Multinationals will be forced to reveal how much tax they pay in each country as part of a “nuclear” crackdown on shifting profits offshore. The Organisation for Economic Co-operation and Development (OECD) is set to announce that it will go ahead with a scheme to impose “country by country” reporting as part of its action plan to prevent companies moving profits to tax havens. The rules, which could come into force as early as 2016, would force companies to disclose how much profit they make in each country, as well as the tax paid, making it easier to collect the right amount of tax revenue. Richard Murphy of the Tax Justice Network said that, “country by country reporting means multinationals can be held accountable for what they do and do not pay.” The OECD is also expected to change the rules regarding permanent establishment, which govern where a company is based for tax purposes, in order to deal with digital companies such as Google and Amazon, who have been accused of exploiting global tax rules. (Sunday Times*)
Equality
Coca-Cola airs advert featuring gay family in Super Bowl first
During this week’s American Super Bowl, Coca-Cola aired its “It’s Beautiful” advert, which is claimed to be the first Super Bowl advert to feature a gay family. The move comes after a backlash against the company’s sponsorship of the 2014 Sochi Winter Olympics, in the wake of Russia’s crackdown on members of the lesbian, gay, bisexual and transgender (LGBT) community. Coca-Cola also announced that it plans to air the advert during the opening ceremony of the Sochi Winter Olympics this week. Last September, Barilla pasta became subject to a widespread boycott after the company’s chairman claimed they wouldn’t feature gay families in their advertising and critics could “eat another brand of pasta.” The LGBT community’s response lead Barilla to announce a ‘Diversity and Inclusion’ campaign and the company begin participating in the Human Rights Campaign‘s Corporate Equality Index. (Huffington Post)
Community Investment
Match-funding by UK employers in payroll giving schemes rises to £7.5m
The amount given to charities through the match-funding by employers of payroll giving schemes rose by 27 percent in the last financial year, according to findings by the Association of Payroll Giving Organisations. Figures show that match-funding in workplace giving schemes increased from £5.9 million in 2011/12 to £7.5 million the following year. It means the total amount donated to charity by employers and employees through payroll giving was £162.5 million, an increase of 24 percent on the previous year. Jonathan Gill, corporate adviser at the Charities Aid Foundation, which is a payroll-giving agency, said that, “matched giving is a simple yet increasingly effective way of showcasing companies’ commitment to both their employees and their local communities. Our recent research has shown that even the smallest changes can encourage people to give – and companies are clearly becoming more savvy in the ways they encourage people to take up payroll giving.” (Third Sector)
Supply Chain
Unilever sees success with sustainable deodorant format
FMCG giant Unilever has announced that it is extending its “compressed” deodorant aerosol format to four more of its deodorant brands. Just one year after the launch of the award-winning technology, the company has sold approximately 12 million cans of compressed deodorant, resulting in an aluminium saving of 77 tonnes – equivalent to 38,000 bicycles. The new cans, which use up to 25 percent less aluminium, are claimed to reduce the overall carbon footprint of the product by up to 25 percent. This takes Unilever closer to its ‘Sustainable Living Plan’ targets of halving the greenhouse gas impact of products across its lifecycle and the waste associated with the disposal of products by 2020. Richard Swannell, director of design and waste prevention at resource efficiency experts, WRAP, commented, “WRAP applauds Unilever’s leadership role in making this ‘step change’ in the aerosol format. This is exactly the type of innovative initiative that the WRAP is encouraging retailers and brands to explore.” (Ethical Performance)
Employees
Pressure on UK charities over ‘fat-cat’ chiefs
Executives at leading UK charities have come under further pressure to lower their “fat-cat” salaries after it emerged that Save the Children pays its highest earner £234,000 a year. The charity is believed to employ 20 people worldwide earning over £100,000, with nine UK employees earning over six-figure sums. Whilst charities are required to declare how much their top executives are paid, they do not have to name them. According to The Times, birth control charity Marie Stopes International pays its highest earner more than £290,000. A second employee is paid more than £200,000 and, in total, 11 people are on six-figure sums. William Shawcross, chairman of the Charity Commission, warned last week that the huge sums risked bringing “the wider charitable world into disrepute.” (Times*)
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