Business Ethics : News brief

Beneath Toyota's buffed shine lies a dark undercoat. The Toyota Corporation enjoys a fine reputation for well-built cars, environmental innovation, flexible production lines and effective management practices. But in its quest for ever-increasing efficiency, profitability and growth, the world's largest auto manufacturer has sparked a race to the bottom that, like its car sales, is global in scope.

A report by the Interior Department's inspector general, Earl Devaney, described a party atmosphere at the Denver office of the Minerals Management Service, a bureau of the department. Some employees of the office, which houses the department's royalty-in-kind program, "frequently consumed alcohol at industry functions, had used cocaine and marijuana, and had sexual relations with oil and gas company representatives," the report said, adding that "sexual relationships with prohibited sources cannot, by definition, be arms-length."

Today, large companies find themselves constantly in the firing line over bribery and corruption. Regulators and prosecutors are becoming ever more vigilant. Convictions and fines for business corruption are rapidly increasing.

Still many large companies are unaware of the growing legal liability they face under laws such as the Foreign Corrupt Practices Act. KPMG data points out that many companies lack basic compliance programmes yet face hugely increased criminal risks.

Of 57 resolutions filed on the issue, almost half were withdrawn after companies including Ford and El Paso made commitments and took action on climate change. Other resolutions saw an increased amount of shareholder support in votes at AGMs. Of the 24 that went to the vote, they secured an average of 23 percent support, up six points from two years ago.

Read more about US climate change resolutions here.

Employees at small and medium sized business (SMBs) are significantly more likely to take action to cut energy use and carbon emissions, such as turning of lights and computers and promoting recycling, than their counterparts at larger organisations.

That is the conclusion of a major survey of over 1,200 UK workers from energy giant E.ON, which also found that SMBs are more conducive to such measures.

The 2008 Favorite Green Brands Index, just released from Outlaw Consulting, rates the top 15 green brands among young American trendsetters. The big surprise? Top finishers earned their reps for some unexpected reasons.