There is much more to CSR (Corporate Social Responsibility) than feeling good and public relations. It can be a valuable risk management tool, says Antonio Huertas of MAPFRE. “There is a higher court than courts of justice, and that is the court of conscience. It supersedes all other courts.” Mahatma Gandhi’s words from a century ago serve as more than a moral compass by which to live one’s life, they also encapsulate what is to me the essence of corporate social responsibility (CSR). I like to think of CSR as the conscience of a corporation, guiding senior management on their journey to maximising shareholder returns legally and ethically. Harnessed effectively and supported from the top down, it can contribute both to improving relationships with stakeholders and enhancing business outcomes.
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In the companies quarterly application to the Securities and Exchange Commission (SEC), Apple warned investors about the impact that US rates on Chinese goods could have on a company. International trade disputes may result in tariffs and other protectionist measures that may adversely affect the business activities of the company. Rates can increase the cost of the company’s products and the components and raw materials needed to make them. These higher costs can have a negative impact on the gross margin that the company earns on the sale of its products.
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The 2018 UK Corporate Governance Code, published by the Financial Reporting Council, is shorter and sharper than its predecessor and emphasises the importance of the way in which boards and companies apply the spirit of the Code Principles. Whilst reasserting the importance of risk management and risk reporting, it puts the relationships between companies, shareholders and stakeholders at the heart of long-term sustainable growth in the UK economy.
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The EFTA Surveillance Authority (EFTA SA) has registered the Nordic Credit Rating AS (NCR) as a credit rating agency under Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies (the CRA Regulation), as incorporated into the Agreement on the European Economic Area (EEA Agreement). This decision comes into effect on 3 August 2018.  NCR is based in Oslo, Norway, with a branch in Stockholm, Sweden. NRC intends to issue corporate ratings.
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President Juncker and President Trump agreed to launch a new phase of close friendship and strong trade relations between the United States and the EU. President of the European Commission Jean-Claude Juncker visited Washington, DC, where he was received in the White House by US President Donald Trump. Leaders agreed on a Joint EU-U.S. Statement launching  “a new phase in the relationship between the United States and the European Union – a phase of close friendship, of strong trade relations in which both of us will win, of working better together for global security and prosperity, and of fighting jointly against terrorism.”
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Credit standards for loans to enterprises eased in net terms in the second quarter of 2018, according to the July 2018 bank lending survey (BLS). The net easing (-3%) of credit standards – i.e. banks’ internal guidelines or loan approval criteria – follows on from an easing of credit standards (-8%) for loans to enterprises in the previous quarter and was in line with banks’ expectations in the previous survey round. In addition, credit standards for loans to households for house purchase eased (net percentage of reporting banks at -8%, after -11%), and credit standards for consumer credit and other lending to households also eased (-3%, unchanged from previous period).
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The Financial Conduct Authority (FCA) has banned David James Carter Mullins, Edward John Booth, Christopher Paul Brotherton and Mark Robert Kennedy, the former directors and shareholders of Secure My Money Limited (now dissolved). The firm took fees of over £7.2 million from approximately 124,000 online customers by duping them into believing they had been approved for short term loans.
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The European Banking Authority (EBA) published a report presenting the outcome of its assessment to the European Commission’s call for advice on the European Secured Notes (ESNs). In addition, it puts forward recommendations on key aspects for the European Commission to consider when possibly designing the legislative framework forSME ESNs.
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The European Securities and Markets Authority (ESMA) has fined Danske Bank, Nordea Bank, SEB, Svenska Handelsbanken and Swedbank €495,000 each and issued five public notices for negligently breaching the Credit Rating Agencies Regulation (CRAR). ESMA found that the five banks infringed the CRAR by issuing credit ratings without being authorised by ESMA to do so.
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The Financial Conduct Authority (FCA) has published its Annual Report and Accounts, which looks back on the key pieces of work undertaken by the organisation throughout 2017/18.  FCA’s Chair Charles Forward: “Financial services affect the lives of everyone. And, as this Annual Report shows, keeping pace with the depth and breadth of developments in financial services can be a challenging balancing act. We must act swiftly and decisively to tackle harm to consumers,  particularly the most vulnerable. In the process, we have to make some difficult choices, learn from what works and what doesn’t – and be open about both.”
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