CPD IN THE NEWS

Adam Galatioto’s loyalty to diesel Volkswagens predates his ability to drive.

The 29-year-old’s parents first bought a Jetta TDI in 1998, and he drove the little sedan through high school, college, and a master’s program before selling it in 2013. Mr. Galatioto and his girlfriend now share a 2011 Jetta TDI SportWagen, which he helped encourage her to buy.

“They get really good mileage,” he says. “Mine got 50 m.p.g. on the highway. By proxy that means you are being environmentally friendly.”

He’s not alone. Volkswagen has long enjoyed a reputation for reliable engineering, cheerful affordability, and, largely thanks to its efforts in clean diesel, sustainability. In Consumer Reports’ 2014 survey on how people perceive leading car brands, the German automaker was singled out (alongside Tesla) for its fuel efficiency.

That made recent revelations that VW had duped environmental regulators for years, installing software on 11 million diesel vehicles worldwide allowing them to run cleaner during emissions tests than they did on the road, all the more unnerving.

“I don’t generally trust corporations on what they say, and this was so intentionally devious it just lumps them in with any other car company for me,” Galatioto says.

This is a worst-nightmare scenario for companies trying to attract customers that increasingly want to make not just quality or affordable purchases, but ethical ones. It’s an impulse nearly every consumer industry is racing to capitalize on, from restaurant chains shifting to cage-free eggs and fair-trade coffee to retailers pledging to raise wages and give workers more predictable scheduling.

But with such promises being made left and right, and especially in the wake of Volkswagen’s fall, conscientious consumers may be wondering: Can any of them really be trusted?

Not always, clearly, but there is some comfort to be had on that front. Brands that fail to deliver risk even greater financial and reputational fallout than ever before (Volkswagen lost a third of its stock value when the scandal broke, and it faces billions in future losses from EPA fines, repairs, and lost sales). Combined with effective third-party oversight, it’s a powerful motivator for companies on the whole to behave better, experts say.

Consumers, particularly younger ones, are armed with easier access to information about what they buy than previous generations, and it’s affecting their choices. Millennials (adults ages 21 to 34) are more than twice as likely as their Gen-X and baby boomer counterparts to be willing to pay extra for products and services billed as environmentally and socially sustainable, according to a 2014 Nielsen survey. They are equally more prone to check product labels for signs of sustainable and ethical production.

“There’s an increased attention to more intangible characteristics of a product,” says Dutch Leonard, a professor who teaches corporate responsibility and risk management at Harvard Business School. “When I buy a shirt, it has a particular color, it’s soft, or wrinkle-free. But now people are also paying attention to where it was made, if the workers are being exploited, and if the company is environmentally conscious or not.”

This makes responsible changes effective marketing tools, which can create domino effects as companies try to keep up with and outdo standards in their particular industries. When Wal-Mart, the biggest retailer in the world, raised its minimum pay rate at the beginning of this year, competitors such as Target and Kohl’s quickly followed suit. The success of Chipotle, which has a carefully detailed food-sourcing policy, has been followed by major supply chain overhauls for McDonald’s, General Mills, and other giants of the corporate food world.

 “Customers want 'food with integrity,' ” Warren Solochek, a restaurant-industry analyst with NPD Group, a market-research firm, told the Monitor in May. “[Companies] that choose locally sourced, fresh ingredients can put that on their website and know that people are looking at it.” 

But especially for major corporations, “when you say you are doing things, you will attract attention from outside business groups," Professor Leonard says. "You can bet some NGO [nongovernmental organization] is going to try and figure out if that’s true or not.”

Indeed, Volkswagen isn’t the first brand to have its positive positioning face pushback, especially as global companies work to strike an operational balance between ethics and profitability. Wal-Mart’s wage hikes were followed by cutbacks in worker hours when the retailer’s earnings suffered, a move that led labor advocacy groups to call the earlier wage hikes “a publicity stunt.” Earlier this week, the Center for Popular Democracyreleased a report showing that Starbucks has so far failed to live up to a much-publicized vow from a year ago to give workers more consistent schedules.

While Volkswagen eluded the Environmental Protection Agency, it was eventually found out by the International Council on Clean Transportation, an independent nonprofit aided by researchers at West Virginia University.

In addition to catching such discrepancies, watchdog groups can be helpful in weeding out credible claims of positive change from the less so. In the mid-2000s, the Unions of Concerned Scientists’ annual environmental consumer guide largely dispelled the idea that washable cloth diapers are significantly better for the environment than disposable ones.

Furthermore, some major corporations and industry groups have partnerships with independent, NGO-like organizations to set ethical industry standards and submit to outside monitoring. Unilever, for example, teamed up with the the World Wide Fund for Nature (WWF) in the 1990s to create the Marine Stewardship Council, a certification program for sustainable fisheries. In 2008, Starbucks embarked on a decade-long project with Conservation International to improve the sustainability of its coffee supply around the world. Home Depot sells lumber certified by an outside organization.

Such collaborations may not catch everything, Leonard says, but they are effective because they are “constructed in such a way that the [certification groups] are not beholden to an industry. We may not be able to get full agreement on the standards, but we might make real progress by creating safe harbors through development of standards that are negotiated in advance.”

Source: The Christian Science Monitor

Not everyone was so optimistic in Powell. Sam Bell—a research adviser at Fed Up, a campaign to encourage the central bank to keep interest rates low, as Yellen did—also criticized the Powell pick.

Read the full article here.

JPMorgan Chase & Co (JPM.N) Chief Executive Jamie Dimon on Tuesday responded to criticism from angry shareholders of his role advising President Donald Trump on economic matters, saying he would help "any president" in office.

At the bank's annual meeting in Wilmington, Delaware, several attendees demanded answers from Dimon about his role on a White House business council and JPMorgan's involvement with financial deregulation efforts in Washington.

Read the full article here.

NATIONWIDE - Today the Center for Popular Democracy and its affiliates including Organize Florida and ACCE, together with national allies Color of Change, CREDO, Free Press, MoveOn.org, People’s Action, SumOfUs.org and Working Families Party protested Disney locations around the country. Following the lead of Orlando Disney workers and Orlando community groups, the social justice groups called on Walt Disney Company CEO Bob Iger to step down from his role as a member of Trump’s Business Advisory Council. The coalition collected over 390,000 petitions to Disney on behalf of people from across the country who demand Iger leave the council.

“Disney has the power to take a stand against Trump and support a happy ending for all families. They must follow in Uber’s footsteps and quit the economic advisory council instead of collaborating with Trump and his authoritarian, hateful, anti-immigrant regime,” said Jennifer Epps-Addison, Network President and Co-Executive Director for the Center for Popular Democracy.

Racial and social justice activists say this is only the first step in what will be a continuous fight to protect the health and well-being of all people — including immigrants, people of color, minimum wage workers, and the LGBT community during the Trump administration. Disney is one of more than a dozen other corporations still on Trump’s economic advisory council. CPD aims to hold each and every one of them accountable.

“Donald Trump has built his brand and presidency by disparaging Latino, Muslim, and Black communities as well as women and people with disabilities. As a corporation that has touted itself as valuing diversity, inclusion and family I would think that CEO Bob Iger would seek to distance himself, not embrace or enable Trump and Steve Bannon’s bigoted agenda. But instead, Iger and other CEOs continue to place access to power over people’s lives under the false pretense of influencing positive change. To be clear- any CEO who thinks they can disrupt Trump and Bannon’s agenda is either disingenuous or fooling themselves” said Rashad Robinson, Executive Director of Color Of Change.

"By standing with Trump, Iger has mistaken his role as the CEO of the Walt Disney Company. He cannot just represent the business concerns of the company for trade and tax regulations, but must also represent the ethics and values that the Disney brand sells to families around the world. It’s time that our corporations put immigrants, workers and refugees first" said Yulissa Arce, Central Florida Director, Organize Florida.

"It is appalling that any leader would be willing to advance company interests on the backs of the people most threatened by Trump’s hate,” said Heidi Hess, Senior Campaign Manager at CREDO. "CEOs like Disney’s Bob Iger who serve on Trump’s advisory councils have to make a choice: Stand up for morality and human dignity or side with Trump’s racist, misogynistic and xenophobic hate."

The announcement comes after successful protests around the country led to the resignation of Uber CEO Travis Kalanick from the Trump business council. Last week, drivers and other community organizations organized #UberRidesWithHate protests at Uber offices in New York City, San Francisco, and New Orleans, among other nationwide locations, demanding that the ride-sharing company stop collaborating with the Trump administration.

"Disney is known for it's fun-loving family movies. But there's nothing fun about what the Trump Administration is doing to immigrant families. Disney can sing 'It's a Small World' all they want, but until Bob Iger steps down from Trump's economic advisory council, they'll be singing out of tune, “ said Liz Ryan Murray, Policy Director at People's Action.

"Disney CEO Bob Iger is validating Trump’s violent agenda by serving on his advisory council.” explained Nicole Carty, Campaign Manager for SumOfUs.org. “We know Iger supports immigration, and has employees that will be impacted by the ban. By remaining on Trump’s advisory board Iger is signaling his own interests and profits are more important than the basic human rights of his employees, customers and vulnerable refugees. There is no neutral,” added Carty. “Either Iger steps off the advisory committee, or he is complicit in the violence and chaos that Trump’s administration is creating.”

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www.populardemocracy.org

Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda