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August 11, 2014

Corporate Reputation

Matalan under fire over size of Rana Plaza compensation payment

Last week, UK clothing retailer Matalan agreed to pay into the Rana Plaza Donors Trust Fund, which was set up by the International Labour Organisation to fund compensation payments to the dependents of those killed in the disaster in Bangladesh last year. However, labour rights campaigners and members of the campaign group 38 Degrees have condemned the payment as “derisory”, as only 2 percent of the £3 million demanded by campaigners was donated – representing a payment of £50 to each killed worker. Until last week Matalan was the only major British retailer linked to the Rana Plaza factory that had not contributed to the fund. Susannah Compton of 38 Degrees said: “Customers have been left wondering why Matalan still refuses to do the right thing for workers who died and were seriously injured by the Rana Plaza collapse”. Company contributions to the Rana Plaza Donors Trust Fund have been calculated by campaigners according to the brand’s ability to pay, the size of their relationship with Bangladesh and their relationship with Rana Plaza. On this basis Matalan was asked to contribute £3 million. Primark is the largest contributor to the Fund so far, donating $8 million USD. (Labour Behind the Label)

 

Authors rally against Amazon in Hachette dispute

More than 900 authors are making a public appeal to Amazon to end a bitter publishing dispute that they say has been “hurting” writers and readers. Authors including James Patterson and Donna Tartt have signed a letter to the retailer that is due to appear as a full-page advert in the New York Times. Amazon is in a battle with Hachette, one of the world’s biggest publishers, over the terms of e-book sales. Amazon has urged Hachette to reduce the price of e-books, claiming the current price of $14.99 is “unjustifiably high for an e-book”. The authors said their books had been “taken hostage” by Amazon’s tactics, as the online retailer has delayed delivery, prevented pre-orders and removed discounts for books by some Hachette authors. The letter urges Amazon to stop the “selective retaliation” of various authors. “Without taking sides on the contractual dispute between Hachette and Amazon, we encourage Amazon in the strongest possible terms to stop harming the livelihood of the authors on whom it has built its business”. (BBC News)

Supply Chain

McDonald’s and Yum release supplier data after China food safety scare

Five fast food chains including McDonald‘s and Yum Brands have published details of their suppliers on their Chinese websites following a request from Shanghai authorities after a food safety scare. The five firms were among a range of companies that used meat from Shanghai Husi Food, a unit of US-based OSI Group, which was alleged by a TV report to have improperly handled meat and used expired food. Food chains are generally reluctant to publish supplier lists as they don’t want competitors to know where they source their materials. However, “In this case it’s probably smart for the companies to do this because they want to send a clear message that they are being transparent both to the government and to their consumers”, said Benjamin Cavender, analyst at China Market Research Group. Last week McDonald’s said the China food scandal had put its 2014 global sales forecast at risk. (Reuters)

Technology & Innovation

Erik Möller: Wikipedia can be read on mobile for free in developing world

Wikipedia can be read for free by 350 million mobile phone subscribers in the developing world, according to a recent statement by its vice president of engineering and product development, Erik Möller. The ‘Wikipedia Zero’ programme, which allows mobile subscribers to access the site with no data charges, now stretches across more than ten developing countries. For Möller, the project answers two key priorities: building new international audiences and focusing on mobile devices. “By working with mobile operators, we can enable anyone to read and edit for free”, he said. Mobile use is important in helping to close the digital divide, especially in developing nations where mobile data connections outstrip traditional fixed line broadband connections. “We must provide the best possible experience for these users, both for reading and for contributing content, to truly enable every person on the planet to share in the sum of all knowledge”, added Möller. (Guardian)

Responsible Investment

World Bank to fund ecologically safe power projects

A World Bank economist has said that the lender will fund only those hydropower projects where safeguards are in place to prevent any adverse impact on the environment. The commitment follows the World Bank’s recent pledge of $5 billion to support similar energy projects in Africa. “We are prepared to support only those good hydro-power projects in India which make economic sense as well as take socio-environment safeguards very seriously”, said Michael Toman, lead economist on climate change. The World Bank currently lends money to a number of power development projects in India. It is estimated that there are 79 million households in India that have no access to electricity and the country imports 28 per cent of its net energy consumption. Various environmental groups in India have raised concerns over safety of large power projects. Last year’s catastrophic flood in Uttarakhand was blamed on hydro projects for intensifying the magnitude. Toman said: “The impact in terms of environment, relocation of people, and availability of water to farmers should be minimum”. (Eco-business)

 

Image source: “Mumbai Guy on phone” by Victorgrigas / CC BY-SA 3.0

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