Trust Digest 26 (October 28, 2013)
Costco CEO Craig Jelinek Leads the Cheapest, Happiest Company in the World
Jelinek is content to focus on the future of Costco, vowing to keep prices low, volumes high, and his employees happy. “As long as you continue to take care of the customer, take care of employees, and keep your expenses in line, good things are going to happen to you,” he says. “I don’t ever want us to become irrelevant. I hope when I’m 90, and this company is around 30 years from now, I can go eat a hot dog at a Costco food court and hear someone say, ‘I remember you.’”
Key Words: Costco, Trust
Trust Issues: Responsibility, Accountability, Competence, Integrity
A Mexican Start-Up: Border Buzz
Mr Muñoz says most Americans “don’t trust Mexicans very much”; but he credits Mr Anderson’s untypical background (he was born in Britain) for helping him to see beyond the racial stereotype and write a $500 cheque for Mr Muñoz the first time he met him: “The best $500 he’s ever spent.”
Key Words: Trust, Mexico, Drones
Trust Issues: Communication, Reputation, Motives
Mizuho Punishes Officials for Crime Loans as Chairman Quits
Mizuho Financial Group Inc. cut pay for President Yasuhiro Sato and said the chairman of its lending unit will step down after Japan’s third-biggest bank by market value failed to address loans made to crime groups. Takashi Tsukamoto will give up his role as chairman of Mizuho Bank Ltd. while keeping the post at the parent company, the Tokyo-based bank said in a statement today. He and Sato will forgo pay for six months and 52 other current and former executives will be penalized.
Key Words: Mizuho, CEO Pay, Penalties
Trust Issues: Responsibility, Transparency, Integrity, Ethics
Jeff Immelt: The Boss who is 'Horribly Self-Critical'
“I worry about the 300,000 employees, and I am being a good leader? Am I being good enough?”- Jeff Immelt
Key Words: GE, Trust
Trust Issues: Responsibility, Reputation
British Business Must Rebuild Public Trust – or Be Forced To
Several business leaders have recognised the problem, and are trying to do something about it. The most visible is Paul Polman, chief executive of Unilever, who believes that business needs to be reconnected to a sense of purpose beyond making money and getting bigger. Others are beginning to talk the same language.
Key Words: British business, Trust
Trust Issues: Responsibility, Communication, Reputation
Merkel Says Trust Must Be Restored after Reports of U.S. Spying
Declaring that “spying among friends is absolutely not OK,” German Chancellor Angela Merkel said Thursday that trust between her government and the Obama administration would need to be rebuilt after reports that U.S. intelligence agencies might have tapped her cellphone.
Key Words: Phone tapping, Merkel, Trust
Trust Issues: Accountability, Communication, Competence, Integrity, Ethics, Transparency, Reputation
Here are America’s Most Popular CEOs - As Ranked by Their Employees
Jamie Dimon is in a world of hurt. JPMorgan just got hit with a $13 billion settlement, which even for America's biggest bank is an unwelcome development. And yet, Dimon seems to be coming out alright -- there's little indication that he'll be forced out for presiding over a company that committed violation after violation. What's more, his employees don't think he's doing too badly either, giving him a 78 percent approval rating on the career Web site Glassdoor.com.
Key Words: CEO popularity, Glassdoor.com
Trust Issues: Accountability, Reputation
Memo to Workers: The Boss Is Watching
Blue-collar workers have always been kept on a tight leash, but there is a new level of surveillance available to bosses these days. Thanks to mobile devices and inexpensive monitoring software, managers can now know where workers are, eavesdrop on their phone calls, tell if a truck driver is wearing his seat belt and intervene if he is tailgating.
Key Words: Trust, Workplace Tracking
Trust Issues: Communication, Motives, Stakeholders, Integrity
Subterranean Capitalist Blues
Since the crisis, the regulatory burden on firms has shot up. Many of the new rules designed to make finance safer undefined raising capital levels, improving transparency in derivatives markets undefined are vital. Plenty are laudable: allowing “say on pay” votes for shareholders, for example. But the effect is the same: capital is again flowing to where frictions are lowest. As the constraints on regulated banks pile up, the global shadow-banking system grows: from $62 trillion in 2007 to $67 trillion in 2011.
Key Words: Regulation, Master Limited Partnerships
Trust Issues: Responsibility, Transparency, Regulation
Bursting at the Seams
After the Rana Plaza clothing factory near Dhaka collapsed in April, killing at least 1,100 people, the big Western clothing companies that have their garments run up in Bangladesh came under pressure to intervene more forcefully to improve safety and working conditions in the workshops they buy from…Meanwhile, the tragedies continue: earlier this month ten people died when another factory in the Bangladeshi capital, used by big foreign clothes retailers, went up in flames. Nevertheless, it has become clearer since Rana Plaza that the clothing firms have little option but to continue sending work to Bangladesh. It will remain Asia’s primary production base outside China for cheap clobber, with exports on track to rise by a fifth, to $24 billion, in the current fiscal year.
Key Words: Bangladesh, Clothing retail, Rana Plaza
Trust Issues: Responsibility, Accountability, Integrity, Benevolent Concern, Reputation, Stakeholders