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Submitted by Guest Contributor

By Richard J. Crespin, CEO Crespin Enterprises & BCLC Senior Fellow

No one owns honey bee pollination. As with almost anything in a highly specialized society, a commercial beekeeper owns her bees but not the means of making the inputs or outputs of bee pollination. She doesn't own the land or the crops and flowers that her bees depend on for forage, that is to say, for food. She relies on farmers and other surrounding landowners to feed her bees. Nor does she own the distributors and stores that bring the crops and flowers her bees pollinate to market. This specialization has wonderfully increased the production and distribution of food.

It's a problem, though, when a tough problem arises where no one party stands to lose or gain in the short term, but where we all stand to lose or gain in the long. These are problems "in the commons." Just such a problem threatens honey bee health.

Colony Collapse: Who’s Problem Is It?

The recent Honey Bee Health Summit held at Monsanto’s Chesterfield Village Research Center in St. Louis and co-hosted by Project Apis mP identified a set of potential problems causing declining honey bee populations. These included poor nutrition due to lack of a multivariate diet, the varroa destructor mite and its accompanying viruses, and pesticides which exacerbate the other two problems.

The beekeeper doesn't really "own" any of these problems. She can’t control what is planted on the land where her bees look for food. The varroa mite, an invasive parasite that burst on the scene in the early 2000s that attaches itself to bees and weakens their immune systems making them susceptible to a battery of viruses, isn't owned by the beekeeper. She owns the decision about whether or not to use miticides to treat her bees, but that's it.

Bees come into contact with pesticides when they forage near agriculture, mainly when they pollinate treated crops, but the beekeeper doesn't have the decision of whether or not to treat crops with pesticides, nor does she completely control where her bees range.

"Bottom line: the vast majority of managed colonies in the U.S. contain a population of bees that requires intensive husbandry, chemical control of parasites, and is dependent upon supplemental feeding, similar to other livestock," wrote Randy Oliver in a recent entry on his Scientific Beekeeping blog.

What Does This Mean for Improving Honey Bee Health?

It means even if you had the perfect scientific solution, you would still need a complex social solution.

Let's take forage. Bees, like humans, need a multivariate diet. "What is important to bees, other pollinators and beneficial insects are the weeds, native plants and brush between the rows [of crops], on the field margins and ditch banks and in hedgerows and woods," writes Oliver. "It is these plants that provide the steady mix of diverse nectar and pollen upon which colony health is dependent. Such bee-friendly flora used to be a common feature in agricultural lands. But today’s farms often appear 'sterile'—all the pasture and biologically diverse 'natural' areas have been cleared and herbicided right down to bare soil."

Many activists blame large agribusinesses for creating these bee food "agri-desserts" through the proliferation of monocultures; when in fact, the spread of monocultures are due to, "the application of the recommendations of [USDA] agricultural extension agents and the economic reality of farming." These recommendations and their resulting intense and highly specialized farming practices arose in response to a growing population worldwide with an expanding demand for more and more food produced on less and less land by fewer and fewer people.

Scaling Long-term Investments

Solving the forage problem lies outside the control of the beekeeper. If the answer is to plant more varied crops, weeds and wildflowers, the farmer would need to do it on his land, thereby giving up production capacity, i.e., revenue. Planting more varied crops raises his cost to plant, manage and harvest. Solving the bee nutrition problem requires the active cooperation of at least three parties: the USDA to change its recommendations on farming practices, the farmer to plant forage and the beekeeper to place her bees in the right fields.

And this demonstrates the problem of problems in the commons. No one party stands to gain or lose in the near term but we all stand to gain or lose in the long term. In fact, the short-term incentives may actively work against long-term solutions. The USDA, the farmer and even the beekeeper have limited to no short-term interest in solving the problem. In fact, the farmer's immediate interest is to maximize production on his land, so giving up land to plant forage runs directly counter to his interests. Solving this problem will require developing solutions that benefit farmers and beekeepers while addressing the need of an ever hungrier planet.

When we work to solve big social problems, we need to take a step back and look at the social aspects as well as the scientific—what some might call the "soft" as well as the "hard" problems. Even if we come up with great "hard" solutions, if the social structures aren't in place to implement them, they will persist.

About the Author:

Richard is the CEO of Crespin Enterprises, a boutique consulting firm working to bring companies, NGOs, and governments together to create commercial innovations that solve problems in the commons. He is also a Senior Fellow of the US Chamber of Commerce Foundation. He lives with his wife in Falls Church, VA where they practice extreme parenting with their three young children.

Voting is now open for L’Oréal’s annual community recognition awards in the US.

The Women of Worth programme recognises women who embody the spirit of the French beauty giant’s cosmetics brand L'Oréal Paris – ‘Because You’re Worth It’ - through commitment to their communities.

From helping victims in the wake of the Sandy Hook Elementary tragedy, to enabling terminally ill seniors accomplish their bucket lists, to building a nonprofit restaurant that helps at-risk youth learn life skills, this year’s nominees come from a wide range of backgrounds.

The 2013 contenders, selected by a panel of judges, each receive $10,000 for their charitable cause. A National Honoree will be awarded an additional $25,000 when voting closes on 20 November.

The contenders for the $25,000 are:

• Somy Ali, president of No More Tears, nonprofit organization devoted to rescuing victims of domestic violence and helping survivors with assistance to meet basic needs; 
• Tricia Baker, co-founder and co-director of Attitudes in Reverse, a nonprofit organization to educate society about mental health and combat negative perceptions about mental illness;
• Patty Boles, executive director of Straight From The Heart, Inc., a nonprofit resource center that provides critical support, mentoring, must-have items and resources for foster children and their caregivers;
• Lauren Book, founder and ceo of Lauren's Kids, a nonprofit organization dedicated to preventing sexual abuse through public awareness, education and political advocacy, and to help survivors heal;
• Maria D'Angelo,founder, president and ceo of The Children's Lifesaving Foundation, a nonprofit dedicated to serving and transforming the lives of homeless and at-risk children and families in LA;
• Kimberly Iverson, founder of Bucket List Foundation, a nonprofit which grants end-of-life or "bucket list" wishes to the terminally ill;
• Lori Lee, founder of Me Fine Foundation, a nonprofit founded in memory of her son Folden Lee, IV, which provides resources and financial assistance to families with children being treated at Duke and UNC Children's Hospitals regardless of race, diagnosis, religious affiliation or economic status;
• Estella Pyfrom, ceo of Estella's Brilliant Bus, a nonprofit fueled by a state-of-the-art mobile learning center and network of opportunities where children and families without home access to technology or internet can learn vital computer skills.
• Kaitlin Roig-DeBellis, teacher and founder of Classes 4 Classes, Inc., a nonprofit organization developed in the wake of the Sandy Hook Elementary tragedy whose mission is for every student in the US to learn compassion, caring, kindness, empathy and consideration;
• Susan Garcia Trieschmann, executive director of Curt's Cafe, a nonprofit restaurant that provides training and support for at-risk youth while offering the community a place to "dine with a purpose".

Votes can be cast at the dedicated website WomenofWorth.com and on the L'Oréal Paris Facebook and Twitter pages.
 

Our Sunday mornings lately have begun with kale, cauliflower, and heaps of carrots. Once a week, our neighbors gather to harvest veggies from our local community supported agriculture (CSA) farm. It is a worker-share arrangement, so each member contributes a couple hours of time each week or  pays in a larger sum to receive a share of the farm bounty. There is an element of surprise each week as we discover what we are harvesting and thus bringing home. By design, this unique business promotes resiliency, teamwork, and a deeper relationship with our food.

Little River Community Farm was founded by three members of Belfast Cohousing & Ecovillage (BC&E), a multigenerational community in Midcoast Maine on 42-acres that will contain 36 units when complete next year. The arrangement between the two organizations is a symbiotic relationship, allowing community members to have fresh produce grown just beyond their doorstep and the community helps provide the infrastructure and support to the young business.

When my family made the move from Wisconsin to Maine, we arrived in August with no established garden. The CSA was just beginning to harvest the fall share and we had instant access to high-quality and extremely local veggies.

The CSA is boosting the soil quality of the several acres it uses by planting buckwheat, millet, vetch, and pea cover crops that boost nitrogen, retain topsoils, and boost organic matter, thus increasing the fertility of the land for years to come. BC&E has just three unsold units and having an on-site CSA offers a unique benefit to potential homebuyers.

“To me, a really important part of being a member of BC&E was there being a farm where we would raise food and work together,” says Jeffrey Mabee, a member of BC&E and Little River Community Farm. “The CSA has really answered my prayers about that. Having young farmers using the land in such a responsible way feels right. The farm feels like the heart of any intentional community. It has a much greater significance than merely producing food.”

The farm began operating this fall with 11 paid shares and several free shares for those who traded use of a tractor or tools. The farm will become profitable once it has more than doubled its shares.

CSA and worker-share CSA farms in particular are generally small in scale, as the market for people willing to put their hands in the dirt is relatively small and it is more difficult to have a strong connection with the members as the membership grows. Members can participate, regardless of experience, as every task is explained.

"If you're going to take seriously the 'community' component of it, and if one of your goals is to have strong ties with your members and have your members have strong ties with you, maybe there is a point where the CSA can't really get any bigger," says John Hendrickson, an outreach specialist at the University of Wisconsin-Madison's Center for Integrated Agricultural Systems in an interview with NPR.

The support from BC&E has been essential for Little River Community Farm to have a successful first season, including having people trade use of a tractor or tools for a free share in the CSA. “It’s great to work with the community and have the support,” explains Amy Adamson, member of BC&E and one of the founders of Little River Community Farm. “Starting a farm without support can be a huge investment of time and money to establish the needed farming infrastructure.”

There is a desire by many BC&E members to see the farm become lucrative for its founders. “There are cohousing communities that have grown high-priced vegetables that restaurants are willing to buy, such as mushrooms and mixed lettuces,” says Judith Grace, Jeffrey’s wife, and a member of BC&E and Little River Community Farm. “That’s been the way they’ve been able to turn a profit. Maybe this group will decide to do that.”

To replicate such a project, Adamson says finding a market is really important, as interest and knowledge of CSAs varies widely across the country. Interest in contributing labor will also vary widely, as it does require a time commitment from members.

“I think its tough for people who can’t come to the weekly harvests [to meet their work commitment],” says Jenny Davis, a member of BC&E and Little River Community Farm and Amy’s wife.

Some of the downsides of a worker-share CSA are luxury problems: having to use or preserve four bunches of kale in one week, learning to prepare less known crops such as mustard greens, and helping out in cold or rainy weather. This has caused community members to make jokes about using kohlrabi as a paperweights and learning to weave baskets with green onions.

This scenario can also create an opportunity. I've learned to freeze and pickle a variety of veggies this year and I have a large stockpile for the colder months. We only gain experience with produce that can be cultivated here at home, thus strengthening the local food culture.

“One of the things I enjoy most are the veggies that we wouldn’t bother with or simply haven’t grown for ourselves over the years,” says Judith. “It’s opened up new tastes and dishes. Kohlrabi or fennel, for instance, comes to mind.”

There is interest by some in BC&E to host educational events related to sustainable agriculture, such as a hoop house building and vineyard planning event that is open to the public on November 10. The three founders of Little River Community Farm have also demonstrated a commitment to educating people about sustainable agriculture.

“I love the idea of teaching people how to grow food,” says Amy. “I think a lot of people don’t understand how inexpensive it is to have their own garden. A lot of people could get much healthier food if they grew their own. They just have to invest their time in it.”

Updated January 18, 2017

Image Credit: Jeffrey Mabee of Belfast Cohousing & Ecovillage

Concerns that women are still discriminated in the workplace because they are pregnant has galvanized The Equality and Human Rights Commission to undertake a new research project into the scale of pregnancy and maternity discrimination in the UK workplace.

Anecdotal evidence suggests that some pregnant women experience discrimination while on maternity leave or on their return to work. However, there is no up to date evidence as the most recent data goes back to 2005.

The project will investigate employers’ practices towards employees who are pregnant or on maternity leave, and these employee’s experiences in the workplace to provide evidence on the extent, causes and effects of pregnancy and maternity discrimination. This information will enable the Commission and Government to shape the most appropriate response.

The Commission proposed the project to the Department for Culture Media and Sport (DCMS) as part of a package of measures to address Equality and Human Rights, and Secretary of state Maria Miller has confirmed the funding to support this project.

Education for both employers and employees nationally will be key to tackling this issue and the Commission will assess how best to raise awareness of pregnancy and maternity rights.

Mark Hammond, chief executive of the Equality and Human Rights Commission, said: “It is very concerning that in 2013 a number of women are still being disadvantaged in the workplace just because they are pregnant. That would be unlawful discrimination and needs to be tackled.

“We will look at existing research, gather new evidence and carry out our expert analysis to establish the extent of the problem and advise on how best it can to be addressed.”

Picture credit: © Marcio Moraes | Dreamstime Stock Photos

American investment bank Morgan Stanley is to set up an institute for sustainable investing. 

The Morgan Stanley Institute for Sustainable Investing claims three main focus areas: financial products that enable clients to invest in sustainability-focused strategies seeking risk-adjusted financial returns; thought leadership that will help mobilize capital toward sustainable investing opportunities; and strategic partnerships with the public, private and nonprofit sectors designed to build capacity and best practices within the field of scalable sustainable investing.

The Institute’s first major commitments include setting a goal of $10bn in total client assets through Morgan Stanley’s Investing with Impact Platform in the next five years. By developing new products, thematic portfolios and sustainable investing thought leadership, it is hoped that the platform will meet the increasing client demand for opportunities to invest for positive environmental and social impact in addition to the goal of achieving risk-adjusted financial returns.

The institute will aslo establish an annual Sustainable Investing Fellowship programme at Columbia Business School that will enable a select group of graduate students to pursue thought leadership in sustainable investing, coupled with an internship at Morgan Stanley to gain hands-on experience in product innovation, thought leadership and investment strategy. 

Picture credit: © Dana Rothstein | Dreamstime Stock Photos

Submitted by Guest Contributor

By Joanna and Wolfgang Hafenmeyer

Part of the Future Makers series

Translator, source of information, agent of change, Junko Edahiro of Tokyo, Japan, is a fountain of hope in critical times.

Junko Edahiro grew up in Tokyo, got married early and graduated from the University of Tokyo with a Master of Arts degree in educational psychology. Following that, she accompanied her husband to the US, and learned English well enough within two years that she was able to work as an interpreter and translator.

Inspired by Lester Brown, Environmentalist

On her return to Japan, Junko learned about the ideas of Lester Brown, one of the legends of the environmentalist movement. She got to know him personally when she became the interpreter of his presentations and conversations during his tour through Japan. His conversations often revolved around questions of how to create a system of worldwide sustainability, and were both an inspiration and a rich source of knowledge.

In the following years, Junko translated about 20 books into Japanese, including almost all of Lester Brown’s publications. Translating was, however, only the beginning of her journey.

Junko became a mother shortly after, and motherhood became the spur for her most successful book so far: Get Up at Two in the Morning and You Can Do It All! When she put her daughter to bed at eight in the evening, she started going to sleep with her. And since Junko only needs about six hours of sleep, she took advantage of the new rhythm and got up at two in the morning. After she realized how productive the time between two and nine in the morning was – undisturbed by phone calls and emails – she wrote the much-read book about it.

Spreading the Ecology Good News: Japan for Sustainability

Proud of her bestselling book and still highly interested in the ecological movement, Junko’s started an email newsletter in which she compiled the most interesting and important news on sustainability that she had read and heard about Japan.

Over the next few years, she gathered more than 8,000 subscribers from Japan and abroad. In 2002, Junko therefore decided to establish a permanent news platform under the name Japan for Sustainability.

Junko explained:

The basis of my work is not that I am against something, but rather I am for something. I want to support constructive dialogue. That is why my cooperation with partners from various enterprises and also public administration is so successful.

In practice, this means she and her team report on the positive activities of Japanese companies, the Japanese state and individual citizens in the area of sustainability. There is no time for charges and accusations. In addition, her experience in Japan has shown that when people actively contribute their own information to the organization’s work, the more valuable, highly informative news they receive.

Slow Life, Candle Night and More

In 2003, Junko initiated the “Candle Night” together with the movement Slow Life. Since then, about five million Japanese citizens follow her call twice a year and congregate at night under the free sky, simply to spend a few quiet hours in the light of their candles.

Junko’s other initiatives include EcoNetworks, Change Agent and e’s, which stands for: ecology, empowerment, energy, enthusiasm and Edahiro. The latter organization sells eco-products and offers courses for Japanese women supporting them as they make changes in their careers and lifestyles.

EcoNetworks offers translations and consulting services for Japanese companies in the field of communication. The focus here lies on corporate social responsibility and sustainability.

Change Agent takes things a step further. The aim is to train agents of change at a higher level. With the help of insights from systems theory and systems modeling, people are supported to induce changes in Japan on a large scale. Participants learn about theories and methods and are integrated in suitable networks.

One of Junko’s newest initiatives is the Web platform, “Children for the Future.” With its help she wants to educate the upcoming generation with regard to sustainability.

Mother, Activist, Role Model for Women

With all her activities, Junko wants to create a more livable and sustainable world, as well as be a role model for other Japanese women who still hesitate to become active in an area of their choice because they are afraid of societal pressures and the disapproval of others. Junko wants to show them that they can develop freely, even if this implies not fulfilling all external expectations.

And, even though Junko’s children are too old now to go sleep with her, she still gets up at two o’clock in the morning:

In the coming years, there will be some overwhelming and dramatic developments in the world. In this negative atmosphere, people will give up and despair. But I believe in the power of positive information and I want to provide a fountain of hope.

More Information:

• Japan for Sustainability (JFS)
• e's Inc.
• EcoNetworks
• Change Agent, Inc.

About the Authors:

Joanna Stefanska Hafenmayer is the Managing Director of “MyImpact”, an organisation focusing on helping leaders to realize meaningful careers through coaching and seminars, as well as assessment tools and publications. An expert in the development of corporate responsible leadership programmes, Joanna is also a member of the Board of “Öbu” – the Swiss think-tank for business and sustainability – and leads the Responsible Corporate Leadership (RECOL) Forum, a group of innovative global enterprises in this area. Prior to 2012, she was a member of Microsoft Switzerland’s Executive Board as their Innovation & Sustainability Officer. Joanna was selected as a First Movers Fellow of the Aspen Institute.

Wolfgang Hafenmayer is the Managing Partner of LGT Venture Philanthropy, with a mission to improve the quality of life of less advantaged people. To realize this mission, Wolfgang built a team of 25 investment managers and philanthropy advisors on five continents to identify and support organizations with outstanding social and environmental impact currently improving the quality of life of 7.9 million less advantaged people. Wolfgang has been an Investment Manager with BonVenture, the first social venture fund in German-speaking Europe, and helped set up Forma Futura, a sustainable asset management company.

American bank Capital One is ramping up its Book by Book programme with a new Facebook campaign.

Up until 25 November,  the bank will donate a book for every new Like on its Investing for Good Facebook Page.

In addition, book lovers across the US can enter for a chance to win a custom children’s home library or reading nook in their own home created by designer and television host Taniya Nayak.

“Early reading and language skills are fundamental building blocks for learning and success. Developing a lifelong love of reading fuels the imagination and can open doors to a world of possibilities for children,” said Ken Kido, executive vp, Local Distribution, Capital One Bank. “It all starts with that first great book. That’s why we’re working with The Heart of American Foundation and Communities In Schools to get books in the hands of children, with the goal of helping set more children on a path to future success.”

Capital One and The Heart of America Foundation have worked together since 2001 to help foster reading in students across the US and, so far, have put 1.3 million books (valued at over $10.5m) into the hands of more than 564,000 children through 64 READesign Library Makeover and Reading Corner projects and hundreds of literacy related events.

The Book by Book grand prize custom children’s home library, valued at over $17,000, includes 150 age-appropriate books to stock the shelves in the winner’s new space. In addition to the grand prize, entrants have a chance to win one of four weekly Library-in-a-Box prize packages. The packages include two boxes of books: one for the winner to keep for a young reader in his or her life and another box to give away to a local school or youth organization in their community.

Image credit: Unsplash/Susan Q. Yin

From filling 6,000 backpacks with weekend food for children in the US, to cooking at a homeless shelter in Poland to holding a food collection in Brazil, BNY Mellon employees are engaging in more than 100 food-related charity events around the world.

While BNY Mellon, under its five-year-old Community Partnership program, has previously participated in hunger awareness events, in this bigger, focused campaign centered on Oct. 16 World Food Day, the company is doubling its matching contribution and employee participation surged. Five U.S. offices chose to work on behalf of the Stop Hunger Now charity and packed 100,000 ready-to-eat meals.

“We have just been taken aback by our employees’ desire to help others,” said Kathy Charochak, manager of its Community Partnership program, which encourages employees to work year round with charities to improve social and economic conditions in their communities, not exclusively food. In addition to matching funds raised, BNY gives workers comparable time off.

Last year, without this focused effort, the company raised $1.2m for hunger translating to 6m meals. But this food awareness campaign is expected to far exceed that, with final results in by late November. In 2012, BNY’s Community Partnership raised $15m across all its charitable efforts.

“We allowed our employees to use their own creativity and innovation to develop concepts and ideas that would promote food sustainability amongst themselves and their colleagues,” explained Jim McDonald, global director of philanthropy for BNY Mellon, a New York based financial firm that operates in more than 35 countries. “This is really to promote and highlight our Community Partnership program. It is a time for us to get our employees excited about opportunities they may be involved in.”

One in eight people in the world do not have enough food, while nearly 40% of the food in the US goes uneaten, according to data provided by BNY. Through this campaign, BNY hopes to help raise awareness of global food security issues and waste.

In a related program, BNY is partnering with the Atlanta, Ga.-based Canstruction charity to build food-can sculptures in five of its largest cities – an apple in Boston, a rice bowl in Hong Kong, a fish in London, an apple tree in New York and a globe in Pittsburgh. BNY is donating the 17,000 cans of food which will later be given to local charities. It expects the effort will result in 12,000 pounds of food providing more than 9,000 meals.
 

Japan’s Mizuho Bank is in trouble following admissions that it had loaned money to the country’s organized crime syndicates, popularly known as the Yakuza, with the knowledge of senior management. The bank is a core unit of the Mizuho Financial Group, Inc, Japan’s second largest financial group in terms of assets.

Yakuza gangs are not illegal and register as companies, much like any other business. However, since 2011 it has been illegal to do business with them. New laws have made it increasingly difficult for the gangs to make money and have helped reduce membership to 63,200 last year from a peak of 87,000 in 2004.

As traditional revenues from extortion, drugs, gambling, theft, and fraud, have become more difficult, the yakuza have diversified into finance, construction, and waste disposal, devising new schemes to avoid detection.

One of these has been for individual gangsters to take out consumer loans from credit organisations and default on re-payments. The lenders then have the choice of taking action to recover the loans, thereby admitting they had broken the law, or doing nothing. Since no financial institution wishes to see its name in headlines about business with the mob, nothing was done. Mizuho’s problems only emerged during a routine inspection by the Financial Services Agency this September.

Mizuho's troubles began when Orient Corp. a leading consumer credit lender affiliated to the bank, approved gang members for auto and other small loans. Consumer credit firms are less informed than banks about organized crime. Since 2010, the Japan Bankers Association has gathered information on gangsters from public records and shared it with members but not with consumer lenders, who have been left to make their own checks.

After initial denials, Mizuho admitted that 230 illegal loans had been made totalling ¥200m, and that lending had continued for two years after it was first detected. The bank’s CEO made ritual bows of apology before cameras, as is the Japanese custom.

The FSA has ordered Mizuho to improve its control and compliance functions, describing them as “seriously flawed.”

The bank will establish a new in-house watchdog whose sole purpose will be to keep Mizuho from doing business with organized crime. It will strengthen the bank's loan screening and terminate any loans to underworld groups. Separately, the banks, other financial institutions, and the police will increasingly share databases on gang activities and membership.
 

Picture credit: © Lalan33 | Dreamstime.com

Alliance Boots, parent group of the Boots pharmacies and shops prominent in UK high streets for generations, is now accused of using a legal loophole to dodge £1.1bn ($1.78bn, €1.3bn) in tax.

Critics claim Alliance Boots is avoiding 95 per cent of its UK tax liability by offsetting the interest on £9bn ($14.6bn, €10.6bn) borrowed for its 2007 buyout.

Alliance Boots, the health and beauty group resulting from the merger of the original Boots company and the pan-European wholesale and retail pharmacy Alliance UniChem, was bought in 2007 by the private equity business Kohlberg Kravis Roberts and the Italian billionaire Stefano Pessina.

The buyers paid £12.4bn, of which £9bn was loaned by investment banks, including Deutsche Bank, JPMorgan Chase, Bank of America and Royal Bank of Scotland.

After the purchase Alliance Boots moved its headquarters from Nottingham in the UK to Zug, Switzerland, amid protests that the transfer was made solely to reduce tax liabilities. Last year Walgreens, the largest US drug retailing chain, bought 45 per cent of the company.

The group’s annual revenue is more than £22bn and in the past six years its operating profits have exceeded £5bn, but its accounts show an overall £130m tax credit.

The company insists it complies with UK law, paid the same amount of UK tax as it would have if it had stayed, and even paid more tax last year than before the buyout.

However, the UK’s largest trade union Unite and the anti-poverty charity War on Want claim that without the loan payments Alliance Boots would have made £4.2bn more in profits in the UK, increasing its corporation tax bill by £1.1bn.

Unite maintains this revenue would have paid for 78,000 nurses, two years of medicine prescription charges, or 5.2 million emergency ambulance calls.

Len McCluskey, Unite’s general secretary, said: “The revelation that yet another high street name fleeces Britain, taking work from our NHS while avoiding tax responsibilities, will leave taxpayers furious.”

He said the company had “abused the trust of the British public” and should be denied public service contracts until it “comes clean” on tax.

John Hilary, War on Want’s executive director, complained: “Ministers have allowed corporations such as Boots and its private equity owners to abuse the UK’s tax system.”
Another legal loophole, used by Apple, Microsoft and Google, is to be plugged in the Irish Republic.
At present companies can pour profits into Irish subsidiaries, or “ghost companies” that have no tax residency in the country.
Apple and Google, for example, place funds in their Irish subsidiaries and then switch them as deductible royalties to their tax-resident subsidiaries in Bermuda, which is a zero-tax jurisdiction. This manoeuvre is called the “double Irish”.
The Dublin government aims to stop the practice by making it illegal for companies in its territory to have no residency.

In May a US Senate committee inquiry claimed Apple had avoided tax on $44bn (£27bn, €32bn) during the past four years by declaring its companies registered in the Irish Republic as not resident anywhere. Apple, it said, had used “a complex web of offshore entities” to avoid paying billions of dollars in taxes.

Chief executive Tim Cook responded that Apple had not acted illegally and had paid “every single dollar” of due tax. He said the company had paid more than $6bn last year.

Finance observers maintain the Irish proposals will be ineffective. Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants, a London-based global group, predicted that companies would still be able to nominate any country for tax residence, including a zero-tax jurisdiction such as Bermuda.