Business News

World Bank updating social policies

The World Bank is in the process of reviewing, updating and strengthening its environmental and social policies that serve to protect vulnerable people and the environment in World Bank investment projects. On July 1, 2015, the Committee on Development Effectiveness (CODE) of the World Bank’s Board of Executive Directors authorized a third phase of consultations on a revised (second) draft of the proposed Environmental and Social Framework and requested the preparation of an accompanying document to outline certain issues that require further attention. The text of the entire revised framework, as well as the issue summary, was made publicly available today. Consultations will begin immediately. “This revised draft is the result of a robust – in fact, an unprecedented – consultation with World Bank shareholders and stakeholders,” said Hartwig Schafer, World Bank Vice President for Operational Policy and Country Services. “The level of engagement and the caliber of feedback has been excellent, which shows in the revised draft. The proposed Environmental and Social Framework would substantially expand the scope of coverage from our current policy, and would help to ensure that project risk is managed more consistently and effectively.” The proposed framework presents a risk- and impact-based approach to protecting the environment and people, and features a strong emphasis on risk management and achieving sustainable development outcomes over the life of projects; broadened social assessment and management of environmental and social risks; greater clarity of the roles and responsibilities of the World Bank and Borrower; increased harmonization with development partners and recognized good international practices; and renewed and strengthened partnerships with borrowers. “We are well on our way to having ‘leading edge’ environmental and social standards that are clear, stronger and more comprehensive than our current safeguards, and that support our goals of ending poverty and promoting shared prosperity,” said […]

Nestlé’s crisis in India

Nestlé has handled a product safety scare stunningly badly, appearing to have learnt little from its multinational experience over many decades Nestlé has found itself in hot water in India after the local food safety regulators said the company’s instant noodles contained unsafe levels of lead and traces of monosodium glutamate (MSG), contrary to the food’s labelling. Nestlé’s handling of the situation has created a new case study on how not to handle a crisis. First, let’s look at the potential and actual severity of the crisis and the damage. Maggi, Nestlé’s instant noodles brand, has been a household name in India for 30 years. According to market estimates, Maggi contributes more than 20% of the $1.5bn annual sales Nestle has in India. Maggi accounted for 60% of India’s noodle sales last year, according to a Euromonitor report. Maggi ranked among the top five most trusted brands last year in a survey-based ranking issued by India’s leading business newspaper the Economic Times. Nestle introduced instant noodles to India, where noodles were not previously part of the culinary culture and instant food was not common. An aggressive advertising campaign with a catchline of “two-minute noodles” proved so effective that Maggi became the breakfast of choice for parents struggling to get their children ready for school in the morning. The advertised idea of a delicious and nutritional meal that could be cooked in just two minutes appealed to millions. Maggi became a preferred snack for children, singletons and working couples. In more recent years, hundreds of thousands of Maggi stalls have opened across the country making it a popular street food. First signs of trouble ignored The first sign of trouble emerged on 30 April this year when the local food safety regulator in Lucknow, the capital of the most populous state […]

Commuter families: Analysis from Malaysia

Commuter families normally consist of dual-career marriages that choose to establish separate homes to fulfill their career commitments. Around the world, the numbers of dual-income, dual-household families is on the rise, fuelled by such reasons as the desire of spouses to improve their lifestyle, obtain a higher family income, or pursue better opportunities for career advancement. However, in Malaysia, the most common reason (44.4%) that married couples adopt a “commuter family” lifestyle is that they are required to by their employers, according to a recent study published in the Pertanika Journal of Social Sciences and Humanities. Conducted by researchers at the Universiti Putra Malaysia, this study is the first in Malaysia to investigate the challenges faced by long-distance commuters and their families. The study involved families based in Klang Valley that had one spouse working outside this region. Commuter families normally consist of dual-career marriages that choose to establish separate homes to fulfil their career commitments. However, life for these families can be challenging and difficult to manage due to such factors as the time spent travelling back and forth every week, increased expenditures and financial cost, as well as changes in the relationship dynamics with spouses, family and friends. According to the study, among commuter families, more men than women (60.2% versus 39.8%) work away from home in Malaysia. However, no gender differences were observed in terms of how commuting impacts personal wellbeing. Overall, the study found that most respondents have a negative perception of their commuting lifestyle (80.6% of males versus 96.5% of females). “This may be because the majority of these commuters not only did not choose to work away from home and their families, but also they did not receive any financial incentive or stipend to cover commuting expenses such as accommodation, transport or food while […]

Greenpeace at war in India

By Rajesh Chhabara – Ethical Corp The Indian government, under the new leadership of Narendi Modi, has taken a harsh line against Greenpeace’s opposition to several development projects – blocking funds and preventing individuals from travelling. Environmental campaign group Greenpeace has run into serious trouble in India. The government has barred Greenpeace India from receiving foreign funding and has frozen all its bank accounts. As a result, Greenpeace India has no access to funding, including any new local or foreign funding. The government’s tough stand against Greenpeace is based on a report submitted by the Intelligence Bureau to the prime minister’s office last June when the new federal government was taking charge. The report, leaked to media, calls Greenpeace a “threat to India’s economic and national security”. The report says a number of large development projects have been cancelled, disrupted or delayed because of Greenpeace campaigns against coal mining, coal fired power plants, genetically modified organisms (GMOs), hydro power projects, tea farming practices and several large industrial projects. The intelligence report has named London-based Vedanta’s bauxite project, South Korean company Posco’s steel plant in Odisha state and hydro power projects in Arunachal Pradesh state bordering China as examples of affected projects. The intelligence agency estimates that disruptions to large projects have cut India’s gross domestic product growth by 2-3% a year. Greenpeace has different ideas for India The intelligence agency has noted that Greenpeace and other NGOs are using funds from donors in the US, the UK, Germany and the Netherlands to mobilise protests against development projects in India. The agency alleged that Greenpeace has flouted laws relating to receiving and accounting for foreign funding. It has raised questions about the intentions of a number of expat Greenpeace officials, consultants and journalists who were brought to India for various campaigns […]

The romance of the blue bloods

The victory of David Cameron’s party at the UK elections shows a continuing romance of countries with the middle-class side of politics when you also consider similar governments of such countries as Australian and New Zealand. All British – based political systems going back a long way. The three leaders – Cameron, Abbot and Key – are cut from the same cloth and adhere to similar political philosophies and ways of being. And as they are inclined to govern, they rule over three countries that are leaving a lot of their people behind. This is not to say their parties control the destiny of every citizen’s lives. But it can be said that they are seen to be hugely linked with the status-quo and indicate a push for the blue bloods to continue ruling, maintaining financial control above all else. Today, two days after the British elections there are demonstrations in the streets of London from people concerned about the proposed cuts from the re-elected government.

The four global forces breaking all the trends

This article is an edited extraction from No Ordinary Disruption: The Four Global Forces Breaking All the Trends to be be published on May 12 by Public Affairs. -McKinsey. In the Industrial Revolution of the late 18th and early 19th centuries, one new force changed everything. Today our world is undergoing an even more dramatic transition due to the confluence of four fundamental disruptive forces—any of which would rank among the greatest changes the global economy has ever seen. Compared with the Industrial Revolution, we estimate that this change is happening ten times faster and at 300 times the scale, or roughly 3,000 times the impact. Although we all know that these disruptions are happening, most of us fail to comprehend their full magnitude and the second- and third-order effects that will result. Much as waves can amplify one another, these trends are gaining strength, magnitude, and influence as they interact with, coincide with, and feed upon one another. [sam id=”1″ codes=”true”] [sam_block id=”1″] Together, these four fundamental disruptive trends are producing monumental change. 1. Beyond Shanghai: The Age of Urbanisation The first trend is the shifting of the locus of economic activity and dynamism to emerging markets like China and to cities within those markets. These emerging markets are going through simultaneous industrial and urban revolutions, shifting the center of the world economy east and south at a speed never before witnessed. As recently as 2000, 95 percent of the Fortune Global 500—the world’s largest international companies including Airbus, IBM, Nestlé, Shell, and The Coca-Cola Company, to name a few—were headquartered in developed economies. By 2025, when China will be home to more large companies than either the United States or Europe, we expect nearly half of the world’s large companies—defined as those with revenue of $1 billion or […]

Books: Marissa Mayer and the fight to save Yahoo

From her controversial rise and fall from power at Google, to her dramatic reshaping of Yahoo’s work culture, people are obsessed with, and polarised by, Marissa Mayer’s every move. She is full of fascinating contradictions: a feminist who rejects feminism, a charmer in front of a crowd who can’t hold eye contact in one-on-ones and a geek who is Oscar de la Renta’s best customer. Marissa Mayer and the Fight to Save Yahoo! tells her story. Back in the 1990s, Yahoo was the internet. It was also a $120 billion company. But just as quickly as it became the world’s most famous internet company, it crashed to earth during the dotcom bust. And yet, Yahoo is still here, with nearly a billion people visiting it each month. Marissa Mayer and the Fight to Save Yahoo! tells the fly-on-the-wall story of Yahoo’s history for the first time, getting inside the board room as executives make genius calls and massive blunders. Dan Loeb, a tough-talking hedge fund manager, set his sights on Yahoo in 2011. He grew up idolising the corporate raiders of the 1980s, building a career being more vicious than any of them. Without Loeb’s initiative, Marissa Mayer would never have been given her chance to save the company. This book tells the tale of how Dan Loeb spotted the real problem inside Yahoo – its awful board – and tore it apart, getting two CEOs fired in the process.When Marissa Mayer first started at Yahoo in 2012, the car parks would empty every week by 4.00 p.m. on Thursday. Over the next two years she made plenty of mistakes, but she learned from them. Now Yahoo’s culture is vibrant and users are coming back. In Marissa Mayer and the Fight to Save Yahoo! Nicholas Carlson also explores what may […]

Productivity across all sectors

Over the last couple of years I have been receiving information from Wal Mart workers in the USA about their conditions and terms of employment and salary. They have a very intensive campaign which continues their push for improved wages so they have a fair deal and can afford to pay their bills. So my ears pricked up here – naturally enough – when the plight of the takeaway workers became apparent with their employers over zero-hour contracts. At this time, let’s give some credit for the role of the trade unions doing the right thing by the above mentioned workers. Trade unions support workers, they want to see people getting a fair go and being able to feed their children and not left at the bottom of the pecking order. Trade unions are a compass to show the direction to better things. And even if you are not a member of a union you can still applaud their pro-activity for attempting to make life better for others. If we measure the take away worker on a low income as against, say, a tradesman the salary is miles apart. The take away worker is still productive, however, and through their efforts allows their employer to add to the nation’s GDP. Maybe less skilled but still a valued member of society, of a community and contributing in domestic and business environments. New Zealand is a high tech country. However, not all of our citizens are into hi-tech working at Fisher & Paykel or the Reserve Bank. We are all, though, the sum of parts that make up this country and contribute to our going forward. All countries are categorised as having blue and white collar workers. The colour of your collar is not what makes you a better person, is it? […]

BOOKS:Flash Boys – A Wall Street Revolt

Flash Boys: A Wall Street Revolt is a non-fiction book by the American writer Michael Lewis published by W. W. Norton & Company on March 31, 2014. The book focuses on the rise of high-frequency trading (HFT) in the US equity market. Lewis states that “The market is rigged” by HFT traders who front run orders placed by investors. The book remained on the first place of The New York Times Best Seller list for four consecutive weeks. The book centers on several people, including Sergey Aleynikov, a one-time programmer for Goldman Sachs, and Bradley Katsuyama, the founder of IEX, the Investors’ Exchange. Flash Boys starts out describing the new construction of Spread Networks’ secretive 827-mile cable running through mountains and under rivers from Chicago to New Jersey that would reduce the journey of data from 17 to 13 milliseconds. The speed of data becomes a major theme in the book; the faster the data travels, the better the price of the trade. Lewis claims access to this fiber optic cable, as well as other technologies, presents an opportunity for the market to be controlled even more by the big Wall Street banks. To counter this disadvantage to investors, Katsuyama bands together a team that sets out to develop a new exchange, called IEX, to make the playing field for trading fairer. The book takes a look at how electronic trading replaced the trading floor of screaming brokers, slamming telephones and hysteria-inducing ticker tape, and how that change impacted the market. The book concludes by observing that there is now a conventional (microwave) link between Chicago and New Jersey, which follows an even straighter route than the Spread Networks’ 827-mile cable (as microwaves always follow a direct path, whereas cables, by their very nature, must, at least occasionally, detour around […]

Water-Man-of-India-gets-Stockholm-Water-Prize

“Water man of India” makes rivers flow again

Revival of traditional rainwater harvesting has transformed the driest state in India, and could be used to combat the effects of climate change across the world. School textbooks in India have been telling children for generations that Rajasthan is an inhospitable state in the northwest of the country, constrained by the hot, hostile sands of the Thar Desert. But the driest state in India has a softer, humane face as well – that of Rajendra Singh, known as the “Water Man of India”, whose untiring efforts in water conservation in arid Rajasthan have led to him being awarded the Stockholm Water Prize, commonly referred to as the Nobel Prize for Water. Singh did not attempt to design a new technology to address Rajasthan’s water problems. He began simply by de-silting several traditional surface level rainwater storage facilities – called “johads” in the local Hindi language − that fell out of use during British colonial rule. And, in doing so, he has quenched the thirst of villages that were dying. Thousands of villages followed his example, and so much water was captured and soaked into aquifers that dry rivers have begun to flow again. Water wars Singh believes that water conservation is vital to combat the effects of climate change and to avoid “water wars” in the future. And such is his reputation on water issues that he received a call from Prince Charles, heir to the UK throne, seeking advice on how to handle the devastating summer floods in England in 2007. In an interview with Climate News Network, Singh recalled how he began making water flow again in perennially dry Rajasthan by inculcating do-it-yourself initiatives in the villagers. He explained: “I imbibed Gandhian ideals during my school days that emphasised working for empowerment of villages. “As an Ayurvedic (traditional […]

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