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    Advertising giant WPP cuts diversity references from annual report

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    The British advertising giant WPP has become the latest company to cut the phrase “diversity, equity and inclusion” from its annual report as the policies come under attack from the Trump administration.The agency, which counts the US as by far its largest market, boasts the storied “Madison Avenue” agencies J Walter Thompson, Ogilvy and Grey among its top brands.In WPP’s annual report, which was released on Friday, the chief executive, Mark Read, told shareholders that “much has changed over the last year” due to political events.“In today’s complex world, a pressing question for brands and organisations is whether to engage on social issues in a more contested public arena, and how to navigate the expectations of different audiences with competing views on sensitive topics,” he wrote.The same document axed all references of “diversity, equity and inclusion”, “DE&I” and “DEI”. The policy attracted 20 mentions in the previous year’s report. The earlier document mentioned three times that the company was seen as a “diversity leader”.The omissions, which were first reported by the Sunday Times, included changes to how the company reports on measuring top executives’ non-financial performance, which contributes to the size of their short-term bonuses. In the new report, the phrasing has switched to “people and culture”.WPP declined to comment on whether the new wording was a response to anti-DEI policy moves by the Trump administration. The company said that, while the phrasing in its annual report had changed, the way in which executives’ short-term bonuses are calculated was unaltered.Within his first few days in office, Donald Trump instructed US government agencies to shut down their DEI programmes and federal employees working in diversity offices were immediately put on paid leave.Trump signed two executive orders targeting DEI programmes within the federal government. The first executive order largely scrapped the DEI efforts that took place under Joe Biden, who had ordered all federal agencies to come up with equity plans.skip past newsletter promotionafter newsletter promotionA second executive order effectively ended any DEI activities within the federal government. This order overturned a handful of executive orders from past presidents, including one from Lyndon B Johnson that was signed during the civil rights era that required federal contractors to adopt equal opportunity measures.The Financial Times recently reported that more than 200 US companies have removed references to “diversity, equity and inclusion” from their annual reports since Trump’s election. More

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      You might think Starbucks is a ‘progressive’ company. You’d be wrong | Hamilton Nolan

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      You might think Starbucks is a ‘progressive’ company. You’d be wrongHamilton NolanRarely in modern history have we seen a company that so exquisitely cultivates an image as a caring, progressive employer while actually acting like a bullying, union-busting gangster Corporate hypocrisy is as old as corporations themselves. But there are levels. It is important to recognize astounding achievements in business insincerity. So let us send a note of congratulations today to Starbucks: rarely in modern history have we witnessed a company that so exquisitely combines a cultivated image as a caring, progressive employer with the well-documented, large-scale behavior of a gangster who expects to rule employees through bullying and fear.The $100bn coffee-and-flavored-syrup chain meticulously refers to its employees as “partners”. What does it mean to be a partner to someone? Reasonable people might say that a partnership is a relationship in which you treat the other person as an equal, zealously uphold their basic rights, and deal with them in all cases as fully formed human beings deserving of respect. Luckily for Starbucks, they’ve had a great chance to exhibit these values over the past year, as thousands of employees at more than 230 of their stores across the country have voted to unionize. The historic union wave has offered the company an unprecedented opportunity to respect their “partners’” right to organize; to listen to their concerns and requests for change; and to bargain contracts with them in good faith, as partners, of course, should.To say that Starbucks has failed to live up to their progressive reputation would be far too polite. It’s more like the union is Scooby-Doo, and they have yanked off the company’s pleasant mask to reveal Tony Soprano lurking underneath.This week, the National Labor Relations Board (NLRB) said that Starbucks had illegally withheld raises and other benefits from its unionized workers. This is one of the oldest pseudo-friendly union busting tactics in the book – a company in the midst of a union campaign will hand out goodies to its non-union employees and then shrug theatrically and say: “Gee, we’re not allowed to give these things to the union people!” (which, as the NLRB has affirmed, is a lie).And that giant, illegal ripoff is not even the worst part. The union, Starbucks Workers United, says that the company has fired more than 85 workers for organizing. The company has begun permanently closing stores that recently unionized or were in the process of doing so. The NLRB still has hundreds of charges of illegal labor practices against Starbucks that it has yet to rule on. There were so many GoFundMe campaigns floating around for fired Starbucks workers that the union finally had to set up a national Solidarity Fund to try to help them all. In the midst of all of this brash intimidation, Starbucks has complained that the NLRB has unfairly favored the union, which is akin to a bank robber complaining that the police are unfairly favoring the bank.What accounts for the hubris of a company that so boldly risks its own reputation to flout labor law and treat its “partners” like so many automatons who must be whipped back into submission? I’m no psychoanalyst, but I imagine that it flows from the same source as the hubris that made the billionaire Starbucks CEO Howard Schultz imagine that he could get elected president as an independent. It seems that none of Schultz’s sycophants were brave enough to tell him up front that he is, perhaps, the single worst presidential candidate you could ever imagine: Conservatives hate him because he pretends to be progressive; progressives hate him because he is, in fact, a cutthroat billionaire businessman who slathers himself in symbolic liberalism to ward off accurate criticism; and his own employees hate him because he treats their request for labor rights like an act of war.Schultz, who returned to Starbucks as CEO this year for the express purpose of fumbling the company’s response to unionization, seems to imagine himself as some sort of kindly Stewart Brand figure who will redeem capitalism, but acts in practice like just another irate union-buster – Andrew Carnegie with an espresso machine. (A monstrous bit of Democratic party trivia: Hillary Clinton reportedly considered Schultz as labor secretary in her presidential administration, something that the next reporter to interview Clinton should absolutely ask her about.)It may be that the very idea of a “progressive corporation” is, given the realities of American capitalism, an oxymoron. But anyone who has ever held a job understands what a good employer is. It is someone who treats workers as humans. When you get right down to it, the demands of the many Starbucks workers who have unionized are downright modest. They have asked the company to sign a pledge to simply allow workers to choose to organize “without fear of reprisal”. The company has not only refused to sign, but has dedicated itself to instilling fear of reprisal in the hearts of every single employee. That is not how a good boss treats his workers. That is not how a genuine progressive treats anyone. And it is certainly not how you would treat a “partner”.In Boston, recently, I stopped by a unionized Starbucks store where workers have been on strike for more than a month. Through scorching days and lonely nights, these young workers, who could have spent the time doing anything more fun, have maintained a 24/7 picket line. That is not something people do if they do not care – about their co-workers, about their rights, and about the company itself. Schultz, who sits in his $30m mansion and sends out messages exhorting his employees to show “collective courage”, has not been there. He should pay it a visit. I bet they could teach him a lot about what real progressive values look like.
      Hamilton Nolan is a writer based in New York
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      A global agreement on taxing corporations is in sight – let’s make sure it happens

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      For more than four years, France, Germany, Italy and Spain have been working together to create an international tax system fit for the 21st century. It is a saga of many twists and turns. Now it’s time to come to an agreement. Introducing this fairer and more efficient international tax system was already a priority before the current economic crisis, and it will be all the more necessary coming out of it.Why? First, because the crisis was a boon to big tech companies, which raked in profit at levels not seen in any other sector of the economy. So how is it that the most profitable companies do not pay a fair share of tax? Just because their business is online doesn’t mean they should not pay taxes in the countries where they operate and from which their profits derive. Physical presence has been the historical basis of our taxation system. This basis has to evolve with our economies gradually shifting online. Like any other company, they should pay their fair share to fund the public good, at a level commensurate with their success.Second, because the crisis has exacerbated inequalities. It is urgent to put in place an international tax system that is efficient and fair. Currently, multinationals are able to avoid corporate taxes by shifting profits offshore. That’s not something the public will continue to accept. Fiscal dumping cannot be an option for Europe, nor can it be for the rest of the world. It would only lead to a further decline in corporate income tax revenues, wider inequalities and an inability to fund vital public services.Third, because we need to re-establish an international consensus on major global issues. The Organisation for Economic Co-operation and Development, with the support of our countries, has been doing exceptional work in the area of international taxation for many years. The OECD has put forward fair and balanced proposals on both subjects: the taxation of the profit of the most profitable multinationals, notably digital giants (Pillar 1), and the minimal taxation (Pillar 2). We can build on this work. For the first time in decades, we have an opportunity to reach a historic agreement on a new international tax system that would involve every country in the world. Such a multilateral agreement would signal a commitment to working together on major global issues.With the new Biden administration, there is no longer the threat of a veto hanging over this new system. The new US proposal on minimal taxation is an important step in the direction of the proposal initially floated by our countries and taken over by the OECD. The commitment to a minimum effective tax rate of at least 15% is a promising start. We therefore commit to defining a common position on a new international tax system at the G7 finance ministers meeting in London today. We are confident it will create the momentum needed to reach a global agreement at the G20 in Venice in July. It is within our reach. Let’s make sure it happens. We owe it to our citizens.
      Nadia Calviño, second deputy prime minister of Spain, is the country’s economy minister. Daniele Franco is minister of economy and finance in Italy. Bruno Le Maire is France’s minister of economy, finance and recovery. Olaf Scholz is German vice-chancellor and minister of finance More

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      AstraZeneca’s boss is a boardroom superstar but a potential £2m cherry is pushing the point

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      A majority is a majority, but a rebellion of 40% against an executive pay policy is too large to be pinned solely on those brain-dead fund managers who outsource their thinking to proxy voting agencies.At AstraZeneca some serious institutions, with Aviva Investors and Standard Life Aberdeen to the fore, clearly thought the company was pushing things too far by adding a potential £2m cherry on top of their chief executive, Pascal Soriot’s, already substantial pay package. The rebels had a point.Yes, Soriot is a boardroom superstar thanks to AstraZeneca’s success in supercharging the development and production of the Oxford University vaccine for no profit. Communication with regulators went awry at times, and Soriot himself obviously wasn’t getting his hands dirty in the labs. But the boss, even when operating from Australia, is doing an excellent job of standing up to irritating and ungrateful EU commissioners, which is also part of the pandemic operation. And, amid it all, the company didn’t miss a beat on its day job and had time to spend $39bn buying the rare disease specialist Alexion, which looks a promising deal.Yet exceptional effort in an exceptional year is roughly what one expects from a chief executive on Soriot’s pay package. In the last three years, his incentives have performed wonderfully and he has earned £13m, £15m and £15m, so is firmly established in the £1m-a-month category, which very few chief executives of FTSE 100 companies can say. Even for an international hero, it feels a decent whack.The company’s claim was that “the world drastically changed in the last 12 months, and so did AstraZeneca”, and thus adjustments should be made outside the normal three-yearly cycle for tweaking pay.That argument would have felt stronger if AstraZeneca was not already at the adventurous end by UK standards. Last year, Soriot earned 197 times the median pay among his workforce. And, critically, the new arrangement will take his variable pay – annual bonus plus long-term incentives – to 900% of his £1.33m salary. A few years ago 500% was regarded as high by FTSE 100 standards.That precedent-setting detail helps to explain why the rebellion was so strong. Those fund managers who care about controlling boardroom pay inflation saw the risk of knock-on effects elsewhere. Loyalty to Soriot probably swayed a few doubters and helped AstraZeneca prevail, but the company did not need to pick a fight at this time – it gave Soriot a chunky rise a year ago.Some real pay shockers (think Cineworld) have slipped through in recent months. If the wider message in the AstraZeneca vote is that fund managers are not all asleep, that would be no bad thing.Seatbelts on for more stock market turbulenceLast Friday investors preferred to see a silver lining in a weak set of US unemployment numbers – only 266,000 jobs created in the month of April, against forecasts of 1m. If a lack of new jobs implied no inflationary wage pressures in the US economy, at least the stock market could take a few days off from worrying about rises in interest rates, ran the theory.Inflationary pressures, though, come in many forms, and here is a piece of data that spooked the stock market on Tuesday: China’s producer prices index rose at an annual rate of 6.8% in April, up from 4.4% in March.That is the highest level for three years and a sign, probably, that the boom in prices of raw copper, iron ore and other raw materials is finally feeding through to goods. The FTSE 100 index fell 175 points, or 2.5%, following other stock markets down.The benign view says a flurry of higher prices is almost to be expected as the global economy reopens. In that case, central banks’ mistake would be to move too early and choke off recovery. Yet it is clearly also possible that we could be at the start of a big move on prices, with the next leg delivered by the Biden’s administration’s huge infrastructure programme. If so, the mistake would be to delay rate rises.Do not expect quick or clear answers. Inflation data can give mixed messages for months. Do, though, anticipate more bumpy days for stock markets. Investors’ default assumption is to assume the US Federal Reserve will play nicely and look through the short-term signals. Life could quickly get ugly if there is any deviation from that assumed path. More