NGOs accuse Alliance Boots of avoiding £1.1 billion in UK tax
According to a report commissioned by the UK union Unite, the anti-poverty organisation War on Want and the US union coalition Change to Win Federation, Alliance Boots, Europe’s largest pharmacy retailer, has avoid paying £1.1 billion in UK corporate tax by routing money through a series of subsidiaries in tax havens since 2008. Alliance Boots, which is owned by the US private equity firm Kohlberg Kravis Roberts, has rejected the report’s findings and said that “it is extraordinary and disappointing that this organisation has not at any stage contacted us during the preparation of their report or subsequently” and that the company “conducts its business and organises its tax affairs strictly in compliance with all applicable law, including legislation in the UK, and observes the highest standard of good ethics.” (The Guardian; The Independent)
Supply Chain
IKEA and M&S join protest against forced child labour in Uzbekistan
IKEA and Marks & Spencer are amongst the 136 brands and companies which have signed the Company Pledge against Forced Child and Adult Labour in Uzbek Cotton, and declared their refusal to source cotton from Uzbekistan until the country ceases to use forced labour in its cotton fields. The campaign, which is being coordinated by the US NGO, the Responsible Sourcing Network, said that "signing this common pledge demonstrates solidarity by the industry to block cotton using any form of slave labour from entering the global market." Although the Government of Uzbekistan has for the first time allowed UN International Labour Organisation (ILO) to conduct inspections during the 2013 cotton harvest, ILO representatives are being accompanied by Uzbek officials, making it difficult for workers to speak openly with ILO monitors. Despite the inspections, forced labour of children and adults has continued and the death of a six year old girl in September 2013 was the fourth fatality in the first month of the harvest. (Sustainable Brands)
Walmart considers MSC alternatives
After a push from Alaskan salmon fisheries, the US retailer Walmart is considering alternative seafood certification systems to the Marine Stewardship Council (MSC), following claims from fishermen and fish processing firms that the MSC certification standards have fallen – despite the costly certification process, which can amount to over $100,000 per fishery. Julianne Curry, the Executive Director of the United Fishermen of Alaska, said that “the money is a big deal, but it’s not the deal breaker. What’s harder to swallow are fisheries that are simply headed in a sustainable direction can get certification. When we look at some of the overseas fisheries that are being certified, it definitely raises questions.” While the MSC maintains that no other seafood sustainability certification programme carries as much credibility and acceptance, the organisation has been criticised by both scientists and environmentalists in recent years for a drop in standards. Last week, a number of Alaska seafood suppliers attended a meeting held by the US Sustainability Consortium, to discuss alternative seafood certification systems. (Guardian Sustainable Business)
Employees
Danone overhauls baby food brand after China bribery probe
Dumex, the baby food brand owned by the French food company Danone, has announced that it will appoint new management following findings that Dumex employees bribed doctors and nurses at Chinese hospitals to push parents of newborn babies to buy its infant milk formula. Chinese Government investigators said that 13 medical workers are facing disciplinary action for taking bribes from Danone’s Chinese unit. Dumex said that the findings were linked to a Dumex-sponsored programme for mother-and-child health education programme in China, which “was not properly managed in some cases” and that the firm had suspended the programme in all regions and “accepted full accountability.” Dumex said that the company would take disciplinary action according to company policy and that it would introduce mandatory training in marketing responsibility for all employees. (Financial Times;* Wall Street Journal)
Consumers
Target partners with GoodGuide to develop industry standard for sustainable products
The US retailer Target has teamed up with the makers of the US mobile app GoodGuide, which rates products and companies on their health, environmental and social performance, to rate thousands of its products and to develop an industry standard that allows consumers to make informed purchasing decisions. This follows Target’s recent announcement of its Sustainable Product Standard, which has been developed over the last two years in partnership with industry experts, retailers and NGOs to establish a common standard, definition and process for what makes a product sustainable. Dara O’Rourke, the Co-Founder and Chief Sustainability Officer of GoodGuide, said that “currently, there is no widely accepted industry standard by which vendors and retailers can judge the environmental impact and sustainability of products. With the Target Sustainable Product Standard, Target will help push the industry toward consensus on what sustainable standards should be.” (Triple Pundit)
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