Politics & Legislation

Companies move beyond penning codes of conduct to auditing supply chain practices

There was a time, long past, that companies with heavy exposure to manufacturers in China, were content to draft supplier codes of conduct and human rights policies. But, today, global corporations are stepping up and getting very involved in monitoring and clamping down on rogue supply chain practices in Asia and beyond. Integral to many companies’ operations, supply chains in China are front page news, thanks to grim revelations about threats to U.S. public health and safety.

Companion proposal seeks employee disclosure of criminal violations of government contracts

New Federal Acquisition Regulations, effective Dec. 24, 2007, require companies receiving government contracts to have a written code of business ethics, to establish an employee business ethics and compliance training program, and an internal control system.

The changes apply to contractors working for the Defense Department, the General Services Administration, and the National Aeronautics and Space Administration, but generally exclude contracts below $5 million. And the rules don't apply to contracts for work done wholly outside the U.S., which some commentators have noted would exclude many contractors in Iraq and Afghanistan.

Bottom-line CR impact: Goldman Sachs, JPMorgan Chase demonstrate good governance and results, but other firms see fortunes destroyed

With the housing market implosion spurring writedowns and losses of more than $200 billion in subprime mortgages, other credit, and mortgage-backed securities since the beginning of 2007, and assuredly with more to come, many banks and brokerages are scurrying to revamp the way they manage risk as investors and other stakeholders are demanding answers about what went wrong.

Why things went awry varied from firm to firm, and financial services companies have weathered the crisis to date with divergent degrees of success—or failure.

A platform for engaging with NGOs when they elect to target companies’ operations

There is a growing worldwide movement afoot with no name, leader or headquarters. Found in every city, town and culture, it organizes from the bottom up, is extraordinarily creative, flies under the radar and includes NGOs, village-based organizations, foundations, institutes, citizen-based groups and more. This movement directly addresses social justice and environmental issues and is estimated to comprise more than 1 million organizations, populated by more than 100 million people. Collectively it constitutes the single biggest citizens’ movement.

A platform for engaging with NGOs when they elect to target companies’ operations

There is a growing worldwide movement afoot with no name, leader or headquarters. Found in every city, town and culture, it organizes from the bottom up, is extraordinarily creative, flies under the radar and includes NGOs, village-based organizations, foundations, institutes, citizen-based groups and more. This movement directly addresses social justice and environmental issues and is estimated to comprise more than 1 million organizations, populated by more than 100 million people. Collectively it constitutes the single biggest citizens’ movement.

Companies should fine-tune internal probes to make investigation more asset than liability

In litigating whistleblower retaliation claims, we have found that poorly conducted internal investigations can be extraordinarily helpful to plaintiffs and harmful to employers. In particular, investigations that are intended to discredit the concerned employee or cover up wrongdoing to protect the accused will, at a minimum, deprive the employer of an affirmative defense and can also provide circumstantial evidence of retaliatory intent. Employers, however, can take fairly simple measures to prevent an investigation from becoming more of a liability than an asset. Following are five tips for conducting an effective internal investigation.

Southwest CEO says cap-and-trade unnecessary

The problem of greenhouse gas (GHG) emissions and the resulting climate change is one that faces all of us—as individuals, but also as corporations. The backbone of the aviation industry is helping individuals go, see and do in a time-effective manner. If we don’t address the problem of GHG emissions, there will not be natural places to go, a world to see or things to do. We, as an industry, are highly motivated to preserve the natural world around us.

Southwest Airlines and the entire airline industry have a great story to tell about improving fuel efficiency and reducing GHG emissions.

Proposals look to increase transparency and limit conflicts of interest in housing market

The mortgage crisis is rapidly becoming an issue for the 2008 proxy season, as activists press for more disclosure on mortgage practices and risks.

Presidential wannabes: No carbon copies on environmental, corporate-responsibility platforms

What if you were picking 2008 presidential candidates based solely on their corporate sustainability, governance, compliance, or CSR platforms? Then you might believe politicians really had firm convictions that won’t buckle under well-applied political pressure. But go ahead and read on anyway.

Showing the bigger picture—including pay-for-performance connections—in compensation reports

It is easy to point to bad examples of executive compensation practices and disclosure. But where are the good examples? The 2007 proxy season unveiled the first executive compensation reports under sweeping new disclosure regulations for publicly traded companies. Meanwhile, three key producers and users of those reports—corporate executives, boards and investors—are still at an early stage in developing a market consensus on best practices. Here is how we believe best practices should—and will—evolve.