compromised. (The Independent; The Guardian)

Supply Chain

Samsung faces £70 million damages claim over working conditions

Brazil’s Ministry of Labour have accused the South Korean electronics manufacturer Samsung of “serious” labour violations at a factory in the Amazon rainforest.  If found guilty, Samsung faces a fine of approximately £70 million in damages.  The Ministry has said that 5,600 workers are made to work up to 15 hours a day, and sometimes for up to 27 days straight.  Prosecutors have alleged that in 2012, 2,018 workers suffered work-related health problems such as back injuries at the plant, which supplies smartphones and televisions across Latin America.  According to the non-governmental organisation Reporter Brazil, Samsung has refused to hand over documentation detailing how much overtime has been done by employees.  Samsung, the world’s largest manufacture of smartphones, computer chips and LCD panels, paid a six figure settlement in 2011 after being prosecuted in Brazil over poor working conditions.  (The Independent)

Spawning a sustainable industry for farm raised salmon

15 of the world’s farmed salmon producers based in Scotland, Norway, Canada and Chile, have joined forces to make the $5.4 billion salmon aquaculture industry more responsible by launching the Global Salmon Initiative (GSI).  The GSI aims to tackle challenges such as biosecurity, feed sourcing and meeting industry standards to achieve “significant and continuous progress in sustainability” within the industry. The 15 companies, representing approximately 70 percent of the global salmon farming industry, have made a commitment stating that by 2020, 100 percent of their production will be certified by the Aquaculture Stewardship Council, an independent non-governmental organisation (NGO) co-founded by the World Wildlife Fund (WWF) and the Dutch Sustainable Trade Initiative (IDH).  The WWF said that this commitment is the culmination of almost a decade of work with producers, supply chain representatives, seafood buyers, feed companies, NGOs, government officials and independent researchers to tip the industry into becoming more sustainable. (The Guardian; BBC)

Environment

China to invest in energy saving industries to tackle pollution

China’s State Council has announced plans to make the energy saving sector a “pillar” of the Chinese economy by 2015.  The State Council said that under the new plan, the environmental production sector is predicted to grow by an average of 15 percent annually, reaching an output of £474 billion.  China’s Ministry of Environmental Protection has acknowledged that the country’s significant economic growth has had some detrimental environmental effects, and stated that the environmental situation was “grim.”  Under the plan, environmental protection industries will receive funding from the China’s Government in an effort to stimulate technological innovation. The funding will cover a wide range of technologies that address air, water and soil pollution including energy saving products, waste disposal, electric vehicles and pollution monitoring. (The Guardian)

Corporate Reputation

Head of Indonesia energy regulator held in corruption probe

Rudi Rubiandini, the chairman of SKKMigas, Indonesia’s oil and gas regulator, has been arrested by the country’s Corruption Eradication Agency for allegedly accepting bribes amounting to $790,000 on two separate occasions from another country.  The arrest comes as Indonesia is already battling concerns over corruption allegations in its oil and gas sector that some analysts have said could deter investors.  SKKMigas said the arrest would not affect the running of Indonesia's oil operators. The agency has contracts with the UK company BP, and the US firms Chevron and Exxon Mobil. Indonesia is trying to attract investment to reverse declining oil output amid ballooning domestic energy demand.  The country has previously faced international criticism for unclear regulations and complaints of a nationalised stance on energy resources.  (Financial Times*; BBC)

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