Microeconomics: IB Economics

Perish the thought that Shell should be greenwashing on the back of its report of record profits, how ever non-profit group Global Witness argue that far from the stated 12% of capital investment in renewables claimed on the company's website, the real figure is nearer to 1.5%. Who would have guessed?

Wow! Lots going on here - in announcing that they are going to sell patented drugs at cost in 45 low-income countries, are Pfizer engaging in price discrimination, and if so what three conditions are required for price discrimination to succeed? 

Additionally, are the welfare effects of this likely to be good or bad? I'd have thought this self-evident...

And why else, apart from the ethical perspective, might Pfizer want to adopt such a strategy - there are a couple of reasons that struck me straight away - corporate social responsibility/enhancing the brand but might it also increase competition in markets where rival pharmaceutical firms have considerable presence? 

Why have workers across the developed world starting to advocate for greater workers' rights? Even in the United States, where unionisation is harder than elsewhere.

This Bloomberg clip looks at why one worker decided to push for unionisation among her fellow employees - looking to promote workers' rights, especially for part-time workers. Michelle Eisen felt that the pandemic was a watershed: the company was making record profits, but not passing this on to workers in the form of higher pay or better working conditions. And thus Starbucks Workers United came into being...

Uber are hoping that the Mayor of London will agree to renew their operating licence having been knocked back on two previous occasions. The company has made concessions, but the importance of this for the Uber brand in an increasingly competitive market cannot be overstated.

Uber seems keen to right wrongs - or try to improve its brand image by agreeing to make backdated pension contributions to all of its UK drivers. 

The great debate appears to have been resolved, drivers appear to be employees of the company not self-employed contractors. but will it be enough to buff up a tarnished brand? 

Can Walmart marry the sale of millions of low-priced products with its climate change commitments? This article details how the firm is trying to cut its carbon emissions, enhance its sustainability and eventually reach net zero. 

A potential CUEGIS article, methinks...

Look whose trying to recruit - and overcome a potential shortage of workers in the US as well as enhance its credentials as an employer who looks after workers' rights. 

Amazon isn't always seen in this light. 

Another example of why you rarely find mining and ethics in the same sentence. Rio Tinto in the dock again. No wonder they're categorised as an "extractive" industry. 

One for the CUEGIS file - Tesco has admitted that some aspects of its Indian garment supply chain are less than satisfactory, with widespread abuse of migrant labour reported. 

It seems that the retailer's practices have been less than ethical.

It seems that shareholders at Rio Tinto have reacted to the company's blatant disregard for ethics by opposing the remuneration scheme proposed for its executives. 

However, note that the vote is only advisory, not binding. For what it's worth, I would be seeking imprisonment. The destruction of the Juukan Gorge shelters would be vandalism had it been perpetrated by an individual. 

BBC's Newsnight look at the impact of the coronavirus pandemic on working conditions for Amazon delivery drivers. Yes, they're still in work but they're being expected to deliver an ever greater number of parcels a day, as many as 200 drop a day. Now work that out. 20 parcels an hour, for 10 hours. That's three minutes per drop. 

The article looks at the fact that their drivers are monitored to an absurd degree, and this may make their working conditions unsavoury in the extreme. 

It seems that Amazon have been a little bit disingenuous in denying the story of American delivery drivers urinating in bottles; it seems that it is true after all. 

Of course, it's only part of the story - with the Congressman concerned noting that the company should "acknowledge the inadequate working conditions you've created for ALL your workers". 

The ethics of Amazon under the spotlight once again, this time with evidence emerging of delivery drivers resorting to urinating in bottles - and worse.

That the company is aware of this is bad enough - that it has taken no action, worse.

However, will this affect the amount of people buying from Amazon? I'd doubt it.

One for both Economics and Business Management students: Amazon is going to invest in rolling out an electric fleet of lorries, vans and courier bicycles, and the infrastructure to support them. This will see the number of electric vehicles in the UK grow from 5 to 700 by 2025. 

They think that it will be good for the environment and also, presumably, for the bottom line too.  

A theory of the firm 'scoop' relevant to both Economics and Business Management students - the CEO of Brewdog is planning to give his staff a 20% stake in the company, and to share the profits of his bar business with his staff, both to try to improve the brand image of the beer maker, but also to help boost productivity and reduce staff turnover. 

This comes in the wake of allegations about the poor working environment at the Scottish brewer. 

More Business Management than Economics, but this is a brilliant article about how Ikea has adapted its business model for the Indian market, both in terms of cost but also in terms of products sold, and as a result started to gain a foothold in one of the world's largest, and most diverse economies. 

One for the Business Management students among you - a great article by Robert Reich on why the notion of corporate social responsibility is - in his eyes - a nonsense. It's pretty punchy. 

The fashion industry isn't renowned for its environmentally-friendly stance - and certainly not in the case of so-called fast fashion. However, in this instance, Asos and Primark are attempting to assert their green credentials and emphasis their commitment to corporate social responsibility, looking at sustainable production and enhancing the diversity of their workforce. 

More of a Business Management story than anything else - this Guardian piece looks at the fact that Google has singularly failed to pay its temporary workers in line with local labour laws. 

It's another example of how the ethics of many of these companies are not as ethical as they always seem. One for the CUEGIS element of the IB course.  

an interesting, and often overlooked consequence of renewable energy generation, is the reliance of many forms of renewable energy on metals, and thus mining. 

This article by the Chief Executive of Save the Children highlights the range of areas where mining companies have fallen short in relation to human rights, environmental and other ethical standards. Is it time for multinational mining giants to raise their game in relation to corporate social responsibility? 

Business ethics?

To quote the article: " Environmentalists won a court case in May, arguing Shell was failing to reduce emissions quickly enough. Mr van Beurden said Shell would appeal against the ruling, but meanwhile he would look at hastening the transition."

So we'll appeal and still hasten the transition? Doesn't strike me as a consistent approach. 

More Business Management than Economics perhaps but I pose the question: would you want to work for Amazon? 

As an executive 'yes', as an ordinary employee 'no' - I suspect is the answer. And that might indicate something about your perception of workers' rights and the company's ethics. 

More of a Business Management article if anything but this look at an Argentinian software company highlights a radical approach to organizational structure, industrial relations and wage determination. 

But will it work? And if so, what factors might make it work in these circumstances? And how might it ultimately fail as the company grows? There's a wealth of material in this one article.  

Amazon again under pressure for its working practices - as it is revealed that the company fired two workers who had the temerity to criticise the company's environmental practices. 

And here's how the internet reacted to Amazon News' take on the Amazon "urinating in bottles" story. I think that it's fairly revealing...