Monthly Archives: August 2008 - Page 2

Moderate Risk Assessment for Cemex

Cemex has comprehensive policies in regard to its corporate responsibility commitments. In regard to its practices, Cemex has come up against some of its stakeholders, particularly in regards to the locales of proposed plant operations. Furthermore, the company has faced several union disputes and appears to continue its process of layoffs and plant closures. Nonetheless, evidence that the company participates in negotiations with its trade unions suggests a concerted effort to avoid strike activity.

The company is facing a likely nationalization of its operations in Venezuela due largely to the ideosynchrocies of the country’s president, Hugo Chavez. The jury remains out with respect to the underlying claims of the Chavez government with respect to the company’s business practices used to justify the takeover. Read more »

Corruption in America: Business and Politics as Usual

Corporate contributor at the ConventionSome years ago, I had a conversation with an FBI agent at a cocktail party. In the course of our conversation, I asked the agent what the difference was between a bribe paid to an elected official and a campaign contribution. He didn’t know the answer. I have thought about this discussion many times over the years. Watching the events unfold at both the Democrat and Republican conventions in the coming weeks, I am reminded that this question remains not only unanswered but unasked.

What is the difference between a bribe and a campaign contribution?

Election lawyers, lobbyists and politicians all have their own pat answers but none of their responses get to the problem with politics and campaign finance in America. Moreover, the duplicity in this process remains the great hypocrisy in American politics today and for the foreseeable future.

Black’s Law Dictionary defines a bribe as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in discharge of a public or legal duty. The bribe is the gift bestowed to influence the recipient’s conduct. It may be any money, good, right in action, property, preferment, privilege, emolument, object of value, advantage, or merely a promise or undertaking to induce or influence the action, vote, or influence of a person in an official or public capacity.

Wikipedia oddly has no definition for the term political contribution. However, the search produces a definition for fundraising which is defined as “the process of soliciting and gathering money or other gifts in-kind, by requesting donations from individuals, businesses, charitable foundations, or governmental agencies. Although fundraising typically refers to efforts to gather funds for non-profit organizations, it is sometimes used to refer to the identification and solicitation of investors or other sources of capital for-profit enterprises.”

These definitions smell suspiciously similar.

In a recent article in the New York TImes, it was noted that “[a]t Invesco Field, the site of Barak Obama’s acceptance speech for the Democrat nomination, “Mr. Obama would allocate his skyboxes to “staff, supporters, family members and friends.” Among those getting skyboxes are Quest, Comcast, Xcel Energy and Tom Golisano, the New York Republican who recently gave $1 million to the Denver host committee.” [1. New York Times, August 22, 2008] In addition, the following corporate sponsors are participating in a range of events:

A.T.&T. and Genworth are among the sponsors of Blue Night in Denver, an event Sunday honoring the Blue Dog Coalition, a group of fiscally conservative Democratic House members.
Corporations and other donors are being solicited to buy “sponsorship packages” for events costing $25,000 to $50,000 and honoring the New Democrat Coalition, a group of moderate Democrats.
Donors to the New Democrat event will get V.I.P. tickets and access to the exclusive area, with amenities, for a party at Union Station, a Rockies game at Coors Field and a jazz brunch at “an incredible private residence” in Denver, according to the invitation.
Visa and U.S. Bank are also sponsoring a reception honoring the freshman Congressional class.
Of course the Democrats don’t have a lock on this sort of corruption nor is this phenomena new. Certainly in our contemporary memory, corporations have sponsored and heavily participated in the party conventions at many levels. Despite campaign finance reforms that have sought to tighten up the flow of political money, the conventions remain veritable sink holes of corporate cash into the political influence process in America.

What differentiates the American campaign finance system with backroom payoffs of politicians in third world countries is really only a matter of style. We have glamorized, regulated and legitimized the payoff system in America so that it has become the accepted norm. By comparison, smoking marijuana is illgeal and people are jailed for using and possessing the substance. However, alcohol is legal, it’s taxed and regulated and many more people die and suffer debilitating injuries and disease from its use. The later substance is commonly accepted in our society and is treated as a higher form of substance abuse. Social norms not objective consequences drive this differentiation.

Corporate influence through the expenditure of large sums of cashs may anger ordinary folk witnessing such activity but nothing more comes of such corrupting activities. However, like bribery and corruption in its more banal forms, it has a dramatic affect on the lives of people throughout the world. As noted by Transparency International:

Political corruption affects us all. We elect politicians and political parties expecting them to act in the public interest. By electing them we give them access to public resources and the power to take decisions that impact on our lives. Given this privileged position, immense damage can be inflicted by politicians or parties acting out of greed, or in the service of those who bankroll their ascent to power. It is not surprising that people the world over are demanding absolute probity of their political leaders: citizens in three out of four countries polled by TI and Gallup International in 2003 and in 2004 singled out political parties as the institution they perceived as most corrupt.

While it is unlikely that there will be any dramatic transformation in the way corporations get to influence politics in America, bringing a measure of transparency or openness to the process is critical. Every effort must be made to reveal both direct and indirect contributions to political candidates and parties and related causes. Currently, this is not happening in the U.S. We continue to convince ourselves that pigs at a trough are really socialites at a Southampton tea party. This does not bode well for humanity.

Five Best Websites for Labor and Human Rights Research

Today, I would like to share with you five of the best web sites for researchers attempting to undertake human rights research in the context of business analysis. As more attention is paid to non-financial factors in analyzing public companies from an investor perspective, the need for better data and analysis becomes critical. The following sources provide researchers with valuable information for conducting this sort of research.

Corp Watch

(www.corpwatch.org)

Like its name suggests, Corp Watch is a global watchdog group for corporate activity around the world and is an excellent source for researching global companies or the environmental or social impacts of a particular industry. Information found on the site is based on news, as well as first-hand accounts from people who are directly affected by corporate-led globalization and others fighting for corporate accountability, human rights, social and environmental justice. The site provides analysis, and action alerts in addition to research tools for conducting on-line research.

The Business and Human Rights Resource Centre

(www.business-humanrights.org)

This source is probably the most comprehensive in terms of the scope of companies (over 4000 companies in 180+ countries) the website tracks. The site is updated hourly with both positive and negative accounts of company human rights impacts and information is gleaned from a number of sources including news accounts, regional researchers, international advisers, academic partners, and a wide range of reports published by NGOs, as well as governmental and international organizations. The Centre seeks responses to allegations from the companies in question in an attempt to provide balanced reporting and when possible publishes information in both English and non-English languages. “Custom Alerts” also help track news and reports about specific companies and subjects.

SoliComm

(www.solicomm.net/)

SoliComm is a labor movement search engine and a communication system that searches only union and union-related sites worldwide. Registration is required to search the site-accessed database. The site also offers information in several languages and includes links to the International Trade Union Confederation (http://www.ituc-csi.org/) and Global Unions (http://www.global-unions.org/) websites.

United Nations Global Compact Participant Search

www.unglobalcompact.org/ParticipantsAndStakeholders/)

The UN Global Compact is a voluntary framework for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labor, the environment and anti-corruption. Rather than acting as a regulatory instrument, the Compact relies on the public accountability and transparency of companies in regards to labor and civil society in pursuing the principles upon which the Global Compact is based. The site’s participatory search function enables one to search voluntary signatories (i.e., companies and countries) to the Compact including links to companies’ annual Communications on Progress (COP). Indicators reveal whether a participant has failed to develop a COP by the relevant deadline or has not yet provided a link to a COP. Since its official launch in 2000, the initiative has grown to more than 5600 participants, including over 4300 businesses in 120 countries around the world.
International Labor Rights Forum

(www.laborrights.org)

ILRF is an advocacy organization dedicated to achieving just and humane treatment for workers worldwide. The website highlights some of the most egregious labor rights abuses around the world by companies such as Firestone, Cargill & ADM, Wal-Mart, and Nestlé. Through strategic partnerships with NGOs around the world, the ILRF seeks to disclose labor rights abuses and raise public awareness about international labor issues through campaigns around child labor, working women’s rights, sweatshops, and violence against trade unions.

All of these sites offer ways to stay informed about the issues through various subscription services (updates, news, action alerts, newsletters etc.). If you have resources you would like to share, we invite you to do so by commenting to this post.

Human Rights This Week

Here is our weekly roundup of stories we have found, focusing on human rights around the world. Read more »

Colombia Free Trade: The Brat and the Psycho Soccer Mom

It’s August here in Washington during a presidential election year. Not much is getting accomplished. Zip, nada.

However, quivering in the empty halls of Congress is the Colombia-U.S. Free trade Agreement, full of hope for passage, its anxious parents in Bogota and Washington twisting arms like an angry mom at a kids soccer game. “Let him play coach. Let him play!” But Johnny, or perhaps we should call him Juanito, has been a very bad boy. Like the kid who plays too rough on the field, tripping other players, going out of bounds and denying any foul, Colombia wants to play but certainly doesn’t deserve the opportunity. Read more »