1. Banking and finance
Reputation recovery target number one
Wal-Mart's supply chain
Get sustainable and grow the bottom line
Ethical Corporation Awards
Responsible business recognition
June 2010 www.ethicalcorp.com
India gets the message
Business-led sustainability in a fast-growing economy

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Other heavyweight speakers include:
UK Serious Fraud Office US Department of Justice
Robert Amaee Mark Mendelsohn
Head of Domain Deputy Chief, Fraud Section
AstraZeneca Tyco International
Glenn Engelmann Matthew Tanzer
General Counsel VP & Chief Compliance Counsel
Weatherford Baker Hughes
William Jacobson Jay Martin
VP, Co-General Counsel & Chief Compliance Officer &
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I’ve seldom seen a conference run so smoothly, and the caliber of the attendees and
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3. Ethical Corporation • June 2010 Contents 3
Contents
4 What’s on the web 20 CRWatch
Simple sanitation
4 Ethical Corporation research
5 Letter from the editors
22 Ethical Corporation Awards
The best of the best
EthicsWatch
6 BP oil spill
Long-term consequences 26 Brendan May
Handling NGOs
7 New UK government
Coalition politics
8 Cotton from Uzbekistan Country briefing: India
Child labour still there
27 A culture of giving
9 UK anti-corruption laws
A welcome crackdown 29 Responsible pioneers lead the pack
33 Government getting tough
35 Civil society’s crucial role
10 Mallen Baker p27 A developing ethical-entrepreneur mix
Agreement is better than argument
Strategy and management
36 Bhopal
Briefing: banks and finance Union Carbide’s toxic legacy
12 Kicking against reform 40 Wal-Mart
14 Leading institutions regain the high Supply chain revolution?
ground
18 Campaigners keep up the pressure
44 Peter Knight
Anti-obesity starts at home
p11 Banking sector rebound?
Review
45 Academic news
46 Report: Barclays
47 Report: BAE Systems
48 New books
49 People on the move
50 The last word
We need to change how we consume,
p36 Bhopal, 25 years on says Jon Entine

4. 4 EthicalCorp.com Ethical Corporation • June 2010
What’s on the web
There’s more comment and analysis available online
In an online opinion story, Carbon Smart’s Esther rather than helps. In some circumstances, Baker directors will have to explain how their companies
Rodriguez argues there is now little argument that argues, gut instinct may in fact be more accurate are to deliver prosperity without growth.
sustainability is a buzzword for corporate perform- than any other test of what makes a “good”
ance. It is, she suggests, now an important company. The Ethical Corporation team has continued to
benchmark on which investment decisions are But, what to look out for? Baker’s view is that interview leading responsible business figures.
based. Published sustainability data allows anyone can cobble together a programme and call China editor Paul French recently spoke to Suzhou-
investors to assess the extent to which a company is it CSR. It is, however, companies with integrity based consultant Bill Dodson about the persistent
“future proofed”, how much it is anticipating and embedded in corporate culture that will be kick-back culture in China’s manufacturing supply
addressing potential risk. consistent when faced with business choices. chain. French and Dodson discussed how this works
And following the lead of companies such as and what foreign companies can do to limit their
Novo Nordisk, integrated reporting – where a Making a company grow while remaining exposure.
company’s green credentials are seamlessly integrated sustainable is a big challenge, says Howard Paul French also spoke to Nick Gerritsen from
with its financial performance – is gaining Sharman, managing director of ERD Associates New Zealand companies Carbonscape and
momentum, Rodriguez says. It is, she concludes, time and a senior consultant for AdvanceAid. There Aquaflow about developing green technology
for companies to engage with stakeholders and move is a growing number of people, he says, who projects in China. Gerritsen discussed how to
sustainability reporting fully into the mainstream as a consider this to be the underlying problem that microwave charcoal for carbon capture and how
method of determining business performance. all companies are going to have to address before to turn algae from pollutant discharge into fuel.
long. The conundrum is that all of our collective And Ethical Corporation founder Toby Webb
In an online-only column, Mallen Baker ponders financial and social capital is built on a foundation spoke with global brewer SABMiller’s head of
the problems of spotting what makes a responsible of environmental capital, and this capital is being sustainable development Andy Wales about water
business and how to spot it. He says that sometimes used up at an entirely unsustainable rate. Before use and planning, engaging suppliers and how
all the information now available gets in the way long, Sharman argues, corporate responsibility to use socio-economic impact research. I
Research review
Corporate responsibility should respond to local circumstances, Ethical Corporation’s research finds
thical Corporation has been exploring how needed at the local level and how companies are consume the majority of your time? The results
E companies can successfully adapt their corporate
responsibility and sustainability strategies to local
adapting CR strategies to the local environment.
After surveying four countries, it is already
show that how CR professionals fill their schedules
differs significantly.
business environments. evident that sustainability in practice differs Sustainable business opportunities vary as
Each month, we analyse one country in-depth, substantially, depending on the local context. well.German companies are vying for leadership
and survey local professionals. Take core responsibilities, for example. One in green technology and energy, and in positioning
Our analysts have been asking what skills are survey question asks: what three activities their company as a sustainability leader.
In South Africa, opportunistic companies are
What three activities consume the majority of your time? addressing energy efficiency, water management
and education/technical skill development.
Community socio-economic support, water
Germany China management and education are at the top
prospects of Indian sustainability professionals.
52% reporting 50% partnerships and collaboration Professionals operating in China prioritise
42% performance measurement opportunities through collaboration with
33% energy efficiency
stakeholders, specifically civil society and with
38% partnerships and collaboration 33% performance management leading corporations. I
A new country briefing will be published each month
India South Africa and also posted online at www.ethicalcorp.com/briefings.
For more information about Ethical Corporation
41% community engagement 52% reporting
reports and bespoke research, contact Pam Muckosy,
33% reporting 33% community engagement head of research, at pam.muckosy@ethicalcorp.com
28% employee engagement 28% performance measurement or +44(0) 20 7375 7554, or browse our reports at
www.ethicalcorp.com/reports.

5. Ethical Corporation • June 2010 From the editors 5
Welcome to the June 2010 issue
his month, we’re analysing our usual wide variety of respon- Our country briefing this month is on India, the second largest
T sible business stories.
First up, the biggest event of the year will undoubtedly be the
emerging market. The country has come a long way on the
global stage in the last 15 years, from protectionism to much
ongoing oil spill in the Gulf of Mexico. As Bob Moser points out on greater openness. As our resident India expert Oliver Balch,
p6, and as BP’s chief executive Tony Hayward has admitted, the who is writing a book on the country, points out in the
event will change forever how the offshore oil industry, at least in nine-page briefing starting on p27: “The notion of giving back to
the US, is regulated and how risks are assessed. It’s too early to society is deeply engrained in Indian corporate culture. So too is
judge the long term ramifications for the companies involved, the ability to improvise and innovate in the face of challenging
particularly BP but it will be interesting to see how much political
, circumstances.”
donations from company coffers and their political action commit- Also in this month’s issue, we
tees rise over the next year. Overall, the awful events may provide look at what was learned from the
a fillip for offshore wind in particular. disastrous poisonous gas leak at
Unethical Uzbek cotton and how to track it and remove it from Union Carbide’s plant in Bhopal 25
the supply chain remains an important issue for many European years ago. And we focus on how
and US retailers in 2010. We’re delving back into the story to look at Wal-Mart’s work with suppliers
current progress on p8. Brand boycotts are all very well, but when may revolutionise how many of
they fail to deliver political change, the limits of corporate action them operate.
are revealed all too clearly. We’ve also got our round up of
We’re also looking at trust in banking in this issue. Perhaps a the latest books on corporate
modern oxymoron for almost everyone, we wanted to find out responsibility, reviews of the BAE
what plans, if any, the bigger banks have to try and rebuild Systems and Barclays sustainability
trust, and what they can learn from smaller finance firms. Our reports, and our usual people
specialist finance writer Oliver Wagg finds out from p11. The moves on p49.
picture appears mixed at best. Many banks appear to have their And if you’re still stuck for a good new read, I’d particularly
heads, unfortunately, still in the sand. What the politicians do next, recommend Jeffrey Hollender ’s new book The Responsibility
should they have the courage, may come as deserved shock Revolution.
therapy. Enjoy the June issue, and please email me if you have any
This month we’re also publishing some analysis of who came comments or suggestions on how we can improve at
top in the first Ethical Corporation Awards. Congratulations to the toby.webb@ethicalcorp.com.
winners, which include PepsiCo, Timberland, Continental
Clothing, F&C Investments, Greenpeace, Carlson, GSK, Interface
and ProduceWorld.
Our greenwasher of the year award went to Sinar Mas, owner
of Asia Pulp and Paper, a company that finally appears to be
receiving its comeuppance as brands such as Nestlé belatedly
cancel contracts after pressure from campaigners. Starting on p22 Toby Webb
you can see why our worthy winners won. Founding editor and publisher
Founding editor & publisher: Toby Webb Contributors: Mallen Baker, Oliver Balch, Jeni Bauser,
toby.webb@ethicalcorp.com Rajesh Chhabara, Zoë Cokeliss, Peter Davis, Jon Entine,
Commissioning & production editor: Ian Welsh Aleksandra Dobkowski-Joy, Stephen Gardner, Miriam
ian.welsh@ethicalcorp.com Heale, Mark Hodge, Amita Joseph, Peter Knight, Gopa
Kumar, Bob Moser, Ben Schiller, Oliver Wagg
Head of research: Pam Muckosy
pam.muckosy@ethicalcorp.com
Business Intelligence for Sustainability Sub editors: Sarah Burton, Gareth Overton
Contributing editor: Brendan May
7-9 Fashion St, London E1 6PX UK People on the move Advertising and sales: Andrew Bold Design: Alex Chilton Design Ltd
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