Go to.... CW Home Back Issues Publications Resources Links

Magazine Issue 7 - Spring 1998

Issue 7 Contents CW7 Picture Gallery Magazine Back Issues

Babylonian Times Missing MAI point Donald Johnston, Secretary General of the Organisation for Economic Co-operation and Development (OECD), recently had an opportunity to tell the world just how much he likes the OECD-negotiated Multilateral Agreement on Investment. "Unions and greens", he wrote in the Financial Times, "have claimed that the agreement ... could drive down labour and environmental standards... Let's take a close look at these concerns and ask why so many governments are interested in the MAI". Unfortunately, these concerns are not addressed in the remainder of the article, let alone closely examined. And the only obvious 'standards' that get a look in are the "high standards of liberalisation and investor protection" that the Paris negotiators are committed to incorporating in the agreement. As an afterthought, Mr. Johnson mentions that "ideas are still being refined to respond to labour and environmental concerns. (perhaps his detailed analysis of these was edited out in error?) "...I am convinced that the MAI will establish high standards, and prevent manipulation to attract or retain investments." High standards of what? Corporate Watch verdict, total failure to address the issues. Financial Times 24-2-98 Milking Student Apathy Undergraduates at Trinity College Oxford had hoped to make history by becoming the first Junior Common Room with corporate sponsorship. They had planned to use the money to improve their entertainments and sports facilities. In return, their corporate sponsor was to participate in the "corporate milk round"- when companies come to the university to recruit students. However the deal fell through when the negotiations were reported in the student papers. According to the Oxford Student, JCR President Mike Hirst said that "people are happy that we're doing something for the facilities, and eradicating the idea that this is an apathetic college. So unapathetic that they didn't seem to mind that the company, CSC, was in the business of "computers, IT, defence - that sort of thing". CSC's website describes its reaction to being subcontracted by the US Navy: "We are excited about entering into the growing business of electronic warfare", said Milton E. Cooper, President of CSC's Federal Sector. In the UK CSC also do supercomputing for lots of Corporate Watch's favourite companies: British Aerospace, the UK Defence & Evaluation Research Agency and GEC-Marconi. Oxford Student 29-1-98 www.csc.com London Greenpeace has published a nev leaflet. Called "What's wrong with the Bod~ Shop" it tackles the spurious issue of 'greet consumerism with obviously terrible libellous statements like "The truth is nobod~ can make the world a better place b~ shopping". Whether Anita Roddick follow.' the example of McDonald's or keeps her hea( down amongst the peppermint footbalm remains to be seen. We're told that the Bod~ Shop's very litigious, suing anybody wh( dares to criticise, but with Londot Gfeenpeace's record (McLibel) Anita migh want to think very carefully.. The Road to (S)heII? At last summer's Shell AGM, outgoing chair John Jennings said that the board could not accept the idea of externally verified social and environmental auditing. Now, however, they are set to publish a health, safety and environment report that will be audited by the group's yinancial auditors KPMG and Price Waterhouse. They are also publishing a report on how they have kept to their new business principles of "acting with honesty, integrity and respect for people". Andy Oliver, the group's health, safety and environment advisor, says Shell is at the forefront of corporate social and environmental reporting (they've got a lot to report on, after all). "We are probably further down the road than any company of this size," he snivels. Now, which road would that be? Guardian 11-3-98 Running Jobs off the Road Stagecoach, the privatised transport company that has been accused of earning excess profits, providing poor services on trains, and allegedly running other bus companies off the road with predatory tactics, has appointed the infamous "Killer Kinski" from Scottish Power as its chief executive. A former head of Jaguar, Mike Kinski earned his nickname while working for Manweb and Southern Water. Under his direction more than 2000 jobs were lost. If he plans to maximise Stagecoach profits by promoting greater efficiency (ie: axing jobs), he might do well to remember how South West Trains, which is part of the Stagecoach empire, had to cancel large numbers of services when it found itself short of train drivers, having sacked too many of them. Times 28-1-98 Bigger and Growing While merger mania sweeps across Britain, creating company names so long they won't fit on the products, it's worth remembering that the human cost of such mergers is always high. Substantial job losses tend to be the result. And it also might be worth remembering that before it was elected to government, the Labour party published a glossy document entitled "Vision for Growth". It put forward the idea that as company mergers rarely produce the expected increase in efficiency, the burden of proof in a takeover bid should be shifted to the companies. They should have to demonstrate that mergers are in the public interest. But fortunately for big business wanting to become bigger businesses. this idea was dropped by Lord Borne when he reviewed the Labour party's competition policy. Phew. Obsen'er 22-2-98 Fat Cats vote for Diet This year's City Debate at the Mansion House in London saw top corporate fat cats debating the motion "This House believes City salaries are totally fair and justified." In proposing the motion, George Cox, Head of Unisys, made the intelligent comment that, "If Nicola Horlick had left Morgans to join the Spice Girls, becoming Very Posh Spice, her press would have been far better." Seconding the motion, Brian Willamson of the Gerrard Group added further weight to the argument by saying, "The case of Nicola Horlick was embarassing, but it was her behaviour that was embarassing, not what she was paid." Surprisingly, the motion was lost despite a third of the audience earning between _100,000 and _200,000 a year, with another third earning more than _200,000. A second vote concluded that bonus payments were a dangerous incentive rather than a fair reward. Pay cuts all round then. Independent 30-1-98 Slick and Sleazy (again...) Yet again the strong links between government and oil have been demonstrated with former Tory oil minister Tim Eggar gaining the post of chief executive of Monument Oil and Gas, an exploration company that has projects in Pakistan, Algeria, Colombia and Turkmenistan. "I went into the oil industry as soon as I qualified as a batrister [in 19751. It's the industry I know," says Tim earnestly. And having left politics he decided he wanted a full time career in business - "that is the genuine reason Meanwhile, former Scottish Secretary Malcolm Rifkind has taken up non-executive directorships at oil firms BHB and Ramco. Independent 30-1-98 Washing with Green Soap London Greenpeace has published a new leaflet called "Whats wrong with the Body Shop". It tackles the spurious issue of 'Green Consumerism' with the obviously terrible, libellous statements like "The truth is, nobody can make the world a better place by shopping". aWhether Anita Roddick follows the example of McDonald's or keeps her head down amoungst the peppermint footbalm, remains to be seen. We're told that the Body Shop's very litigious, suing anybody who dares to criticise, but with London Greenpeace's record (McLibel) Anita might want to think very carefully...Sunday Times 1-3-98 Memorial Tub of Lard Trustees of the Diana Memorial Fund have agreed that tubs of margarine can go on sale bearing the deceased's signature. Diana's former butler helped arrange the deal with Flora, and what they have dubbed "celebratory packs" will go on sale to help promote the London Marathon. A touching corporate tribute. Independent 23-3-98