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Financial News
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Wednesday, 05 September 2007 |
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Corpobligation: CEO's or corporate leaders in the for-profit sector are receiving salaries over 30 times higher than in the non-profit sector
- Sarah Anderson, Christian Science Monitor has written a book and article that states:
- "Overall, the 20 highest-paid executives of publicly traded corporations make, on average, 38 times more than the country's
20 highest-paid nonprofit leaders."
- Salaries are supposed to motivate behaviour and theoretically compensate
employees for their contribution to a business, but how can salaries over 100 times those of the average employee be justified?
- Limits on CEO salaries could be based on reducing corporate tax deductions based on a multiple that relates CEO salaries to the average employee's earnings.
- Where is the corporate obligation? Corporate directors have an obligation to shareholders to look after their best interest. Can they justify astronomic salaries?
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Company News
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Tuesday, 28 August 2007 |
Corpobligation.com: Battling PR campaigns over the future of drug access, production and patents
- A fight over the patentability of a cancer drug (Glivic, Gleevic, Imatinib) produced by Novartis has led to a wider debate around patents over drugs

- Patents are Good: encourage innovation and risk taking, by preserving long term profits
- Patents are Bad: prevent access to drugs because the patent holder charges more than generic drug makes would charge
- Novartis challenged Indian patent law for failing to provide sufficient protection from the competition under WTO rules
- Groups like Medicins Sans Frontieres (Doctors without Borders) disagreed arguing that drug access was vital for worldwide health, especially in developing countries
- Corporate Obligation? Did Novartis do the right thing strategically? They donate many treatments in India (99% according to their site) of Glivic and they have been upfront with their position; yet, a worldwide coalition formed to attack them. How can NGOs and governments create incentives to drive drug innovation?
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Opinion
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Friday, 24 August 2007 |
Corporation Obligation: CSR is ripe for satire - can it change behavior?
A few years ago, the Yes Men made a film that shook the halls of power...or at least the reputations of various media outlets and corporate reputations.
The Yes Men are set on "impersonating big-time criminals in order to publicly humiliate them." Some recent "hijinks" include a mock WTO Proposal for slavery in Africa and a Keynote address at a major Canadian oil company conference:
"We need something like whales, but infinitely more abundant," said
"NPC rep" "Shepard Wolff" (actually Andy Bichlbaum of the Yes Men),
before describing the technology used to render human flesh into a new
Exxon oil product called Vivoleum. 3-D animations of the process
brought it to life.
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Human Rights News
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Tuesday, 21 August 2007 |
Corpobligation action: TNCs should pressure suppliers, but should not abandon them
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China Labour Watch released a detailed report about the
labour abuses of 8 Chinese toy companies.
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Should there be a recall of the products? Or compensation to
workers?
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Ironically, Mattel recalled millions of products because of
the potential of lead paint to harm children in the United States;
yet, in cases where workers have certainly been harmed, the odds of
a human rights related recall are low. But what about a human rights
return action by consumers?
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The report provides excellent recommendations including: do not
abandon supplier factories, but rather commit to them and be
resolute in making sure that violations are corrected. Not
only take responsibility for their suppliers’ legal infractions,
but go a step further and strive to actively improve its workers’
lives.
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Spelling note: labor (USA) labour (Rest of english world).
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How does this relate to corporate obligation? Labour
conditions are possibly the area where corporations can take the
largest role, especially, when they are prompted by NGOs like China
Labor Watch.
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Question: When will human rights abuse of workers be as
important as potential harm to children?
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uninews
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Friday, 17 August 2007 |
Corpobligation: Governments contribute funding to universities,
should they vet appointments by partisan terms? Have funding
realities destroyed academic independence?
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Not wanting to be pedantic, of course academic independence
has been undermined by financial realities: universities sign
exclusive agreements with Coke, drug companies name buildings,
professors have to seek their own research funding from companies
and the government.
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UBC was seeking to hire a Vice-President of External and
Community Relations: “Former Tory MP John Reynolds was asked
whether the appointment of Liberal MP Stephen Owen as vice president
would be a “problem” for the university.”
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Link Article in the Globe and Mail
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Where does corporate obligation come in? Universities have obligations to at the least ensure academic independence. It is a little frightening to see universities spending funds on lobbying.
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Isn't UBC just acting like any rational actor? Perhaps, the
mistake was to get caught? See related
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uninews
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Wednesday, 15 August 2007 |
Corpobligation: Universities losing face?
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How should universities screen donations?
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“Naming a noteworthy building or a street
after an individual is one of the most visible ways society can
recognize outstanding achievements that contribute to the public
good. Institutions
like hospitals and universities make similar gestures when they name
wings or programs after individuals whose career dedication or
financial contributions leave a legacy that benefits future
generations.”
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“...have
we really come to the point where even a university’s good
name is up for sale at the right price like some “rebranded”
hockey arena?”
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See Marc Spooner's article,
“Universities losing face: Sign of the times?”
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Where does corporate obligation come in? Universities are
often faced with the opportunity to receive “donations”
from corporations, which seek to bolster their brand and invest in
basic research and training for their future employees.
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Question: When should universities take or refuse a donation?
Is any money too dirty? See related
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Legal News
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Friday, 10 August 2007 |
CO: Indonesia has passed legislation making CSR mandatory for
resource firms, now it has to figure out what that actually means
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The Jakarta Post reported the
passage of the legislation
on July 21, 2007
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Article 74 is obviously vague but it shows the government's intention to enforce CSR despite corporate objections. At a minimum, Art. 74 seems to require that companies put in place programs that fulfill social and environmental responsibilities. If the government adopted a reasonableness standard, the minimum standard could be based on best practices and comparative standards from other countries.
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See the reaction of the Wall Street Journal and the surprising
acceptance by Indonesia business groups below
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The question is what
is Canada waiting for before it actually adopts the CSR Roundtables
Recommendations?
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