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Corporate ownership
Alternatives that work
Climate change
Post Doha, what now?
Cradle-to-cradle
The Desso approach
February 2013 www.ethicalcorp.com
Extractive
sector ethics
The security and human rights challenge

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Ethical Corporation • February 2013 Contents 3
Contents
5 From the editor
EthicsWatch
6 Energy
Do shale gas economics add up?
7 Cashflow management
The squeezed middle
8 Anti-corruption
Bribes still popular
9 Gold standard
Conflict free
10 Mallen Baker p19 New venue, same problem p45 On your bike
2013 speculation
11 Extractive sector 24 Sustainable energy Strategy and management
Human rights underground Hong Kong’s inexhaustible supply 33 Desso
Innovative sustainability
16 CRwatch 26 Cheat sheet 36 Essay
Garment industry waste All the info you need What board directors need to do
18 Peter Knight 28 NGOwatch
Welcome home! Drones v poachers 40 China column
Paul French on Chinese sustainable business
drivers
19 Climate change 29 Corporate ownership
Out of time? There are alternatives
Review
41 Academic news
42 Report: Co-operative Group
43 Report: Volvo
44 New books
People
45 Commuting
It’s easier by bike
COVER IMAGE: SHOTBYDAVE/ISTOCKPHOTO.COM
48 People on the move
50 Toby Webb
Do what good communicators do
p11 Human rights abuses still abound p29 Brotherly profit

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Ethical Corporation • February 2013 From the editor 5
Welcome to the February 2013 issue
t’s great to be back after our winter break. Kicking off 2013, our ownership structures compares to more traditional companies.
I cover story this time reflects on how the extractive sector’s
human rights record has improved over the first 12 years of the
The results are interesting. In the financial sector – which has
been taking a trust battering recently – over 20 to 25 years,
Voluntary Principles on Security and Human Rights. The violent money invested in organisations with mutual ownership structures
clashes at South African mines hit the headlines in late 2012, but typically out-competes traditional funds by 25%. UK top-end
these were not isolated incidents. In the past few months there has high street chain John Lewis is owned by its employees, who
been similar violence at mines in Peru, Bolivia, Guatemala, Ghana all shared in £165m divided up
and others. The spark for these incidents is often the proximity from total profits of £354m in
of local communities, and a heavy-handed attitude towards 2012. And 13.5 million people in the
protesting on the part of some facilities’ management, or over- UK are now members of some sort of
reaction to relatively minor incidents. cooperative. So they must be doing
This is despite, of course, the real and definite progress made by something right.
many of the big international mining companies, not least through Sticking to this theme, in our review
the provisions of the voluntary principles. As is so often the case, section we consider the latest report
hard work through multistakeholder initiatives, and genuine from the Co-operative Group, the
determination to make progress is hard to translate on the ground, UK’s biggest cooperative, alongside car
where older attitudes prevail. manufacturer Volvo’s latest offering.
Elsewhere this issue, we reflect on the implications of the recent And as usual we also have all the latest
United Nations climate summit in Doha. There is a growing sense, analysis and comment from our
as we reflected in our review of 2012 in December, that we are regular columnists.
rapidly moving from a question of if we will need to deal with the Please do let us know if there any specific issues you’d like us
implications of climate change to how we are going to avoid the to cover this year. Upcoming stories are regularly updated on
worst impacts. Ethicalcorp.com. I
Even in the face of the strong – albeit anecdotal – experience of
so many violent or extreme weather events over the past couple of
years, governments are incapable of taking the leadership posi-
tions required. NGOs and smart, progressive companies can help
show the way, of course, but this is an instance where heads of
government need to get beyond politics and do their jobs. There
are still opportunities for sustainable growth, but these need to
be grabbed, and now.
With corporate reputation generally so low, we’ve been consid- Ian Welsh
ering how the performance of organisations with alternative Editor
Publisher: Toby Webb Contributors: Rob Bailes, Mallen Baker, Oliver Balch,
toby.webb@ethicalcorp.com Jeni Bauser Yaghoubi, Aleksandra Dobkowski-Joy,
Editor: Ian Welsh Paul French, Stephen Gardner, David Grayson,
ian.welsh@ethicalcorp.com
Andrew Kakabadse, Peter Knight, Lisa Leath,
Claire Manuel, Eric Marx, Sam Phipps, Rikki Stancich,
Contributing editor: Mallen Baker
Toby Webb
Sub editors: Sarah Burton, Gareth Overton
Business Intelligence for Sustainability
People on the move Advertising and sales: Oliver Bamford Design: Alex Chilton Design
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