Opinion

Wednesday, 21 September 2022

Companies that include ESG metrics in their executive compensation schemes experience more tangible improvements in their CO2 emissions, research from the University of Mannheim, Business School reveals.

According to Professor Stefan Reichelstein, Director of the Mannheim Institute for Sustainable energy Studies and Professor of Business Administration at the University of Mannheim, Business School, including ESG criteria among key performance indicators for executives (referred to as “ESG pay”) is also associated with firms receiving more favourable ESG scores from external rating agencies.

The likelihood of firms adopting ESG pay for executives is more common in environmentally burdensome industries and countries with greater sensitivity to ESG-related issues, Reichelstein finds.

At the firm level, the proclivity to introduce ESG pay is associated with large firms that exhibit greater volatility, and increases if a company has already publicly issued environmental commitments.

“By including ESG metrics for activities subject to external costs in executive compensation schemes, owners can credibly convey to the firm’s stakeholders that management’s attention will be drawn to these external effects. In addition to improving the general corporate image, a firm commitment to be ‘ESG conscious’ may strengthen customer loyalty and make the firm’s equity shares more attractive for institutional investor groups,” says Reichelstein.

Though window-dressing activities, where firms don’t want to “walk the talk”, can be difficult to detect in the context of ESG pay, these findings indicate that the majority of ESG pay adopters are not merely engaging in window-dressing.

This research was based on a sample of 4,395 public firms from 21 countries taken from the ISS Executive Compensation Analytics database.

• New research by financial brokerage XTB reveals which #FinTock and #StockTock trends should be avoided, and why
• Some TikTok hacks with over 500,000 views are promoting extremely risky investment strategies that could leave investors broke
• With hashtags such as #investing, #money and #stocks gathering over 43 million views on the platform1, misleading hacks such as these are gaining more attention than ever

TikTok is one the biggest social media platforms in the world, and people are using it for more than just casual entertainment. Thousands of people are looking for financial advice on the platform, from content creators who post tips and tricks for making money called “Investing and Money Hacks”. Whilst learning about investing and how to manage finances should be encouraged, some of these TikTok hacks are very misleading and could be dangerous for a lot of people.

To help debunk these misleading hacks, analysts at financial brokerage XTB identify five “Investing and Money Hacks” that have gone viral for all the wrong reasons2 and explain why they should be avoided:

1. Make 100% Return Hack – 597K views

This hack is great – in a perfect world. This hack tells you to invest $1,000 into a risky stock and when you have $2,000, invest the initial $1,000 into a low risk dividend stock, and continue to repeat this until you are rich.

The first glaring problem: make a 100% profit from a risky stock. If trading was that easy, we’d all be millionaires. The average price return on the FTSE 100 has been 5.7% since 1983. Therefore, to double your money on a single stock – whilst possible – is more likely a fantasy for the majority. Keep in mind that risky stocks are risky for a reason – you could lose everything just as easily as you could make money!

2.  Becoming a Millionaire Hack – 2.9M views

This “hack” or “advice” simply says that once you save up $2,000 from a “side hustle” or even a regular job, you can then turn it into $100,000 from “Cigar Butt” methods, CMARs and not diversifying your investments. Who knew it was that easy to generate a profit of 5,000%?

The hack then goes on to explain that you should make Low Risk / High Reward investments until you reach $1m.

This advice would only work if you had the Midas touch of stock trading, and every stock you invested in turned to gold. Turning $2,000 dollars into $1 million takes huge amounts of knowledge and effort, not to mention a lot of time and some luck along the way. This TikTok is extremely misleading and shouldn’t be taken seriously.

3. Passive Income Hack – 3M views

This TikTok hack explains that you should use passive income in order to pay for something you may want to buy – in this case a new truck. According to this hack, you should purchase a house with a $25,000 down payment which when rented out will cover the costs of monthly payments of the truck.

That’s all well and good if you have $25,000 lying around to put down on a house!

4. Cheap Cryptocurrencies that are ready to explode – 100K views

These hacks highlight three or so cryptocurrencies that they claim are going to “explode” (see a sharp increase in value). Depending on the TikTok and which cryptocurrencies they choose, they could be completely right or completely wrong – most of the time, the creators of these TikToks have no idea!

If you’re looking to invest in cryptocurrencies, do not blindly follow recommendations that you see online without doing your own research first because, as we saw with what happened to Luna, cryptocurrencies can go from their most promising to being worth absolutely nothing in a very short period of time.

5. Money hack for Financial Freedom – 666K views

This money hack claims that instead of purchasing a common monthly subscription service like Netflix for $10 with your own money each month, you should instead invest $2,500 and use the $10 return in interest to pay for it – and continue to do this with every purchase you wish to make.

Two problems with this one:

1. You probably don’t have $2,500 lying around to invest, but you probably do have an extra $10 of disposable income every month in order to pay for something like Netflix.
2. Not everything you invest in is going to return a profit. It’s always important to keep in mind that, while investing as a whole can be a great way to improve your financial position over time, not every investment you make is going to return a profit. For example, you can invest those $2,500 into a company, but then their share price goes down, so not only would you not get your $10 a month in interest, but your initial $2,500 would be worth less.

These are just a select few of the finance hacks currently trending on TikTok. It’s always important that any financial advice on social media is taken with a pinch of salt – if in doubt, or if it sounds too good to be true, it probably is!

Top 3 tips from the experts at XTB

1. There is no get rich quick strategy. Don’t be fooled into thinking there is. Investing is a skill that must be honed over years of experience.
2. Have a trading plan. This is a key step when you first start to invest. In this plan you should consider the risk/reward ratio, risk management, technical analysis, fundamental analysis, and economic data, etc.
3. Pick the strategy which best suits your personality, time and knowledge. There are hundreds of strategies out there. Yet if two investors choose the same strategy, in my experience they will each get different results. This is due to the fact we are all different people and handle situations differently. For example, if you over react to price volatility, day trading may not be a good idea. So try and pick the strategy which fits your style first, and then look for which markets that strategy can work successfully.

Tuesday, 23 August 2022

Feeling vulnerable is often associated with weakness, but in some cases it can become a source of strength, reveals new research from Linköping University and Aalto University School of Business.

Alice Wickström, from the Department of Management Studies at Aalto University School of Business, co-authored a study into diversity management practices together with Janet Johansson, Associate Professor at Linköping University. The research is based on Johansson’s ethnographic work at the publicly-funded Swedish theatre company, SPAC.

Previous research has criticised diversity management practices for only valuing diversity to an extent as it furthers organisational goals. This is expressed by promoting social cohesion and assimilation while at the same time essentialising cultures perceived as “other” than the norm.

Based on Johansson’s in-depth interviews with company staff, and over two years of observations of weekly organisational meetings, rehearsals, and day to day practices at SPAC, the researchers note how employees viewed as “different” due to their ethnicity, disabilities, or other reasons, felt marginalised and frustrated due to perceived pressured to conform.

Instead of limiting their agency, however, the findings show that feelings of vulnerability stemming from marginalisation reinforced employees’ feelings of responsibility to care about their co-workers. It became a source of strength which helped them form caring relationships.

Johansson and Wickström note that relationships forged this way do not carry the same intention of forming groups based on homogeneity, rather they emphasise tolerance of perceived differences.

“We identify meaningful care emerging from caring with, instead of for, others. This is where caregiver relates to caregiver by viewing each other as equals and connecting with each other emotionally while seeking empowerment for each other,” says Wickström.

This paper was published in the Journal of Business Ethics.

• Working in public administration and defence (including compulsory social security), offers the best employer contributions to your pension
• Education is the second-best sector to work in for employer pension contributions
• Wholesale and retail trade is the worst sector to work in for generous employer contributions to your pension

A new study has revealed the industries that offer the best pension contributions by your employer, with public administration and defence (including compulsory social security), otherwise known as the civil service, taking the top spot.

The study conducted by investing comparison site Investing Reviews analysed data from the Office for National Statistics to establish which industry has the highest percentage of its workforce receiving employer pension contributions of 20% or more.

The research revealed that employers in public administration and defence (including compulsory social security) are the most generous when it comes to pension contributions with 67.9% of employers contributing 20% or more to their employees’ pension pot.

Education is the second-best sector to work in when it comes to employer contributions to your pension. The percentage of employers in the education sector contributing 20% or more is 64.0% – the second highest percentage out of all industries. The high contribution percentage is likely due to both industries being largely based in the state sector as well as private sector.

Employers in the electricity, gas, steam, and air conditioning supply sector that contribute 20% or more to their employees’ pension pot comes to 19.4% – the third highest percentage of any sector.

The fourth best sector to work in for a good pension contribution is the human health and social work activities sector. A total of 15.4% of employers in this sector contribute 20% or more to the pensions of their employees.

Water supply, including waste management, sewerage, and remediation activities, is the fifth-best sector to work in for good employer contributions to your pension. Employers contributing 20% or more to pension pots in this sector are at 10.6%, the fifth highest out of all industries.

Interestingly, working in wholesale and retail trade (including the repair of motor vehicles and motorcycles) results in the lowest percentage of employer contributions of 20% or more, at only 1.3%.

Commenting on the study, a spokesperson from Investing Reviews said: “With the cost-of-living crisis playing on the minds of many, working in a sector that offers good pension contributions can bring ease of mind when thinking about future finances. This study serves as an insightful guide as to the sectors where employer contributions are higher than others.”

The study was conducted by Investing Reviews, an independent comparison review site that was set up to help people make smarter decisions about investing.

Thai Leisure Group, the UK’s largest Thai restaurant chain, has pledged to invest £1 million into its most popular Chaophraya and Thaikhun restaurants, to be completed before Christmas.

The renovations will see existing Chaophraya and Thaikhun restaurants being refurbished over the coming months, with plans to upgrade both the interior and exterior of at least five of its restaurants. Local contractor, JMDA, has been appointed to work on the refurb for five sites.

This significant investment is being delivered in order to allow the brand to meet the needs of its existing customers, as well as to support its ambitious growth plans. Key changes will include redesigning and modernising the front of house and entrances, as well as the dining and bar areas of several key restaurants.

Managing Director at Thai Leisure Group, Ian Leigh, commented: “At Thai Leisure Group, we pride ourselves on constantly innovating and developing our offering, which is why we’ve remained the UK’s biggest Thai restaurant chain. This significant investment will elevate the dining experience even further for guests, allowing customers to enjoy a greater range of Thai cuisine in a comfortable and aesthetic environment.

“We are excited to unveil the refurbishment works taking place across several of our core restaurants, and look forward to welcoming new and returning customers over the coming months.”

Every Chaophraya site will be refurbished over the next 3 years, with renovations set to start in the coming months.  

Whilst the company’s main priority has always been investing into their team to ensure their service and quality is top notch, the refurbishment of its sites is now a main focus. Thai Leisure Group recently extended its portfolio with its first Thaikhun street food buffet restaurant, Thaikhun Buffet, located in The Trafford Centre, Manchester. Additionally, the brand has plans to open more Chaophraya sites in the next 5 years. 

The group also has a growing presence in the delivery space, with Chaophraya and Thaikhun now on Deliveroo. This is proven to be a key revenue stream and is a main focus in the company’s marketing strategy for the next 12 months ahead.

For more information, please visit: https://www.thaileisuregroup.co.uk/

With the cost-of-living crisis spiralling, Brits are being offered skilful ways to save the extra change when shopping for clothes online.

The penny-pinching team at NetVoucherCodes.co.uk have found 12 useful hacks to slash the price of an online shopping spree.

As a result of household bills steadily increasing, many shoppers are worried about spending their money online.

But using simple methods such as renting out an outfit or buying one standout piece, can help people create a stylish new wardrobe for half the price.

John Stirzaker from NetVoucherCodes.co.uk said: “With households facing rising energy bills, many people are hesitant to buy clothes online in order to save money.

“We wanted to provide some useful tips to help Brits get a bargain when online shopping and allow them to revamp their wardrobe without the heavy price tag.

“Doing simple tricks such as leaving the items in the basket can lead to retailers offering discount codes as a way to encourage you to make the full purchase.”

Here are 12 hacks by NetVoucherCodes.co.uk to save cash when online shopping:

One off premium delivery

It’s cheaper to buy delivery for a year at £9.99 instead of purchasing delivery for every order at around £4. This way you can receive your clothes quicker and for a better price too!

Have a wardrobe refresh

Out with the old and in with the new. If you’re looking for a style change, take all your clothes out and think “Do I still need this?” and then get selling on second-hand clothing apps. Once you’ve started selling, use the extra cash to pay for new outfits to freshen up your personal style.

Purchasing second-hand

Who doesn’t love vintage? Second-hand is becoming a trendsetter for shoppers, as you only need a limited budget to receive desirable clothing sets which look almost brand new.

Find a discount code

It’s easier than ever to find sites offering discount codes to help buyers get the best deal available. Have a browse at what clothing discount codes are available to help save those extra pennies.

Buy a standout piece

This means an item of clothing which you can wear with multiple outfits, but on its own, it beams from the wardrobe. It could be a vintage denim jacket, or a pair of high-quality black jeans which won’t get ruined after a month of usage.

Use the ‘need not want’ mindset

It’s a mental challenge holding back the ‘add to basket’ on everything you want. Resist the need to have a Julia Roberts “Pretty Woman” moment and be sensible with what you need to buy, otherwise it can spiral into an unnecessary shopping spree.

Rent your clothes

This growing trend in the fashion industry involves you using a clothing rental service to select outfits for special occasions. It might be the money saving solver when you need a new outfit for a wedding or a fancy meal, saving the costs of paying in full for an outfit that will never be used again.

Wait for price drops

Don’t ever buy clothes when there’s no special offer on. Shoppers often make the mistake of purchasing clothes with a typical 10% off code, but if you check throughout the week, websites often have a 20-35% off voucher.

Seasonal buying

Being prepared is never a bad trait and the same goes for buying off-season clothes. Winter clothing will be less popular to buy in summer and therefore the prices will be even better.

Leave everything in the basket

It’s a tool most people are still unaware of but leave your items in the basket a day or two after putting them in there. This often leads to retailers offering discount codes to persuade you to buy the clothes.

Don’t fall for the brand

It’s tempting to go for well-known brands, but if you find a product which has the same quality of material, then you’ll be getting better for your money.

Create a checklist

Ready, set, stop? Before you even begin to browse, create a reasonable list of clothes you need to buy, whether it be a new t-shirt for the summer or a pair of trainers to replace your broken ones.

For further tips to save cash on online clothes, head over to NetVoucherCodes.co.uk.

Time-honoured traditions meet new green technology in rural Washington

[London: 28 June 2022] Sustainability meets technology in the recently completed Woodinville Whiskey facility, where the age-old process of distilling whiskey is married together with green technology in the form of Kebony, a global leader in the production of sustainable wood. Situated in rural Quincy, Washington, the site is home to Woodinville Whiskey’s small-batch bottling, barrelling and ageing facilities.

Designed by Seattle-based Graham Baba Architects, the completed warehouses are part of what will eventually be six, 25,000 square-foot structures, spread across a generous 10-acre complex, with the third build to be completed this July.

Maintaining the simple, rectilinear gabled form and dark brown hue of the Woodinville distillery, the new complex’s structures are clad in Kebony and dark metal siding. Kebony wood was selected for its eco-friendly credentials and durable nature, which will stand strong against the extremes of the Washington climate.

A Norwegian company, Kebony uses a patented technique to transform sustainably sourced softwoods with hardwood-like properties such as dimensional stability, without compromising on appearance.

The transition between office and process areas is demarcated with a long vertical window that folds from wall to ceiling, transforming into a skylight. Horizontal windows on the north wall of the processing area frame the adjacent agricultural landscape and farmstead. A row of skylights provides natural daylight into the processing space, while south-facing photovoltaic rooftop panels provide a renewable source of electricity.

Selective elements demolished at the Woodinville distillery (steel and old growth Douglas fir stairs and steel railings) were salvaged and repurposed for the new complex, keeping them out of the landfill while creating a spiritual and physical link between the two sites.

Founded by friends Orlin Sorensen and Brett Carlile, Woodinville Whiskey reflects their passion for a product that blends craft methods with the historic tradition of bourbon whiskey production. The Quincy campus is a study in cutting edge design, utilising high-quality materials to reflect the innovative creation of the whiskey.

Susan Tillack, Associate Principal at Graham Baba Architects commented: “Kebony was a natural choice for the front facades as the clients wanted the warmth of wood, but the material had to be durable enough to withstand the extreme heat and cold of eastern Washington’s weather, without requiring continuous maintenance. For us, it was a perfect fit due to the beauty of the product, its sustainability and the ease of installation with the use of Kebony’s rainscreen system.”

Nina Landbø, International Sales Manager at Kebony, added: “It is pleasing to see that Woodinville Whiskey’s newest addition recognises the importance of using sustainable materials in construction. By pairing recycled materials with Kebony, the warehouses work to minimise their environmental impact, maintaining this with the generation of green energy. The visually impressive structures pay homage to rural America, displaying the Woodinville brand for all to see.”

People struggle to express themselves authentically at work because they feel a need to conform to the tenets of the workplace culture, Dame Inga Beale, the former and first female CEO of Lloyd’s of London, told ESCP Business School.

Speaking on the school’s ‘We All Make Mistakes’ podcast to the host and Professor of Entrepreneurship Ben Voyer, Dame Beale said that companies with a strong traditional culture can be resistant to modernisation as new employees are either absorbed into the current culture, or decide to leave.

“They would come in with a sort of modern attitude, doing everything on their mobile device, living in a very digital world. You would then see them 12 months later and they were as old as your father, or your grandfather. They’d been cloned, because they realised, ‘Gosh, this is how you succeed here. I’ve got to behave just like them,’” she says.

According to Dame Beale, this can create a problem for women and LGBTQ+ workers going into predominantly gender-stereotyped industries.

She believes that employees can come to feel like chameleons, which can provide them with the adaptability to succeed in business, but at the cost of being able to authentically express their real selves.

“If a culture in an organisation is so strong, you tend to mould to it,” she says.

Dame Beale was also an openly bisexual woman during her time as a CEO. When asked what advice she has for employees who are nervous about coming out, she says, “I would always encourage people to find a group, find allies, find somebody you can have a conversation with.”

Employees still choose to closet their sexualities in workplaces that do not feel “gay-friendly”, Dame Beale believes, which negatively affects their careers as their attempts to conceal parts of their authentic selves can be interpreted as unfriendliness by others in the company. Dame Beale recollects being closeted herself during part of her time working in the financial services sector.

The mission of the ‘We All Make Mistakes’ podcast is to find value in what everyone is trying to avoid: getting it wrong. Its purpose is to challenge the perception of what it means to be successful and show that people in the top levels of industry have not always made flawless decisions. Doing so, it showcases the human-side of leaders.

The podcast can be viewed here:
https://thechoice.escp.eu/podcast/series/we-all-make-mistakes/

https://thechoice.escp.eu/podcast/dame-inga-beale-on-embracing-your-identity-from-chameleon-to-role-model/

More than half (57%) of those in the finance industry wouldn’t accept a job with a company known for having a toxic workplace culture, according to new research from Culture Shift.

As the ‘great resignation’ continues to impact organisations nationwide, combined with skills shortages which are affecting most if not all sectors, there has never been more pressure on organisations to truly understand what is important to their people.

The research from the impact software developer reveals that more than two fifths (45%) of employees in the sector wouldn’t apply for a job with a company that had poor online reviews, let alone accept a job.

“Our research shows employer brand can be tarnished as a result of having a toxic workplace culture. However, as more than third (35%) of financial services workers across the UK have experienced problematic behaviour at work, it’s clear leaders aren’t fully aware of the true impact toxic workplace culture can have on their people and organisation.

“From work-life balance, to trusting their employers and colleagues, positive workplace experiences are more important than ever before, yet leaders are failing to put measures in place to protect their people. Not only does this impact an organisation from an employer brand point of view, but it can also impact investor appeal and result in challenges when looking to attract new talent,” comments Gemma McCall, CEO, Culture Shift.

The new research out today reveals that almost half (46%) of financial services workers would leave a bad review online or warn people about applying for a job with a company due to bad culture.

On how toxic cultures are affecting the UK’s financial services workforce, the research revealed:

• 46% have witnessed problematic behaviour (such as bullying, harassment or discrimination) at work
• 45% have previously left a job due to a bad workplace culture
• 31% confirmed an incident, such as bullying, harassment or discrimination, at work has led to them not trusting their employer

However, having a reputation for toxic workplace culture doesn’t just impact recruitment opportunities and employer brand, it also has a direct impact on an organisation’s bottom line from both a consumer and investor point of view.

In fact, the new nationwide study reveals two in three (62%) say they wouldn’t buy a product or service from a company with a reputation for treating employees poorly, while almost three in four (71%) investors wouldn’t invest in a company with a problematic workplace culture.

“The true impact toxic workplace culture has on an organisation really shouldn’t be underestimated. From influencing future applicants and investors, to affecting the lives of those experiencing and witnessing bullying, problematic behaviour in the workplace often has a lasting impact on both an organisation and its people.

“The only way organisations can reduce this risk is to commit to eradicating problematic behaviour in the workplace by putting culture at the top of their agenda. There will never be a one size fits all approach for all organisations to adhere to, however there are steps which all leaders can put in place to ensure they’re protecting their culture,” concludes Gemma.

To access the full ‘Reputational repercussions of problematic behaviour’ report, visit https://info.culture-shift.co.uk/reputation-report