Ethical Brand

Burger King Ad Angers Mexicans

trendsupdates.com — Burger King’s latest promotional poster has pissed off Mexicans and the ad has been forcefully withdrawn. It shows the Texican Whopper being promoted in a bad light with an American cowboy standing next to a short Mexican man draped in the country’s flag. The Mexican ambassador to Spain said to show the Mexican flag in such a way is illegal...

read more | digg story

When Footnotes Speak Louder than Accuracy in Media

One of the organisations I have admired for a long time now is Accuracy in Media who have over the years set out a fairly respectable stall for fairness, balance and accuracy in news reporting.  Unfortunately though, in a recent post entitled Obama Endorses Soros Plan to Loot America by Cliff Kincaid, AIM is looking more like the kind of right wing opinion factory we see in mainstream media than an upstanding, independent voice for fairness in media reporting. 

Kincaid certainly makes a few noteworthy points, but the fact that these are lost in a grungy haze of right wing vitriol targeting George Soros is a sad enough indictment of his so-called fairness and balance, but what really makes this a slam dunk for all of the things that AIM claims not to be, is the footnote of the article which simply reads "Commenting is not available in this weblog entry."

Something doesn't add up.

Obama Endorses Soros Plan to Loot America

Big Pharma Quietly Hikes Drug Prices 100 Percent or More

Without any fanfare, pharmaceutical companies have been raising the prices of many of their drugs by 100 percent or more, according to a study conducted by researchers from the University of Minnesota.

read more | digg story

BP to Pay $180 Million to Settle Pollution Case

BP has agreed to pay $180 million to resolve a federal inquiry into pollution violations at its Texas City refinery. The proposed settlement requires the London-based oil giant to spend $161 million for equipment to reduce harmful emissions at the refinery, including stricter controls for benzene, a petroleum byproduct known to cause cancer.

read more | digg story

Monsanto Accused of Putting Normal Seeds Out of Reach

Linn Cohen-Cole of Global Research writes "Monsanto contaminates the fields, trespasses onto the land taking samples and if they find any GMO plants growing there (or say they have), they then sue, saying they own the crop. It ’s a way to make money since farmers can’t fight back in court and they settle because they have no choice."

read more | digg story

Coca Cola's Vitaminwater violates NCAA Banned-Substances Rule

AdAge.com reports that six product varieties of a major marketing partner for the NCAA, Coca-Cola's Vitaminwater, should not be consumed by its players or they might test positive for banned substances. The news came to light after an e-mail, purportedly from Drug Free Sport, which conducts drug testing for NCAA schools, found its way into the inboxes of athletic directors around the country. Coca-Cola is considered an NCAA "Corporate Champion," having signed an 11-year, $500 million deal in 2003.

Coca-Cola target of California class-action over deceptive "VitaminWater"

First there was 'green-wash'. Now wash-weary consumers need to be on the lookout for 'health-wash'. A legal representative for California's Center for Science in the Public Interest says, "Consumers should not have to look beyond the misleading claims on VitaminWater labels in order to discover the truth on an ingredients list." Hear hear!

read more | digg story

Alaskan gold miner Coeur wants permit to destroy Lake Life

If 'Coeur' was a brand of jewellery it would have a well deserved and costly public relations disaster on its hands right about now, but it does not. This is because the origins of gold - like so many other raw materials and ingredients used in our daily lives - remain obscured from and practically impossible for consumers to trace.

read more | digg story

Black Money, World Aid and Tax Havens

As sovereign governments of major countries in the world come under severe pressure to inject fresh funds in concert into their financial institutions and national economies, their tax revenue and customs departments are gearing up to crack down on private banking tax havens at lightning speed. 

In March 2005, the Tax Justice Network (TJN) published a research finding "The Price of Offshore", demonstrating that USD 11.5 trillion of personal wealth was held offshore by the rich and ultra rich -- High Net Worth Individuals (HNWIs) -- across the globe.  This was based on data from many consulting firms and financial institutions including the Bank for International Settlements in Basel, Switzerland. The findings estimated that a large proportion of this wealth was managed from 70+ tax havens with Switzerland at the top of the black money pyramid.  The USD 11.5 trillion of assets held offshore would generate a return of about USD 860 billion a year at a 7.5% rate of return, and a consequent tax loss of USD 250+ billion for sovereign nations, more than three times the OECD countries' official development assistance to the entire world. 

Surprisingly, India -- still regarded as a poor country by many -- has USD 1.5 trillion in Swiss banks, which is more black money than the rest of the world combined. This is thought to be unaccounted money earned in India by inappropriate means as otherwise any Indian citizen or corporation wishing to open a bank account abroad has to take permission from the Reserve Bank of India and records do not show any such permissions granted for deposits in Switzerland.  A 2006 report of the Swiss Banking Association claims Indians are the biggest depositors of black money in banks located in Switzerland.  Top five countries in terms of such deposits are:

India:  USD 1,456 billion
Russia:  USD 470 billion
United Kingdom:  USD 390 billion
Ukraine:  USD 100 billion
China:  USD 96 billion

With private account deposits of USD 1.5 trillion in foreign reserve which have been misappropriated, an amount 10 times larger than India's foreign debt -- USD 155+ billion -- one needs to rethink if India is a poor country?  Many Indians regard this money as public loot since independence from Britain in 1947 and are asking, "Can we bring back our money?"  It is argued that once this huge amount of black money and property comes back to India, the entire foreign debt can be repaid immediately, still leaving a huge surplus amount of foreign exchange reserves in India.  Some 80,000 Indians travel to Switzerland every year, of whom 25,000 travel very frequently. "Obviously, these people won't be tourists. They must be travelling there for some other reason," believes an official involved in tracking illegal money. And, clearly, he is not referring to the commerce ministry bureaucrats who have been flying in and out of Geneva ever since the World Trade Organisation (WTO) negotiations went into a tailspin!

South Asia has been hit hard by the "The Great Unwind" because it is an important part of the global economy which has caved in. Under pressure from the West, India opened up several sectors in the last two decades. However, it has been seen during the last few weeks that the Western financial institutions, hedge funds and capital providers have been the first to sell their shares in various Indian companies, bringing the share market tumbling down. It is estimated that in India alone the Western investors have been withdrawing USD 1+ billion in foreign exchange per week as they experience margin calls, unwind carry trades, and confront liquidity problems and greater hardship in their originating countries.

The Swiss Banking Association's startling disclosure that Indians hold USD 1.4 trillion of their USD 2.15 trillion black money deposits is intensifying pressure on the Indian government to get access to that money as global financial pressures intensify and there is this accelerating flight of capital abroad.  The well known economist Professor Arun Kumar estimates black money generation in India to be currently 50% of the GDP. The growth of black money in proportional percentage to the GDP has shown an alarming increase in recent years, from 20% in the 1980s to 45 - 50% at the turn of the century.  It is further estimated by experts that one per cent of the world's population holds more than 57 per cent of total global wealth, routing it invariably through tax havens.  ATCA's preliminary investigation to analyse the Swiss banking chain and to assess Indian wealth in that single country, suggests that the number is much larger than the USD 1.4 trillion figure and is more likely to be near USD 3 trillion.  The larger figure can be derived from the deposits in vaults of gold, diamonds and other precious gems alongside assets managed out of Switzerland in other tax havens.  There are some well known 'slush parks' like St Kitts, Antigua, Bahamas, Isle of Man and Liechtenstein that multiply such holdings manifold with the central management points in Switzerland.

Raymond Baker, a US-based expert in illicit financial flows, in his widely referenced book "Capitalism's Achilles Heel: Dirty Money and How to Renew the Free Market System" estimates that at least USD 5 trillion have been shifted out of poorer countries to Western tax havens since the mid-1970s.  He estimated cross-border flows of global dirty money in a range between USD 1.1 to USD 1.6 trillion annually, about half of which came from developing and transitional economies, and two thirds of which is commercial dirty money. In April 2007, the World Bank endorsed Baker's figure.  Using his lower USD 500bn estimate for developing and transitional economies, Baker has said, "Through most of the 1990s, aid was running at about USD 50bn a year from all sources. It has edged up slightly in this decade. USD 50bn of aid in; USD 500bn of dirty money out. For every USD 1 that we [the West] have been generously handing out across the top of the table, we've been taking back some USD 10 of illicit proceeds under the table [via tax havens and other means]. There is no way to make this formula work, for poor or for rich." The USD 500bn coming illegally out of developing and transitional economies is equivalent to 8% of their GDP.

In the 1990s, US Treasury department officials told Baker that illicit inflows into the US stood at around USD 250 billion per year, and in a good year they seized USD 250 million of that. This equates to a failure rate of 99.9%. The volumes have increased since then, but there is no reason to think that the failure rate has improved.  "Laundered proceeds of drug trafficking, racketeering, corruption, and terrorism tag along with other forms of dirty money to which the United States and Europe lend a welcoming hand," Baker concluded. "These are two rails on the same tracks through the international financial system." It is not possible to tackle any of these seriously without tackling them all. Baker's opening speech at a recent conference explains some of the issues in stark detail, "No one I have ever talked to thinks dirty money is declining or that anti-money laundering efforts are stemming the global tide of illicit proceeds. Indicators point in the opposite direction." Baker broke down his data like this:

Cross-border annual flows of Global Dirty Money -- Low - High

1.  Criminal -- USD 331 - 549 billion
2.  Corruption -- USD 30 - 50 billion
3.  Commercial -- USD 700 - 1,000 billion
    
     of which:   

     Mispricing -- USD 200 - 250 billion
     Abusive transfer pricing -- USD 300 - 500 billion
     Fake transactions -- USD 200 - 250 billion

TOTAL -- USD 1,061 - 1,599 billion

Experts point their finger at the new investment environment of the last two decades which shunned state intervention and favoured massive deregulation.  The retreat of the nation state ensured that the restraint exercised on capital to keep its greed in check was diluted and some amount of the black money went into the process of being legalised.  They point out that in a free market environment takeovers were much easier. Those who possessed black money tried to buy legal businesses to gain legitimacy for their shadow wealth.  The Great Unwind has reversed this process.  Watch out particularly for the United States, Euro-zone countries, United Kingdom, China, India and Russia in regard to the coming sovereign crack down of tax havens worldwide.

DK Matai, Chairman, ATCA Open.

The Soccer Industry Cup - played with Big Balls: EUFA v Poland: Poland 1 UEFA 0

How does the governing body of a sport - any sport - get into the position of feeling comfortable telling a government - any government - to butt out of the affairs of that sport taking place within it's national jurisdiction - particularly when the government in question is flagging the integrity of its own national sporting body? 

This is the question emerging from the latest round between the Polish Footbal Associatiion and UEFA, with the latter threatening to withdraw Poland's right to host the 2012 European Championship after the Polish Government suspended the Polish Football Association over allegations of corruption. However, the real question surrounding all of this must be whether the problems which the Polish authorities were responding to is not perhaps more endemic - maybe the widely accepted modus operandi for European soccer administrators?

read more | digg story