Audioburst Search

The ethics of doing business with migrant detention camps

Automatic TRANSCRIPT

This marketplace podcast is brought to you by indeed. Are you hiring with indeed? You can post job in minutes. Set up screener questions than zero in on your shortlist qualified candidates using an online dashboard. Get started today and indeed dot com slash marketplace. That's indeed dot com slash marketplace. And by the Novo small business, it's for the go getters, and the doers, small businesses for the passionate and the courageous for those who want to change something small businesses for the difference makers to learn more about Lenovo for small business. Visit WWW dot Lenovo dot com slash SMB. Powered by Intel core, I seven processors. On the program today. The arts of the tariff, loophole the business of climate change risk, and the making of a measurable from American public media. This is marketplace. In oakland. I'm Ali would in for Kyra style. It's Wednesday, June twenty-sixth good to have you with us. We begin today where we often have lately, the trade war, the escalating tariffs between the US and China, perhaps you've heard that mentioned here before now. Yes, four. Sure those tariffs have had an impact on trade between the two nations, and during the g twenty summit that starts on Friday and Japan. President Trump and president Xi Jinping will meet to talk about their relationship issues. But meanwhile business finds a way to go on as usual, and many businesses have resorted to work arounds loopholes shall we say that helped them avoid paying these tariffs? Marketplace's Erica barris has that story. Work arounds on tariffs, sometimes called transshipments have been around as long as terrorists have existed says, Emily Blanchard professor at Dartmouth. But right now, they're having a moment when. Were lower before this trade war. It wasn't a profitable strategy. Now that tariffs are going up. We would definitely expect to see transshipment becoming more popular and not all transshipments are created equal practices, like shipping. Furniture, made in China to a third country with lower tariffs like Vietnam, and then removing the made in China sticker, that's a legal, but doing most of the production in China and then the finishing touches elsewhere, that's arguably legal says Michael Moore who teaches economics and international affairs at George Washington University, if you bring the product in, and you use a screwdriver to screw in the last screw that doesn't mean it's made in Vietnam. It has to be a substantive change in the product like assembly new kind of paint or a crucial part since the beginning of the trade war, a lot of goods made in China have been shipped from sapient nam, or other southeast Asian countries, entering the USB transshipments, Mary, lovely. Economist and fellow at the Peterson institute says industries, like footwear toys, and steal can use transshipment. But others can't like industries that have to be certified so called life and death industries artificial knees, any kind of medical products that are made in China those that whole supply chain is certified by US regulators. You can't all of a sudden just say, oh, I happen to get any from someplace else that leaves those industries with no option but to pay those terrorists or move their production elsewhere altogether. America bears for marketplace. Hundreds of employee's of online furniture, seller Wayfair, staged a walkout at the company's headquarters in Boston today, they were protesting the company's sale of two hundred thousand dollars worth of mattresses to a detention camp. For migrant children along the us, Mexico border employees wanted the contract. Cancelled Wayfair says it won't do that. And Wayfair isn't the only company finding that doing business with firms that? Attain migrants for the US government is tricky ethical territory. Marketplace's Andy Euler reports from UT in Austin in recent weeks reports have emerged that several border detention facilities are dangerously crowded with children living in unclean unsafe conditions now protesting Wayfair employees say, they don't want the company to enable support or profit from the practice of detaining people. But in a memo the company told employees, quote, we believe it is our business to sell to any customer, who is acting within the laws of the countries within which we operate, unquote. I think the company's response that says, all I have to do is follow the law and Gil with customers who aren't breaking the law is not, not quite right. Sandy rider is a business ethics professor at Washington and Lee university whether we like it or not businesses companies or a part of our moral community. They affect the lives of individuals. But how a company's decisions affect lives can cut both ways says Linda Trevino. She teaches busy. Ethics at Penn State. You know, many people would say, look, you know, there are people sleeping on concrete floors. It would really be good. If they had beds, then, again, being used as the company isn't giving the beds away, other companies have been caught in similar immigration quandaries, as well just today, Bank of America said, it would stop lending to companies that run detention centers. J P Morgan Chase the same call a few months ago, r Edward Freeman at the university of Virginia says, there's one clear cut issue for businesses, navigating this space should CEO's listen to their employees. That's a question Google, and Microsoft, or dealing with in the past year, employs at those and other companies have also pressured their bosses over government contracts. They think are unethical in Austin, Texas. I'm Andy Euler for marketplace Wayfair, by the way announced today. It's donated one hundred thousand dollars to the Red Cross. The walkout employees were not totally impressed. On Wall Street traders, also, not entirely sure how to proceed in these topsy-turvy. Times markets were mixed. We'll have the details when we do the numbers. The world of venture capital is pretty mysterious, especially if you're an entrepreneur trying to make your startup dream a reality. The center of the BBC world is one St. in Menlo Park California in the heart of Silicon Valley. It's called sandhill road. And now a big critique of venture capital. Is that it is so concentrated on this one road and eight tiny group of investors. More than eighty percent of whom are men, mostly American lots from Stanford and they have historically picked startup founders who are a lot like them. Scott Cooper is managing partner of one of the most famous venture firms Andriessen Horowitz. He's got a new book out called secrets of sandhill road, venture capital, and how to get it Scott. Thanks for talking with me. Thanks for having me, rich beer, your book is really a guide for the current world venture capital, you know as it works. Now, there have been a lot of critiques of that world. Whether it's diversity or building insular cultures funding. The same people over and over. Do you also feel a responsibility to change the way this current world operates? Absolutely. And you're absolutely right. Which is the industry has not been done. Great job on inclusion generally, and that's true. Both with female entrepreneurs as well as with, you know, entrepreneurs of color, ultimately, I think the best thing, we can do is try to address what we would call network connectivity problem, which is we know there are great and smart entrepreneurs everywhere. And the question is, how do we reach out to those communities and make them feel like there is actually a home for them here? One of the things I do hope that we get out of the book is, if we can demystify the business and make it feel accessible to people who are not in New York, and Boston, and California. I think that actually might have a positive impact from overall diversity inclusion the industry. What is the next step like you're clear in the book that you're not handing out, Mark Andrews, since phone number. I get it. But, you know, let's say I am an an entrepreneur in island. I have a great idea. And I read this book, and I want money like how do they how do they get in? How do they translate that into action? Yes. So I think one of the most important things to do is to prove your medal as an entrepreneur in some respects by showing your creativity and your willingness to kind of walk through walls and find a way to get an introduction into a firm. So we got a number of people, of course, who will send cold emails in, and we look at those, but it's very hard to obviously kind of get those into the right hands. Ninety five percent of what we do comes from some referral source that at least we've known of or seen at some period of time, we liked to see an entrepreneur find, you know, how many degrees of freedom to, they need before they can find someone who actually knows us. It can get something to our hands and that's the same skill. They're gonna have to do when they're recruiting employees. It's the same skill. They're going to need when they're trying to identify customer opportunities. And so that's our best advice is going to be persistent in trying to find a way in the door. That's a little passive. Have to be on ethnic. We'll just wait here for these awesome people to find us, and then we'll know how great they are. Like do you also should you also have the equivalent of sort of a publishing house slush fund? Like a scouting. So you're absolutely right. Which is the way our business works is some of the stuff is we're lucky enough to have relationships who say, hey, I met this great person the other day. But the vast majority of our activities, you can think about them as outbound activities, where we might have a thesis on an industry. And so as part of that we're doing research in trying to identify the five or ten companies who are doing something interesting that space that really is quite frankly, you know, kind of a huge part of what the job is being gentle partner firm like this. I will say it wasn't until last June. I think right. That Andriessen hired its first female general partner how much how important is that. It's very important. And you're right. It, it did take us a while to do that. We've since hired three general partners. And one of the things that we recognize was as we were recruiting for GP's we had a hard requirement, which is you had to have been a founder or CEO in order to be a general partner candidate and not surprisingly overtime, we recognize of course at that really narrow the funnel. Of diverse candidates just given the fact that the industry itself, a founder, since it ios is not very inclusive. And so we felt like it was better for us to say, hey, if we relax that constraint and really focused on what is the unique quality that makes you attractive to entrepreneurs in your field. Those types of things ought to count just as well. And be just as important as whether you're a founder, CEO. So that's really helped us make progress on the inclusion side. Scott Cooper has managing partner of Andriessen Horowitz and author of the new book secrets of sand hill road, venture capital, and how to get it. Thanks for talking with Scott. I appreciate it. From West Virginia to California, thousands of teachers have demanded better pay and even gone on strike for it, and a fair number of them. Got those increases which brings us to our series, my economy, people sharing what's happening in their personal economies. This one comes from a teacher at a school where teachers recently negotiated a pay race here. She is. My name is Christie Williamson. I am a teacher in cheer coach at Ogden high school in Ogden Utah. Ogden high school is very diverse. We have kids that come from inner city Ogden a lot of newcomers from different countries. And then I have a lot of wealthier parents who are doctors here, and they're all blended in here, and it makes for, I think fun and interesting teaching. When I started the team, there was kids who weren't getting grades. They were kind of being troublemakers in class. I had to set my standards pretty high and I had to stick with those. I try really hard to like, build relationships with those kids and just try to get down to, like, why are you doing this, like, what is your plan? What are you going to do after school either way? If you want to have a job and keep a job you have to learn how to be on time. You have to learn to commit to something or be there, when you say you're going to be there, I at the end of this year, I literally had a student who I walked him to class every single class period, nothing that we did or said to him like nothing was motivating him and I made a deal with him. If you go, then I won't walk with you. But as soon as you stop, I'm going to be your walking buddy. He hated it because the kids were like, oh, man. Coach Christie's walking him to class rough life, you know. But he went to class and the teachers are like, yeah. He's great. Once he's here. But he was never here before. So it is like it is a constant struggle getting them to understand that. But to me, those things make teaching worth it. And doing myself a big favor, and I'm taking off the month of July. You know, I'm just going to hang out with my toddler who I feel like I never see go to the pool just kind of relax in decompressed, so that I don't burn myself out and a lot of this like the teachers here, extremely selfless. They don't do it because like it's a paying job where you get the summers off. You know, we do it because like we love it, and we want to make a difference. Christie Williamson who sounds like an absolutely wonderful teacher at Ogden high school in Ogden, Utah. This series only works with your help. So tell us your story at marketplace dot org. Coming up. We like to make an honest living. We don't like that in the backyard rolling the dice on where to put a casino but first, let's do the numbers. The Dow Jones industrial average lost eleven points. Basically flat to close at twenty six thousand five thirty six. The NASDAQ found twenty five point three tenths percent to finish at seventy nine zero nine and the s&p five hundred declined three points, one tenth of a percent, and at twenty nine thirteen the financial times reported that Nike has stopped selling a line of shoes in China, after the Japanese designer of those shoes express support for recent protests in Hong Kong in an Instagram post proposal on Hong Kong to allow extradition to mainland China, triggered those protests, Nike loss, less than a tenth percent bonds fell the yield on the tenure, Tino, rose two point oh, five percent. You're listening to marketplace. And as we approach the end of marketplace's budget year, we're doing some numbers of our own part of being a responsible news organization, especially when the covers business and the economy is fiscal responsibility, and we've got a target, we need to hit by June. Thirtieth are closing in on our goal of twenty five hundred marketplace investors for this drive, but we still do need to hear from you even a gift of just five dollars will make a difference. So, please donate today at marketplace dot org. And thanks this. Marketplace podcast is brought to you by indeed. When it comes to hiring, you don't have time to waste you need help. Getting your shortlist of qualified candidates fast. That's why you need indeed dot com. Post a job in minutes. Set up screener questions than zero in on qualified candidates using an intuitive online dashboard. And we need to hire fast, accelerate your results with sponsored jobs. New users can try for free at indeed dot com slash marketplace. That's indeed dot com slash marketplace. Terms, conditions, and quality standards apply. This marketplace podcast is brought to you by the United States. Postal service. Every day, we talk about how innovative companies are reinventing the way business happens. But none of that's possible without the right people to enable it people who get packages to over one hundred and fifty million delivery points of forcibly an on time with the latest technology and expertise, so who can help you deliver the future of commerce. The United States postal service, see why they deliver more ecommerce packages to homes than anyone in the country at USPS dot com slash future. This is marketplace. I'm Molly would the Trump administration. Recently took steps to limit climate science research, within government agencies. It'll reduce the timeframe covered by US, climate, models and maybe stop, including some kinds of projections, like worst case scenarios and is happening at a time when private industry is trying to increase climate intelligence. Emily Musset karate is founder and CEO of the climate data firm, four twenty-seven, which works with companies to integrate what's happening with climate science into. The better business decisions. I recently visited her offices in Berkeley, California. Can you go in and just pronounce your last name for me 'cause I don't wanna yes month at Karachi muscle karate, cool? And since I didn't see any giant projections, or maps, or quantum computers, processing, a bunch of big climate data in the office, I started by asking karate. How does she figure any of this stuff out? They are over forty climate models globally that project what's going to happen to the planet in terms of temperature precipitation, sea-level rise. Those models are not for the faint of heart a, so we have developed a set of tools and applications that extract and process. The data and apply it to real economic asset, so real estate properties corporate facilities, and help investors incorporations quickly, see where the might be exposure and start thinking about what they can do to build resilience. What do the, the companies do? After you've advised them. I mean, I imagined the simplest answer is don't buy their or don't build their depends. Right. If they already have, or they've already Bill, there's a range of things that they can do that includes sort of hardening from an engineering standpoint their facility, it can be working with insurance to make sure that they're well, covered in case of certain events and adoption as we described it that will protect no just this company's facilities versus another, but the entire community including the workers that nearby and the roads that bring goods and services. Right. So, whether it's well understood self-interest, or broader community interest. Everybody's better off before will protected. So to what extent do you see this as part of this kind of evolving conversation around adaptation, like the awareness that it's here like you said, and that we will have to really core and for many years with described it as climate adaptation farm as well. The first. Thing for that position is to understand your risk. Right. And so that's really this fundation all data layer that we provide the only differences, the private sector calls resilience and the government's collate adaptation. But it's, it's really all moving in the same direction of preparing for those impact. Do you feel like then the work that you do? Because there is this argument that, well, the businesses that can afford your services are going to do fine, and everybody else is going to be left to the high water got dark in hurry. But it sounds like you're saying you see that you see a broader benefit in working with these businesses and helping them adapt and stay where they are. Absolutely. We're seeing we do work with the very large corporations, and they have the power in the wherewithal to be huge influencers in their communities in their supply chains. We're also seeing some of our clients understanding that small businesses are actually going to be much more vulnerable. And so there's a role of local governments and financial institutions to help chunnel this information through smaller businesses. Are any companies coming to you sort of after the fact, you know, like those Facebook, no, they're going to be underwater in twenty years? I believe they know that. Yes. And we see some of everything we see a lot of companies coming right now, because their investors are asking questions and we see companies combing not so much here. But in Europe in Asia, there's a lot of regulatory pressure. And so both investors in corporations fully expect that they're going to be under regulation in a matter of twelve months, pretty much turning your attention somewhat to resilience adaptation. Does it feel a little more hopeful? To be doing something are really dark days to be honest, when we look at projections for southern parts of the world. When we read the latest scientific article on civil rise or impacts on food, productions globally. So would better be in the thick of things. Helping move the ball forward and helping inform. The more data the more information, the more likely will make the right decisions. The more likely people, we pay attention when you can make the business case that this will be money, well, spent because look at the risks and that the costs. So there is a hopeful component. But we do work on a pretty dark topic. Emily messing karate is founder and CEO of climate data firm import twenty-seven. Thanks so much for talking with me. My pleasure, thank you so much. Over on my show. Marketplace tech, we've been doing a whole series on how technology can help us adapt to climate change. It's called how we survive subscribe to the marketplace tech podcast to hear all those stories. Now to ace tick, that is pretty grim in two thousand seventeen more than three hundred and fifty people were intentionally shot dead at work, that's according to the bureau of labor statistics. That's more than one person for every work day of that year. It is horrible. And we've got to look at it gun violence in the workplace is the focus of new series at marketplace dot org. Reporter Yana Cuthbert Vic examines. What the stats mean for employers, and employee's from training and preparation to active shooter insurance to possible prevention, techniques you can find that whole series right now at marketplace dot org. Casinos are huge business in America. Earlier this week, Eldorado resort spot Caesar's in a seventeen billion dollar deal that behemoth is based in Nevada. But the second biggest state in non tribal casino revenue is actually Pennsylvania, that's according to the American gaming association. Now Pennsylvania's authorized a number of new casinos, including one on the edge of Amish and Mennonite country as miles, Brian reports that is a culture, clash, that is not going, well, take the Pennsylvania turnpike west out affiliate for about fifty miles, and you'll hit Morgantown PA population. Eight hundred twenty six Edward Kurtz lives just off the highway, on a piece of land that used to be part of the family farm, started by his Mennonite grandfather just across the highway on land that also used to be part of the farm is the future site of Hollywood casino Morgantown so I have some sun mental reasons that I don't like casino, right? They're Hollywood Morgantown received a state license in June. It said to be the first of five, new mini casinos in Pennsylvania, it's being built by Penn national gaming, which owns forty one casinos and racetracks nationwide. The Morgantown casino is expected to have seven hundred and fifty slot machines and thirty table games much smaller than a full-size casino in the state that can have thousands of slot machines and hundreds of games with some residents, like Kurtz say a casino of any size is a bad fit for this area. A conservative rural part of the state where it's common to see families travelling via a horse and buggy. I met eighty six year old Paul Stoltze food who's Amish on his farm at the edge of town, that's been in his family for generations, dad brand. Would you grow corn? We fell stoltzfus says a casino disrupt what he calls, his communities simple way of life to make an honest living. And we don't like that in the backyard at a packed public input meeting before plans for the casino were approved resident after resident testified against it. They cited things like gambling addiction, fear of a rise in crime and concerned that it would change the area's traditional culture for the worse with the plan is had the support of business and labor leaders, as well as local politicians Alan Styler, the chairman of the board of supervisors for the township that encompasses Morgantown likes the numbers, he seen from the casino builders. The mate that they're gonna be contributing one point six million dollars a year to the local tax base. Currently our entire budget is two point six million dollars year style says that an addition to new tax revenue, the casinos should bring in more traffic that could lead to new restaurants and bars and the casinos builders expect to. About two hundred fifty jobs that Japan average of forty to forty five thousand dollars a year with benefits. Jeff Morris is a spokesman for Penn national gaming. He says the casino will be open twenty four seven so folks have the opportunity to, you know, to work around their schedule, and frankly opportunity to grow, CLYDE, barrow is a professor at the university of Texas Rio Grande valley. He's been studying casinos, particularly in the northeast since the early nineties. He says the promises and perils of the Morgantown casino, maybe overblown a will it create jobs. Yes. Will you get spin-off benefits of restaurants and motels and hotels? Probably not barrow says, smaller casinos like Hollywood Morgantown, don't tend to pull people into neighborhood restaurants and bars. Gamblers go to the casino game and drive home. But Barra says that means the casino is also not likely to have a big affect on the areas way of life. My suspicion is based on my experience with this casino is Bill given its size. Once up and running most people won't even notice that it's there for Kurtz lives just across the highway, from the casino site, new jobs and more tax revenue. Don't mean much to them. It's an economic thing to me as a Christian that a poor excuse Penn, national gaming hopes to have Hollywood casino, Morgantown opened by the end of next year in Morgantown, Pennsylvania. I'm miles Brian for marketplace. This final note on the way out from the marketplace desk, let's lighten things up for a minute. You know how everyone is talking about plant based meat replacements like impossible burger and beyond meat will add week has a little write up today about arby's. You know. We have the meats knows the prize. They are doubling down on the meat arby's. Put out a recipe today for a merit, meet carrot. They call it a measurable, and look as we're discovering that plant based proteins, contain a lot of material other than plants. It is worth noting that a merit is made out of two things Turkey dried, carrot juice. And that's it. Marketplace listeners it's KYW we've got a new podcast out. I think you're gonna want to subscribe to. It's called. This is uncomfortable. So weekly show about life, and how money messes with it hosted by McRae's. She tells funny and honest stories about how money relationships and shapes identities and often defines what it means to be an adult, please subscribe to our new show. It's called this is uncomfortable. And you can do that wherever you get your podcasts area. We gotta go. The Dow Jones industrial average last eleven points today. Basically flat, NASDAQ up twenty five points, and the s&p five hundred declined three points or one tenth of a percent, are media production team includes Sarrebourg air, Jake Gorski, drew justed, Jeff Peters, Dan Powell, Daniel Ramirez, Charlton Thorpe, and Ben tolliday. I am. Molly would tyrez Dom be back tomorrow. This is a PM.

Coming up next