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| Tuesday, 21 August, 2001, 14:43 GMT 15:43 UK Unilever chief's anti-bribes line ![]() Niall FitzGerald: Unilever "never uses bribes" Unilever, the food and hygiene giant, insists it does not pay bribes. But its co-chairman says that does not mean the company never pays out so-called "facilitating payments". There is a fine line, but the line is there, Niall Fitzgerald told BBC News 24's Hardtalk programme. Facilitating payments - sweeteners - are "a marginal exception" to the blanket ban on bribes, Mr Fitzgerald said. Custom and practice "There are customary local things," he said. When asked whether these are the same as "sweeteners", he said: "You could put it like that." But they are only used where local custom and practice dictate in the 90-plus countries in which Unilever operates. The idea is akin to tipping a waiter to get a better table, he said.
He insisted that an overall code of conduct governs these matters, and bans the use of payments for unfair advantage - although trusted local managers have leeway to interpret the rules according to local habits. All such transactions are recorded - although not necessarily under the heading of "facilitating payments", Mr Fitzgerald said - with tax relief on the "minute sums" involved claimed in the countries where they are paid. Mr Fitzgerald's position contrasts with that of some companies, such as construction group Balfour Beatty, which admitted to British MPs recently that it is not always possible to know whether agents in remote locations are accepting bribes. Burmese connections The code of conduct dictates where and how Unilever can trade, he said, meaning that serial human rights abusers such as Burma are out of bounds.
But he admitted that Bestfoods, a US-based company Unilever bought last year, had a distributor in Burma until recently, although he insisted that he had "personally" ensured that connections with the country were severed. The code of conduct also governs environmental issues, an area where Unilever has faced criticism of its Hindustan Lever unit in India. Mercury allegations Earlier this year the environmental watchdog Greenpeace revealed that Hindustan Lever's mercury thermometer plant near a mountain beauty spot in Tamil Nadu, Southern India, was dumping its waste around the local area and polluting local water supplies. "We closed it down within 24 hours of being informed that our normal practices and procedures were not being abided by," Mr Fitzgerald said.
He insisted that no workers or other people had been harmed. "If they had been, we would have done everything necessary to make appropriate reparations." But Greenpeace said there is plenty of evidence of mercury poisoning from the 30-40% of the factory's thermometers which were broken during manufacture and then dumped. "Ex-workers report kidney problems, chronic stomache aches, blood vomiting, infertility and women suffering a variety of gynaecological disorders," the group said, suggesting these are symptoms of mercury poisoning.
"The company has neither conducted a comprenhensive and scientific epidemiological study, nor published the basis of its claims that no workers have ever been affected." The group said Unilever's own environmental audit showed that for years toxic waste had been buried in unlined pits. As with the Burma distributor, the factory was part of a US company acquired by Unilever. Euro defender During the Hardtalk programme, Mr Fitzgerald defended his position as one of the most vocal supporters in the UK of British entry into the European single currency. He reiterated his belief that Britain will lose its pole position in attracting inward investment if membership is put off much longer. "The investment you are seeing today is based on decisions made two, three, four years ago," he said "Most of them were made on the assumption that Britain would become a paid-up member of the euro during the life of this parliament. "If it were to become clear that might not be the case, then that might change decisions - the impact of which we would only see in three, four, five years' time." |
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