London: Emerging Networks around Philanthropy

 

Presentation written by:

Margaux HUMBERT, mxhumbert@gmail.com

Melissa LAIRD, laird-melissa@hotmail.fr

Presentation supervised by: Assoc. Prof. Dr. Elena M. BARBU, elena.barbu@univ-grenoble-alpes.fr

 

GENERAL INFORMATION

ECONOMICS

London, the English capital, is the city of records. It is the largest city in Europe, the second most expensive city in the world concerning real estate after Hong Kong and the world’s leading financial centre. London is an innovative city, whose architectural qualities are undeniable. It is in this city that is the largest tower in Europe named “The Shard”. London is also known as the “Tech City”. This European start-up capital has no less than 88 000 digital companies, which attract a lot.

DEMOGRAPHY

London has a large population with 8.6 million inhabitants and covers 1 600 km2. Moreover, it has an additional 100 000 inhabitants each year consequently, it is a leading metropolis. Unfortunately, inequalities persist. London produces 20% of British GDP and represents 50% of job creations in Great Britain.

ATTRACTIVENESS

London is the only capital, which was able to organize 3 Olympics Games and since those of 2012, the tourism industry is growing up. Moreover, thanks to its heritage such as Big Ben, Trafalgar Square, London Eye and Tower Bridge, million of tourists come to visit these monuments.

Furthermore, as it is also very dynamic at the economical level and aspires to immigration. According to the Boston Consulting Group’s study, London is today the most attractive city in the world. The survey, conducted among 200 000 people from 189 countries, shows that London is more attractive than Paris and New York.

This success is largely due to the multicultural aspect of the city, which is home to about 3 million people born abroad. London offers many opportunities on the professional level thanks to the presence of big international companies. For example, some foreigners found in London, a dynamic labour market and lower unemployment rate than in their native country. Others think London has taxes advantages.

Moreover, the strength of London is the number of various communities where foreigners can find themselves, share their culture and express themselves in the universal language, the English.

MAIN ACTIVITIES

London is trying to be “greener” at the environmental level because for the moment only 47% of the city is considered as “Green” even if several natural spaces exist. These spaces are multifunctional and can accommodate parks, outdoor sports facilities or spaces for children.

ENVIRONMENTAL AND SOCIAL ACTIONS

ENVIRONMENTAL PROTECTION

In this first part, we will analyse what the city of London is doing to protect the environment. To begin, environmental protection is a practice of protecting the natural environment for the benefit of both the environment and humans.

Environment protection is one of the biggest issues in the world and especially in big cities such as London. Indeed, 64 years ago, London suffered the most catastrophic environmental crisis in its history. It was in 1952 and London was cover by a thick fog generated by coal, see figure n°1 in the index. At this time, factories and households were using coal but the pollution due to the use of this resource killed more than 4000 Londoners and sickened another 15000 who were unable to get to work. Consequently, this environmental crisis turned into an economic crisis what spawned a few years later the ban to use coal in the city centre.

Unfortunately, nowadays in 2018, London knows an even worse environmental crisis. Nitrogen dioxide pollution replaced coal pollution and this new pollution is killing more than 6000 Londoners prematurely every year. This pollution comes from the development of diesel vehicles in the city centre. Consequently, most of London areas are affected by this pollution and some are even more exposed because of buses and trucks.

In order to solve environmental issues, the city of London has to respect goals set by the World Health Organization[1] in order to increase, and not reduce, Londoners’ life expectancy. To fight against diesel pollution, we will see which drastic measures the city of London has taken since 2000.

The first measure is concerning vehicles and taxes:

After having setting up a “Low Emission traffic Zone” (LEZ) which operates to encourage the most polluting heavy diesel vehicles driving in London to become cleaner, the city of London wanted to move up a gear and created a new “Ultra-Low-Emission traffic Zone” (ULEZ) as you can see on the figure n°2.

This measure is in addition to the “Congestion Charge” which has been created in 2005. It aim is to make drivers pay a £11.50 daily charge for driving between 7am and 6pm from, Monday to Friday in the centre of London. Unfortunately, this charge was not effective enough to convince Londoners to not take their diesel cars. Consequently, the city put in place on October 23, 2017 another tax named the “T-Charge”. This measure obligates older vehicles driving in London, to meet a minimum European standard or to pay an extra daily charge of £10 in addition to the “Congestion Charge”. The “T-Charge” operates in the “Congestion Charge zone” to help clean up London’s polluted air.

The second measure is concerning bikes:

The city of London has allocated 900 million euros for the next five years to development cycle paths. These paths will be separated from the road in order to encourage people to travel by bike by bike and not receive cars pollution in their face.

The third measure is concerning new biofuel for red buses:

To encourage Londoners to travel by public transport, the city of London wants them to become green transports. To put this measure in place, the famous London red buses are now moving thanks to coffee. Since 20 November 2017, their biofuel has incorporated oil extracted from recycled coffee grounds. Consequently, it is composed by 80% of diesel and the other 20% contains coffee oil. This initiative comes from Arthur Kay, the founder of a British start-up named Bio-Bean. According to him “Instead of sending the coffee grounds to the dump, the start up collects it, recycle it and turn it into clean fuel.” This is explaining in the figure n°3.

Other measures

– Greenpeace activists

One of Greenpeace measure took place in London in April 2016. Activists from the famous association Greenpeace decided to put a mask on seventeen London statues. Among the statues, we could see the faces of Admiral Nelson, Piccadilly Circus Eros, footballer Thierry Henry, Queen Victoria and Winston Churchill (see figure n°4). This was made to shock people and send a strong message to the government to make it react about pollution.

– Taxis

In the long run, the mayor of London, Sadiq Khan, would like taxis and rental cars to become zero emissions by 2033, buses by 2037, and trucks and other road vehicles by 2040. He also wants the cycling and public transport to account for 80% of journeys to the centre of London by 2041. At present, only 64% of journeys are made with one of these two alternative means.

To conclude with environmental protection London would like to become as green as Amsterdam for example by developing several measures to encourage people to travel by bikes. The city of London is following the evolution of corporate social responsibility as at the city started by controlling pollution, than prevent about pollution and finally put in place environmental sustainability.

EMPLOYEES’ PROTECTION

In this second part, we will analyse how employees are protected in London. We can define employee protection as the rights of employees working within an organisation. It is a system of laws and agreements between employers and employees. First, we will describe terms of employment each company has to follow in London. Then, we will talk about the salary, the dismissal procedure and finally about women rights in London companies.

First of all, employees’ law is very framed in the United Kingdom and in London as in most European countries. All employees must have an employment contract with their employers it means an agreement that sets out an employee’s employment conditions, rights, responsibilities and duties. These different points are called the “terms of the contract”. They have to be present in every employment contract but the content may vary according to companies. Employers and employees must stick to a contract until it ends or until terms are changed. It is also important to notice that an employment contract doesn’t have to be written down in the United Kingdom. After analysing what is an employment contract, it is obvious to say that it is one of the best tools to protect employees. Indeed, by determining the terms, the employer has to follow them and cannot change anything without the employee’s consent. Consequently, the employee is protected because he normally agreed with the terms proposed by the employer.

Secondly, Londoners employees are protected thanks to a minimum salary of £7.50 per hour for people aged 25 or older. Moreover, a working week in the United Kingdom is usually 40 hours and the average number of working day per month is 22. Consequently, the minimum salary in the UK is around £1320 pounds. Obviously, this figure is an average because number of factors has to be considering as the age of the worker and its apprentice status. Rates depending on the age on the workers are explained in the index, figure n°5. It is important to know that they increase every year in April. Moreover, employees have a minimum of 28 days of paid vacation per year. Once again, having a minimum salary for employee is another precious measure to protect London employees as employer cannot pay them less than minimums rates and so cannot take advantage of them.

Thirdly, the last measure to protect employee putted in place by the United Kingdom government is the dismissal procedure. It must, as a minimum, comply with the minimum legal requirements. All employees who have worked for at least one year cannot be dismissed without cause.

Finally, concerning women’s rights and gender equality, London ranks among the worst in Europe. Consequently, we are going to discuss this topic in the negative aspects part.

 

To conclude, employees in London are well protected thanks to employment and dismiss laws. Unfortunately, human’s rights are not as respected as they should in every London companies because of gender inequalities even if the city wants to fight against this issue.

ETHICAL LABOUR PRACTICES

Ethics has been a popular theme for many years. Organizations want to promote this value. There is a desire to align with a managerial tendency and to respond to an economic and social imperative. It is also a mean by which organizations can assert their legitimacy and develop relationships of trust, essential to their credibility and sustainability.

The moral excesses and misbehaviour of managers, leading to financial scandals, are at the heart of a crisis of confidence, which companies have to face. Promoting a climate of trust in the organizational environment seems to be based more and more on adherence to a set of rules and principles of conduct, advocating ethical values shared by members in the company. Ethical practices can improve relationships of trust at work.

Some ethical practices are common and widely used in companies in the City of London:

  • Principle of informed consent: To be informed in the most complete way, clearly and simply, to know the risks for one and for others.
  • Principle of confidentiality: Privacy respect, protection of information.
  • Principle of qualification of care: Professionals must be trained and competent (especially in areas such as law or medicine).
  • Taking into account differences: Freedom and equality of persons.
  • Transparent and non-binding communication: Communication is sometimes a source of manipulation.
  • Precautionary principle: Very important in the field of food safety. It is a question of stopping to act as long as one is not assured of the harmlessness of what one produces (question about the capacity of the professionals to act when no answer is brought).

Since 2007, Ethisphere has honoured the “World’s Most Ethical Companies”. This price recognizes the important role of companies, which influence and drive positive change in the business community and societies around the world and work to maximize their impact wherever possible. In 2018, 135 companies have been honored from 23 countries and 57 industries.

We can take the example of 2 well-ranked London companies in the World’s Most Ethical Companies.

APTIV 

Elected for the 6th time in a row, it is a global technology company, which develops safer, greener and more connected solutions, which enable the future of mobility, where employees work with the highest degree of integrity. The drive principles are diversity, respect, integrity, value, and excellence.

The golden rules in terms of ethical practices are:

  • Diversity and respect in their workplaces: Including provide equal employment opportunities to individuals of diverse backgrounds and experiences, fair working conditions with work hours set in compliance with applicable local laws, don’t employ anyone under the age of 15.
  • Doing business with integrity: Including avoid conflicts of interest, corrupt practices, compete fairly, never act on material non-public information, commit to superior product quality…
  • Valuing our property and information: Including protect company assets, follow information security procedures, respect personal information

MARK & SPENCER

They are committed to the core values of:

  • Inspiration: excite and inspire their customers
  • Innovation: improve things for the better
  • Integrity: do the right thing
  • In Touch: listen actively and act thoughtfully

The leitmotiv is “We all have a responsibility to protect the Company’s reputation in everything we do and say”. This also includes things like: complying with the applicable laws and regulations in all countries in which they operate, following company policies and procedures, working with the suppliers, third parties and agencies to ensure their high ethical standards are maintained.

This code applies to everyone working for M&S no matter where they are located in the world.

They also want to make their business more sustainable. So that they believe a successful business must also be environmentally and socially sustainable.

To conclude, MARK & SPENCER give importance to: human rights, bribery and corruption, conflict interest and working relations.

PHILANTHROPY

The word philanthropy comes from the Greek words “philos” which means “lovers” and “anthropos” which means “man”. It refers to an attitude of benevolence and beneficence of some people towards other people they do not know but whom they consider materially poor and therefore needy. In this sense, “philanthropy” is opposed to “misanthropy”. It is a humanist philosophy that puts the cohesion of humanity at the forefront of their priorities.

Philanthropy is connecting with like-minded people who want to do good is a growing trend in the city. Many emerging networks bring people together around philanthropy.

London is a city that gives more and more importance to philanthropy, many networks have been created such as:

  • BeMORE aims to involve people in philanthropy, to show how much charitable donations can be made and to create a community that feels good. The members supported a variety of causes by helping young Londoners find jobs and building a new hospital ward in Madagascar.
  • The City Funding Network was launched in July 2012 and is based on the “Dragon’s Den” model. The goal is to support young professionals of the City in the discovery and development of their philanthropy. They organize events that bring in an average of £5 000 for each charity and over the last three years have raised more than £145 000 for various charities.
  • The Bulldog Trust in 2009 created the Engaging Experience Philanthropy Network. It has inspired more than 1 100 professionals to engage with charitable and social organizations and has successfully connected 815 charitable projects. The network connects professionals who work with small-scale, dynamic, charitable and social impact projects that require business expertise, mentorship, or non-executive governance support.

In London, philanthropy has never been more important than today. Local authority budgets have been reduced, but the demand for charitable services is increasing. Although, philanthropy is never a complete substitute for government, it must now take more responsibility for community provision, just as philanthropists in London have done for centuries. Millions of pounds are donated each month to help charities change and transform the lives of Londoners in need. Here are few examples:

  • Jonathan Ruffer: he has invested in the creation of a world-class centre for Spanish art.
  • Kelly Holmes: Two-time Olympic champion, bringing together world-class athletes and underprivileged children to help them succeed.
  • Global Health Awareness Week: A meeting of 150 companies where employers had to create workshops for employees to discuss about it.
  • Jamie Oliver: Young chef with several restaurants in London. He carries out many actions with disadvantaged people. For example, it uses a provocative strategy through a reality TV program to improve the meals of British schoolchildren, to reduce obesity in this country whose rate is 8.5% in children 6 years and 15% in teens. It also works to help young people in difficult neighbourhoods get by.

Private philanthropy has always played a crucial role in building, maintaining and maintaining the cultural heritage of the capital. Thanks to the generosity of Londoners, there is a free access to an exceptional range of arts and culture.

A wide range of institutions is funded in part or in full by private donations. Philanthropy adds to London diversity and dynamism; it also allows vision and ignites creativity in the arts and performing arts.

Of course, charity in London also helps the less fortunate. “CHICKS” is a fantastic example of this. The charity offers country breaks for inner-city children, including many Londoners. This year alone, the charity plans to take 1 300 children on a one-week trip to the country. These examples are just a fraction of how private initiative has helped and enriched London and, more broadly, the United Kingdom.

During the City Three Peaks Challenge, some of the city’s best-known businessmen will be abseiling three of the city’s tallest buildings: the Gherkin, the Cheesegrater and the Walkie Talkie.

ACTIVITIES AGAINST POVERTY

The British capital concentrates strong inequalities. Indeed, one out of four Londoners is facing poverty, according to a report published in October 2017 by the New Policy Institute, due to the stagnation of wages and the rapid increase in rents (1 800 pounds per month on average). On the 2.3 million people involved, more than half are employed. London is considered one of the most expensive cities in the world for housing.

The criteria to be considered in a situation of poverty are:

  • Singles with less than 144 pounds per week after taxes and rent
  • For a family of four, the threshold is 347 pounds.

To fight this poverty effectively, a coalition has emerged: London Coalition Against Poverty. It is inspired by the Ontario Coalition Against Poverty, which has created a successful model of community organizing. It brings together activists and advisers to tackle the causes and effects of poverty, merging the work of counselling, direct action and the libertarian organization.

London Coalition Against Poverty is a coalition of groups, which is based on the idea of solidarity and direct action.

London Coalition Against Poverty’s work was based in North East London. The main goal in 2017 has been to combat the use of “gate-keeping” (practice of misdirecting, lying and confusing people trying to gain access to housing). This practice is officially illegal, but the practice is widespread. Among boards trying to manage demand to reduce housing stock by having staff refuse to interview homeless people.

London Coalition Against Poverty London Coalition Against Poverty’s approach is based on the “direct action casework”.

Poverty in London is real, expensive and harmful. As a government, business, citizen or employer, everyone has a role to play. To solve poverty, 4 efforts must be made:

  • Increase revenue and reduce costs
  • Offer an efficient benefits system
  • Improve education standards and skills
  • Promote long-term economic growth benefiting all

It also exists The Childhood Trust is London’s child poverty charity. It has been founded with a simple vision: to support vulnerable children living in poverty in London. Their work is focused on helping children in poverty to overcome the many disadvantages caused by poverty.

NEGATIVE ASPECTS

GENDER INEQUALITY

One of the big issues in London is gender inequality. Indeed, a study (from 2016), establish on 17 Europeans countries and on the United States, shows that in the field the United Kingdom still ranks among the worst students in Europe. Talking about the results, the United Kingdom ranks 11th out of 18 countries taken into account, behind the United States, France and Spain.

Moreover, the gender inequalities are even worst for mothers because the wage gap between man and woman with at least one child is about 14% in London. Another problem is that childcare is also more expensive in London than in most European countries.

To fight against this, UK government asked companies to publish pay gaps between men and women in order to make them react and change their mind. In addition to this, more and more feminist associations have been developed in London to defend women rights in the working world. One of the most famous is called “UK feminista”.

WEBOGRAPHY

https://www.cairn.info/revue-rimhe-2012-1-page-53.htm

https://dubasque.org/2014/05/16/10-principes-ethiques-pour-le-travail-social/

https://www.worldsmostethicalcompanies.com/honorees/country/united-kingdom/

https://ir.aptiv.com/investors/press-releases/press-release-details/2018/Aptiv-Named-One-of-Worlds-Most-Ethical-Companies-for-Sixth-Straight-Year/default.aspx

https://corporate.marksandspencer.com/documents/policy-documents/code-of-ethics.pdf

http://www.cityam.com/223610/london-beating-heart-uk-philanthropy-long-may-it-continue

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/78577/philanthropy_in_the_regions.pdf

https://www.challenges.fr/monde/europe/londres-capitale-de-la-pauvrete-selon-un-nouveau-rapport_505088

http://www.solfed.org.uk/da/london-coalition-against-poverty

https://www.jrf.org.uk/report/we-can-solve-poverty-uk

https://www.courrierinternational.com/article/royaume-uni-egalite-femmes-hommes-au-travail-les-britanniques-eux-aussi-loin-du-compte

http://ukfeminista.org.uk/about-us/

https://dictionary.cambridge.org/fr/dictionnaire/anglais/employment-protection

https://www.franceculture.fr/emissions/le-choix-de-la-redaction/londres-accelere-sa-lutte-contre-la-pollution-avec-une-nouvelle-taxe

http://www.rfi.fr/europe/20171121-royaume-uni-bus-roulant-cafe-peage-urbain-toxicity-charge-londres-pollution

https://www.ouest-france.fr/europe/angleterre/contre-la-pollution-londres-greenpeace-masque-les-monuments-4171048

http://www.bensussan.fr/pages/droit-du-travail-en-angleterre/

https://www.gov.uk/employment-contracts-and-conditions

http://www.gigl.org.uk/keyfigures/

INDEX

Figure n°1: Thick deadly fog with Piccadilly Circus April 6, 1952

Macintosh HD:Users:loyetguillaume:Desktop:brouillard-londres-1952.jpg

Source: http://ici.radio-canada.ca/nouvelle/1003309/brouillard-meurtrier-londres-1952-explications

Figure n°2: Summary of idea for the future of ULEZ

Macintosh HD:Users:loyetguillaume:Desktop:table4.png

Source: https://ctablog.org/2016/12/06/community-transport-and-ultra-low-emission-zones-in-london/

Figure n°3: Recycling of coffee grounds

Macintosh HD:Users:melissalaird:Desktop:Bio-Bean.png

Source: https://www.greenchallenge.info/info/winners/bio-bean

Figure n°4: Queen Victoria’s moment masked Macintosh HD:Users:loyetguillaume:Desktop:contre-la-pollution-londres-greenpeace-masque-les-monuments_0.jpg

Source: https://www.ouest-france.fr/europe/angleterre/contre-la-pollution-londres-greenpeace-masque-les-monuments-4171048

Figure n°5: Minimum salary compared to workers age

Source: https://www.gov.uk/national-minimum-wage-rates

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