Regulator accused of complacency

The FSA is accused of letting societies expand into "dangerous" areas

The Financial Services Authority (FSA) has been accused of complacency in its dealings with building societies.

Liberal Democrat Treasury spokesman Vince Cable has asked FSA chairman Lord Turner to investigate the accusation made by a former FSA supervisor.

Poorly qualified FSA officials allowed building societies to expand into risky areas, he had told Mr Cable.

See full Article.

Electric car proposals dismissed as gimmick

Drivers could receive up to £5,000 to subsidise the purchase of an electric car under a new £250 million Government scheme designed to promote environmentally-friendly transport.

The plans, due to come into force in 2011 for five years, are also aimed at boosting the green technology sector as Britain comes out of recession.

But opposition politicians, car groups and environmental groups dismissed the proposals as a gimmick, warning that electric cars would be expensive and impractical without a much more developed support system, including a national recharging network.

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Whistleblower attacks FSA's indifference to risky loans at building societies

Britain's top financial regulator has been accused by a former supervisor of "indifference" and "wilful ignorance" in regulating building societies as they moved into risky loans in the run up to the credit crisis.

"A culture of apathy and complacency marked the Financial Services Authority in the period," the whistleblower wrote in a commentary to Vince Cable, the Treasury spokesman for the Liberal Democrats.

He claimed many "talented and conscientious" staff left rather than challenge the official light-touch policy because anyone who did was "criticised for rocking the boat and branded a trouble maker".

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New study warns damage to forests from climate change could cost the planet its major keeper of greenhouse gases

The critical role of forests as massive "sinks" for absorbing greenhouse gases is "at risk of being lost entirely" to climate change-induced environmental stresses that threaten to damage and even decimate forests worldwide, according to a new report released today. The report will be formally presented at the next session of the United Nations Forum on Forests (UNFF) taking place 20 April-1 May 2009 at the UN Headquarters in New York City.

"Adaptation of Forests and People to Climate Change — A Global Assessment" was coordinated by the Vienna-based International Union of Forest Research Organizations (IUFRO) through the Collaborative Partnership on Forests (CPF), an alliance of 14 international organizations that each has substantial forestry programs.

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A Green Global Recovery? Assessing U.S. Economic Stimulus and Prospects for International Coordination

Well-tailored “green” components of a recovery effort can create jobs and stimulate the economy while achieving significant energy cost savings for businesses, consumers and the government.

As the 111th Congress begins and a new president takes office, the economic crisis dominates the US policy agenda. The financial system remains in a tenuous state despite massive bank recapitalization, and the economy, more than a year into the current recession, shows no signs of recovery. Given the scale of the challenge Washington faces and the amount of money required to combat it, there will likely be little room for other legislative priorities. As a result, policymakers are hoping to direct government spending over the next two years in a way that not only generates short-term economic growth and employment but also addresses long-term policy goals sidelined by the current crisis.

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Generation and treatment of waste

Generation and treatment of waste - Issue number 30/2009 print this page
Households and businesses in the European Union (EU27) produced over six tonnes of waste per person in 2006; over 400 kg was household waste. More than half of the waste generated by businesses was produced by industry and construction. Mining produced more than half of the waste generated by the industrial sector. Mining, and as a consequence mining waste, is unevenly spread over the countries. Around 3% of waste generated in EU27 was hazardous, meaning harmful for health or the environment. The main treatment types were disposal and recovery; incineration is important for the treatment of household waste.

See full Article, in pdf format.

Los nuevos motores de crecimiento económico con impacto social

Hace unos días publiqué el post titulado RSC 2.0: del Buenismo a la Innovación Social. Y han sido muchas las opiniones de los lectores de Diario Responsable (donde se reproduce este blog), unos a favor, otros en contra.

Mi intención no era generar polémica. O si. Mi intención era trasmitir esta idea: “En tiempos de crisis, o se vincula la RSC a la búsqueda de nuevos motores de crecimiento, a la reducción de costes, al incremento de los índices de satisfacción de los clientes y a la mejora del clima laboral de los empleados, o tendremos un problema. Los gestores de esta “cosa” no podemos permitirnos el lujo de vivir al margen del momento. Difícilmente se puede “devolver nada a la sociedad” cuando la empresa está a punto de dejar de existir.

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The business judgment standard for directors and audit committee members

In summary, the business judgment rule provides that a director, including a member of the audit committee, should undertake his or her duties:

-In good faith, with honesty and without self-dealing or improper personal benefit;

-In a manner that the committee member believes to be in the best interests of the corporation and its shareholders; and

-With the care, including reasonable inquiry, that an ordinarily prudent person in a like position would use under similar circumstances

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Saving the planet and creating jobs may be incompatible

Esta semana The Economist ha publicado un interesante artículo titulado “The grass is always greener” donde se cita bastante a España y se explica que las políticas ecológicas pueden ser incompatibles con crear puestos de trabajo. Copio algunos párafos:

”THINK of what’s happening in countries like Spain, Germany and Japan where they’re making real investments in renewable energy,” Barack Obama instructed Americans earlier this year. “They’re surging ahead of us, poised to take the lead in these new industries. This isn’t because they’re smarter than us, or work harder than us, or are more innovative than we are. It’s because their governments have harnessed their people’s hard work and ingenuity with bold investments-investments that are paying off in good, high-wage jobs.”

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Del "Buenismo" a la "Innovación Social"

Desde que en España se declarase oficialmente la crisis, los que nos ocupamos de esta cosa que es la Responsabilidad Social Corporativa (RSC), o Responsabilidad Social Empresarial (RSE), o Responsabilidad Corporativa (RC) -o llámese como se llame- nos venimos enfrentando a una misma “muletilla”: En época de crisis, las políticas de RSC pasarán a un segundo plano porque las empresas se centrarán en su core business y abandonarán proyectos sociales”.

Pensar que la crisis no afecta a las políticas de RSC es tontería. Si el PIB cae; si el consumo se resiente; si el desempleo crece; si las tasas de morosidad se multiplica; si el crédito se estanca… no es razonable pensar que haya áreas o funciones dentro de las empresas, por ejemplo la RSC, que no se verán afectadas por el nuevo contexto. Pero definitivamente la RSC puede aprovechar la crisis. ¿Cómo?

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¿Quiere saber cuáles son las compañías que operan de una manera más ética?

El Ethisphere Institute ha identificado a las 99 compañías que, según su parecer, son las que trabajan con más ética del mundo, la tercera lista anual que elabora con el objetivo de exhortar a las prácticas éticas dentro de la comunidad financiera. Las 99 compañías, entre las que aparecen Honeywell International, Nike, Patagonia, BMW Bayerische Motoren Werke , Johnson Controls y HSBC Holdings, proceden de 35 sectores diferentes y no recoge ninguna compañía española.

Las calificaciones están basadas en factores como los valores corporativos y las prácticas ecológicas, incluyendo entre ellos la innovación que contribuye al bien público y el uso de menores recursos.

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Energy Efficiency in India: Part 2

In India, Energy Service Companies and local governments are teaming up to increase energy efficiency and save money.

With India’s energy demand expected to more than double by 2030, there is a pressing need to develop innovative ways to conserve energy. As major energy consumers, local governments in India are key players in promoting and implementing energy conservation measures and technologies.

Enter Energy Service Companies (ESCOs), which provide energy efficiency-related services on a performance contracting basis, instead of the traditional fee for service model.

See full Article.

Stimulus to Fund Thousands of New, Green Jobs

President Obama’s economic recovery program could create or save 2.5 million green jobs designing, building and maintaining renewable energy projects and increasing the energy efficiency of schools, homes and federal office buildings.

The work funded by the stimulus spending bill includes jobs in fields ranging from ironworking to window manufacturing, power distribution and alternative energy production.

As these jobs are coming online, state energy offices, unions, power companies and community colleges are forming training programs to help new and experienced workers move into green careers.

Whether you’re currently employed or out of work and looking for a stable job in a new field, stimulus spending on green initiatives could create your next position.

See full Article.

Study: Corruption Goes Up as Economy Goes Down

It’s well known that during times of financial hardship, crime goes up. So no one should be surprised that corporate crime goes up during a recession.

Today’s financial crisis allows the opportunity for many research based organizations to publish studies on just that. One such study, conducted by Transparency International in January, discovered that as the economy sinks, the amount of corruption in the business world goes up.

As Jermyn Brooks, a Director at TI, put it, “For the business world, when the economic parameters get tight there is a much stronger temptation to focus on survival … regardless of what that means in terms of perhaps cutting corners.”

He suggests that business leaders are more concerned about job cuts than preventing bribes in time like this. So what should companies to do? Ensure that you have up-to-date compliance and anti-corruption systems, Brooks says.

See full Article.

PG&E signs deal for first space-based solar farm

California utility PG&E has signed a deal for the world’s first space-based solar power plant to be built by a secretive Southern California startup staffed by veterans of the U.S. Air Force, Boeing and Lockheed Martin.

In papers filed Friday with the California Public Utilities Commission, San Francisco-based PG&E asked for approval of a 15-year, 200-megawatt contract with Solaren, a Manhattan Beach, Calif.-based company that plans to put satellites in geosynchronous orbit to collect solar energy by 2016. The sunlight would then be transmitted to a ground station in Fresno, Calif., in the form of radio frequency power and converted into electricity to be distributed into the power grid. Since the sun shines in space 24/7, a Solaren solar farm could theoretically supply “baseload” green electricity to coal-dependent regions without access to abundant sources of renewable energy.

Whether regulators will be willing to risk utility customers’ cash on such unproven, bleeding-edge technology remains to be seen.

See full Article.

5 tips for keeping your job

The numbers just keep getting scarier. Sun Microsystems is laying off up to 6,000. For Pepsi Bottling it's 3,150. And that Citigroup figure still sends chills down your spine. So how do you hold on to your job when it seems like no one is safe?

1. Be visible

Hard work alone won't cut it. A noble toiler who thinks diligence is a virtue is wrong, says Yale professor Jeffrey Sonnenfeld. Unless you know that what you're doing is appreciated and noticed, don't bother.

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Sense of Ethics: An Essential Quality for Individual Board Member Performance

For every corporate scandal there are many untold tales of corporate goodness. Corporate directors make the difference.

In every sector of our society today, we see strong ethical cultures helping organizations achieve their missions and reach their goals. Organizations with high ethical standards and value driven cultures operate with discipline and sustainable success, benefiting their shareholders, customers, consumers, and communities. In every case, these organizations ensure that theirown ethical standards exceed regulatory expectations.

During thirty years of service as a corporate board member as well as many years of leadership in the higher education, philanthropic, and nonprofit sectors, I have witnessed both corporate and non-profits, and in each sector, the story is the same.

See full Article.

Get Rid of Negative Thoughts

You've been unemployed for six months. Your spouse recently passed away. You think you're too old, fat or stupid to find a job. Keep thinking that way, and you'll prove yourself right. Negative thinking and speaking can derail your job search. Most employers want to hire happy people -- not people who are down on themselves and the world.

Picture two job applicants. Each walks into an office for an interview and is greeted by a receptionist who says, "Good morning." The first says, "I thought I'd never find this place. It's raining so hard that I got drenched just walking from the car to here." The second says, "Those directions you gave me were great. It sure is raining, but we really need it, don't we?" Which of the two would you want to hire?

It's All in How You View the World

Maybe you wouldn't complain about directions or the rain, but the way you view yourself can influence your job search. "You can perceive anything in a lot of ways," says Elaine Varelas, managing partner at Keystone Partners, a Boston career management firm. If you're an older worker, you can see yourself as experienced -- or just old.

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An Innovation Conundrum

Entrepreneurs can build future prosperity. But we first need to fix capitalism's systemic cultural problems.

I met Nassim Nicholas Taleb in San Francisco's Fort Mason Center once. Taleb is now famous for The Black Swan, a book through which he has popularized the idea that random accidents and uncertainties--he calls them Black Swans--determine the course of history and the trajectories of people's lives. (See "The Oracle of Doom.") I asked him, "What are you going to do about your thesis?" He answered, "I don't do. I just think and write."

For the moment, I have also been thinking and writing. My thinking has led me to conclude that innovation is a crucial need of the hour. But we have systemic problems holding innovation back.

See full Article.

Commission calls for radical equal pay reform and a new approach to closing the pay gap

The Commission today called for radical reform of the 1975 Equal Pay Act. Nicola Brewer, the Commission's Chief Executive, said the Act was 'no longer fit for purpose'.

Britain's outdated equal pay laws are almost exclusively reliant on individual women bringing lengthy and costly tribunal cases when they experience discrimination - a system that delivers more conflict than change.

At a time when the tribunal system is straining under a massive almost 500 percent rise in equal pay claims over the last four years, the limits of a so-called 'complaints led' approach - as opposed to one that puts more onus on employers to ensure their pay systems are transparent and fair - are increasingly obvious.

See full Press Release.

A Different Shade Of Green

Outsourcing energy costs isn't reducing total energy consumption.

Despite all the talk about reducing energy consumption in the data center, on the desktop and in a variety of mobile devices that interface with it, companies are expanding their consumption of electricity faster than they are saving it. While many say they have adopted a very deep shade of green, they are decidedly less green than the image they paint.

For the CIO, this is largely good marketing--and a bit of a sleight of hand. Mobile devices and notebook computers do consume less power than a desktop, but they typically get charged while employees are home or on the road, in cars, hotel rooms or even airports. Mobilizing a workforce may lower a corporation's energy bill, but it really isn't reducing the energy consumption tied to that corporation. And mobile employees burn fuel when they're on the road, so the net effect is definitely negative.

See full Article.

Is Direct Method Cash Flow Reporting Better at Predicting Future Performance?

“Cash is king” goes the saying. Even companies enjoying brisk business have been known to fail because of unhealthy cash flows. How can businesses best report on and manage the cash they receive and spend? International accounting standards bodies favour the use of the direct method (DM) in preparing cash flow reports. However, the accounting profession is split over DM’s benefits versus the indirect method (IM) which is used more often.

In a working paper entitled, "Are Direct Cash Flow Disclosures Informative? A Revisit", Singapore Management University accounting professors Yoonseok Zang and Steven Orpurt show conclusively that the direct method does better at predicting future performance and earnings based on a study of over 100 US-based companies which used direct cash flow statements.

A DM statement reports the source of operating cash inflows and outflows directly to facilitate assessment of an organisation’s risk. The format of a DM cash flow statement differs from the IM cash flow statement in that the DM statement directly reports individual cash flows from various operating activities, such as collections from customers, employee salaries or inventory purchases.

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20 ways to win in business

Former Olympic champion, politician and businessman Sebastian Coe shares the secrets of his success.

I am often asked what motivates me to succeed, and how I apply the skills I learned as a runner to my roles in politics and business. The answers to the first question are a passion for the job in hand and a wish to be the best I can be; the answer to the second is that I apply them daily.

There are common traits to successful leaders in any field: imagination, tenacity, the ability to listen, intuition and intelligence. Equally important is the ability to focus and stay on track for as long as it takes, self-management, an element of charisma, a degree of talent and sheer personal courage.

Sports people at the top of their game tend, like entrepreneurs, to have something of a frontier mentality. They are bold and they are prepared to embrace new ideas. Those with a winning mentality are often more prepared to listen to criticism and do things in a new way. It can take courage to set yourself apart from the crowd. Choosing to do things differently can be mistaken for arrogance but, in reality, taking a new approach is often born simply of a compulsion to keep driving forwards.

See full Article.

Stimulus to Fund Thousands of New, Green Jobs

President Obama’s economic recovery program could create or save 2.5 million green jobs designing, building and maintaining renewable energy projects and increasing the energy efficiency of schools, homes and federal office buildings.

The work funded by the stimulus spending bill includes jobs in fields ranging from ironworking to window manufacturing, power distribution and alternative energy production.

As these jobs are coming online, state energy offices, unions, power companies and community colleges are forming training programs to help new and experienced workers move into green careers.

See full Article.

Interview Dining Etiquette

No matter where an interview takes place, it is still an interview. If a potential employer decides to interview you over a meal at a restaurant, your table manners must be up to par. The following etiquette guidelines will help get you through your next dinner interview.

Before the Meal

Long before you enter the restaurant, make sure you turn off your cell phone or beeper. The candidate who receives a call during the meal doesn't receive a call after the meal.

Before the meal arrives, be sure to actively listen to the interviewer. Paraphrase the content of what an interviewer is saying. Be sure to stay away from sensitive subjects such as religion and politics. Look for and seize any opportunity to sell yourself.

During the Meal

Eighty percent of communication is expressed through body language. Although you may be nervous, do your best to relax. Maintain an assured posture throughout the meal and, yes, elbows off the table.

See full Article.

Don't Expect Much From The Next Kyoto

The Copenhagen Climate Convention is months away, but likely DOA already. Here's why.

The Copenhagen Climate Convention is still eight months off, but it already looks likely that the follow-up to the Kyoto Climate Protocol will end without agreement on dramatic new action to curb global greenhouse gas emissions. The reason? American politics.

In December representatives from 170 countries will attempt to craft a global policy to reduce the emission of carbon dioxide and other greenhouse gasses. A Copenhagen agreement would replace the Kyoto Protocol, the current global climate pact that entered in effect in 2005 and expires in 2012. It calls for countries to reduce their greenhouse gas emissions through means such as Europe's carbon cap-and-trade market, which began in 2005.

See full Article.

EIB grants green loans to Jaguar and Nissan

Jaguar Land Rover (JLR) and Nissan's British factory have won hundreds of millions of pounds in loans from the European Investment Bank (EIB) in the first round of money for UK-based carmakers.

Lord Mandelson, the Business Secretary, also appeared to offer hope for JLR's move to get an additional £500 million in loan guarantees from the Government.

JLR was granted €366 million (£329 million) from the EIB and Nissan's European division, which comprises its Sunderland factory and an operation in Spain, was awarded €400 million. JLR's loan and the UK part of Nissan's will be underwritten by the Government.

See full Article.

Pick A CEO Who Truly Fits The Company

Fit is absolutely crucial, and there are ways you can calculate it.

If the experience of previous recessions is any guide, we should expect companies that had the right leaders in place at the start of the downturn to fare better, by and large, than ones that didn't. However, a great many didn't. Turnover of chief executive officers--a prime indicator of wrong leadership--was 50% higher coming into this recession than at the start of the previous one, in 2001. Several statistics cited in the new book The Right Leader: Selecting Executives Who Fit (co-written by one of the authors of this article) likewise indicate that as we entered the current recession, more and more companies were discovering that they didn't have the right leaders to guide them through normal economic conditions, let alone those we face today.

Among them: Some 40% of new CEOs are fired, or "retired," within their first 18 months, and 64% of them never make it to their fourth anniversary on the job. The average cost of replacing a CEO after 18 months ranges from $12 million for small-cap firms to $52 million for large ones. And not having the right leaders costs American industry an estimated $14 billion a year, not even counting the price to shareholders in lost market capitalization and increased stock volatility, and to businesses themselves in being left demoralized, floundering and ripe for the picking.

See full Article.

Invasion of the Charitable Kind

The notion of applying commercial concepts towards charitable goals is old news. Many of today’s large non-profit organisations already display remarkable corporate savvy, apparent in their annual reports, corporate communications and operations management. These organisations, well-oiled and rich as they may seem, are often backed by one or several wealthy philanthropists; a luxury so defining to non-profit organisations but yet largely unavailable to small and medium start-ups.

Questions on funding are almost customary with social entrepreneurs, many of whom are challenged with maintaining sustained support, monetary or otherwise. One-off donations are common but are they an ideal source of principle funding? -- A question posed at “Social Conversation for Venture Philanthropy”, a seminar organised by the Lien Centre for Social Innovation at Singapore Management University (SMU).

Venture philanthropy is a concept derived from venture capital, where investments are put into start-ups that show strong potential for growth. Venture capitalists not only provide capital but also intellectual, managerial and technical expertise.

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Fair-value Accounting Provides Much Needed Transparency in Dislocated Markets

In the current global financial turmoil, more transparency is needed, not less, say Singapore Management University professor of accounting Andrew Lee, and accounting lecturer Lim Chu Yeong. Financial markets have long been regarded as the paragon of perfect competition.

“When there are many buyers and sellers and there is an adequate flow of information, the market price of an asset reflects the collective wisdom of all participants and represents fairly its intrinsic value,” said Lee. “Of course, markets can still function reasonably well even if they are not perfect; they just need to be sufficiently competitive.”

He pointed out, however, that when critical conditions for perfect competition are badly breached, markets break down. Buyers and sellers become extremely hesitant to trade or disappear from the market completely, prices fluctuate outrageously and they no longer reflect fairly intrinsic values. Economists term this phenomenon a market failure.

See full Article.

Moulding the Corporate Social Responsibility Agenda in Singapore

Companies today must look beyond simply making a profit and be mindful of the non-economic impact of their operations. No longer the domain of big companies where it was equated with philanthropy, corporate social responsibility (CSR) is now part of the triple bottom-line. Businesses, big and small, must take into account the interest sof `stakeholders’, not just `shareholders’. Singapore Management University law professor Eugene Tan, author of a working paper on the state of corporate social responsibility in Singapore, states: “CSR is very much an intrinsic part of the corporate landscape today, and any company not giving it the priority it deserves is out of touch with an increasingly important development.”

In Singapore where small and medium-sized enterprises (SMEs) make up 92% of all firms, account for 51% of the workforce and 34% of gross domestic product, SMEs as well as larger companies have a significant role to play in addressing CSR priorities.

See full Article.

City glass ceiling 'impenetrable'

Continuing differences in salaries and in opportunities is unacceptable.

Lack of results should be sufficient proof of discrimination and should be penalized.

Onésimo Alvarez-Moro

See article:
Women earn up to 60% less than men in the finance sector, an Equality and Human Rights Commission report says.

The research indicates that although numbers of men and women in the sector are equal, the pay gap is more than twice the national average.

The study also points to a 79% gender gap for annual incentive pay for full-time workers.

The TUC says the figures are evidence that the City is failing to shed its "impenetrable" glass ceiling.

See full Article.

Green Product Trends: More Launches, More Sales

Research ranging from product launches to retail sales shows that green products are staying strong, with long-time green companies like Seventh Generation seeing strong sales and mainstream companies launching more green lines, AdAge reports.

Companies have launched 458 products that claim to be “sustainable,” “environmentally friendly” or “eco friendly,” according to Datamonitor's Product Launch Analytics. If that trend continues there'll be 1,570 new green products launched this year, triple the amount launched in 2008, which saw double the amount launched in 2007.

Although just because products carry such claims doesn't mean the claims are truthful, as research firm TerraChoice has found out when comparing environmental claims to its Seven Sins of Greenwashing.

See full Article.

Se anuncian ayudas para Africa

En medio de todas las palabras sobre los problemas económicos del mundo, especialmente del mundo rico, y de las reuniones de la G20, es fácil perder de vista las necesidades más básicas que los más pobres están sufriendo.

Por eso es tan importante el anuncio ayer, durante una conferencia en Lusaka, Zambia, organizado por la North-South Corridor, una iniciativa de tres organizaciones: COMESA, EAC y SADC, organizaciones regionales fomentando el desarrollo en Africa.

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The poor must be included in a global economy

In an age characterised by the death of trust we find comfort in being able to blame everyone. It is entirely reasonable that thousands will protest, hopefully peacefully, against bankers who stuck their noses in the trough, regulators who turned away and governments who kept smiling as the tax take grew. The truth is they could just as easily protest against themselves for blindly succumbing to this leveraged society. We must now clear up the mess. Amid all the experts who failed to call this disaster, only one got it right. It was Bob Dylan, who said: “Money doesn’t talk. It swears.”

The system was always skewed and its rewards asymmetric. We built a global economy that excluded half of the globe. We marginalised the productive capacity of the 3bn people who live on less than $2 a day. By excluding them, we deprived them of the income they need to buy our stuff and consigned them to ill-health, lack of education and conflict. Instability is inherent in asymmetry. It will topple over. The first task of the Group of 20 nations must be to bring the peripheral economies and their people into the centre.

See full Article.

US body agrees accounting changes

Bank stocks were boosted on Thursday by an accounting rule change that is expected to allow managers to repair balance sheets by recalculating the value of some of their most troubled assets.

The Financial Accounting Standards Board voted on Thursday morning to allow banks more freedom to use their own valuation models, rather than current market prices, for assets where markets have become illiquid. A second rule change means banks will only have to recognise a part of any impairment in their profits.

See full Article.

¿Funciona su comité de dirección?

Los comités de dirección son los responsables de definir la estrategia de una compañía, ¿pero tienen estos una estrategia que asegure su buen funcionamiento? José Luis Álvarez, profesor de Política de Empresa de la escuela de negocios Esade y autor del libro recién publicado Decisiones estratégicas, ha compartido con Universia Knowledge@Wharton cuáles son los problemas de estos comités, a la vez que identifica los puntos clave para asegurar que los altos directivos sacan el máximo partido al tiempo que dedican a las reuniones en las que deciden el futuro de la empresa. En su opinión, el papel del líder ejecutivo a la hora de fomentar el debate entre todos los miembros del comité es uno de los pilares fundamentales.

Universia Knowledge@Wharton: ¿Cuáles son los problemas típicos del trabajo en equipo de la alta dirección?

José Luis Álvarez: La calidad del trabajo en equipos de alta dirección deja mucho que desear. Los principales problemas recurrentes para su funcionamiento son:

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US 'wants more financial rules'

The US is committed to the establishment of stricter rules against financial fraud and abuse, Treasury Secretary Timothy Geithner has said.

Speaking in Washington, Mr Geithner said such new regulation - both in the US and globally - would help to prevent a repeat of the credit crisis.

His comments come a week before the heads of the G20 group of leading countries meet in London.

G20 leaders have already pledged to try to agree new global financial rules.

See full Article.

Do International Financial Reporting Standards Live Up to Their Promise?

At a time when many barriers to global trade have fallen and the world's economies have become increasingly linked, countries all over the world are taking steps to harmonize their accounting standards and develop a truly global language of business.

Under the lead of the International Accounting Standards Board (IASB), already more than 100 countries, most notably the European Union and many Asian economies, have either implemented International Financial Reporting Standards (IFRS) or plan to do so.

So far, the United States has been a holdout. But the winds are changing. On November 15, 2007, the U.S. Securities and Exchange Commission (SEC) -- which up to then was requiring foreign companies to either report using Generally Accepted Accounting Principles (GAAP) or to reconcile to them -- announced that it would promote international compatibility by allowing foreign companies to access U.S. capital markets while reporting under IFRS. At the same time, the SEC is contemplating changes that would grant domestic firms the choice between reporting under GAAP or IFRS.

See full Article.

Time for Transparency: What Will It Take to Improve Corporate Governance in the Middle East?

Last month, news broke that Nabil al-Boushi, an Egyptian brokerage owner based in Dubai, swindled his clients -- including several celebrities -- to the tune of millions of dollars. Among other things, he is thought to have used money from Egyptian investors to pay off investors in the United Arab Emirates, while falsely claiming to have had relationships with top government officials in the region. His doings brought to mind another person in the news: Bernard Madoff, the former chairman of the NASDAQ stock exchange, who has been charged with running a $50 billion Ponzi scheme and duping numerous well-heeled investors, both in the United States and elsewhere.

As al-Boushi's dealings were brought to light, he was quickly termed the "Egyptian Madoff" in the press -- and in both cases, the finger pointing began. As if that weren't enough, investors in the region had already been spooked by the ongoing long-term probe into allegations of bribery and corruption at Dubai Islamic Bank and its subsidiaries, which sent more than 20 executives to jail.

To what extent might strong and enforceable financial regulations and good corporate governance standards have kept these frauds from happening -- or at least limited their impact?

See full Article.

Malaria No More - Donate Bed Nets

On April 25, World Malaria Day reminded us that every 30 seconds a child in Africa dies from malaria. We know how to stop this tragedy, but we need your help.

A $10 mosquito net can protect a child and its family as they sleep, the time when most malaria-spreading bites occur.

See full Article.

El racismo se aprende (y se enseña)

Hace 49 años, el 21 de marzo de 1960, la policía abrió fuego en el distrito de Sharpeville en Sudáfrica y mató a 69 personas que se estaban manifestando pacíficamente contra las “leyes sobre los pases” del apartheid.
Posteriormente, la Asamblea General de las Naciones Unidas proclamó ese día, el 21 de marzo, Día Internacional de la Eliminación de la Discriminación Racial. La Asamblea instó a la comunidad internacional no sólo a conmemorar esa tragedia, sino también a colaborar para luchar contra el racismo y la discriminación racial donde quiera que se den.

Ningún país puede decir que está libre de racismo y discriminación racial. El racismo es una violación de los derechos humanos y de la dignidad humana, sin embargo es una situación que ha existido desde hace mucho tiempo y a la que hoy todavía se enfrenta millones de personas en el mundo.

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Crisis is an opportunity to revive trade reforms, says OECD report

Resisting protectionism and reviving stalled trade reforms would help the major emerging economies build on the progress achieved over the past two decades and emerge from the crisis with their trade performance strengthened, says a new OECD report.

Presenting Globalisation and Emerging Economies: Brazil, Russia, India, Indonesia, China and South Africa, OECD Trade and Agriculture Director Ken Ash said: “Trade protectionism is not the way to tackle the current economic crisis. Openness has served the BRIICS very well and the most open segments of their economies have done the best. All countries - OECD members, BRIICS, and others – should now, more than ever, strive to keep international markets open in order to improve their economic prospects.”

The report shows that Brazil, Russia, India, Indonesia, China and South Africa (BRIICS) have significantly reduced their border protection and have been expanding their exports much faster than the leading developed countries. But a “second generation” of reforms is now needed. Reducing remaining import tariff barriers, reforming domestic regulations that unduly impede trade and further opening up service sectors will enable the BRIICS to emerge stronger from the crisis.

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Obama, Who Vowed Rapid Action on Climate Change, Turns More Cautious

President Obama came to office promising swift and comprehensive action to combat global climate change, and the topic remains a surefire applause line in his speeches here and abroad.

Yet the administration has taken a cautious and rather passive role on the issue, proclaiming broad goals while remaining aloof from details of climate legislation now in Congress.

The president’s budget initially included roughly $650 billion in revenue over 10 years from a cap-and-trade emissions plan that he wants adopted. But the administration, while insisting that its health care initiative be protected, did not fight to keep cap-and-trade in the budget resolutions that Congress passed last week, and it wound up in neither the House’s version nor the Senate’s.

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América se vuelve verde II

Siguiendo la propuesta de Barack Obama de que en 2025 el 25% de la energía consumida en los Estados Unidos proceda de fuentes renovables, en Atlanta ya existen iniciativas puntuales enfocadas a un consumo responsable de energía y a mejorar el entorno, sobre todo en centros relacionados con la investigación como son la Universidad de Emory o el Georgia Institute of Technology (GaTech). La primera está construyendo edificios verdes, sobretodo dormitorios, pensados para educar a la siguiente generación hacia un comportamiento más respetable con el medio ambiente. Un buen ejemplo es el 'Turman Hall' que ya ha ganado varios premios a la sostenibilidad. Este edificio está parcialmente construido con materiales reciclados, cuenta con paneles solares, sala de recogida de materiales reciclables e incluso tiene una pantalla plana en la entrada que muestra el consumo energético de cada planta por el cual los estudiantes compiten.

Por su parte el GaTech tiene 26 edificios sostenibles, el número más alto en todo el país y cuenta con 23 centros investigadores en energía verde y sostenibilidad. Tiene una página web, Green Buzz, que explica todos los proyectos de sostenibilidad en el campus y por ejemplo en los comedores self-service se está eliminando el uso de bandejas ya que suponen el uso de unos 12.000 litros de agua diarios.

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El mundo verde según el ciudadano: Consumo y cambio climático

La conciencia de que la salud medioambiental del planeta no es buena es algo generalizado en la opinión pública mundial. Sin embargo, el ciudadano no es plenamente consciente de su poder como consumidor.

La desconfianza en la economía y en la política es también algo común. El mensaje con argumentos ecológicos requiere especial coherencia, los políticos necesitan transmitir compromiso y presentar acciones tangibles para reinvertir el proceso de creciente desconfianza instalado en el ciudadano a nivel internacional.

El reciente estudio “Our Green World” llevado a cabo por la agencia TNS Sofres muestra que un 78% de personas cree que la situación medioambiental del planeta es mala. En Francia la cifra se eleva a un 92%. Sin embargo, los consumidores no relacionan sus compras con la posibilidad de cambiar el rumbo de las cosas y cuestionan la credibilidad tanto de las empresas como de los líderes de opinión en relación a los temas medioambientales.

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New FASB Rules: Back to Square One?

Financial institutions applaud the accounting-rule changes, but investors could end up losing even more faith in the banking sector

The Obama Administration has moved swiftly over the past two months to reassure the markets it is doing everything it can to stabilize the financial system: stress-testing banks, planning auctions to buy their questionable assets, making capital available to the ones that need it. Have accounting rulemakers thrown a wrench in the works?

After intense pressure from lawmakers and some factions of the financial industry, the Financial Accounting Standards Board (FASB) voted on Apr. 2 to make it easier for corporate management to value assets on their balance sheets with less regard for market prices. The board, which sets U.S. accounting policy, was cheered on by the banking sector and pressured by Congress.

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Mind the GAAP: Analyzing the Proposed Switch to International Accounting Standards

The Securities and Exchange Commission (SEC), as stated in an August 2008 "roadmap proposal," wants to set aside U.S. Generally Accepted Accounting Principles (GAAP) in favor of the international standards followed by most of the world.

The call to replace U.S. GAAP with International Financial Reporting Standards (IFRS) by 2014 would represent one of the biggest-ever accounting rule changes for public companies based in the U.S. Among other issues, it would likely displace the Financial Accounting Standards Board, or FASB, as the U.S.'s chief accounting authority, subsuming it under the London-based International Accounting Standards Board (IASB).

But there are some tough questions about the move that have yet to be answered, according to Wharton accounting professor Luzi Hail, who, with professors Christian Leuz from the University of Chicago and Peter Wysocki of MIT's Sloan School of Management, recently conducted research on the potential impacts of the change. They present their findings in a paper titled, "Global Accounting Convergence and the Potential Adoption of IFRS by the United States: An Analysis of Economic and Policy Factors."

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Geithner to Outline Plan for Broad New Finance Rules

The Obama administration will detail on Thursday a wide-ranging plan to overhaul financial regulation by subjecting hedge funds and traders of exotic financial instruments, now among the biggest and most freewheeling players on Wall Street, to potentially strict new government supervision, officials said.

The Treasury secretary, Timothy F. Geithner, will outline the broad revamping of the regulatory system, which goes further than expected, in a hearing on Thursday. He is expected to say that the new rules are necessary to prevent a repeat of the excesses that nearly wrecked the global financial system and plunged the economy into a recession.

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Dissenter on Climate Change Takes Fight to the Web

Marc Morano does not think global warming is anything to worry about, and he brags about his confrontations with those who do.

For example, Mr. Morano said he once spotted former Vice President Al Gore on an airplane returning from a climate conference in Bali. Mr. Gore was posing for photos with well-wishers, and Mr. Morano said he had asked if he, too, could have his picture taken with Mr. Gore.

He refused, Mr. Morano said.

“You attack me all the time,” Mr. Gore said, according to Mr. Morano.

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