ECM Feb_Layout 1 30/01/2013 17:18 Page 1 Corporate ownership Alternatives that work Climate change Post Doha, what now? Cradle-to-cradle The Desso approach February 2013 www.ethicalcorp.com Extractive sector ethics The security and human rights challenge
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ECM Feb_Layout 1 30/01/2013 17:19 Page 3 Ethical Corporation • February 2013 Contents 3 Contents 5 From the editor EthicsWatch 6 Energy Do shale gas economics add up? 7 Cashflow management The squeezed middle 8 Anti-corruption Bribes still popular 9 Gold standard Conflict free 10 Mallen Baker p19 New venue, same problem p45 On your bike 2013 speculation 11 Extractive sector 24 Sustainable energy Strategy and management Human rights underground Hong Kong’s inexhaustible supply 33 Desso Innovative sustainability 16 CRwatch 26 Cheat sheet 36 Essay Garment industry waste All the info you need What board directors need to do 18 Peter Knight 28 NGOwatch Welcome home! Drones v poachers 40 China column Paul French on Chinese sustainable business drivers 19 Climate change 29 Corporate ownership Out of time? There are alternatives Review 41 Academic news 42 Report: Co-operative Group 43 Report: Volvo 44 New books People 45 Commuting It’s easier by bike COVER IMAGE: SHOTBYDAVE/ISTOCKPHOTO.COM 48 People on the move 50 Toby Webb Do what good communicators do p11 Human rights abuses still abound p29 Brotherly profit
ECM Feb_Layout 1 30/01/2013 17:19 Page 05/12/2012 13:51 Page 1 4 4TH ANNUAL The Responsible Business Awards 2013 V Are you the next winner? Gain recognition as a global leader in Corporate Sustainability and boost your reputation for ethical best practice EN TER your comp 21 any b st Ma y 2013 rch ! Last year’s winners included: # Heathrow # UPM # Deutsche Telekom # National Australia Bank # Timberland # Credit 360 # Marks & Spencer # Compartamos Banco Find more information and download an entry form > www.ethicalcorp.com/awards
ECM Feb_Layout 1 30/01/2013 17:19 Page 5 Ethical Corporation • February 2013 From the editor 5 Welcome to the February 2013 issue t’s great to be back after our winter break. Kicking off 2013, our ownership structures compares to more traditional companies. I cover story this time reflects on how the extractive sector’s human rights record has improved over the first 12 years of the The results are interesting. In the financial sector – which has been taking a trust battering recently – over 20 to 25 years, Voluntary Principles on Security and Human Rights. The violent money invested in organisations with mutual ownership structures clashes at South African mines hit the headlines in late 2012, but typically out-competes traditional funds by 25%. UK top-end these were not isolated incidents. In the past few months there has high street chain John Lewis is owned by its employees, who been similar violence at mines in Peru, Bolivia, Guatemala, Ghana all shared in £165m divided up and others. The spark for these incidents is often the proximity from total profits of £354m in of local communities, and a heavy-handed attitude towards 2012. And 13.5 million people in the protesting on the part of some facilities’ management, or over- UK are now members of some sort of reaction to relatively minor incidents. cooperative. So they must be doing This is despite, of course, the real and definite progress made by something right. many of the big international mining companies, not least through Sticking to this theme, in our review the provisions of the voluntary principles. As is so often the case, section we consider the latest report hard work through multistakeholder initiatives, and genuine from the Co-operative Group, the determination to make progress is hard to translate on the ground, UK’s biggest cooperative, alongside car where older attitudes prevail. manufacturer Volvo’s latest offering. Elsewhere this issue, we reflect on the implications of the recent And as usual we also have all the latest United Nations climate summit in Doha. There is a growing sense, analysis and comment from our as we reflected in our review of 2012 in December, that we are regular columnists. rapidly moving from a question of if we will need to deal with the Please do let us know if there any specific issues you’d like us implications of climate change to how we are going to avoid the to cover this year. Upcoming stories are regularly updated on worst impacts. Ethicalcorp.com. I Even in the face of the strong – albeit anecdotal – experience of so many violent or extreme weather events over the past couple of years, governments are incapable of taking the leadership posi- tions required. NGOs and smart, progressive companies can help show the way, of course, but this is an instance where heads of government need to get beyond politics and do their jobs. There are still opportunities for sustainable growth, but these need to be grabbed, and now. With corporate reputation generally so low, we’ve been consid- Ian Welsh ering how the performance of organisations with alternative Editor Publisher: Toby Webb Contributors: Rob Bailes, Mallen Baker, Oliver Balch, firstname.lastname@example.org Jeni Bauser Yaghoubi, Aleksandra Dobkowski-Joy, Editor: Ian Welsh Paul French, Stephen Gardner, David Grayson, email@example.com Andrew Kakabadse, Peter Knight, Lisa Leath, Claire Manuel, Eric Marx, Sam Phipps, Rikki Stancich, Contributing editor: Mallen Baker Toby Webb Sub editors: Sarah Burton, Gareth Overton Business Intelligence for Sustainability People on the move Advertising and sales: Oliver Bamford Design: Alex Chilton Design firstname.lastname@example.org email@example.com | +44 (0) 20 7375 7518 firstname.lastname@example.org | +44 (0) 20 7042 6340 7-9 Fashion St, London E1 6PX UK Subscriptions: +44 (0) 20 7375 7575 Editorial: +44 (0) 20 7375 7213 Subscriptions Corporate subscription Ethical Corporation is printed by Four Way Print Ltd on Green Coat plus paper, which ISSN 1758-1575 email@example.com | +44 (0) 20 7375 7575 packages from £495 comprises 80% recycled and 20% Forest Stewardship Council certified source material.