One in six Walmart factories in Bangladesh fails safety review
According to independent inspections, 32 of the 200 factories used by the global retailer Walmart in Bangladesh are failing to meet basic structural, fire or electrical safety standards. One factory was deemed so unsafe that it had to be shut down and another was found to have an illegal eighth floor which contained the staff canteen. Jay Jorgensen, Walmart’s global compliance officer, said that the retailer had published its inspection findings in order to help other companies with suppliers in Bangladesh. These include the signatories of the Accord on Fire and Building Safety in Bangladesh, which was set up in the wake of the Rana Plaza factory collapse and which Walmart has refused to sign. Scott Nova, the executive director of the US-based Workers Rights Consortium, said that Walmart’s disclosures offered “no specifics whatsoever as to the dangers workers face in these factories.” Jenny Holdcroft, the policy director of the international union IndustriALL, said that “I honestly don’t know what anyone could do with the information they have published,” and has called on Walmart to formally sign the Accord. (The Guardian; Financial Times*)
Employees
Germany set to introduce legal quota for women in boardrooms
The German Government has announced that it will introduce legislation that will require German companies to allot 30 percent of their non-executive board seats to women from 2016. The new quota will apply to all listed companies and companies that are unable to appoint women to at least 30 percent of open board seats from 2016 will be required to leave the seats vacant. The European Commission proposed new rules last year to require companies listed in EU countries with more than 250 workers to have 40 percent of women on their boards by 2020; however, Germany and other EU countries resisted, arguing that rules should be set at the national level. Manuela Schwesig from the Social Democrats party said that the move “is an important signal to improve the career chances for women and for greater equality in the labour market.” However, Germany’s four biggest car manufacturers, Volkswagen, BMW, Daimler and Opel, have threatened to move production out of Germany if they are forced to introduce the quota. (The Independent; The Guardian)
UK companies urged to publish ethnic breakdowns
According to a new report by Race for Opportunity, part of the UK NGO Business in the Community, representation of black, Asian and ethnic minority executive board members fell to just 3.3 percent in 2013 from 5 percent in 2012. Sandra Kerr, the director of Race for Opportunity, said that “by backing gender breakdowns, the UK Government has galvanised more companies into action” and is calling for the UK Government to also make it mandatory for UK companies to publish the ethnic composition of their workforces to increase diversity in boardrooms. According to the report, applicants from ethnic minority backgrounds are less likely to make the shortlist for jobs in financial and professional sectors. Proposals for companies to set out the racial composition of their workforce have been put forward within the UK Government but have not yet been acted upon. (Financial Times*)
Environment
Japan cuts CO2 goal as solar projects fail
The Japanese Government has announced that the failure of solar developers to deliver on planned projects will cost Japan’s utilities approximately $3.5 billion annually in additional coal and gas imports to generate power. The Japanese Government introduced generous subsidies to encourage solar investment to help meet the country’s shortfall in electricity supply after the Fukushima Daiichi nuclear disaster in 2011, sparking a rush from developers. However, according to White & Case in Tokyo, who advise on solar projects, the subsidies encouraged speculative developers that lacked the experience and expertise needed to deliver the projects as the Japanese Government did not include any eligibility requirements. The announcement follows Japan’s move to cut its carbon emissions target for 2020 from 25 percent to a 3.8 percent reduction in carbon emissions, owing to the country’s increasing reliance on coal imports and natural gas following the shortfall in solar energy and the shutdown of the country’s 50 nuclear reactors. (Reuters; CleanBiz Asia)
Community
Google, Microsoft and Bing tighten online searches to combat child abuse
Online search engine operators Google, Microsoft and Bing, have announced that they will collaborate to block online searches for child abuse images. The three companies said that as many as 100,000 search terms will now fail to produce results and will trigger warnings that child abuse imagery is illegal. The UK Prime Minister, David Cameron, said that “we were told that cleaning up searches couldn’t be done and shouldn’t be done. We’re now being told by the industry that it can be done and will be done.” The companies have introduced new algorithms to prevent searches for child abuse imagery and Google said that the changes would be initially introduced in the UK before being rolled out to another 158 countries in the next six months. Google and Microsoft have also agreed to use their technological expertise to help in identification of abuse images and give technical support to the UK Internet Watch Foundation and the US National Center for Missing and Exploited Children. (Reuters; Blue & Green Tomorrow)
Consumers
UK supermarkets “still misleading” shoppers on prices
According to the UK consumer watchdog Which?, UK supermarkets are still selling products with “dodgy discounts” and misleading multibuy offers, just months after UK supermarkets signed a set of principles stating that only fair price promotions would be offered. Sainsbury’s was found to have misled customers by running a “special offer” on antibacterial handwash which was sold at a higher price of £1.80 for just seven days, before it being on offer at 90p for 84 days. Asda was found to have increased the regular price of Greek yoghurt from £1.50 to £2.18 as it went on a “2 for £4” offer, costing shoppers £1 more. The UK Department for Business said that it was a criminal offence to mislead consumers on prices, including special offers. Asda, which is owned by the US retailer Walmart, said that “sometimes mistakes can happen, but we would never deliberately mislead our customers. Our aim is always to offer the lowest prices for the longest.” Sainsbury’s apologised and said that it was “absolutely committed to fair and transparent promotions.” (BBC; The Times*)
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