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Unethical behaviour costs corporates dear
Companies in the US and UK have wasted about $150-$200bn through unethical and irresponsible behaviour since 2009, according to “conservative” estimates by Ecclesiastical Investment Management (EIM). The figure equates to about 15% of global dividends, which totalled $1.1tn in 2013. The financial sector is singled out in the report as particularly dishonest. EIM notes that 6,000 bankers have been sacked or suspended since 2006 for ethical misdemeanours. The Payment Protection Insurance (PPI) scandal alone cost UK banks £22bn. Another poorly performing sector highlighted in the report is the pharmaceutical industry, which has seen an estimated 15% of its global revenues lost due to corporate misconduct since 2009. Price fixing emerges as a key concern in a number of industries. The report cites tech firms Samsung, Philips, LG and Panasonic, which were fined €1.4bn by the European Commission for cartel price fixing. A global probe into price fixing in the automotive supply sector, meanwhile, saw 26 companies fined a total of $2bn.
McKinsey probes motivations for sustainability
Alignment with a company’s mission and values is the main reason corporate executives prioritise sustainability, according to a survey by consultancy firm McKinsey. More than two-fifths of the 2,904...