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In a very literal sense Thailand has introduced new guidance where companies need to do CSR in order to retain their licence to operate. The National Telecommunication Commission has this week warned private operators that their 3G licences could be taken away from them if they do not abide by consumer protection laws. The CSR issues companies are expected to manage covers issues such as junk mail management, consumer health and contingency planning. This is another part of the general trend in Asia whereby regulators are expecting CSR as a minimum requirement in order to do business. |
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With over a million hits on YouTube, one Indonesian toddler has become very popular.... for smoking. Living in the Indonesian Island of Sumatra the family are arguably the victims of (behind a gross lack of common sense) weak regulations. Indonesia is the only country in Southeast Asia not to have signed the Framework Convention on Tobacco Control which critics argue has enabled tobacco companies to target young Indonesians with advertising and events promotions. As this article reports: Anti-smoking initiatives have floundered in the face of the powerful local tobacco industry, which employs scores of thousands of people and generates more than six billion dollars a year for the government. A bill establishing tobacco as an addictive substance was about to be signed into law last year when officials realised the pertinent clause had been mysteriously deleted. The case is under investigation. The government has increased excise taxes but prices remain extremely low by international standards, with a pack of 20 costing little more than a dollar. Even so, studies have shown that poor families spend more on cigarettes than on books and education. In another blow to anti-tobacco activists, lawmakers have strongly opposed a plan to cut cigarette production by five percent to about 248 billion sticks this year on the grounds that it would hurt local producers." Is this clip the smoking gun for the industry in Indonesia? |
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Another budget airline in Asia bites the dust and, no surprises, hundreds were left stranded with perhaps thousands more wondering about tickets for upcoming trips. No wonder angry passengers in Macau tried to storm the departure area at the airport yesterday. However, I can't condone subsequent actions that included attempts at preventing other passengers flying non-bankrupt airlines getting to their gates on time (see more here).
The Viva Macau website is still operational, although I can't see any notice about the planes being grounded.
On a related note, while looking for a list of budget airlines in the region that have gone broke, I came across this website: Low Cost Airlines Graveyard. It makes you wonder how many of these outfits cared about anything other than a quick buck. |
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Today sees the launch of a new international campaign to demand that Samsung accept responsibility for the deaths of young workers from occupational cancer. Spearheaded by a coalition including Supporters for the Health and Rights of People in the Semiconductor industry (SHARPs), Korean Metal Workers' Union (KMWU), Asian Network for the Rights Of Occupational Accident Victims (ANROAV) and International Campaign for Responsible Technology (ICRT), the "Samsung Accountability Campaign" has also launched a new international petition (hit the link to sign) calling on Samsung to accept responsibility for the health of its workers, especially now that it has become a leading global brand promoting itself as a "green company".
The Coalition is calling on Samsung to: 1) accept responsibility for the hazards of semiconductor manufacturing, 2) compensate those harmed; and 3) prevent future suffering and mistreatment of workers by making Samsung a toxics-free model workplace where workers are treated with dignity and respect. You can see a video of some of the Samsung victims and their families here.
The Coalition will hold a press conference this morning in front of Samsung headquarters in Seoul. |
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There were two interesting developments in Singapore yesterday. The first was a business initiative - a green labelling programme for qualifying products made in Singapore. The label will only be awarded to firms that embrace sustainable manufacturing and can prove that they've achieved certain standards. The label is offered by the Singapore Manufacturers Federation and companies looking to gain the label will be audited by the Singapore Environment Council. The second is a resource for businesses in Asia set up by a Singaporean journalist Jessica Cheam. Eco-business.com is set up to be the leading provider of news and views for Asia Pacific’s environmental business community. There is definite momentum here in Singapore to enable companies to 'prove' their CSR and to also raise awareness. |
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Filed under: Hong Kong Product responsibility — Stephen Frost @ 09:11 am |
The picture left shows what you can do with an empty can of Extra chewing gum if you're creative (click here to see full sized photo and more information). This is an entry by Ben Lau in Eco-Redesign's "Reuse the Can" competition. The competition is hoping to find innovative new ways of reusing an empty can.
You can find out more about the competition here. |
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Filed under: Asia Environment Product responsibility — Stephen Frost @ 09:01 am |
The Green Electronics Council has expanded its registry that shows how computers and monitors measure up when it comes to environmental attributes. The Electronic Product Environmental Assessment Tool (EPEAT) registry helps purchasers evaluate, compare and select electronic products based on their environmental attributes (see registry here. The system currently covers desktop and laptop computers, thin clients, workstations and computer monitors. Desktops, laptops and monitors that meet 23 required environmental performance criteria may be registered in EPEAT by their manufacturers in 40 countries worldwide. Registered products are rated Gold, Silver or Bronze depending on the percentage of 28 optional criteria they meet above the baseline criteria. EPEAT operates an ongoing verification program to assure the credibility of the registry.
Here are some interesting figures: there are 1,315 products registered in the US, but only 76 in China, 109 in Japan, and 62 in Taiwan (the only three countries in Asia so far included in the registry). The registry will expand over the coming months so I look forward to seeing how it shapes up in Asia. |
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Early this month the international press were covering the latest in the Bhopal tragedy - an Indian court has re-issued an arrest warrant for the former boss of the US chemical company responsible for the Bhopal disaster 25 years ago. The stats of Bhopal, the worlds worst industrial accident are always shocking: At least 2,000 people died on the night of the accident, in December 1984, according to Indian government figures. Aid organisations estimate 5,000 died in the first 72 hours, and a further 15,000 in the following weeks. Of the living, at least 100,000 say they are chronically ill because of their exposure to the toxic gas. Warren Anderson, the CEO, was arrested following the disaster, but left India soon afterwards. The court has urged the Indian government to seek Mr Anderson's extradition from the United States. This article reports that Anderson, who is now 88, has never commented publicly about Bhopal, and for many years appeared to have vanished from view, lying low in his homes in Florida and the Hamptons. The demands for accountability continue...... |
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Filed under: Sri Lanka Product responsibility CSR — Erin Lyon @ 10:02 am |
The question of whether a tobacco company can be socially responsible is not a new one. But this is an interesting article published in the Asian Tribune where the issue is considered from a Sri Lankan perspective. In what must be a response to an article focussing on the CSR of the Ceylong Tobacco Company (a BAT subsidiary) the author notes that 22,000 people in Sri Lanka reach the grave untimely due to diseases caused by smoking. The author then takes the Ceylon Tobacco Company to task over other issues: tax contributions; environmental degredation; marketing; and the link between poverty and smoking. Interesting the author also notes that Sri Lankan law prohibits CSR by tobacco companies and berates the previous article stating that " Articles of this nature addressing on company CSR therefore should not to be published in the first place. “Sponsorship” means any form of contribution to any event, activity or individual with the aim, effect or likely effect of promoting a tobacco product or tobacco use directly or indirectly." NB: CSR in this context obviously means community investment contributions. |
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It has been interesting to watch the sustainability agenda being promoted by the South Korean government recently (the world's tenth biggest producer of greenhouse gases and has vowed to spend $84 bn over the next five years on improving energy efficiency and reducing pollution). Now the announcements are starting to follow from business. Samsung has announced today it will invest more than US$4bn to cut emissions from its plants. Samsung is also announcing a desire to develop more energy-efficient products and that by the year 2013, the greenhouse gas emissions from its manufacturing facilities will be reduced by 50%.More efficient products are also planned. Will other Korean businesses follow and will their suppliers in Asia keep up? More here and here. |
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Filed under: Australia Product responsibility — Stephen Frost @ 15:36 pm |
In light of the story below regarding Red Bull being pulled from shelves over the discovery of cocaine traces in some of its drinks, it's interesting to see that a new energy drink billed as three times stronger than Red Bull has gone on sale in Australia under the name Cocaine. The company website is worth a visit if only to see the "Just Say No" (to Red Bull) opening image. Persevere though and enter the site to see a chat room that looks like the product of the company marketing team rather than real punters chatting about the product (all those names look a bit to similar for it to be believable). Paul Dillon from Drug and Alcohol Research and Training Australia said it’s “despicable” the product is allowed to trade under such a controversial name. I'd give people credit for being able to make a distinction between this stuff and the real thing, but I'll still file it under dodgy because I think they've fabricated a chat room... See news article here. |
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Filed under: Taiwan Hong Kong Product responsibility — Stephen Frost @ 14:42 pm |
Taiwanese and Hong Kong authorities have pulled Red Bull from shelves over tests showing the popular energy drink tested positive for traces of cocaine (see news items here). But as I suggest in a longer article in today's CSR Asia Weekly, the bans on Red Bull's Simply Cola may simply increase brand image and a long held belief by some that the drink is liquid cocaine. Here is a sampling of interesting online responses that just go to show that bad news doesn't necessarily hurt a brand: i) Tony Montana once snorted an entire giant vat of Red Bull (including photoshopped still from Scarface); ii) Red Bull contains cocaine! Do you think it should be banned? (participate in the poll here); iii) "Hey man! You got your blow in my soda!" (see here); iv) BayAreaLen rant on YouTube ( here). Interesting article in Forbes also. Red Bull. Give you wings! |
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Filed under: Standards Japan Product responsibility — Richard Welford @ 17:17 pm |
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I am in Japan at the moment and it is intersting to see huge numbers of products labeled as being environmentally responsible. From organic cotton products to Forestery Stewardship Council (FSC) certified dried mushrooms (pictured here) I am not surprised to see Japanese consumers interested in the environment. Indeed, the Japanese always have had one of the greatest awareness of environmental issues in the region and it seems are more than willing to act on that. Interestingly though, that interest now seems to be extended to social issues as well. There are plenty of fair trade products in the shops and talking to a couple of journalists over the last couple of days, it seems that there is a perception that consumers are increasingly concerned about wider agendas in relation to responsible products. As if to underline this, in today's local Daily Yomiuri, there is a long article that asks whether it is possible to purchase Indian products that are untainted by child labour. The argument being made is that child labour is so endemic in Indian primary industries and in the production of basic products, that almost no product is free from having children somewhere in the supply chain. I find it hugely encouraging that this huge consumer market seems to be growing in its social awareness. As for the FSC mushrooms, I am going to be trying them soon... |
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Filed under: China Product responsibility — Peter Zhu @ 13:15 pm |
There's an article in the Chinese media today about reverse vending machines for plastic bottle recycling. The idea is simple: the machine identifies recyclable bottles by scanning the bar code and then spitting out 0.05 or 0.1 yuan in payment. The machines have actually been in Shanghai and Beijing streets and supermarkets since late last year. They have been a big success, particularly with scavengers who after the economic downturn saw the machines providing payouts greater than the market rate (due to the decline in demand for recycled plastic bottles). In fact, the price has been so good that one scavenger collected a large number of bottles and cashed them in via the machine causing management in Shanghai to replace payment in cash with a souvenir coin. You can see more here, here, here and here. |
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There's an interesting conference going on in Beijing right now that aims to promote a link between business strategy and sustainable development. The Annual Summit of China Green Companies 2009 (The Green Transformation: Forecasting a New Business Culture) has been organised by the China Entrepreneur Club, the Daonong Research Institute, and the Green Herald MagazineFrom the blurb on the website (in Chinese only), the Summit aims to promote the integration of business strategies, human values and ecological culture and to explore sustainable development of business to shape anew business culture in the 21st century. It will cover topics such as "From Leaders to 'Green Giants'", "Green Transcendence: The way to success in an economic recession", and balancing values among stakeholders, etc. Delegates will explore ways of linking sustainable development for business and human civilization. The Summit forecasts a green revolution. The website also says the summit will explore solutions in the context of the dual challenges of economic and ecological crises, discuss how to develop a new business culture, and find solutions for the future. Mirroring some of the rhetoric and thinking now permeating Western discourse, the organisers say that the present crisis is catalyzing a transformation in the business world. A new growth engine is required and an economy driven by immoderate consumption is giving way to a much greener economy that balances resources, energy and human development. They go on to say that China is undergoing a transformation from an economy based on resource waste and environmental deterioration into an environmental friendly economy. Such a change requires a new philosophy that values balancing rewards for all stakeholders rather than a focus on shareholders solely. You can see more here (in Chinese) and here (in English). |
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Filed under: Supply chains Product responsibility — Stephen Frost @ 13:18 pm |
A survey commissioned by Fairtrade Labelling Organizations International (FLO) has concluded that 'active ethical consumers' make up more than half the population (55%) in the countries surveyed. It also showed that sales of fair trade goods were up in 2008 (as compared with 2007) by 24% in Austria, by 40% in Denmark, by 57% in Finland, by 22% in France, by 75% in Sweden, by 43% in the UK and by 10% in the US. That's good news, and it's certainly bucking the trend, but I can't help thinking FLO is overstating the case. I can't find the survey data, nor the report, but I think it's worth asking two questions. First, is it really true that 55% of people make purchasing decisions based on a belief that (as the FLO report puts it) "it is not enough for companies to do no harm, but that they should actively support community development in developing countries"? And second, did the survey cover Asia? I ask the first question because I cannot for the life of me think of very many people who make purchasing decisions based on information about supply chain practices. Moreover, I just don't think there's enough information available on conditions in the supply chains of most products to make an informed decision. That doesn't mean you can't make informed decisions; it just means that the depth of information for most products is simply not available. With regard to the Asia question: I don't believe that even 0.55% of consumers in Asia think about these issues, let alone 55%. One of the old fair trade hands in Hong Kong told me last year he doubted if the combined turnover of all fair trade retail in the Territory reached HK$5 million (US$645,000). To put that into context, total retail sales for 2008 were HK$273.8 billion (US$35.3 billion) (official figures here). It would be interesting to conduct the survey in various Asian locations. One of the reasons I'm thinking about fair trade in Hong Kong like this is based on a question I received at a talk I gave on Friday night (see my previous blog). The question was whether fair trade is really sustainable, based on an assumption that most fair trade goods retailed for a premium and weren't therefore accessible for many consumers in Hong Kong. Would 50% of the Hong Kong population (which earns less than around HK$10,000 per month), the student wondered, consider paying more for products purely on the basis of sustainability and CSR? And then what about China, where most people have considerably less purchasing power? I agreed they probably wouldn't, but then started a discussion about the base of the pyramid and whether companies (including social enterprises) really can provide low costs products for poor people. We concluded they can, but it didn't really deal with the original question. I'd be interested in any views on this. |
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Filed under: Hong Kong Companies Product responsibility — Stephen Frost @ 14:46 pm |
My wife and I went to a dai pai dong (大牌档 - da paidang in Mandarin) for breakfast this morning, and whilst walking off my caan daan zi (餐蛋治 - can danzhi in Mandarin) I came across this shop. The sign on the window proclaims all items inside are made from 100% recycled products. It turns out the store - Ecols - has a website and has been around since February or March (the discovery of it today being more evidence I'm marshalling to convince the wife that fried spam and egg sandwiches are actually good for me).
The concept got me thinking about a talk I gave last night at HKUST to around 35-40 undergraduate business students on CSR and social entrepreneurship. I was asked to kick-off a hands-on summer course (where students will actually plan a social business) with a short talk on some CSR/SE trends. I started off by comparing Belu with this (a metal stamping press in China producing auto parts), and then asked students to consider what a business that has a positive social/environmental outcome at the core of its business model might look (clearly not the latter). They all seemed to get the main idea, and I'll be interested to see what they come up with.
My other major message, which brings me back to Ecols, is that social entrepreneurship in Hong Kong often seems to focus on the social but almost totally ignores the business side. As I asked the students, what's the point of business providing a social solution that isn't sustainable? Business can be part of the solution, but it needs to be competitive and able to survive in the market. Unfortunately, I hadn't been to my favourite dai pai dong for a while so Ecols was unknown to me until this morning. But it might have been a nice local example for students to go and check out.
And this is why I think I've almost convinced my wife that fried spam and eggs in soft, thick white bread is an integral part of CSR research in Hong Kong... |
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Another case of product responsibility and health issues. 20 types of pickled tea leaves imported from Myanmar to Singapore have been found to be unsafe for consumption. The Agri-Food and Veterinary Authority (AVA) has detected the presence of Auramine O, a yellow dye used as an industrial colouring agent for coloring silk, cotton, paper and leather. This dye is not permitted for use in food and all products containing the dye have been recalled and will be destroyed. The move follows a ban by the Myanmar Health Ministry on 43 brands of pickled tea leaves which were found to contain the chemical dye instead of edible dye, which is said to cost 20 times higher than Auramine O. Exposure to toxic chemicals such as Auramine O can cause several negative effects on human health such as cancer and birth defects. Read more here. |
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Filed under: Health Myanmar Product responsibility — Vijay Ramani @ 11:45 am |
Myanmar's Health Ministry on Sunday banned the sale of 57 brands of pickled tea leaves, a popular snack food found to contain a harmful chemical dye. The state-run New Light of Myanmar newspaper announced the ban, saying the chemical Auramine O was detected in the products. The ministry said Auramine O is commonly used to dye cotton, wool, silk and leather and that prolonged consumption of it in food could be harmful to the liver and kidneys and cause cancer. Pickled tea leaves are widely eaten in Myanmar as a snack with condiments . A doctor from the Health Ministry's Food and Drug Administration said chemical dyes are widely used in Myanmar. The production or sale of harmful food is punishable by up to three years in prison, but enforcement is not strict, the doctor said. More here. |
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Filed under: Hong Kong Product responsibility Safety — Stephen Frost @ 09:00 am |
For the third time in less than three weeks, Hong Kong's Hospital Authority has been hit with allegations of faulty drugs.
It is also the second time in less than a week in which police have been asked to investigate. The latest scare involves 17,000 tablets of the diabetic drug metformin. Authority chairman Anthony Wu Ting-yuk said the investigation involves the 500-tablet package produced by Christo Pharmaceuticals. More here and here. Earlier this month, executives at Marching Pharmaceutical were arrested after it was found they had issued a recall notice for certain products without the approval of the department. In addition, operations at pharmaceutical firm Europharm were suspended after six deaths were linked to one of its gout-treatment drugs, which allegedly contained 10 times the normal level of a common fungus. |
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