- World’s largest companies seeing financial performance aligned with social responsibility
- Netherlands aims for circular economy by 2050
- Survey: 44 percent pay divide for female and male law partners
- Tesco removes Marmite and other Unilever brands in price row
- Foreign investors sue Toshiba over accounting scandal
Community Investment
World’s largest companies seeing financial performance aligned with social responsibility
On its annual analysis of corporate societal engagement, the Committee Encouraging Corporate Philanthropy (CECP), in association with The Conference Board, has found that the link between a company’s business strategy and its engagement with society is ever more vital. Companies with a stronger sense of purpose have stronger financial and Environmental, Social, and Governance (ESG) metrics, the report says. Companies are allocating bigger budgets to community engagement, with 29 percent of corporate giving teams reporting closer alignment with the CEO’s office. Employee volunteering participation rates continue to rise, reaching 33 percent in 2015 from 28 percent in 2013. And 87% of companies now measure societal outcomes and/or impacts of at least one grant, up from 79% in 2013. (3BL Media)
Circular Economy
Netherlands aims for circular economy by 2050
A new government-wide programme in the Netherlands is aimed at developing a circular economy in the country by 2050. The government says that by 2050, raw materials will be used and reused efficiently without any harmful emissions into the environment, and has set an interim objective of a 50 percent reduction in the use of primary raw materials (minerals, fossil fuels and metals) by 2030. In a letter to the House of Representatives, the Ministers for the Environment and Economic Affairs praise the “bold steps” already taken by companies such as Philips, G-Star Raw, Black Bear and FrieslandCampina. For example, Philips offers a “circular lighting” model whereby customers pay for lighting and maintenance as a service, and individual light bulbs are returned for refurbishment and recycling. (Natural Capital Coalition)
Employees
Survey: 44 percent pay divide for female and male law partners
At big American law firms, there is a 44 percent difference in pay between female partners and their male colleagues, according to the latest survey released by the legal search firm Major, Lindsey & Africa. Although billing rates are up across the legal industry, female partners still take home thinner paychecks because, it appears, men are better at receiving credit for landing big cases. Women partners brought in an average of $1.7 million worth of business compared with the $2.6 million average of their male counterparts. Because there are more male partners, the average skews higher than if there were equal gender representation. Other factors, including the number of hours worked, are secondary in determining a lawyer’s annual pay, according to the survey. (New York Times)
Corporate Reputation
Tesco removes Marmite and other Unilever brands in price row
UK supermarket Tesco has stopped selling dozens of its most famous household brands to its online shoppers because of a dispute with its biggest supplier, Unilever. Unilever wants to increase prices in the UK to compensate for the sharp decrease in the value of the pound, but Tesco is resisting that move. Unilever’s chief financial officer said the company “cares deeply” about its brands being affordable for customers, so the increases are “substantially less than we would need to cover the cost on our own profitability”. Such negotiations over price are common, but rarely lead to a public argument and product de-listing. “Brexit-sized events are rare,” said Bruno Monteyne, an analyst at Bernstein. “This isn’t about Tesco or Unilever but about all UK retailers & suppliers.” (BBC)
Foreign investors sue Toshiba over accounting scandal
A group of investors, mostly foreign institutions, are suing Toshiba in a Tokyo court for $162.3 million in damages, over a $1.3 billion accounting scandal uncovered last year. The company said 45 unnamed shareholders were seeking compensation for damages caused by its “inappropriate accounting”. Toshiba has been sued by 15 groups and individuals since it first admitted to reporting inflated profits going back to 2008, including Japan’s public pension fund. Toshiba is still overcoming the reputational and share price hit of an investigation last year that found accounting errors throughout its sprawling business, blaming a corporate culture in which employees found it difficult to question their superiors. (Reuters)
Image source: 3 Women in Suit Sitting by Tim Gouw / Public Domain
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