Big Four accountants wield ‘undue influence’ over UK tax system
UK MPs have accused the ‘Big Four’ accountants of wielding “undue influence” on the tax system in a report today. Margaret Hodge, chair of the Public Accounts Committee, said there was “a ridiculous conflict of interest” in seconding accountants to the Treasury to advise on formulating tax legislation. These firms use inside knowledge gained from seconding employees to the Treasury to “sell clients advice” on how to pay less tax. The tax authorities are outgunned by PwC, Deloitte, Ernst & Young and KPMG as the firms have four times as many staff advising multinationals on how to limit their tax bills as HM Revenue & Customs has working on tackling such avoidance. (Independent, Financial Times*)
Policy & Research
Sustainability of materials needs innovation
The LAUNCH 2020 summit was hosted earlier this week by founding member Nike Inc. in order to catalyse action around the sustainability of materials and how they are made. LAUNCH members convened 150 materials specialists including designers, academics, manufacturers, entrepreneurs and NGOs to uncover innovations in sustainable materials. Nike’s President & CEO Mark Parker said: “Innovation is most powerful when it’s activated by collaboration between unlikely partners, coupled with investment dollars, marketing know-how and determination. It is estimated that by 2015 the global apparel industry is expected to produce more than 400bn square meters of fabric every year; the impact this is due to have on the planet is of paramount concern. (CSR Wire)
Owner-employee contracts: a worrying attempt to remove employment rights
The passing of an amendment to the Growth and Infrastructure Bill in the UK which will see the introduction of a ‘share for rights’ scheme is a worrying decision which sets a “ dangerous precedent”, a leading employment law expert has warned. After rejecting the proposals twice, the House of Lords voted in favour of plans which will see workers give away employment rights in exchange for receiving shares worth between £2,000 and £50,000 in their company. An expert at law firm Irwin Mitchell said: “It seems evident that there is a drive to establish a principle that universal statutory employment rights are able to be eroded in this way.” (Financial Times*,Fresh Business Thinking)
Reporting
Google and Cisco top Greenpeace IT ranking
Google and Cisco both scored 58 out of a possible 100 on Greenpeace’s sixth Cool IT leader board after logging gains of five and nine points respectively over their 2012 rankings. Cisco was particularly commended for its updated commitments to manage its energy footprint and increase the amount of renewable energy powering its operations. Google was applauded for its continued advocacy for clean energy willingness to “put its money where its mouth is”, which has helped keep it atop the Leader board for the second year in a row. The top five companies also comprised of Ericsson, Fujitsu and Sprint. (Energy Manager Today)
Corporate Reputation
Hyundai criticised for insensitive ad featuring man attempting suicide
Hyundai, the South Korean car company has faced fierce criticism over a car advert which features a man attempting suicide in his garage before being thwarted by a zero emission engine. The viral campaign which was posted online last week, includes a graphic depiction of a man trying to end his life. The car company pulled the advert yesterday afternoon after an advertising creative, whose own father committed suicide in the same way, launched a passionate online attack on it. Hyundai said “[We] understand that the video has caused offence. We apologise unreservedly. The video has been taken down and will not be used in any of our advertising or marketing." (Independent)
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