Indian companies allowed to choose own CSR programmes under new mandatory law
Following the introduction of India’s new Companies Act 2013, which makes it mandatory for large companies to spend at least two percent of profits on social welfare schemes and CSR activities, India’s Corporate Affairs Minister, Sachin Pilot, has announced that industry will be “free to choose programmes and strategies best aligned to their corporate philosophy and businesses." The introduction of the CSR law has led to mixed reactions among corporate leaders, with some saying that companies should not be forced to spend on social welfare. Azim Premji, the billionaire industrialist and Chairman of the Indian multinational IT firm Wipro Limited, said that philanthropy should be spontaneous and not made legally mandatory by governments. However Nita Ambani, the Chairperson of the Reliance Foundation which is run by India’s largest private sector company, the Reliance Industries Group, said that the new Act will help to create "sustainable and self-reliant communities.” (The Economic Times)
Responsible Investment
Church of England backing new ethical bank
A £600 million deal by a consortium formed by the US investment firms Corsair Capital and Centerbridge Partners and backed by the Church of England, has bought 314 of the former Williams & Glyn’s Bank branches from the Royal Bank of Scotland (RBS). With roots dating back to the 18th century, Williams & Glyn’s existed independently until 1985 when it was bought by RBS. The bank, in which the Church of England is the largest single investor with a 10 percent stake, will consist of 314 branches and will be run by John Maltby, the former Group Director of Commercial Banking at Lloyds Banking Group, with the former Chief Executive of United Utilities, Philip Green, as the bank’s chairman. The Church of England First Commissioner, Andreas Whittam Smith, said that the new bank would uphold “the highest ethical standards” and the Vice-Chairman of Corsair, Lord Davies, said that the new bank would also address the issue of a lack of women in banking boardrooms. (Blue and Green Tomorrow)
Environment
IKEA to sell £5,700 solar panel kits in all UK stores
IKEA, the world’s largest furniture retailer, has announced that it will sell packages of solar panels to consumers in all of its UK stores within the next 10 months. The move follows a successful pilot project at one of IKEA’s east London stores, which on average sells one solar panel package per day. The solar panels, which are produced by the Hong Kong manufacturer Hanergy Holding Group Ltd, will be priced at £5,700 for the smallest package, will contain 18 panels and will also include in-store consultation, installation and maintenance of the panels. Joanna Yarrow, IKEA’s Head of Sustainability in the UK and Ireland, said that “our customers want to live more sustainably and we hope working with Hanergy to make solar panels affordable and easily available helps them do just that." (Reuters; Bloomberg)
Consumers
McDonald’s to promote healthy eating choices
McDonald's has announced that in partnership with the US NGO Alliance for a Healthier Generation, it will promote healthy eating in 20 of its largest markets. Commitments include providing customers with a choice of a side salad, fruit or vegetable as a substitute for fries in value meals and to only promote only water, milk and juice as the beverage choice in Happy Meals. McDonald's will retain an independent, third-party organisation to verify progress on the commitment. Don Thompson, the President and CEO of McDonald's, said that “his commitment reflects McDonald's progress regarding nutrition and well-being" and that the restaurant chain would continue “to help educate, empower and encourage our customers to make informed choices so they can live a balanced and healthy lifestyle." Dr Howell Wechsler, the CEO of the Alliance for a Healthier Generation, said that this was “an essential step in the fight against obesity” and that "effective promotion of healthier choices can have a substantial impact on the food and beverage choices that get made." (Sustainable Brands)
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