The Progressive Ensign

insights and analytics to build an economy that works for all

Category: Social Responsibility

GOP Administration Panders to Infant Formula Companies

(Editor Note: Insight Bytes focus on key economic issues and solutions for all of us, on Thursdays we spotlight in more depth Solutions to issues we have identified. Fridays we focus on how to build the Common Good. Please right click on images to see them larger in a separate tab.)

Photo: elle

Last May, the U.S. attended a multi-lateral World Health Assembly meeting held in Ecuador to finalize the language for promotion of breast feeding to developing countries with poor regions.  The policy recommended mothers breast feed their babies to promote better health than using possibly contaminated water with dry formula.  The risks of mixing infant formula with polluted water outweighed the possibly less breast milk that some mothers give their infants.

Source: Down to Earth – 3/22/18

About 11 % of the world’s population and 19 % of people in India alone do not have access to clean water.  For developing nations developing sources of clean water is crucial for their long term economic, and societal development. People drinking contaminated water suffer from multiple GI diseases, growth deformities and death.

U.S. representatives dropped long time support of over 40 years of research and other investigations in poor regions of the world noting the good health practice of breast feeding. Instead, the administration wanted all language recommending breast milk over infant formula deleted, including language focused on monitoring infant formula companies overly promoting their formula products.

Taking the corporate side is not new. In 1981, during the Reagan Administration  U.S. representatives at a WHO conference took the only position out of 118 countries against promoting the use of the breast milk over infant formula.

Breast milk provides anti-bodies, nutrients and other substances not available in infant formulas which are synthesized.  Obviously, when breast milk is not available infant formula maybe a good substitute temporarily when using clean water.

Next Steps:

The infant formula market is estimated to be $26 billion in 2017 growing to $66 billion by 2027. The industry is adding GMOs to its formula, offering organic versions and other approaches focused particularly on emerging countries where birth rates are much higher offering greater sales opportunities than in developed countries.  It is clear the infant formula industry has successfully lobbied the GOP Administration when it shifts policy that has been settled for decades promoting breast milk is best for babies to promote good health and longevity. Plus, other studies show the nurturing relationship of the mother with her baby during breast feeding is beneficial  to the social, and psychological health of the child.

The infant formula industry ought to understand their products depend on access to clean water to be effective as a compliment to breast feeding. The industry should shift  its resources from blind product promotion and lobbying efforts and instead help to increase access to clean water worldwide.  The infant formula industry needs to recognize their responsibility to support the common good promoting clean water and good health overall.

We Have A Duty to Provide, Protect and Promote the Common Good

 

Image: Your Little Planet

Today’s discussion of the Common Good is focused on a point that arose this week from a court case where the parents of children in Detroit sued the city school district for better teachers, classroom conditions and funding.  The basis of the suit was that it was a ‘constitutional right’ that all children should have a fair and equal education regardless of income.

Unfortunately, as much as we would like to see education as a ‘right’ it is not mentioned in the U.S. Constitution or the Bill of Rights. The judge held that there was no ‘right’ to a quality education. The 14th Amendment does require states when they provide public education to offer equal access to all students – equal quality is not specifically defined.  We see education as Madison and Jefferson did as a key pillar of the government where a well-informed citizenry will make wise choices about who would lead their government.  We have outlined in an earlier post that we see Education as the Fifth Estate, after the Fourth Estate, The Press and the three main branches of federal government – The Executive, Congress and The Supreme Court.  Then, it follows that as a country we have a duty and responsibility to ensure that all children have a equal opportunity for a high quality education and access to learning institutions.

We do not really talk much in our society anymore about duty to country – or duty at all.  We are indoctrinated constantly about ‘my right’ to this and that.  While it is important that we have key rights ensured by our Constitution and courts, duties need to be in balance and in many ways ensure that rights can be sustained.

What do we ask of our young people graduating from high school in regard to supporting the freedoms and rights they enjoy?  Universal service for every 18 year old as they do in Switzerland, or universal military service as Israel requires?  What sacrifices do we expect our people to take on at any age?

In WWII, the Korean War, Vietnam War, and Middle East Wars, American men and women fought alongside each other to ensure the freedoms we enjoy and to protect the freedom and welfare of others.  The wealthy fought along with the poor as a team, to survive in a hostile environment against a common enemy. They shared this life changing experience, learned how to depend on each other to survive and discovered what they had in common. Today, young people serving in the armed forces are making sacrifices and sometimes putting their lives on the line, yet the vast majority of our forces are comprised of poor or working class men and women from rural regions of the country.  We are not all sharing the duty of defense across classes.

Everyday there are citizens across classes serving our country, as many people do volunteer work in all types of ‘duty’ based work at churches, non- profits and relief groups.  Some sacrifice themselves and time in environmental protection efforts that support good stewardship of the earth that we all live in and enjoy.

So, when we look to ‘get our rights’ in court, we may need to look to how to make duty more of a core value in our culture and in particular business culture.  As we have observed our country is essentially run by Corporate Nation States, they must change their attitude, behavior and operating practices focused on their duty to all the people not just their executives and customers. Everything a corporation does in some way impacts the Common Good. We are the people these corporations serve, and we should expect nothing less than socially responsible behavior from the executives running these huge Corporate Nation States.

Building An Economy for the Common Good

(Editor Note: Insight Bytes focus on key economic issues and solutions for all of us, on Thursdays we spotlight in more depth Solutions to issues we have identified. Fridays we focus on how to build the Common Good. Please right click on images to see them larger in a separate tab.)

Image: Your Little Planet

In the past week, American Express won a gag order over merchants when the Supreme Court handed down a decision that allowed the huge financial services company to require all their merchants not to tell their consumers other cards had cheaper swipe fees.  Amazon announced the acquisition of Pill Pack a mail order pharmacy company, which sent financial shock waves through the drug store industry. So, it goes on, a Corporate Nation State (CNS) like American Express  or Amazon have their way limiting consumers choices to reduce costs and to take over the drug marketplace with no fair market rules in place.

Are these two companies focused on building the common good, fair play rules in the marketplace, doing what is right for consumers and taking social responsibility for the impact of their decisions?  No.  There is no countervailing power when Congress, The Supreme Court and the Executive branch are all doing the bidding of CNS organizations.

Corporations run our federal government by donating hundreds of millions of dollars (they have no campaign donation limits) each year to congressional campaigns through super PACs. Some CNS entities have large lobbying offices in Washington, like Amazon with 94 lobbyists knocking on Representative and Senator doors every day!  Do we have an army of lobbyists twisting arms for our interests?  No.

Where can we look for corporate reform to build the common good?  Larry Fink, the CEO of Blackrock, a $6.3 trillion institutional investment corporation, sent a letter to 1000 CEOs of companies they invest in telling them that beyond profits they would be evaluated on how well they are taking care of the environment, responding to climate change, having a diverse workforce, and fairness with their employees. We applaud Mr. Fink’s move, and look to more investors to call upon corporate management to be held accountable for their social responsibilities.

There are corporate accountability frameworks that have been receiving widespread acceptance and government support. In the European Union a group called the Economy for the Common Good (ECG), has over 2400 corporate endorsers and almost 10,000 individuals support their effort to require corporations report on a Common Good Balance Sheet their social responsibility activities. The EU has adopted a non-binding directive requiring companies of 500 employees and ‘public interest’ to report on human rights, diversity, labor rights, the environment, health and anti-corruption measures. The report is not included with the corporate annual report and is therefore not audited.

The Common Good Balance Sheet is divided into four key accountability areas: human dignity, solidarity and social justice, environmental sustainability, and transparency and co-determination:

Source: Economy for the Common Good – 6/29/18

The ECG is now working to make actual changes in corporate behavior by focusing on gaining support for these eight issues:

  • universal (all values and relevant issues)
  • legally binding
  • measurable and comparable (e. g. using points)
  • externally audited
  • generally understandable (for the public)
  • public (on all products, websites, shop doors)
  • developed in a participatory process
  • linked to legal incentives (taxes, tariffs, …)

The first phase has been completed of their initiative to gain EU nonbinding support next they look for a binding EU directive by 2020 followed by integration financial reporting.

We need to find corporate leaders in the US that see the vision of an Economy for the Common Good, embrace it and implement its ideas in their day to day operations – while measuring the results to show it is a better way to run a business.  A business can build an economy that works for all and still be a thriving profitable enterprise.

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