Trust Digest 38 (February 10, 2014)


CVS Leading the Way on Trust and Corporate Integrity
The CVS action reminds us that being truly trustworthy requires that people and companies constantly examine their espoused beliefs, identify conflicts and find the courage to do the right thing. At the heart of most major trust violations are basic values conflicts that go unmanaged. This was true of the NASA Challenger and Columbia accidents (schedule and budget versus safety), the BP Gulf Oil spill (profit versus safety) and most of the behavior that led to the global financial crisis including, mortgage fraud and Libor manipulations (profit versus trust and transparency). So here’s to CVS for taking a bold move to towards integrity. People and companies are imperfect and struggle to always practice what they preach.
Key Words: Trust, Corporate Integrity, CVS
Trust Issues: Responsibility, Integrity, Benevolent Concern, Reputation, Motives

 
Transparency in the Haze: The Government Takes Steps towards More Openness
The [Chinese] Communist Party has not habitually encouraged public pressure on local officials as a means of implementing its policies. So its recent moves to include the public in enforcing environmental regulations have caused a flutter. Under new rules that took effect on January 1st the environment ministry has called on 15,000 firms to make real-time public disclosures of emissions of air pollutants, waste water and heavy metals.
Key Words: Environment, China, Transparency
Trust Issues: Accountability, Transparency, Regulation


California's New Year's Resolution: Stronger Whistleblower Protections
California is starting off 2014 with expanded protections for whistleblowers through amendments to California Labor Code Section 1102.5, California's existing whistleblower statute. California's amendments take effect as other states, including Minnesota, New York, and Pennsylvania, also enact measures designed to support and incentivize insiders who speak out about improper conduct. The trend is clear: to stand by those individuals who stand up to bad behavior.
Key Words: Whistleblowers, Regulation
Trust Issues: Transparency, Regulation


Introduction: Sustainability, Innovation and Profits
Since 2010, MIT Sloan Management Review and The Boston Consulting Group have been charting how organizations have tackled sustainability-related challenges undefined from resource scarcity to customer demands for healthier products undefined with innovations that create business value. This year, the trend toward profit continued: Key measures bumped up and showed that sustainability is paying off for a growing number of companies. Overall, the portion of respondents reporting profit from sustainability went up 23%, to 37% of the total. But perhaps most important: Nearly 50% of companies have changed their business models as a result of sustainability opportunities undefined a 20% jump over last year.
Key Words: Sustainability, Innovation, Profits
Trust Issues: Accountability, Integrity


The Morning Risk Report: Brazil’s Anti-Bribery Law Comes into Force
Brazil’s anti-bribery law, the Clean Company Act, comes into effect Wednesday. Signed into law in August 2013, the act confers liability on companies under Brazilian law for the first time; prior to its enactment, only individuals could be held liable for corruption. The law’s passage came on the heels of massive anti-corruption protests in the country and the sacking of several government ministers over graft allegations.
Key Words: Brazil, Anti-Corruption, Clean Company Act
Trust Issues: Accountability, Reputation, Regulation


Lambert Sets Out Bank Standards League Tables
A new banking standards board is set to create a league table of lenders’ ethical behaviour and staff qualifications, according to plans outlined by Sir Richard Lambert. Sir Richard, formerly head of the Confederation of British Industry and previously editor of the Financial Times, said on Monday his blueprint should help restore public trust in banks, after the damage done by the financial crisis and the long list of scandals regulators have uncovered in recent years.
Key Words: Banks
Trust Issues: Responsibility, Accountability, Transparency


A Positive Workplace Culture is Simply Good Business
While it may seem like commonsense to take good care of your employees so they will take good care of you, and the company, this simple rule of thumb is so often ignored by both large and small businesses today.
Key Words: Workplace Culture
Trust Issues: Responsibility, Stakeholders, Benevolent Concern


Banks Don't Trust Themselves
The point is that in coming up with a plan to create a new organisation to spur improved conduct on all banks, Lambert [leader of a new organisation monitoring standards in the UK banking industry] is responding to a request from the chairs of Barclays, HSBC, Lloyds, RBS, Santander, Standard Chartered and Nationwide… what is it about banks which means that, unlike supermarkets or pretty much any other industry, the banks don't believe competition provides them with enough of an incentive to behave well.
Key Words: Banks, Trust
Trust Issues: Accountability, Motives, Competence


Trust in the Internet is Crumbling
Better technology alone won't be enough to slow the erosion of trust in the Web. Government must step up. California earlier this month did its part by amending its pioneering breach notification law, the model for similar laws in 45 other states. These local regs require companies to notify clients whose information gets stolen.
Key Words: Trust, Internet
Trust Issues: Accountability, Transparency, Regulation


SAC Capital's Mathew Martoma Guilty of Insider Trading
A former manager at SAC Capital, a major US hedge fund founded by billionaire Steven Cohen, has been found guilty of insider trading.
Key Words: Corruption, Insider Trading
Trust Issues: Accountability, Regulation, Corruption


US to Jail Japanese Auto Execs over Price-fixing
Two former top executives of Japanese auto parts supplier Diamond Electric will be imprisoned for more than a year in the United States for price fixing, the Justice Department said Friday.
Key Words: Corruption, Automobile Industry
Trust Issues: Accountability, Regulation, Corruption


Chinese Official Made Job Plea to JPMorgan Chase Chief
The executive suites of JPMorgan Chase in Midtown Manhattan may seem a world away from the politically connected Chinese job applicants who landed on the bank’s payroll.
But a confidential email has emerged that shows a top Chinese regulator directly asked Jamie Dimon, the bank’s chief executive, for a “favor” to hire a young job applicant. The applicant, a family friend of the regulator, now works at JPMorgan.
Key Words: JPMorgan, Corruption
Trust Issues: Accountability, Ethics, Reputation


Professor's Blinkx Research That Caused Share Slump was 'Paid for by Investors’
Blinkx has demanded a regulatory investigation into a Harvard professor after he admitted that his highly critical research into the company had been paid for by investors.
Key Words: Blinkx, Corruption
Trust Issues: Responsibility, Integrity, Corruption


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