Digital payments could help billions of people without access to banks
The World Bank predicts that ‘mobile money’ and electronic transfers could bring financial services to 2.5 billion marginalised people. A recent report, published with the Better Than Cash Alliance and the Bill and Melinda Gates Foundation, argues that governments in the G20 should target digital payments as a way to help people access basic banking facilities, which it says will encourage saving while reducing theft and corruption. “Rapid development and extension of digital platforms and digital payments can provide the speed, security, transparency and cost efficiency needed to increase financial inclusion at the scale required to achieve G20 goals”, the report says. Safaricom’s mobile money transfer solution, M-Pesa, is one service enabling people in Kenya to save money securely and conveniently. Ruth Goodwin-Groen, managing director of the Better Than Cash Alliance, said: “When we’re looking at the large emerging economies in the G20… there are huge opportunities in those economies to transition their cash payments to electronic payments”. In November, G20 delegates will gather in Australia to debate the future of the global economy. (Guardian)
Strategy
Bank of America investing in further water-saving initiatives during California drought
Bank of America has announced two new initiatives in its efforts to help address California’s severe drought conditions. They have offered a $250,000 grant to the Pacific Institute, which will go towards the Institute’s drought research and response effort, and the expansion of xeriscaping (drought-tolerant landscaping) at six of its California banking centres. The Pacific Institute is working on new approaches to the drought, including conservation and efficiency, storm water capture and water reuse. “We hope to see more corporations like Bank of America step up as leaders to address the water challenges across our communities”, said Heather Cooley, director of the Pacific Institute Water Program. Bank of America’s new pilot in ‘xeriscaping’ builds on existing water-management efforts currently in place at more than 100 of its properties. The Bank estimates total water savings of more than three million gallons annually. Janet Lamkin, Bank of America’s California president, said: “We’re continuing to seek ways to help the state manage through the drought and address ongoing water issues, as well as conserve water in our own operations”. (Sustainable Brands)
Financial literacy initiative pays off for domestic workers in Singapore
The Citi Foundation and ASKI Global’s joint programme on financial literacy has produced nearly 500 graduates since it was launched in 2012. The announcement came as 134 overseas workers in Singapore graduated from the ‘Citi-ASKI Overseas Workers Financial Stability Programme’ on Sunday. The one-year financial education programme was introduced to empower migrant workers in the country, particularly Filipinohousehold service workers. The programme aims to promote inclusive development as a key focus of Citigroup’s corporate citizenship. Citi Asean chief auditor Margie Pagdanganan, said: “We look to provide financial opportunities, access, knowledge and support for underserved communities and individuals”. Citi and ASKI have noticed behavioural change towards managing incomes and expenditures, with ninety per cent of graduates now saving their income through banks both in Singapore and the Philippines. “On the back of the programme’s encouraging results, I look forward to a continued partnership with Citi to further extend the reach of our financial education efforts to the migrant worker population”, commented ASKI Global’s chief executive officer Irma L. Cosico. (Eco-Business)
Policy & Research
Declare social background of your workforce, urges Milburn
Employers should declare the social background of their workforce in order to combat the “social elitism” that exists in senior public positions, according to recommendations from the UK Government’s social mobility expert, and former MP, Alan Milburn. The ‘Elitist Britain?’ report from the Social Mobility and Child Poverty Commission claimed the UK is “deeply elitist” and that key institutions such as the judiciary and the armed forces failed to represent the diversity of the people they serve. Denise Keating, chief executive at the Employers Network for Equality & Inclusion, said it was worrying that the problem was worse in the public sector. “If the Government, which is responsible for these appointments and posts, struggles to appoint a more diverse range of candidates, we will continue to suffer a disconnect between the needs of the majority against the views of the minority”, she commented. The report makes a number of suggestions for employers to ensure they employ a socially diverse range of talent, including publishing data on the background of their staff and insisting on “university-blind” job applications. (Personnel Today)
Corporate Reputation
Dupont fined $1.275 million in West Virginia toxic pollution case
DuPont, the global chemicals company, will pay a fine of $1.275 million and spend an estimated $2.3 million more to settle claims by U.S. officials that the global chemical conglomerate failed to prevent toxic releases of hazardous substances in West Virginia that killed at least one man. The firm reached the settlement with the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice in a case about eight alleged releases of harmful levels of hazardous substances between May 2006 and January 2010. The problems came to light when plant operators discovered that more than 2,000 pounds of methyl chloride had been leaking, and employees had failed to respond to alarms triggered by the release. DuPont expressed deep “regret” for the death of its employee in a statement and pledged tighter controls. “We remain committed to meeting all regulatory requirements and operating at the highest standards for protection of our employees, contractors, community and the environment”, the company said. (Reuters)
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