Apple, Dell, HP ‘Better at Supply Chain Disclosure’
Apple, Dell and HP do a better job disclosing environmental issues in their supply chains than companies headquartered in Asia including Canon, Panasonic and Samsung, according to a report from Verdantix. The report which reviewed 12 consumer electronics companies, showed how Canon and Hitachi and Samsung are not only failing to disclose their environmental supply chain issues but are not auditing and engaging their suppliers to the same extent as the leading US firms. The report revealed that Apple, Canon, Panasonic, Sony and Toshiba do not audit suppliers’ energy use, and only half of the 12 companies (Dell, HP, LG, Microsoft, Nokia and Samsung) include water consumption in audits. Abbie Curtis, Verdantix analyst and author of the report, says that companies that do not prioritise disclosure risk damaging their reputations, particularly as investors, consumers and the media become increasingly informed about environmental supply chain issues. (Environmental Leader)
Human Rights
‘Trump Towers Rio’ to displace hundreds from favela
Trump Organisation, including UK based real estate investor MRP International, announced plans to construct the largest office complex in Rio de Janerio as the city gears up for the 2014 World Cup finals and the Olympics in 2016. The development, which is backed by the Mayor of Rio and initiated by billionaire property tycoon Donald Trump, will be the first Trump-branded project in Brazil, and one of the largest urban office developments in the world. The ‘Trump Towers Rio’ project will feature a row of five 38 story buildings over 345,000 square feet in the coastal city’s downtown area. However, the controversial project has been heavily criticised over its displacement of over 1,000 people in the favela (shanty town) which borders the construction area. The community has accused the government of failing to consult them on the project. However, Donald Trump Jnr, who is representing his father in Rio, dismissed concerns for locals and stated that the development “is going to be so positive that any rational individual will realise this (the project) will totally outweigh any of those negatives”. (The Independent,Wall Street Journal)
Corporate Reputation
UBS fined $1.5bn for Libor rigging
Swiss banking giant UBS has agreed to pay US$1.5bn (£940m) to US, UK and Swiss regulators for attempting to manipulate the Libor inter-banking lending rate. It becomes the second major bank to be fined over Libor after Barclays was ordered to pay US$450m to UK and US authorities in the summer. The fine is the latest blow for UBS, following the conviction of rogue trader Kweku Adoboli earlier this year for losing £1.4bn for the bank and a £500m settlement with US authorities for helping US citizens evade taxes. UBS said the fines – along with other pay-outs for mis-selling mortgage debts in the US – were likely to result in the bank recording a loss of 2bn-2.5bn Swiss francs in its financial accounts for the last three months of the year, although it still expects to make a profit for the year as a whole. UBS chief executive, Sergio Ermotti, stated "We deeply regret this inappropriate and unethical behaviour . . . we are committed to doing business with integrity”. Regulators worldwide are conducting further investigation into a number of banks for rigging Libor. (BBC, Financial Times*)
Bangladesh garment industry demands urgent action on deadly fire report
Officials in Bangladesh’s ready-made garment industry have urged for the quick implementation of recommendations in a report which concluded that last month’s deadly fire at a textile factory was the result of sabotage and negligence. Investigators of the blaze, which occurred at Tazreen Fashion Factory, called for legal action to be taken against the factory owner and nine mid-level managers who neglected fundamental safety precautions and failed to obtain a fire certificate. According to eye witness accounts, supervisors prevented staff from leaving the building and told them to continue working. The main gate, the only entry and exit point of the factory, which made clothing for international retailers such as Wal-Mart and C&A, was also said to have been found locked during the fire. Main Uddin Khandaker, the chief of the investigation committee, stated that committee members concluded that the fire was a result of sabotage and was not linked to bad wiring. The committee recommended further investigation to identify who lay behind the tragic blaze which claimed 112 lives. (Reuters)
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