Picking Up the Pieces

By Peter Lewis

Corporate Australia is getting a bum wrap form the punters and the captains of industry have begun to cry poor.

Giving Not Reward Enough

The head of the Business Council of Australia has warned that the corporate sector could stop making large donations to charity if the public does not start appreciating their generosity. Speaking at the inaugural Philanthropy Australia conference in Sydney this week, Business Council of Australia chief executive Katie Lahey said there was almost a "perverse relationship" between the amount some companies contributed to the community and the level of negative feedback they received. Lahey says corporate collapses such as HIH had drained trust in big business, and people were cynical of claims that corporate money was ever given away philanthropically. Citing criticism of Nike and McDonald's, which last year issued its inaugural Social Responsibility Report, Lahey said businesses that gave money in expectation of positive public relations could be forgiven for questioning their rationale for contributing large amounts to "communities which reciprocate in such a way". (Source: SMH)

New Ratings for Ethical Companies

One way of rebuilding that trust could be a new rating system which will attempt to rate the country's top 100 companies. The RepuTex system will attempt to rate companies in four main areas - environmental, governance -- which will include payments to executives -- social impact and workplace practices. Former Federal Liberal leader and now dean of the Macquarie Graduate School of Management in Sydney, John Hewson, will chair the board. (Source: Nine MSN)

Nike Dives Into Pool

One company attempting a reputation rehabilitation is international sports brand Nike, planning to enter the Australian swimwear market, partnering local brand Seafolly. The new Nike Swim brand will target the "active" swimwear market, which is heavily dominated by Speedo. All the more reason for Nike to keep its hands clean in the Third World factories where so much of their extravagantly priced product is produced. (Source: SMH)

AMP Plays Hard Ball With Batchelor

Meanwhile, AMP is seeking to rescue its standing with shareholders by taking a tough stand on executive pay, keeping a payout to Paul Batchelor to only $2.1 million. The troubled financial services giant sent a take-it-or-leave it cheque to Batchelor at his Mosman home, this week; but Mr Batchelor fired back, saying the amount did not reflect what he was legally entitled to under his contract with AMP and he was "considering the alternatives available" to him. He also described reports that he was seeking a payout worth up to $20 million as "ill informed and incorrect" - although it is believed he is seeking a figure "in the high teens". AMP's newly appointed chairman Peter Wilcox says neither side was able to agree on the size of the payout and that if Mr Batchelor wanted more money he would have to take AMP to court. (Source: SMH)

Workers Lose On Super

As for the wealth of the workers, The Howard Government is under fire for ripping an extra $1 billion from the superannuation savings of Australian workers this year. A plunging stock market has already wiped $50 billion from retirement savings this year, but that won't stop the Federal Government increasing its tax grab. As more and more Australians become locked into compulsory super schemes, the Howard Government's 15 per cent tax on contributions will increase by $1 billion to $5.5 billion this year. Industry figures say the tax should be reduced or suspended when funds are in negative growth. (Source: The Australian)

Silver Lining for HIH Staff

Finally, some rare good news out of collapse of HIH and its $5.3 billion debt. About 550 former HIH employees who are members of the HIH Insurance Group Staff Superannuation Fund are set to share in a windfall. The HIH Super Fund, which is being wound up, has been found to have a surplus of $36 million and the NSW Supreme court has ruled that the assets belong to HIH's former employees, not its creditors. With no possibility of HIH being resurrected or sold, there is no further need for the super fund. Moreover, the two trustees remaining on the fund cannot obtain professional indemnity insurance for their honorary roles and are reluctant to continue to act for it. (Source: SMH)