Politics

Companies may have boycotts called against them for lots of different reasons. At Ethical Consumer, we report on all the boycotts we receive which have a registered headquarters, although we don't necessarily endorse them.

Some campaign groups think that boycotts aren't a good idea in case a company withdraws its business from a factory overseas as a result thus causing lots of workers to lose their jobs and livelihood. Others believe they can be very effective. We think it's up to you where you spend your money.

boycott call sub-categories

• banking, investment or other financial services relationship with a company criticised in this category
• Ongoing boycott of one subsidiary or brand
• Boycott Call - now ceased
• Ongoing boycott of the whole company group

We think that companies have too much influence over governments through lobby groups or donating to the parties themselves.

There are negative marks for companies that donate money to political parties, or companies involved in persuading governments and institutions, through international lobbying organisations, to change policy.

Political Activities sub-categories

• Banking, investment or other financial services relationship with a company criticised in this category
• Lobbying governments for contracts or policy changes
• Bilderberg Group
• Business Action for Sustainable Development
• American Chamber of Commerce - AMCHAM-EU
• Business Round Table
• Transatlantic Business Dialogue
• Trilateral Commision
• European Round Table of Industrialists
• European Services Forum
• International Chamber of Commerce
• US Coalition of Service Industries
• World Business Council for Sustainable Development
• World Economic Forum
• member of free trade lobby group, other than those listed
• Positive policy addressing a political activities issue
• Recorded meetings with ministers 
• Secondary criticism
• Company has stated policy of not making political donations
• Suppression of criticism for activities in EC categories by legal or political means
• Donations to both left and right wing parties>£49,999 
• Donations to both left and right wing political parties <£49,998
• UK Conservative party <£50,000
• UK Conservative party £50,000 or more 
• UK Labour party <£50,000
• UK Labour party £50,000 or more
• US Republicans >$100,000
• Less than £50,000 (or unknown amount) to any other political party
• £50,000 or more to any other political party 
• initiating NAFTA
• Lobbying against legislation designed to correct abuses in other ECRA categories 
• Lobbying against sound environmental policies 
• Lobbying against sound environmental policies - aggravated
• WTO lobbying
• Worst / middle / Best Ethical Consumer rating for likely use of tax avoidance strategies

Companies are often found to be engaging in financial practices that cause harm to society, this can include anything from price fixing to insider trading.

We rate companies based on the criteria below.

Anti-Social Finance sub categories

• Banking, investment or other financial services relationship with a company criticised for anti social finance
• Company criticised for enforcing poor terms on small suppliers
• Criticism for irresponsible marketing of financial products
• Criticism for irresponsible marketing of gambling products
• Excessive remuneration for directors or other staff
• Exploitative currency speculation
• Insider trading or dishonest share dealing
• Internet retailer routing sales offshore
• Licensing relationship with a company criticised in this category
• Mis-selling of products (non health related)
• Other publication is critical of transparency record
• Payment of bribes or other corrupt practices
• Positive policy addressing an Anti-Social Finance issue
• Price fixing
• Providing tax haven services or facilities for other companies
• Secondary criticism
• Self-disclosure of an incident in this category
• Third World debt involvement

Best rating

(a) The company has no subsidiaries based in jurisdictions on Ethical Consumer's list of 43 tax havens.

OR

(b) The company has the Fair Tax Mark.

OR

(c) The company has comprehensive country-by-country tax reporting, a clear public statement confirming that it is company policy not to engage in tax avoidance activity nor to use tax havens for tax avoidance purposes, and provides a narrative explanation for what each entity in a tax haven is for and how it is not being used for purposes of tax minimisation.

Middle rating

The company has two or more non-high-risk subsidiaries which do not appear to be serving the local population and are registered in countries on our tax haven list. It does not have comprehensive public country-by-country reporting with narrative explanation as above.

Worst rating

The company’s UHC is registered in a tax haven to which it is not native, or it has two or more high-risk subsidiaries (see below) which do not appear to be serving the local population and are registered in countries on our current list of tax havens. It does not have comprehensive public country-by-country reporting with narrative explanation as above.

OR

The company has everything required for a middle rating and also has reputable secondary criticism for tax avoidance. High-risk company types are:

• Ultimate Holding Company (UHC)
• Holding Companyl Trustl Nominee Company
• Limited Liability Partnership (LLP)
• Intellectual property company
• Internal finance company
• Insurance subsidiary
• Management services company.
   

Comprehensive country-by-country reporting

This consists of a full list of subsidiary companies stating the following:

1. Place of incorporation
2. Sales or turnover
3. Net asset values or number of employees
4. Profit
5. Tax paid

Some companies, such as financial companies, are required by law to report this, but often ‘forget’ to include one or two key subsidiaries in the list (those located in Jersey, the Cayman Islands, etc).