Trust Digest 5 (May 25, 2013)

Goldman Sachs Links Bonuses to Protecting Firm Reputation
Goldman Sachs Group Inc. (GS) linked bonuses and promotions to employees’ success in protecting the firm’s reputation and put new restrictions on some client transactions to avoid a repeat of the damage to its standing in the wake of the financial crisis.
Key Words: Reputational Harm, Personal Accountability
Trust Issues: Reputation, Transparency, Accountability, Responsibility

There Is Money In Reputation--Private Equity Money
Reputation management is the new black in corporate strategy. With this attention comes an increased demand for reputation management services. Over the past 5 years,  we have seen an increase in companies who are offering their services under the reputation label. And today we learned that Private Equity is also betting on reputation services as a growth industry.
Key Words: Reputation Management, Corporate Strategy
Trust Issues: Reputation, Transparency, Accountability, Responsibility

Survey Says Boards Troubled by Reputation Risk
In its fourth annual survey of 230 board members from a variety of organizations, the audit firm EisnerAmper found 73 percent of board directors said reputation risk is their biggest risk behind financial risk, which is a 19-percent increase in the number of board members who identified reputation risk as their highest concern the year before.
Key Words: Reputation Risk, Digital Risk Management, Enterprise Risks
Trust Issues: Reputation, Accountability, Responsibility

Edward Woodard, Ex-Bank Of Commonwealth CEO, Found Guilty Of Fraud In Financial Crisis Case
The former chief executive of a failed U.S. bank in Norfolk, Virginia, and three others were convicted Friday of conspiracy to commit bank fraud and other charges in connection with a scheme to conceal loan losses that contributed to the bank's collapse in 2011.
Key Words: Greed, Dishonesty
Trust Issues: Integrity, Ethics, Responsibility, Accountability

Deception on Gun Background Checks
A strange thing happened after 45 senators killed a bill to expand background checks for gun buyers five weeks ago: many of those same senators suddenly discovered a profound affection for background checks. Rarely have the National Rifle Association’s most captive lawmakers been so nakedly deceptive as in the weeks since public rage grew over the gun vote.
Key Words: Deception, Background Checks
Trust Issues: Integrity, Ethics, Transparency, Responsibility, Accountability

Social Responsibility No Longer Optional For Businesses
A study by public relations and marketing firm Cone Communications and Echo Research revealed corporate social responsibility is now a reputational imperative, with more than 90 percent of shoppers worldwide likely to switch to brands that support a good cause, given similar price and quality.
Key Word: Corporate Social Responsibility
Trust Issues: Integrity, Ethics, Transparency, Responsibility, Accountability

EU Rushes Out Corporate Tax Transparency Law
Amid a political furore over allegations of tax avoidance by corporate-giants such as Apple , Starbucks and Google, the EU is extending targeted transparency reforms for banks and resources groups to all large public and private companies.
Key Words: Political Furore, Corporate Tax Avoidance
Trust Issues: Responsibility, Accountability, Transparency

Advocates Cheer Tightening of Extractives Transparency Standards
Development groups and corruption watchdogs are applauding landmark new standards adopted Wednesday by an international initiative focused on ensuring greater transparency among oil and mining companies operating particularly in developing countries. The standards will now impose significant new reporting requirements on EITI member countries, requiring regular project-to-project details, covering extraction licenses, how those licenses were awarded, and companies involved in the sector. State oil companies, too, will now need to disclose how much product they’re selling.
Key Word: Extractive Industries Transparency Initiative (EITI)
Trust Issues: Integrity, Ethics, Transparency, Responsibility, Accountability

Search me: online reputation management
Past scandals, bad photos, critical comments: the internet has a long memory. As the EU considers the 'right to be forgotten', we investigate the growing business of online reputation management – and learn how you can airbrush your own past
Key Words: Online Reputation Management
Trust Issues: Reputation, Responsibility, Accountability

GRI Releases New Version of Sustainability Reporting Guidelines
The Global Reporting Initiative, the organization that develops the most widely used sustainability reporting framework in the world, released an updated version of the guidelines May 22. The newest version encourages organizations to report only on information that is material to their business. Under the guidelines, organizations are directed to state why a certain disclosure, such as greenhouse gas emissions, is material to the organization. The previous version identified which issues were relevant and material to most organizations.
Key Words: Corporate Social Responsibility, Global Reporting Initiative
Trust Issues: Responsibility, Accountability, Transparency

Google trying to do the ‘right thing’
Google boss Eric Schmidt insisted on Wednesday his company was trying to do the “right thing” as it faces criticism in Britain over the amount of tax it pays, saying it was for countries not companies to decide tax policies. Schmidt was commenting after Ed Miliband, the leader of Britain's opposition Labour Party, told a meeting of Google staff that he was “disappointed” it had paid just £6-million in corporation tax on sales in Britain worth £3.2-billion in 2011.
Key Word: Tax Evasion
Trust Issues: Ethics, Integrity, Accountability, Responsibility

CSR a ‘Business Requirement, Not Option’
Global consumers have clear and specific expectations for the role companies should play in addressing social and environmental issues with 93 percent wanting to see more of the products and services they use support corporate social responsibility efforts, according to a survey released this week.
Key Word: Corporate Social Responsibility
Trust Issues: Reputation, Accountability, Responsibility, Transparency

Do Corporations Owe Anything To Bangladeshi Victims?
There are several capitalistic arguments in favor of business enterprises voluntarily adopting many of the principles entailed in Corporate Social Responsibility (hiring the best people for the job irrespective of ethnicity, transparency, community activity and integrity in business dealings). People want to buy from, and work for companies they admire, companies which attempt to do what is right.  
Key Words: Corporate Social Responsibility, Corporate Strategy
Trust Issues: Reputation, Transparency, Accountability, Responsibility

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