UK aid watchdog criticises DfID over partnerships with private sector
Britain’s Department for International Development (DfID) is failing to capitalise on partnerships with the private sector because of a lack of concrete targets and detailed operational plans with a clear focus on reducing poverty, the Independent Commission for Aid Impact (ICAI) has said. While recognising the potential for development agencies and private businesses to work together, ICAI said these collaborations must identify more clearly how they will benefit the poor. DfID has described its partnerships with the private sector as an “engine of growth”. But the ICAI study, which was released today, said the department must “work with businesses which want to invest in developing countries in such a way as to maximise benefits for the poor”. This year, DfID is projected to ramp up its financing to private sector firms – in the form of loans, equity investments and guarantees – to an estimated £580 million, up from £68 million in 2012. (Guardian)
Employees
McDonald’s faces worker pressure as shareholders meet
Workers and labour unions are stepping up pressure on McDonald’s to raise the wages it pays workers. Over 1,500 employees and supporters converged on the fast-food giant’s headquarters in Illinois on Wednesday, ahead of the company’s annual shareholder meeting. The Fast for 15 campaign – a group of workers backed by traditional labour unions – has been targeting McDonald’s for over two years, asking for a raise in the base amount it pays workers to a so-called “living wage” of $15 per hour. McDonald’s, for its part, dismissed the protestors as part of a union “publicity campaign”. However, the company has already said it plans to raise the wage it pays workers to above $9/hour – and several other firms, including Wal-mart and Target, have said they will increase their hourly minimums in the wake of protests. (BBC)
Supply Chain
Kenco’s Coffee Vs Gangs project just part of company’s efforts to protect global supply chain
Coffee brand Kenco is training 20 young people at risk of joining violent gangs in Honduras to become coffee farmers, as part of wider global efforts to create a secure supply of the crop and to tackle the challenges posed by climate change and an ever-increasing demand for coffee. At the same time Mondelēz, Kenco’s parent company, is investing $200 million to train one million farmers worldwide by 2020, with the aim of lowering their costs and increasing yields. Malcolm Hett, global sustainability manager for Mondelēz, said: “Without consumer appreciation of doing things the correct, sustainable way, we don’t really have as much motivation for a big company to get involved in [sustainability]. We are pushing ourselves to generate the consumer pull and we’re working heavily in the origins to create the change we’re looking for in the supply chain.”(Supply Management)
Corporate Reputation
Barclays hit with record fine for forex rigging
Barclays has been fined a record $2.4 billion by US and UK authorities after admitting members of staff were involved in rigging the foreign exchange rate. The fine comes as part of a fresh wave of fines levied on banks – including JPMorgan, Citigroup, Barclays, UBS and RBS. In a statement, the bank said that it had agreed to pay the fines to regulators and was taking disciplinary action against individuals involved in the scandal. CEO Anthony Jenkins, said: “The misconduct at the core of these investigations is wholly incompatible with Barclays’ purpose and values and we deeply regret that it occurred. This demonstrates again the importance of our continuing work to build a values-based culture and strengthen our control environment.” The UK Financial Conduct Authority stressed the seriousness of the offences and said that Barclay’s behaviour undermined confidence in the UK financial systems and put its integrity at risk. (FT*; Blue and Green Tomorrow)
Environment
EU concerned about farming impact on its wildlife
EU programmes to protect endangered species have boosted numbers of wild birds, but some of their habitats are cause for major concern largely because of intensive farming, an EU report has found. The State of Nature in the European Union report for the years 2007-2012 found 17 percent of species, including some birds of prey, are threatened. Another 15 percent are near threatened or in decline. Researchers from the European Environment Agency found in their most extensive six-year assessment yet that the state of natural habitats was even more worrying, and most have an unfavourable conservation status. Environment Commissioner Karmenu Vella said the research showed that efforts to improve vulnerable ecosystems can be very effective but it “underlines the scale of the challenges that remain”, whilst campaign groups called for policy-makers not to be distracted by Eurosceptic arguments against Brussels interference. (Reuters)
COMMENTS