Tuesday, 27th June
Two years ago, Fortune launched its first Change the World list—designed to put a spotlight on companies that were making measurable progress addressing key social problems as part of their core business strategy. It’s not an easy list to assemble, since metrics are hard to come by and value judgments inevitably seep in. But we believe it’s an important effort to show the power of companies to do good in the world.
Today, we are opening nominations for the third annual Change the World list, which will be published this fall, and urging CEO Daily readers to give us their nominations. In general, we try to evaluate companies on three criteria:
1. Measurable social impact: We consider the reach, nature, and durability of the company’s impact on one or more specific societal problems, and we work to confirm that impact through independent sources. This category receives extra weight.
2. Business results: We consider the economic benefit the socially impactful initiative brings to the company. Profitability and contribution to shareholder value generally outweigh the indirect benefits of reputation and employee satisfaction. The most successful efforts are not just sustainable, they’re also scalable.
3. Degree of innovation: We consider how innovative the company’s effort is relative to that of others in its industry and whether its actions have prompted other companies to follow its example.
If you have a company you’d like to nominate, send a note to Fortune senior writer Erika Fry with a brief description of why it should be considered. You can also submit nominations to our partners at the Shared Value Initiative through the application portal at this link..
• EU Slaps Google With $2.7 Billion Fine
The EU’s antitrust chief Margrethe Vestager slapped a huge 2.42 billion fine on Google for manipulation of its search results to favor its own shopping tool. The decision, which comes after years of investigations, is more than double the amount mooted in Brussels circles over the weekend, and is obviously calculated to send as strong a signal as possible to a company that is expected to appeal the decision for years. The ruling is also a warning to other tech giants such as Amazon, Apple, and Facebook that are using the power of their core business to build positions in other products and services. Fortune
• Supreme Court Rules to Partly Allow Travel Ban
The Supreme Court issued a provisional ruling upholding parts of President Donald Trump’s executive order that bans travelers to the U.S. from six majority Muslim countries. In doing so, it effectively overturned lower court rulings against the ban. As a result, travelers from those countries will only be able to enter the U.S. if they have a “credible claim of a bona fide relationship” with a person or organization within the country, a formula that allows plenty of scope for appeals. The Court will give closer consideration to the case in October. Time
• Cable Giants Close in on Sprint
Sprint is talking to Charter Communications and Comcast about a strategic partnership that could lead to the cable companies taking a stake in the mobile carrier. An outright acquisition is also possible, but less likely, according to The Wall Street Journal. The U.S.’s two biggest cable companies see it as a way of boosting their own wireless services, an area in which they signed a one-year non-aggression pact recently. The WSJ said Charter’s biggest shareholder Liberty Broadband has been pushing for a joint acquisition for a year, but Comcast’s Brian Roberts is less keen on such a deal. WSJ, subscription required
• Brazil Heads Towards Another Impeachment
Brazil’s attorney general formally accused President Michel Temer of corruption, the first time a sitting president in Latin America’s largest nation has faced criminal charges. The case now goes to the lower Chamber of Deputies in Congress, which must decide whether it has merit. If two-thirds of the legislature decides that it does, then the president will be suspended for up to 180 days while a trial is conducted. The charges center on an accusation that Temer earlier this year took a bribe of around $150,000 offered by Joesly Batista, former chairman of meat-packing giant JBS. Brazil’s financial markets, which have suffered as Temer’s deficit reduction and reform packages have come under threat, remained stable. Time
Around the Water Cooler
• Senate Health Bill in Jeopardy After CBO Verdict
The Congressional Budget Office delivered its verdict on the Senate’s draft health bill, saying it would deliver cumulative budget savings of $321 billion by 2026, compared with the extrapolated costs of the Affordable Care Act. That’s nearly three times the $119 billion savings projected by the House bill. The flipside is that it would leave 22 million more people without coverage. As expected, a number of GOP Senators, including Maine’s Susan Collins, used the CBO report to defend their refusal to pass the bill. The White House retorted that the CBO has a history of inaccurate forecasts on health matters. Fortune
• Arconic Tumbles After Grenfell Report
Shares in Arconic, the former Alcoa, fell 6% after a report that it knowingly allowed combustible cladding panels be supplied to the company refurbishing the high-rise Grenfell Tower in London, which burned down two weeks ago with the loss of at least 79 lives. The company insisted that it wasn’t its role to decide whether the panels were compliant with local building regulations. Arconic’s own 2016 marketing materials stated that the Reynobond panels with a polyethylene core shouldn’t be used in buildings over 10 meters high. Fortune
• Buy the Dip (or, Catch the Knife)
Digital currencies suffered a broad and overdue correction after a rally that had lost any semblance of moderation or rationality in recent weeks. Ethereum led the pack, tellingly, after a hoax headline saying that the man behind it, Vitalik Buterin, had died. However Bitcoin, litecoin, ripple, and others all followed and the sell-off continued overnight into Tuesday. Almost all digital currencies still boast significant gains year-to-date, but their charts right now look like a set of falling knives begging to be caught. Fortune
• Amtrak Turns to Delta Veteran Anderson
Richard Anderson, the former CEO of Delta Air Lines, is to be the new CEO and President of Amtrak. He’ll work alongside outgoing CEO Wick Moorman from July 12 and assume sole responsibility at the start of 2018. Anderson’s biggest challenges will include managing long-running disputes with New Jersey and New York over disruptions to services in and out of Penn Station, and dealing with the loss of $630 million a year in government subsidies for operating long-distance train services. Fortune
Summaries by Geoffrey Smith Geoffrey.email@example.com;