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Submitted by Les Leopold

In the first post of a twelve-part series based on Les Leopold's latest book How to Make a Million Dollars an Hour: Why Hedge Funds get away with siphoning off America's wealth, the author examines who makes how much in the great income pecking order.

Step One:  Reach for the Stars...and Beyond 

If you're concerned about the growing gap between the super-rich and everyone else, you've come to the right place. This series is based on my book, How to Make a Million Dollars an Hour (John Wiley and Sons, 2013), a 12-step guide that explains how the elite of all elite financiers are able to make a million dollars an hour...and more.

Who are they? What do they do? How does it impact the rest of us? That's what we'll explore, step by step. You'll soon discover that it's very, very hard to make this kind of money without skating out to the ethical edge...and beyond. But let's not prejudice the case until you've had a chance to see how it's done.

The Great Income Pecking Order

The first step is to gain perspective on the rich and famous.

If you want to be the richest of the rich you better know whom you need to surpass. For in America, there are many, many rich people.  You need to get an idea of the great income pecking order. Just who makes how much?  Here you'll find the top 10 income earners in each of the following categories; celebrities, musicians, movie stars, athletes, lawyers, doctors, CEOs, movie directors, bankers, hedge fund managers, and alas, writers. (No, I didn't make the cut.) 

Let's review a couple of the charts.

Here's one that looks at the top 10 musicians ranked by their incomes in 2010. Be sure to check out the note on the bottom where we calculate that it would take 334 days of work for the average family to make as much as these musicians averaged in one hour.

After creating similar lists for the other glamour occupations we come up with the following summary chart:

Hedge Fund Managers The Top Earners

Check it out. Way at the top of the list is a group called “hedge funds.”

That group, on average makes over 40 times as much as the top movie stars. In fact the top hedge fund manager in 2010 made as much in one hour ($2.4 million) as the average American family earns in 47 years!

Think about that math: 1 hour = 47 years.

But who are those guys?  (And yes they all are guys.)  What do they do? 

Well, a hedge fund, we discover, is a rather secretive investment fund designed by and for the super-rich. You can't put money into a hedge fund unless you are worth at least $1 million. In reality, you had better be worth a whole lot more.  Hedge fund managers find ingenious ways to invest the money in their funds. In exchange the hedge fund manager usually receives two percent of all the money that's invested with him, plus 20 percent of the profits. 

There are about 8,000 hedge funds in America. But the top 250 or so have most of the investment money. You can really make the big bucks if you're in one of those top tier funds. But doing what exactly? 

Value Created And Compensation: A Core Question 

That's one of the questions that drives the book and this series.  The other main question is this: What kind of economic value is created by those who make $1 million an hour? 

That turns out to be a very tough question few even bother to ask. Usually, it's just assumed that if you make that much money, by definition, you must be worth it. But in economics, what you earn is supposed to be connected to the value you produce for the economy.  U2 and Lady Gaga sing. We pay to listen to their music and watch them perform. There is an exchange of value that is clear -- we give them money, they give us entertainment. 

But who gives hedge funds their enormous profits? And what do they give in return?

That's the core question that haunts our exploration. Stay tuned for Step 2.

Welcome to our series of interviews with leading female CSR practitioners where we are learning about what inspires these women and how they found their way to careers in sustainability. Read the rest of the series here.

TriplePundit: Briefly describe your role and responsibilities, and how many years you have been in the business.

Tessie Topol: I am Vice President of Corporate Social Responsibility (CSR) at Time Warner Cable (TWC), the nation’s second largest cable provider. I am responsible for building TWC’s CSR strategy - overseeing its execution and integration company-wide and communicating its evolution and progress to both internal and external audiences.  As part of that charge, I lead TWC’s signature philanthropic initiative, Connect a Million Minds (CAMM), a five-year, $100 million dollar program to inspire young people to pursue science, technology, engineering and math (STEM) education and careers.

I joined TWC in 2008 following two and a half years at MTV, where I was Director of Strategic Partnerships & Public Affairs. Prior to that, I spent almost 10 years in the non-profit and government sectors.

3p: How has the sustainability program evolved at your company?

TT: Time Warner Cable has a long tradition of strong community interaction and support. In 2009, we began marshaling our resources to drive the majority of our philanthropic activity toward a common cause for greater local and national impact. The result was Connect a Million Minds.

With a solid foundation in strategic philanthropy, I advocated for expanding our view of CSR to include other areas that we can most effectively influence and positively impact in our communities. In addition to our philanthropic efforts, central priorities of our CSR platform are: the environment, diversity and inclusion, and governance.

3p: Tell us about someone (mentor, sponsor, friend, hero) who affected your sustainability journey, and how. 

TT: My parents have spent their lives trying to leave the planet better than they found it, and there is no doubt this has shaped my chosen profession. My dad has been a champion of social causes for as long as I can remember, and my mother is a recently retired middle school reading teacher, her job for over three decades. Together, they instilled in me the core belief that bringing about positive change is possible and, whether on behalf of a company, the country or an individual child, equally worthwhile.

3p: What is the best advice you have ever received?

TT: I learned in my formative years the importance of taking initiative and being personally accountable for the decisions I've made and the actions I took. As a gymnast growing up, some of the best advice I received in those particular areas was from my coach and the sport itself.

In gymnastics competition, there are four events. If you perform poorly in one, you could very well have three more ahead of you, one after the other. When those difficult experiences occurred for me (and they did), my coach would pull me aside and stress that it was up to me whether or not I would allow those failures to prevent my future success. Being able to tackle the next event as if the last one never happened, taking each one on its own merits, and persevering to get the next one right taught me how to stay focused on what was in front of me, instead of dwelling on the past.

This same attitude was critical to the success of evolving the company’s philanthropic strategy. There were many bumps along the way, in trying to change an approach that was deeply entrenched in the company’s DNA. But I tried not to focus on them for too long or carry any sense of disappointment into “the next event.”

3p: Can you share a recent accomplishment you are especially proud of?

TT: Much was accomplished in 2013. It was  a very exciting year for us.  I would say that the release of our inaugural CSR report is a highlight, as it marks the beginning of a new journey for the company. The process of writing this report prompted us to take a take very close look at our broader role in society and examine our sustainability performance today and where we want to be tomorrow.

Of course, I am especially proud of Connect a Million Minds (CAMM), a program I helped to create nearly five years ago when I arrived at TWC. CAMM truly unites our employees, customers and community leaders to impact one of our nation’s greatest challenges – building student interest and proficiency in STEM. In October 2013, Connect a Million Minds was inducted into PR News’ Platinum PR Awards Hall of Fame and recognized as a best-in-class model for all future communications initiatives.

3p: If you had the power to make one major change at your company or in your industry, what would it be?

TT: We know, anecdotally, and through the efforts of small groups of employees self-organizing around the country, that there is a growing desire to help make TWC a more sustainable company.  I want to harness this enthusiasm and give employees the platform and tools they need to support the company’s growing sustainability efforts. We have already taken a step in that direction by collecting stories of environmental impact from across the company, to surface best practices. Now our challenge is to create a way for any employee, anywhere in the company, to join this effort in a way that is meaningful and measurable.

3p: Describe your perfect day.

TT: My perfect day involves waking up without an alarm clock, taking a long hike, catching up with friends and family, and watching cable TV (of course!).

While big names like Unilever and Eli Lilly have earned top spots in a new sustainability ranking, on the flip side 51% of companies were found to be emitting unsustainable levels of CO2.

The purpose of the study from Climate Counts was to analyze greenhouse gas emissions of 100 companies against science-based targets that seek to limit climate change to 2o Celsius (3.6o Fahrenheit). As climate modeling has provided a “best guess” as to what it will take to reverse climate change and stabilize greenhouse gas emissions to safe levels, maintains Climate Counts, the study assesses how well companies are performing in the context of environmental thresholds.

Nearly half the 100 companies analyzed (49%) rated sustainably, with Autodesk, Unilever and Eli Lilly earning three top spots in the ranking. However, 51% of companies are emitting unsustainable levels of CO2, says Climate Counts.

Climate Counts points out that while over half the companies rated scored unsustainably, the sample set of companies chosen for the study are part of a limited universe of companies that have voluntarily disclosed their emissions publicly since 2005 through CDP (formerly the Carbon Disclosure Project).

Paul Dickinson, co-founder and executive chairman, CDP, commented: “If companies are every truly to guage their carbon performance, it is critical to understand what progress means in terms of science-based thresholds. The latest Climate Counts study is a noteworthy step toward that goal, complementing CDP’s own work in providing the only global environmental disclosure system for companies, investors and governments.”

You can download the full report here. 
 

Online fashion retailer, Bastet Noir, is ramping up its support for eco-friendly business practices in southeast Europe by incorporating a new ‘transparency tag’ that details background information on each item of clothing it sells.

Each tag will list information related to the material, manufacturing, and price calculation of each article. This includes everything from fabric origin, to where the item was made, to material and transportation costs. The company says these facts are designed to help consumers make ethical and informed decisions about their purchases. The company is also in the process of redesigning its website to highlight these manufacturing details.

"What we are trying to do is to make sure our clients are informed and know where their hard earned money goes. Our aim is to make the business sustainable and 100% transparent, so that everyone can decide if their favorite piece of clothing is worth the price," says Daniela Milosheska, founder.

Milosheska founded Bastet Noir in 2012, which became the first online retailer dedicated to supporting young Balkan fashion designers who employ eco-friendly business practices.
 

Japanese electronics giant Panasonic is boosting its  aim to donate a total of 100 thousand solar lanterns to locations without electricity by 2018, with a new initiative called “Cut Out the Darkness”.

The supplementary programme to the original 100 Thousand Solar Lanterns Project will produce solar lantern shades based on designs created by visitors to a bespoke website. Panasonic says the rationale behind the initiative is to involve people around the world in the project and to make those participants aware of issues in the regions without electricity.

Currently around 1.32bn people are without access to electricity worldwide, and many homes in the regions use kerosene lamps for lighting, but the fire and smoke from these lamps pose serious fire and health risks. The lack of electric lighting also means significant challenges in the areas of health, education, and the economy. 

The project is based on a website that enables users to design a cutout and see a virtual shade image on-screen while working on the design. When finished, the design can be submitted online, and displayed in the “Design Archives.” Based on a popularity poll by site visitors, the best 100 shade designs will be chosen and produced by a laser cutter into lantern shades true to the original cutout designs.

Designs contributed by 11 acclaimed paper-cut artists, who are supporting the project, are showcased on the site and made into lantern shades. 

The progress of the project will be reported and updated regularly on the project website, and the “100 Thousand Solar Lanterns Project” Facebook page.

Visit the site here.
 

Did you forget to buy the politically charged present your kids really wanted this year? Luckily, it's not too late to pick up a copy of "Ted Cruz to the Future," a 24-page coloring and activity book detailing the "life, principles, values and mission" of the Texas senator. According to the publisher, St. Louis-based Really Big Coloring Books Inc., the book is a "non-partisan, fact-driven view of how Texas Sen. Rafael Edward 'Ted' Cruz became a U.S. senator and details, through his quotes and public information his ideas for what he believes will help America grow."

Among these "non-partisan" accounts is a text-heavy page featuring the senator's 21-hour speech on the eve of the government shutdown, describing Cruz as speaking with "clairvoyant precision" about the "quickly approaching Obamacare disaster." The book even includes a picture of the senator holding a gun, with warnings that the Obama administration will "use any opportunity" to go after the Second Amendment and "other constitutional rights such as free speech."

While you'd think such a book would be too controversial to pick up steam, the fact is that it's selling like hotcakes. At the time this story was published, it was still the best-selling children's coloring book on Amazon's popular products list, which is updated hourly. Really Big Coloring Books publishes a number of other politically oriented books, including "The Tea Party Coloring Book for Kids," "President Obama: Yes We Did" and "Being Gay Is Okay," but the Ted Cruz book has inexplicably outsold them all. The first run of around 10,000 sold out in 24 hours, and the second went nearly as quickly, publishers said.

"It's wild," publisher Wayne Bell told US News & World Report. "It's almost mind-boggling what is happening with this book."

Really Big Coloring Books has had to make new hires just to keep up with demand for the book, which is already on its fifth printing this month, according to the article. Despite descriptions of Cruz as a "real life superhero," the senator was not involved in the publishing of the book, the publisher told the New York Daily News.

Bell acknowledged that many copies of "Ted Cruz to the Future" may have been purchased as gag gifts, but the title continues to outsell its non-political counterparts, including titles from top franchises like Cat in the Hat, Star Wars and Angry Birds. While the concept of political figures dethroning Dr. Seuss on a list of children's favorites is surely unusual, it's not unprecedented. The company also published a coloring book for President Obama's 2008 inauguration, which was a best-seller, reports the Associated Press, though a second edition published in 2012 flopped.

Image credit: Really Big Coloring Books, Inc.

Submitted by David Bollier and Burns H. Weston

By David Bollier and Burns H. Weston

Part of the Green Governance series

Is it possible to solve our many environmental problems through ingenious interventions by government and markets alone? Not likely. Apart from calls for eco-minded behavior (recycle your cans, insulate your house), ordinary citizens have been more or less exiled from environmental policymaking.

The big oil, coal and nuclear power companies have easy access to the President and Congress and expert lawyers and scientists have privileged seats at the table. But opponents of, say, the Keystone Pipeline are mostly ignored unless they get arrested for protesting outside of the White House.

A New Kind of Law to Underpin the Commons

That’s why we believe it’s important to talk about a “new” category of law that has little recognition among legislators and regulators, judges and lobbyists. We call it “Vernacular Law.” “Vernacular” is a term that the dissident sociologist Ivan Illich used to describe the informal, everyday spaces in people’s lives where they negotiate their own rules and devise their own norms and practices.

In our last essay, we introduced the idea of commons- and rights-based governance for natural ecosystems. We turn now to Vernacular Law because its matrix of socially negotiated values, principles and rules are what make a commons work.

Vernacular Law originates in the informal, unofficial zones of society – the cafes and barber shops, Main Street and schools, our parks and social networking websites. What emerges in these zones is a shared wisdom and a source of moral legitimacy and authority. Colonial powers frequently used their formal law to forcibly repress the use of local languages so that their controlling mother tongue could prevail.

Formal Law and the Will of the People

The truth is that States often find Vernacular Law threatening. But on the other hand, what government can possibly govern without the consent of it, also known as “the street?”

There is an implicit struggle in any modern state between State Law and Vernacular Law. Wise political leaders learn that it is best to acknowledge the relationship between the two, and to provide channels for Vernacular Law to flourish and influence State Law.

Vernacular Law is important because it can act as a corrective to formal, organized legal systems. When these formal systems “yield discrepancies between what people want and what they can expect to achieve, macrolegal changes may not be effective,” says Yale law scholar Michael Reisman. “Microlegal adjustments may be the necessary instrument of change.”

A government cannot govern without the “hearts and minds” of the people.

Reisman notes, that “in everyone’s life, microlaw has not only not been superseded by state law, but remains . . . the most important and continuous normative experience.” The social protocols that people develop in a given societal setting constitute an undeniable form of law. In some respects, they are far more powerful than anything enacted by Congress or enforced by courts.

Trent Schroyer, a student of Ivan Illich’s, describes the “vernacular domain” as a “sensibility and rootedness . . . in which local life has been conducted throughout most of history and even today in a significant proportion of subsistence- and communitarian-oriented communities.” Vernacular domains are those “places and spaces where people are struggling to achieve regeneration and social restoration against the forces of economic globalization.”

Examples of Vernacular Law

Consider three relatively conspicuous examples of Vernacular Law: the canons of the church, the rules of the sporting field and the codes of social etiquette. At the other extreme, Reisman includes “looking, staring and glaring,” “standing in line and cutting in,” and “rapping and talking to the boss.”

Somewhere in between there exists a seemingly inexhaustible number and variety of Vernacular Law systems, each with its own protocols for what is acceptable and unacceptable, what constitutes a sanction, and other rules for negotiating relationships.

Vernacular Law can be seen in the management of indigenous communities, peasant collectives, farmers’ markets, businesses and factories, inter-business dealings (e.g., “gentlemen’s agreements”), specialized trades (e.g., magicians’ secrets, bakers’ recipes), and countless other circumstances.

The Internet and Vernacular Law

Perhaps the most salient arena for Vernacular Law today is the Internet, a great hosting infrastructure for countless digital commons. As the Internet has exploded in scope and become a pervasive cultural force around the world, so Vernacular Law – self-organized, self-policing community governance – has become a default system of law in many virtual spaces (notwithstanding the lurking presence of State Law or corporate-crafted law that may enframe these commons).

For millions of “digital natives” using the Internet, Vernacular Law is the most natural, familiar, mode of governance imaginable. It is the “real world” institutions – Congress, the courts, large corporations – that are bizarrely complicated, unresponsive, archaic and/or corrupt.

We need to recognize and validate Vernacular Law so that it can begin to make formal, official law more responsive and protective of our natural ecosystems. In a time when State Law has become captive of large industries and market interests, Vernacular Law serves a vital function as an evolving, communicative life pulse.

Custom to Counter Corporate Capture

The people’s deep will is often expressed eloquently and durably through their customs. Yale property law professor Carol Rose has noted that custom is “a medium through which a seemingly ‘unorganized’ public may organize itself and act, and in a sense even ‘speak’ with the force of law...” Internet communities often have their own “netiquette” and FAQs to express their customs and ethos. The Magna Carta is so renowned because it put down in writing for the first time the many customary practices that people had, and elevated them into rights.

“Over time,” Professor Rose writes, “communities may develop strong emotional attachments to particular places and staging particular events in those places... ”

Medieval courts were known to elevate custom over other claims, as when they upheld the right of commoners to stage maypole dance celebrations on the medieval manor grounds even after they had been expelled from tenancy.

Courts have been uneasy with the idea of informal communities as a source of law because they are not formally organized or sanctioned by the State, and courts themselves are generally creatures of the State. As one court put it, claims of traditional rights are “forms of community unknown in this state.” But as Rose notes, this is precisely why customary law is such a compelling and authoritative substitute for government-made law; it reflects the people’s will in direct, unmediated ways.

Vernacular Law as Antidote to Dysfunction

It is especially important to recognize Vernacular Law today—a time when the State has become captured and corrupted. The State and Market have become so intertwined and collusive that they often fail to carry out their own legal obligations to citizens and the environment.

The best antidote lies in Vernacular Law and the moral authority and legitimacy that it provides, particularly when it is faithful to the fundamental principles of international human rights. We make this extended case for Vernacular Law because it lies at the heart of the commons, and commons-based forms of governance hold out great hope for improving our society’s stewardship of natural systems. They provide a means by which an otherwise unorganized public can express itself and order its affairs, and even do so authoritatively.

What remains is for State Law to recognize the value of Vernacular Law as a tool to renew and rehabilitate itself.

This essay is adapted from Green Governance: Ecological Survival, Human Rights, and the Law of the Commons, by Burns H. Weston and David Bollier Copyright © 2013 Burns H. Weston and David Bollier. Reprinted with the permission of Cambridge University Press.

Submitted by Guest Contributor

By Steve Delfin, President and CEO, America’s Charities

Part of the Inspired Giving series

They filled Capital Hilton ballroom in Washington, DC, leaders of large and small charities throughout the country trying to build higher performing organizations “managing to outcomes.” The “After the Leap” Conference was the brainchild of Mario Morino, Founding Chairman of Venture Philanthropy Partners and Chairman of the Morino Institute, where Morino, who made his fortune in the early days of the tech boom, has for the past two decades turned his innovative mind and business acumen toward helping the philanthropic sector embrace meaningful outcomes.

His ground-breaking book, Leap of Reason: Managing to Outcomes in an Era of Scarcity (2011), urges leaders government, business and the philanthropic sectors to take “bold action” in order to focus increasingly limited resources where they do the most good in addressing pressing social needs. I’ve been following Morino’s work for over 15 years and have watched his influence begin to move the discussion from “why” should we do this to “how.” And just as importantly, I've watched the symposia and conferences discussing outcomes- and evidence-based philanthropy grow from gatherings of a couple dozen thought leaders, to what is now truly becoming a movement of change and impact.

The ‘Whys’

This is important for several reasons and should be of serious interest to several key leaders and influencers in philanthropy. First, the reasons: Morino was the closing speaker at the After the Leap Conference. In my opinion he could have been the first because his message framed the problem/reason why outcomes and results are so vital. Here are the ‘whys’:

• Economics and demographics. Shrinking disposable income, an aging population and increased demands for basic human care services as a result of stagnant and declining wages and the inevitable drop in federal and state funding for human care services will require that we make hard choices.

In the past where government and human care and social interest institutions could survive and even thrive based on brand awareness and emotional appeal, there will now be pressure to only fund institutions and organizations that can demonstrate through data and analytics that their programs work, are scalable to solve big problems and sustainable.

• Outcomes actually matter. There’s a big difference between outputs and outcomes. Outputs, while important, measure how much of something occurs and by when. Outcomes on the other hand measure behavior or systemic change. A clear graphic showing this distinction can be found here.

• Performance actually matters. As multiple speakers at After the Leap emphasized, you can’t have competent, problem-solving, innovative, outcomes-driven organizations without the capacity and infrastructure to effectively and consistently execute.

‘How’ Complexity

As with any big idea, it’s the “how” that gets complex. The concepts of “performance management” and “evidence-based outcomes” have been bouncing around philanthropy and the civil sector for quite some time. In regard to the philanthropy side of the equation, there have, and continue to be, those who fear that embracing ‘business practices’ will result in a loss of mission and soul by charitable organizations. If you want to see the debate, just go online and search “evidence based philanthropy.” Five years ago the search would have surfaced mostly stories and discussions that were negative. But now the body of evidence and knowledge has increased, demonstrating that for a growing number of high performing charities, performance management and an evidence-based approach is working.

In listening to the speakers, panel discussions, Q&A and hallway conversations, I came to the conclusion that given what Morino calls the coming “era of scarcity,” the performance management and evidence-based advocates are on the right path—and, I’ve become one of them.

Scaling Outcomes, Not Outputs

As a former philanthropy officer for a major multi-national company and now leading America's Charities, an organization that works with employers to better connect their workplace giving, philanthropy and employee engagement efforts with broader CSR strategy, I see evidence that corporate funders and gatekeepers are beginning to get wind of this emerging movement and fast-approaching need. But I also sense many of them are somewhat clueless, simply following a path of “doing well by doing good” and not seriously considering the effectiveness, sustainability or scalability of the causes and issues they fund.

Numbers of grants given, numbers of employee volunteer hours, numbers of toys or clothing collected and distributed are outputs. Good things, yes. But they are not outcomes.

I have one last point on outcomes. There are a number of charity watchdog and rating service groups that have emerged over the years. Some have evolved into meaningful and substantive organizations that are working hard to embrace and incorporate more sophisticated analysis into their charity rating systems. Others continue to “rate” charity effectiveness on single factors, like administrative overhead or salaries paid to executives – or outputs instead of outcomes. This is complex and nuanced stuff that cannot be “dumbed down,” although some media outlets continue to try to do so with their annual Top 1o Best and Worst Charities stories. In fact, one of Morino’s big ideas (which I love) is to take the After the Leap message on the road in the equivalent of an IPO roadshow for meetings with editorial boards, key community and business leaders and other important stakeholders (how about donors!) to begin influencing their thinking.

It is going to take a tri-sector commitment and collaborative effort to meet the most vital human care and social responsibility needs as public sector resources become more scarce. As Morino says in Leap of Reason: Managing to Outcomes in an Era of Scarcity, if we don’t manage to outcomes we greatly diminish our collective impact.

Tomorrow we’ll discuss why investing in performance and impact is crucial. Stay tuned.

About the Author:

Steve Delfin is the President & CEO of America's Charities and a leading proponent of effective philanthropy by engaging employers, employees and charities for more effective and impactful giving. America’s Charities recent report, “Trends & Strategies to Engage Employees in Greater Giving,” talks to the growing impact of technology on the intersection of employee engagement and philanthropy.

Lagunitas Brewing Company will be cutting out its 10 truckloads of waste water a day and saving about $1.5m a year.

The trendy California craft beer company has signed on as the first to fully install a new environmentally-friendly water treatment system designed at the hands of MIT (Massachusetts Institute of Technology) graduates. The project should be operational in 12 to 14 months.

Moreover, not only is Lagunitas going to be saving on the disposal and associated treatment costs of its waste water, the new onsite treatment system turns the food particles left over from its beer-making process into energy that will be channeled to drive its plant. Lagunitas CFO Leon Sharyon expects the resulting electricity to meet most of its needs. “I’m not sure it will be 100%, but it will be pretty close to that.”

EcoVolt, the product of Cambrian Innovation of Boston, was first tested for 15 months at the Clos du Bois Winery in Sonoma, a wine-making region of California. The winery saw a reduction in aeration pump electricity costs and a surplus in reusable energy. With the positive test results, Cambrian made EcoVolt commercially available in October. EcoVolt had treated up to 10% of Clos du Bois’ total wastewater.

“Industrial food and beverage producers typically use large amounts of electrical energy to treat their wastewater,” said Matthew Silver, CEO of Cambrian Innovation. “Ironically, the waste water itself contains energy.” EcoVolt uses naturally occurring organisms to extract the energy, “turning waste water from a hassle to a revenue source.”
EcoVolt is specifically designed for beverage, food and dairy operations with a novel process that makes use of the rich nutrients contained in the waste water. Cambrian had been awarded funding from the National Science Foundation for the research and development.

Lagunitas has been transporting 50,000 gallons of waste water treatment a day, requiring more than 3,000 truck trips a year. “We looked at a lot of options for onsite treatment,” said Leon Sharyon, chief financial officer for Lagunitas, who believes this new system can be considered `disruptive innovation,’ that is technology that delivers something better, faster and cheaper than what is currently available in the market.

EcoVolt is smaller than existing wastewater treatment options, opening up access to small businesses and for growing businesses to easily add capacity, said Sharyon. Lagunitas is spending about $3 million on its system. “The pay back on this thing is two years, the most.”

The prefabricated EcoVolt equipment is said to be easy to set up and can also be monitored remotely by Cambrian. A typical installation can generate 30 kW – 200 kW of power, according to Cambrian. It can also enable various forms of water reuse depending on the type of operation.
 

Financial authorities and prosecutors are looking into allegations that employees of South Korea's largest lender, Kookmin Bank, faked government bonds and embezzled the money from their sale; that the bank's Tokyo branch lent more than permitted to a Japan-based firm to secure returns that were used to set up a slush fund; and that the bank didn't return interest as required to businesses for a mortgage product.

The bank has admitted all three allegations, but says the extent of wrongdoing, such as the number of employees involved and amount of money involved in each has not been established.

Kookmin says the bond fraud was uncovered following a tip off from a whistleblower. The bank has not revealed the scale of the fraud nor how many employees were implicated. However, the Financial Supervisory Service (FSS) suspects that the amount could exceed KRW 10 billion and reckons at least 10 employees were involved. The fraud would have required about 10,000 fake documents which could only have been encashed individually, or in very small numbers, across large numbers of bank branches.

The investigation into illegal lending progressed quickly when the FSS handed the case over to prosecutors.
Prosecutors have now sought arrest warrants for two former Kookmin Tokyo branch managers on bribery charges. They, and other workers, in Kookmin’s Tokyo branch are alleged to have made illegal loans worth about KRW 170 billion to unqualified customers in return for bribes between 2008 and 2012. Financial authorities and the prosecution suspect the bribes were channelled to the bank in Seoul to create a slush fund for as yet unknown purposes.

No public comments have been made about the failure to pay interest due to customers.

Further problems for Kookmin loom in Kazakhstan. Operations at the Bank CenterCredit in Almaty, of which Kookmin bought a 41.9 percent stake for KRW 940 billion in 2008, have been suspended by the Kazakh authorities. Mismanagement is alleged, incurring losses of KRW 400 billion for Kookmin.

Financial authorities say there are serious questions about Kookmin's internal controls. Press comments say the regulatory agencies also need scrutiny and there might be need for improvements.

The FSS has also launched investigations at three other major banks, the Hana Financial Group, the Woori Bank, and the Shinhan Bank following allegations of widespread irregularities. According to the FSS, their intention is to stamp out corruption in the banking system.