Archive for the ‘Corporate Accountability’ Category

Piercing the Corporate Veil of Secrecy

Tuesday, June 17th, 2008

Congratulations to Wikileaks, Wal-Mart Watch and a handful of other web resources for being chosen by Portfolio magazine as the “top anti-corporate sites.” Specifically, the magazine is featuring sites that have done the most to distribute confidential—and often embarrassing—corporate documents or otherwise publicize material that companies want kept quiet. “From anonymous whistle-blowers who post secret documents online to fan sites that spill trade secrets,” Portfolio writer Kim Zetter says, “websites and their owners can be a major thorn in the side of corporations that find comfort behind a veil of secrecy.”

Wikileaks is focused on piercing that veil. The site was at the center of controversy a few months back when Swiss bank Julius Baer tried to get it taken offline after it posted documents that purportedly showed how the bank’s Cayman Islands branch helps wealthy clients hide assets and launder money. Much of the web community rallied to the defense of Wikileaks, and the censorship move was defeated.

Wal-Mart Watch, of course, is one of two national campaigns aimed at reforming the giant retailer. Aside from producing its own critiques of the retailer (including one to which I contributed), the group has used its site to publicize internal company documents leaked to it. Among these was a memo in which the company discussed controlling health care costs by methods such as making physical activity part of every job, apparently so that those in poorer shape would not apply.

The other sites singled out by Portfolio are:

* Mini-Microsoft, a anonymous blog written by a Microsoft employee who skewers management and highlights waste and inefficiency at the software behemoth.

* Brenda Priddy and Company, a automobile outfit that is not necessarily critical of carmakers but which manages to take clandestine photographs of their prototype vehicles and sell them to other websites and magazines for distribution well before the companies are ready to go public.

* Farmers Insurance Group Sucks, a site produced by a disgruntled customer who now publicizes lawsuits against the company, complaints to state insurance agencies, and unflattering insider testimonials.

* HomeOwners for Better Buildings, a site that exposes the shortcomings of the residential construction business, especially KB Homes. It is filled with homebuyer horror stories and has an “Implode-O-Meter” that tracks companies in the industry experiencing bankruptcy or other forms of distress.

* AppleInsider and MacRumor, which make it their business to report on new Apple products and features being developed by the secretive company.

Zetter has only scratched the surface, and she seems to realize it. She says to her readers: “If you have suggestions for other pesky sites that are a reliable source for inside information about a company or industry, please let us know. We’ll write about the best ones in a follow-up article.” So go ahead and let Zetter know about the wider world of the corporate-critical web.

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Postcard from the Good Jobs First conference

Thursday, May 8th, 2008

If you are a researcher or campaigner concerned about economic development accountability, the place to be this week is the national conference of Good Jobs First outside Baltimore. Gathered here are activists who are seeking to remake the relationship between the public and the private sectors.

Some of the most impressive presentations came this morning in a plenary session put together by the Partnership for Working Families (PWF). Madeline Janis, head of the Los Angeles Alliance for a New Economy, and Phaedra Ellis-Lamkins, who runs the South Bay AFL-CIO and Working Partnerships USA, described remarkable changes that have taken place in parts of California. Union-sponsored non-profit organizations, working with community allies, are turning the tables on developers who used to have the red carpet rolled out for them. Now the right to build large subsidized projects is being made contingent on providing benefits to the community ranging from apprenticeship programs and living-wage jobs to affordable housing, more green space and air pollution abatement. Janis and Ellis-Lamkins seemed to be describing a parallel universe in which the common good takes precedence over monied interests.

Their themes were echoed later in a presentation by Cecilia Estolano, chief executive of the Los Angeles Community Redevelopment Agency, a remarkable public official who is converting the agency from what she said was a “cookie jar” for developers into a promoter of projects that bring about broad improvements in living standards.

The good news comes not only from California. For example, Deborah Scott of Georgia Stand Up recounted how her group cajoled local officials in Atlanta to provide for community participation in major development projects taking place adjacent to an old rail line ringing the city.

I was unable to attend the PWF workshops (one of five tracks) because I was giving presentations of my own — in my capacity as research director of Good Jobs First — in workshops on advanced research techniques relating to subsidies and corporate taxes. Joining me in the latter were Matt Gardner of the Institute on Taxation and Economic Policy, who told us how to unearth the real tax rates of major corporations (which are often well below what the company claims), and Michael Mazerov of the Center on Budget and Policy Priorities, who described his proposal to compel corporations to disclose abbreviated versions of their state tax returns.

This is only a sample of the provocative ideas swirling around this conference. Wish you could be here.

(This item is being crossposted on Clawback.org.)

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Welcome to the Dirt Diggers Digest

Friday, February 29th, 2008

The Dirt Diggers Digest will comment on corporate misbehavior and report on information sources for those researching that misbehavior. Coming soon.

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