Trust Digest 19 (September 11, 2013)

Yahoo Publishes First Transparency Report; U.S. Made Most Requests
Following a pattern set by Facebook a few weeks ago, Yahoo has published its very first transparency report, outlining the number of government data requests received during the previous six months.
Key Words: Transparency, Yahoo, NSA
Trust Issue: Transparency

Finance: Back From the Bailouts
Last month Fannie Mae reported net income of $10bn for the second quarter. Freddie Mac reported $5bn. Most of those profits will be handed to the US Treasury in the coming weeks, taking the running total to $146.2bn. In a few more quarters, the taxpayer will have taken more in dividends from the two companies than the $189.4bn it had to pump in to keep them afloat.
Key Words: Bailout, Mortgage-backed securities, Housing crisis
Trust Issues: Regulation, Stakeholders

Vietnam Decrees Financial Transparency from Officials
To promote transparency, the government of Vietnam has decreed that state and government officials and lawmakers reveal their income and assets yearly, the Ministry of Finance said.
Key Words: Corruption, Transparency, Vietnam
Trust Issues: Transparency, Regulation

World Economic Forum Sees U.S. Rise in Global Competitiveness, but Europeans Still Top List
In its latest survey, released Wednesday, the Forum ranked the U.S. undefined the world’s largest economy undefined in fifth place for overall competitiveness, up from seventh last year. The U.S. turnaround reflects “a perceived improvement in the country’s financial market as well as greater confidence in its public institutions,” the report concluded.
Key Words: World Economic Forum, Competitiveness, Trust
Trust Issues: Ethics, Reputation, Regulation

Carney Calls for Bank Risk-Model Clampdown to Repair Trust
Regulators must restrict lenders’ ability to escape tougher capital rules by changing how they measure risk, Financial Stability Board Chairman Mark Carney said, as he urged nations to finish an overhaul of bank rules. “The risk models that banks use to calculate their capital needs show worryingly large differences,” Carney, governor of the Bank of England, said in a letter yesterday to leaders from the Group of 20 nations meeting in St. Petersburg, Russia. “This must be addressed for depositors, investors, clients and authorities to have full confidence in the strength of bank balance sheets and their resilience during a downturn.”
Key Words: Regulation, Risk Models
Trust Issues: Responsibility, Transparency, Risks, Regulation

China Bans Officials from Buying Mooncakes with Public Funds
China is banning officials from using public funds to buy mooncakes, pastries offered as gifts during the Mid-Autumn Festival, as part of President Xi Jinping's fight against corruption, the government said on Tuesday… The party, fearful of anything that could weaken its grip on power, has struggled to contain public anger over a string of corruption scandals.
Key Word: Corruption
Trust Issues: Corruption, Reputation

Acxiom Lets Consumers See Data It Collects, a Web site introduced on Wednesday by a leading marketing technology firm called the Acxiom Corporation, is offering individual consumers a glimpse of some of the details the company has collected about them.
Key Words: Data, Marketing, Consumers
Trust Issue: Transparency

Olympus to be Prosecuted by U.K. Fraud Agency
Japanese camera and medical equipment maker Olympus and its UK subsidiary Gyrus Group will be prosecuted by the UK's Serious Fraud Office.
Key Words: Fraud, Olympus
Trust Issues
: Corruption, Dishonesty, Regulation

Mali's New President Promises to Bring Peace, Fight Graft
Mali's new president, Ibrahim Boubacar Keita, pledged to stamp out corruption and bring peace to the turbulent north as he was sworn in on Wednesday, 18 months after a coup and rebel uprising plunged the gold exporter into chaos.
Key Words: Democracy, Mali
Trust Issue: Transparency

Norilsk to Pay Chief $100m to Quit
Vladimir Strzhalkovsky, the controversial chief executive of Norilsk Nickel, will receive a $100m payout to step down from his position under a new agreement between the miner’s oligarch shareholders… Steven Dashevsky, of Dashevsky & Partners, a Moscow investment company, agreed, calling the payout “unprecedented by whatever metric you want to judge it”. “If I was an employee at Norilsk Nickel I think I would be completely incensed,” he added.
Key Word: Executive pay
Trust Issues: Ethics, Stakeholders

Trust, Innovation and Ronald Coase
The passing of Ronald Coase is an opportunity to think about the close relationship between notions of trust and of transactions. Coase made significant contributions to our understanding of “transaction costs” and helped to frame up the challenge of understanding the true cost of social transactions in organizations.
Key Word: Ronald Coase
Trust Issues: Risk, Stakeholders

Fast-food Condemnation: Trade Unions Grill the Nation’s Burger Joints
On August 29th, shortly before Labour Day, protests were staged outside more than 1,000 fast-food restaurants in 60 American cities. Protesters called for the minimum wage to be raised to $15 an hour, up from $7.25. (That is the federal rate; some state minimum wages are higher.) The “Fast Food Forward” campaign has grown rapidly from its beginnings last November in New York, when 200 workers went on strike for higher pay and unionisation.
Key Word: Unions
Trust Issues: Reputation, Stakeholders

Corporate Boards Too Focused on Short-Term: Barton
55% of CFOs will not take a value-enhancing investment which will have a longer-term benefit if it will mean a cost to them in their short-term quarterly earnings.
Key Words: Corporate boards, Long-term investments
Trust Issues: Integrity, Stakeholders, Motives, Stewardship

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