Tuesday, November 13, 2007

Yahoo bows to congressional pressure and scrutiny

I'm working on a story for tomorrow's air about Yahoo's settlement with jailed Chinese dissidents who accused Yahoo of helping the Chinese government torture them when the Internet company turned over private user information that identified them.

If you have strong thots about it, ping me.

The terms of the settlement is private, so there isn't much details. Biggest question is why Yahoo would have settled since this opens the floogates to similar suits, which will happen unless Yahoo changes its disclosure practices when Chinese officials come knocking with supoena in hand.

Morton Sklar, attorney of World Organization for Human Rights, which filed the lawsuit on behalf of the jailed dissidents and their families, said the families settled so there was hope of securing their release.

"The settlement provides more immediate help for the detainees and their families, but also provides a precedent making clear that U.S. companies have to do much more than just follow the orders of their host governments; that they have to look to U.S. laws and U.S. human rights standards when they make their decisions abroad," Sklar said.

Besides compensating the families, Yahoo will provide a humanitarian relief fund to support other political dissidents and their families, according to a Yahoo statement.

"After meeting with the families, it was clear to me what we had to do to make this right for them, for Yahoo, and for the future," Chief Executive Jerry Yang said in the statement. "Yahoo was founded on the idea that the free exchange of information can fundamentally change how people lead their lives, conduct their business, and interact with their governments. We are committed to making sure our actions match our values around the world."

Monday, November 12, 2007

A tasty approach to a plunging dollar


From Boing boing:



Dollar devaluation for dummies

"To rectify the oversupply of American Dollars, Florian removed one from circulation -- by eating it. The harsh realities of currency valuation can be hard to swallow."

China confirms toys contained date-rape drug

There was yet another toy recall last week. Now, a Chinese safety watchdog confirms the problem.

As a parent, this makes me totally paranoid about toy shopping. And Christmas is coming up. My son is making lists already. I'm glancing at it, wondering what wooden toy equivalent would be suitable. Of course, then you have to worry about toxic paint!

Are you going to shop differently this holiday season? Let me know.


BEIJING - China's safety watchdog confirmed Saturday that toy beads recalled in the United States and Australia after sickening children contain a substance that can turn into the "date-rape" drug after ingested.


The toys, coated with the industrial chemical 1,4-butanediol, were made by the Wangqi Product Factory in Shenzhen, a city just over the border from Hong Kong, the General Administration of Quality Supervision, Inspection, and Quarantine said in a statement.

When ingested, the chemical metabolizes into the "date-rape" drug gamma hydroxy butyrate, also known as GHB, which can cause breathing problems, loss of consciousness, seizures, drowsiness, coma and death.

Millions of units of the popular toys, which are sold as Aqua Dots in the United States and as Bindeez in Australia, were recalled in those countries as well as Britain, Malaysia, Singapore and elsewhere this past week after children began falling sick from swallowing the toy's bead-like parts.

In the latest case, the Aqua Dots or Bindeez were supposed to have been coated with nontoxic 1,5-pentanediol, a chemical commonly used in computer printer ink. But that chemical generally sells for three or four times the price of the toxic compound found on the tainted toys, 1,4-butanediol.

Americans leaving their island

This is heartening news: more US students are venturing abroad to study.

I studied in a small town outside of Madrid for a year, as a part of an study abroad program. I picked up Spanish, traveled around Europe and most importantly, learned a lot about myself.

There were 30 of us on the program from the various UC campuses. I was one of two Asian Americans. Spain, then in the early 90s, didn't have much immigration. So everywhere I went, I was "la China", the Chinese chick. It began a lot of interesting discussions with Spaniards about race, ethnicity, what it means to be an American.

This is a crucial time for Americans to be abroad, when so much of the world despises our foreign policy.



By JUSTIN POPE, AP Education Writer Mon Nov 12, 7:41 AM ET

Growing numbers of U.S. colleges and universities are sending more students abroad for international study opportunities, and to a wider range of countries.
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More than 223,000 U.S. students studied abroad during the 2005-2006 academic year, up 8.5 percent from the year before, according to the latest annual survey by the Institute of International Education, being issued Monday. The number who get academic credit for study abroad is up 150 percent over the past decade.

As recently as five years ago, although nearly every college was talking about internationalization, many were struggling to develop programs and make them feasible for students, said Allan Goodman, IIE president and CEO.

"A lot of people had the words but not the plan," he said. "In the last five years, more people have put the beef in the sandwich."

The report also contains encouraging news for U.S. universities that depend on a steady stream of foreign students, particularly to fill graduate programs. Enrollment by international students rose 3 percent last academic year to about 583,000 — the first significant jump since 2001-2002. More encouragingly, first-time enrollments rose 10 percent.

Goodman attributed the increase to an easing of visa problems and aggressive recruiting efforts by American institutions.

He said there is capacity for much more growth.

"Half of all the international students that come here go to about 150 schools," he said. "We have about 4,000 altogether. We have an enormous capacity to expand, and almost no other country can do that."

The United Kingdom was again the leading destination for U.S. students, with 32,109 students enrolled there. But that number was flat from the year before, and other traditionally popular destinations like Italy, France and Spain saw only small gains.

Study in Asia, however, rose 26 percent. The number of U.S. students in Latin America rose 14 percent and 31 percent in the Middle East.

Forty campuses sent more than 1,000 students abroad. New York University sent the most (2,809) followed by Michigan State and the University of Texas-Austin. The University of Southern California was the largest host school for international students.

Much of the growth in study abroad for U.S. students is coming from short-term programs, in which students may get a taste of a foreign culture but less of a true immersion experience. IIE reports that 53 percent of study abroad now takes place in short-term programs, lasting a summer, a January term, or less than 8 weeks. Only 5.5 percent is in long-term programs, lasting longer than one semester.

Still, Goodman says a taste of life in a foreign culture is helpful, and students often return for another program or after graduation.

Wednesday, November 7, 2007

PayPal in Singapore

PayPal is betting that its online payment service will take off in Singapore.

Singapore maybe, but it'll likely face problems in places like China and Vietnam. You need high Internet penetration for one and user trust. When you order something in China, it gets personally delivered to your hotel or home -- then you hand the delivery dude or gal your wad of cash. Consumers there don't trust giving information over the phone or online.

Any bets on how long it'll take to change consumer behavior in China?


The Business Times Singapore

November 7, 2007 Wednesday

PayPal opens international HQ in S'pore;
It will also set up new technology development centre

BYLINE: Ong Boon Kiat

SECTION: SINGAPORE

LENGTH: 391 words

PAYPAL, the worldwide online payments system, is setting up its new international headquarters in Singapore. The company yesterday also announced that it would establish a new technology development centre here, which will require more than 200 new staff members over five years.

The moves will swell the size of PayPal's 30-strong Neil Road office, which it shares with its parent, the online auction firm eBay. The office was set up last year.

PayPal chief technology officer Scott Thompson said yesterday that PayPal had been attracted by the talent pool and business environment in Singapore. Establishing an international HQ, he added, reflected the increasingly global nature of PayPal's business.

PayPal took in $470US million in revenue in its third financial quarter, with 43 per cent of it coming from outside the US. Next year, international revenue is expected to surpass US revenue, he said. As international HQ, the Singapore facility will co-ordinate PayPal's business entities outside the US and Canada, Mr Thompson said.

The facility will also house a new technology development centre, its second in Asia after Chennai. Like the Indian facility, it will contribute to the development of PayPal's global payment products.

The perils of eating in the global village

Interesting story in the Baltimore Sun about the tough job the Food & Drug Administration faces as it tries to ensure the safety of our food:

FOOD RECALLS APT TO BE DU JOUR;
FOODSTUFFS' INCREASINGLY GLOBAL ORIGINS, MULTIPLE AGENCIES BAR THOROUGH CHECKS

BYLINE: Dan Thanh Dang and Larry Carson, SUN REPORTERS

SECTION: BUSINESS; Pg. 1D

LENGTH: 843 words

Consumers suffering from recall fatigue should get used to news of contaminated food as underfunded regulatory agencies struggle to police a burgeoning food system that's supplied by all corners of the world market, food safety experts said yesterday.

Just this weekend, more than 1 million pounds of E. coli-contaminated ground beef was recalled by Pennsylvania-based Cargill Meat Solutions Corp. from stores including Giant Food and Wegmans in Maryland.

In the past month, more than a half-dozen recalls have been issued for tainted meat products ranging from ground beef to frozen meat pizzas and potpies.

"It's one thing after another," said Michelle McFadden, 38, who was shopping yesterday at the Giant in Ellicott City.

She, like other shoppers, said there's little they can do to protect themselves, other than cooking food well and watching for news alerts. She decided to play it safe by not buying beef for awhile.

Kathleen Joesting said she found out too late about the recent recall.

The Ellicott City resident had already eaten a burger for dinner on Saturday before her husband heard the news and rummaged through their trash. He discovered that the ground beef they purchased from the Giant was part of a contaminated batch.

Tuesday, October 30, 2007

Peeps just got even scarier

Okay, you shouldn't be eating it anyways: animal-shaped marshmallow in unnatural shades of yellow, blue and hot pink. Now, there might be another reason for some people to avoid PEEPs: they're made in China.

Happy Halloween!

PHILADELPHIA (AP) - The maker of Peeps -- the fluffy, yellow, marshmallow chicks that have spawned a fanatical following -- has tapped an overseas manufacturer to make candies for the first time in the company's history.

Just Born Inc. is making its Spooky Friends treats for Halloween in China.

That could be a scary thought for American consumers concerned about products made in China, which has been hit by a series of recalls of substandard goods and lead-tainted toys. An August poll by The Associated Press found that most Americans believe the U.S. government is not doing enough to ensure that Chinese imports are safe.

Bethlehem-based Just Born said it was making the foray into outsourcing for the first time in its 84-year history because its plant in Bethlehem cannot individually wrap the Spooky Friends candies. The company found a factory in China that can do the job and meets their quality standards.

Privately-owned Just Born said it wanted to make sure there's demand for the product before investing in equipment to make the treats in the United States.

'It's expensive and we wanted to make sure we have a viable product before we'll source it here,' said Kathy Bassininski, vice president of brand development and corporate services.

Just Born has sold out this Halloween's entire inventory of Spooky Friends to retailers. The company will find out later whether shoppers went for the marshmallow candies, which come shaped like pumpkins, bats, ghosts, and spiders.

Just Born made the decision to test outsourcing last year, before the Chinese products scandals hit.

The candy maker said its popular Peeps and most of its other confectionery will continue to be manufactured in Pennsylvania.

National Confectioners Association spokeswoman Susan Fussell said it's not uncommon for candy makers to manufacture abroad, often in Canada and Mexico.

Monday, October 29, 2007

I was a child worker!!

A British journalist visited a garment factory in New Delhi where kids as young as 10 were putting Gap labels on clothing.

Gap says it had not contracted with that factory and that a Gap contractor had subcontracted the work without the company's approval.

Gap, based in San Francisco, is generally viewed as a leader in manufacturing clothes that were made in factories with good working condition. It has a team of inspectors who make surprise visits to subcontractors' factories around the world. If it supposedly got snookered, you can only imagine how widespread the problem is at factories cranking out goods for smaller manufacturers.

Now don't get me wrong--all kids, everywhere are entitled to education and to be safe. But in many countries, it's only feasible for a host of reasons for families to educate their kids through grammar school or middle school. Families in India, China, Vietnam, Chile are struggling to even survive. Parents there face hard choices everyday. So is it realistic that Westerners expect all kids to be in school and out of the factories until they're 17?

I wonder if we Westerners romanticize childhood now that we can afford to as a developed country. When we first came to the U.S. my parents worked in garment shops that were owned by friends and relatives. They brought work home and I remember staying up late to help them cut thread and fix stitches. I'm sure some laws were being broken technically, but my parents really needed that money to feed us--and that meant me helping them. And that was right here in California.




India Activists Decry Gap Child Labor

By MATTHEW ROSENBERG – 3 hours ago

NEW DELHI (AP) — With Gap Inc. under fire for selling clothes made by children in India, activists and police raided a sweatshop in New Delhi where 14 boys were embroidering women's garments Monday, illustrating the widespread problem of child labor in the South Asian country.

The children were as young as 10, came from a poor farming district on the other side of the country, and said they had never been given promised wages for working up to 15 hours a day embroidering sequins onto the flowing saris worn by Indian women.

The working and living conditions in the sweatshop just blocks from where the Gap clothes were being made were grim — the boys were packed into a filthy room, sleeping on the same floor where they sewed all day.

"I don't want my money anymore. Now I want to go home," said a thin 15-year-old boy who gave his name only as Hatiquallah.

Speaking at a nearby police station after the raid, Hatiquallah said he had been brought to New Delhi three years ago by a man who promised him work — and money. He never told his parents he was leaving.

"I was waiting for my wages," he replied when asked why he stayed. "I don't want them now."

India's transformation in the past decade into an emerging global economic power has done little to alleviate the country's widespread poverty — and the problems that go along with it, such as child labor.

The government estimates that 13 million children work here, many of them in hazardous industries, such as glass making, where such labor has long been banned. Rights activists place the number as high as 60 million — one estimate has 20 percent of India's economy dependent on kids under the age of 14.

The scope of the problem was clear Monday in the warren of narrow and dark alleys in New Delhi's Shahpur Jat neighborhood, where the sari sweatshop was found just a few houses down from the now-shuttered operation that made Gap clothes.

"Every other house is like this — there are children working in small garment units," said a police officer involved in the raid, Birpal Singh.

Police said they believed the saris were for sale within India.

But the widespread use of child labor in India and the discovery that kids were making clothes for the Gap, which has 90 full-time inspectors who travel around the world, raises questions for India's garment exporting industry, a $10 billion a year business that grew by more than 20 percent last year.

Some of the biggest names in retailing make clothes in India, from Ralph Lauren to J.C. Penny. They all say that oversight of contractors is strict, but child's rights activists disagree.

"International companies hire subcontractors and then forget about it. There is no monitoring at all," said Bhuwan Ribhu, a lawyer who works with Bachpan Bachao Andolan, or the Save Childhood Movement.

For the kids themselves, the issue is not as clear cut as many outside India would imagine — many poor children are expected to work.

Sanjeev, an 11-year-old rescued Monday from the sweatshop, said his parents had sent him off to work in New Delhi two years ago. He had not heard from or seen them since, and was worried they would be upset with him for not sending any money home. "But I never got my wages," he said.

Monday's raid came a day after Britain's Observer newspaper reported that children as young as 10 were found sewing clothes for the Gap in a New Delhi factory. It quoted the children as saying they had been sold to the sweatshop by their impoverished families and were not paid.

Gap responded quickly, saying the factory was being run by a subcontractor who was hired in violation of Gap's policies, and none of the products made there will be sold in its stores.

Indian officials, in contrast, offered no comment on the Observer report.

But child's rights activists said it was just a small part of a bigger problem, as evidenced by Monday's raid.

"The biggest responsibility here lies with the Indian government — they don't develop a way of monitoring" factories, said Ribhu, the lawyer.

"Where the Gap is concerned, at least they've taken a good pro-active stand against the subcontractors," he added.

Ribhu's group organized Monday's raid, finding the sweatshop and tipping off police, who planned to question the boys and then hand them over to child welfare authorities.

Ribhu said he would push authorities to return the children to their families in eastern India.

Associated Press reporter Muneeza Naqvi contributed to this story.

Wednesday, October 24, 2007

Is Corporate Social Responsibility Dead?

Executives from around the globe are hunkering down at the Hyatt Hotel for the next few days to chew on corporate social responsibility.


China seems to be dominating the discussion. Mattel head honcho, Robert A. Eckert, was a keynote speaker. Didn't attend the session, but I'm sure he fielded lots of questions about their recent recall troubles.

There was also a panel discussing China's responsibility in Darfur.

I caught the end of a panel debating whether corporate social responsibility is on the outs. Spoke to one interesting panelist, a CSR consultant who's a Filipina working in Equatorial Africa. A lot of her clients are in Asia, mostly mining and mineral companies.

Her take is that with globalization, it's harder to be a good corporate citizen, since the context for it changes from place to place and culture to culture. She says some firms, especially if they're in China, look at competitors with fat bottom lines who trash the environment and wonder if they're hurting their bottom line playing by the rules.


I'm heading to the conference tomorrow. More to come.

Tuesday, October 23, 2007

Aussies come to Silicon Valley

"The world is flat, but some places are flatter than others. Namely Silicon Valley."

A French chief executive now in Silicon Valley told me that at a dinner party recently. He says that even with the rise of Silicon Valleys in the world, only this Valley has the tech trifecta: talent, innovation and venture capitalists in the backyard.

He's not alone.

Twelve tech companies from Australia are showing off their wares today in Sunnyvale to attract American customers and venture capital.

And earlier this week, 60 Mexican companies, mostly tech and biotech firms, were in the Valley to try out for 12 slots at TechBA, Mexico's incubator program in San Jose.

Christo Columbus would be proud.