Trust Digest 42 (March 11, 2014)


The 'CVS Effect' in Effect: Apple, Disney and Chipotle Step Up
Five major brands have just made news for decisions that buck the bottom-line mantra. Could this be momentum for the "CVS Effect"? Take a look and see if you agree. And note too how brands are joining with allies on these issues, while one brand — Chipotle — is potentially breaking major new ground.
Key Words: Apple, Chipotle, Disney, Safeway, Responsibility, Integrity
Trust Issues: Responsibility, Integrity, Transparency, Reputation, Stewardship


Is Apple Cleaning up its Act on Labour Rights?
Almost four years on, have electronics suppliers in the developing world cleaned up their act? Peter McAllister, director of the Ethical Trading Initiative, says: "We are seeing some positive signs in China, such as increases in the minimum wage as a result of worker protests and chronic labour shortages. But the labour rights challenges should not be underestimated. [We see] high levels of bribery and corruption, audit fraud and a poor health and safety culture."
Key Words: Apple, Supply chains
Trust Issues: Responsibility, Ethics


US Intelligence Group Wants Software to Decide Who is Trustworthy
In the security business one can never have enough trust. And one government group now wants your help in developing a software program that could help decide who's trustworthy and who isn't. A software competition announced recently by the Intelligence Advanced Research Project Activity (IARPA) group is looking to the public to develop what it calls an "algorithm that identifies and extracts such signals from data recorded while volunteers engaged in various types of trust activities."
Key Words: Security Business, Algorithms
Trust Issues: Motives, Stakeholders


Trust Issue Looms Large for Tech Companies Capitalizing on Personal Data
As tech companies increasingly rely on analyzing and selling user data to boost revenue, trust is emerging as one of the defining issues of the year for the IT sector. Tech vendors say that by collecting user data, they can offer better, personalized services. However, user wariness about exposing personal data may throw a wrench in plans for such new services, which are fueling growth not only for tech companies but, industry insiders say, the larger global economy as well.
Key Words: Tech companies, Security, Privacy
Trust Issues: Accountability, Communication, Regulation


Oil and Gas Industry Using Tired Arguments in Fighting Transparency
The Dodd-Frank Financial Reform Act, enacted in 2010, included a provision requiring oil, gas, and mining companies to disclose the payments they make to governments around the world. Access to this information would help investors assess and mitigate risk, empower citizens to hold their governments accountable for spending revenues responsibly, and help combat the corruption and waste to which extractive projects in developing countries are especially vulnerable. Unfortunately, the oil industry in the United States, led by its lobbying groups the American Petroleum Institute and the U.S. Chamber of Commerce, has used multiple tactics to try to undermine this law, known as Section 1504.
Key Words: Oil & Gas, Transparency
Trust Issues: Transparency, Regulation


Paying Bribes: How Not to Win Business
Next month, Nazir Karigar will be sentenced in connection with an international bribery case. Last August, a Canadian court convicted him of paying bribes to secure a contract with Air India on behalf of the Canadian company Cryptometrics. Karigar is the first individual to be convicted under the Corruption of Foreign Public Officials Act (CFPOA), the Canadian equivalent of the US Foreign Corrupt Practices Act (FCPA). The case therefore makes legal history: it also illustrates the hazards of making the wrong assumptions on how to do business in India.
Key Words: Corruption, India, Bribery
Trust Issues: Corruption


Glaxo CEO’s Bonus Reduced by China Bribery Investigation
GlaxoSmithKline Plc (GSK) Chief Executive Officer Andrew Witty received a bonus less than the maximum possible because of a Chinese investigation into bribery allegations against the company.
Key Words: GlaxoSmithKline, Executive Pay
Trust Issues: Accountability


Goldman Fraudster Fab Tourre to Teach Honors Class
Former Goldman Sachs banker and securities scammer Fabrice Tourre has landed a new gig: teaching an honors economics class at the prestigious University of Chicago.
Key Words: Rogue Trader, Fab Tourre, Goldman Sachs
Trust Issues: Integrity, Corruption


Siemens Banned From Bidding in Brazil on Suspected Bribery
Siemens AG (SIE), Europe’s biggest engineering company, was banned from bidding on federal contracts in Brazil because of suspected kickback payments.
Key Words: Brazil, Bribery, Corruption
Trust Issues: Corruption


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