Trust Digest 17 (August 17, 2013)


Deutsche Börse's News Service for Traders Draws Scrutiny of Investigators
Several times a month, the Labor Department invites news reporters to a sealed room for an early look at soon-to-be-released reports such as the unemployment rate. One organization attending in recent years stands out from the rest. Founded by an investment firm and now owned by the Deutsche Börse stock exchange, Need To Know News has operated with an overriding mission: sending data directly from the government through high-speed lines to financial firms that are able to trade on it instantly. Some have paid $375,000 a year for the service.
Key Words: “Need-to-Know News,” Market Data
Trust Issues: Transparency, Regulation


Take a Closer Look at the Hand That Gives
Last week, India’s ill-functioning parliament passed a bill rejigging the country’s companies laws. It included an especially eye-catching proposal: all businesses are now expected to give 2 per cent of their net profits to corporate social responsibility projects. It sounds like a splendid means of nudging stingy businesses to greater heights of public spiritedness. Unfortunately, the generally cozy, often inefficient and occasionally corrupt systems through which some Indian companies support worthy causes mean it may do more harm than good.
Key Words: Corporate Social Responsibility, Indian Law
Trust Issues: Responsibility, Integrity, Ethics, Benevolent Concern, Regulation, Motives, Stewardship


Gifts Galore
As scandals go, Virginia’s seems small beer beside those that sent the governors of Illinois and Louisiana to jail. The Republican governor, Bob McDonnell, and his family accepted around $150,000 in unreported gifts from Jonnie Williams Senior, head of a money-losing tobacco company turned dietary-supplement manufacturer… Virginia ethics law does not apply to an officeholder’s family. And officials are not required to report gifts from a relative or personal friend, which the governor says Mr. Williams was.
Key Words:
 Ethics Law, Government Corruption
Trust Issues: Integrity, Ethics, Transparency, Corruption, Dishonesty


How to Win in China: Top Brands Share Tips for Success
Millward Brown has found that Chinese consumers once valued low prices above any other factor when making choices. But a mix of higher living standards and falling trust in local brands means people are looking to international brands more. "Our research shows that in the last three years, trust in Chinese brands has eroded quite dramatically," says Millward Brown's Peter Walshe. "This is an opportunity for well-known and well-supported international brands to make their move as consumers start to value quality and experience as much as price."
Key Words: 
Trust Issues: Reputation, Loyalty


Break-up-the-Big-Banks Fever Hits the States
Elizabeth Warren’s effort to break up Wall Street banks through a return to Depression-era laws may not have a lot of support in Congress, but it has a sympathetic audience in state capitals across the country. Lawmakers in at least 18 states have introduced resolutions this year calling on Congress to split up banking giants by putting back in place a wall between commercial banking, taking deposits and making loans, and investment banking, the world of traders and deal-makers.
Key Words: Commercial and Investment Banking, Financial Crisis
Trust Issues: Regulation, Accountability


Trust in Investment Firms Remains Fragile, Survey Shows
Investors worldwide have little trust in the investment profession and believe there is much that can be done to restore trust, according to a CFA Institute/Edelman study on investor trust. The June survey polled on asset owners only with 1,604 retail and 500 institutional investors included. It revealed that just 53% of investors in the US, UK. Hong Kong, Canada and Australia trust investment firms to do what is right.
Key Words: Trust, Investment
Trust Issues: Accountability, Reputation


Engaging Investors in Sustainability: A Silver Bullet or a Thankless Task?
Once every three years, Accenture joins forces with the United Nations Global Compact (UNGC) to conduct the most comprehensive global study in existence on corporate views on sustainability. In addition to in-depth interviews with 76 CEOs and a survey over of 1000 CEOs globally, we also conduct detailed assessments of investor and consumer attitudes to sustainability. We present the results in September at the UNGC Leaders' Summit in New York. But some of the early findings are in.
Key Word: Sustainability
Trust Issues:Responsibility, Accountability, Stewardship


Empowering Employees to Integrate Ethics and Social Good Into Their Work
There is a flaw in the concept of corporate social responsibility (CSR). The term suggests something that is planned and managed at the top - specific strategies, priorities, and programmes from the C-suite. But whether a company behaves responsibly or not is largely the aggregate of individual employees' everyday decisions and actions, not just top-down actions and proclamations. That's why we need much more emphasis and training focused on employee social responsibility (ESR).
Key Words: Ethics, Sustainability
Trust Issues: Ethics, Stewardship


Plan B: 14 Top Leaders Come Together to Incorporate CSR Into Business
Debates on corporate sustainability get louder by the day. Enticing monikers for doing good are coined. Codes of conduct proliferate and there is much congratulatory backslapping among CEOs on receiving awards and recognition. What is sorely missing is substantive progress on the ground. Now, a plain-speaking, crack team of 14 leaders have ambushed the debate.
Key Word: CSR
Trust Issues: Responsibility, Ethics


How Do You Earn Trust?
But how do you build trust in a new market space, like social media analytics? How can you build trust in a space where there is little precedent, and the precedent that does exist is rife with dissatisfaction? (According to Useful Social Media’s 2013 State of Corporate Social Media briefing, roughly 68 percent of corporations say they are not confident in how they are measuring the impact of social media.) This is one of the core challenges I face every day working in social media at Mashwork.
Key Words: Trust, Reputation
Trust Issues: Reputation, Communication


Former JPMorgan Traders Charged With Fraud in US $6.2-Billion ‘London Whale’ Scandal
Two former JPMorgan Chase & Co. employees are facing criminal charges related to the trading scandal that cost the bank US$6.2-billion last year, but the trader who earned the nickname “the London Whale” and was at first most closely tied to the scandal is not one of them.
Key Words: Fraud, London Whale
Trust Issues: Responsibility, Accountability, Corruption


Ecuador to Drill for Oil in Amazon Rainforest After Rich Countries Failed to Pay Up
President Rafael Correa said Thursday that he has abandoned a unique and ambitious plan to persuade rich countries to pay Ecuador not to drill for oil in a pristine Amazon rainforest preserve. Environmentalists had hailed the initiative when Correa first proposed it in 2007, saying he was setting a precedent in the fight against global warming by lowering the high cost to poor countries of preserving the environment.
Key Words: Oil, Environment
Trust Issues: Responsibility, Stewardship


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