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GOOGLE BOWS TO WORKER PRESSURE ON SEXUAL MISCONDUCT POLICY

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Google is promising to be more forceful and open about its handling of sexual misconduct cases, a week after thousands of high-paid engineers and others walked out in protest over its male-dominated culture.

Google bowed to one of the protesters’ main demands by dropping mandatory arbitration of all sexual misconduct cases. That will now be optional, so workers can choose to sue in court and present their case in front of a jury.

It mirrors a change made by ride-hailing service Uber after complaints from its female employees prompted an internal investigation. The probe concluded that its rank had been poisoned by rampant sexual harassment.

“Google’s leaders and I have heard your feedback and have been moved by the stories you’ve shared,” CEO Sundar Pichai said in an email to Google employees.

“We recognize that we have not always gotten everything right in the past and we are sincerely sorry for that. It’s clear we need to make some changes.” Thursday’s email was obtained by The Associated Press.

Last week, the tech giant’s workers left their cubicles in dozens of offices around the world to protest what they consider management’s lax treatment of top executives and other male workers accused of sexual harassment and other misconduct. The protest’s organizers estimated that about 20,000 workers participated.

The reforms are the latest fallout from a broader societal backlash against men’s exploitation of their female subordinates in business, entertainment and politics — a movement that has spawned the “MeToo” hashtag as a sign of unity and a call for change.

Google will provide more details about sexual misconduct cases in internal reports available to all employees. The breakdowns will include the number of cases that were substantiated within various company departments and list the types of punishment imposed, including firings, pay cuts and mandated counselling.

The company is also stepping up its training aimed at preventing misconduct. It’s requiring all employees to go through the process annually instead of every other year. Those who fall behind in their training, including top executives, will be dinged in annual performance reviews, leaving a blemish that could lower their pay and make it more difficult to get promoted.

But Google didn’t address protesters’ demand for a commitment to pay women the same as men doing similar work.

When previously confronted with accusations that it shortchanges women — made by the U.S. Labour Department and in lawsuits filed by female employees — Google has maintained that its compensation system doesn’t discriminate between men and women.

The changes didn’t go far enough to satisfy Vicki Tardif Holland, a Google employee who helped organize and spoke at the protests near the company’s Cambridge, Massachusetts, office last week.

“While Sundar’s message was encouraging, important points around discrimination, inequity and representation were not addressed,” Holland wrote in an email responding to an AP inquiry.

Nevertheless, employment experts predicted the generally positive outcome of Google’s mass uprising is bound to have ripple effects across Silicon Valley and perhaps the rest of corporate America.

“These things can be contagious,” said Thomas Kochan, a Massachusetts Institute of Technology management professor specializing in employment issues.

“I would expect to see other professionals taking action when they see something wrong.”

Some employers might even pre-emptively adopt some of Google’s new policies, given its prestige, said Stephanie Creary, who specializes in workplace and diversity issues at the University of Pennsylvania’s Wharton School.

“When Google does something, other employers tend to copy it,” she said.

Google got caught in the crosshairs two weeks ago after The New York Times detailed allegations of sexual misconduct against the creator of Google’s Androidsoftware, Andy Rubin.

The newspaper said Rubin received a USD90 million severance package in 2014 after Google concluded the accusations were credible. Rubin has denied the allegations.

Like its Silicon Valley peers, Google has already acknowledged that its workforce is too heavily concentrated with white and Asian men, especially in the highest-paying executive and computer-programming jobs. Women account for 31 per cent of Google’s employees worldwide, and it’s lower for leadership roles.

Critics believe that gender imbalance has created a “brogammer” culture akin to a college fraternity house that treats women as sex objects. As part of its ongoing efforts, Google will now require at least one woman or a non-Asian ethnic minority to be included on the list of candidates for executive jobs.

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Mercedes-Benz sells 180,539 vehicles, January

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Mercedes-Benz delivered 180,539 vehicles to its customers worldwide in January (-6.7%).

The second-best start to a year for sales was influenced by important model changes in the high-volume SUV and compact-car segments.

In particular, the model change of the B-Class, CLA and GLE, each with a double-digit sales decrease, had a negative impact on total unit sales worldwide despite the ongoing high demand for the cars with the star insignia.

From today’s perspective, the company expects the model changes to affect deliveries in the first quarter.

With a high degree of probability, the full year will be affected also by exogenous challenges and geopolitical risks, the company announces in its global sale report for January.

A member of the Board of Management of Daimler AG responsible for Mercedes-Benz cars marketing and sales, Britta Seeger, said “With more than 180,000 vehicles delivered, Mercedes-Benz has started the year 2019 with the second-best January ever”.

“With the B-Class, the CLA and the GLE, we look forward in the coming months to the new generations of models very popular with our customers and expect the model offensive in our high-volume segments to provide significant sales impetus”.

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AMAZON ERROR ALLOWED ALEXA USER TO EAVESDROP ON ANOTHER HOME

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A user of Amazon’s Alexa voice assistant in Germany got access to more than a thousand recordings from another user because of “a human error” by the company.

The customer had asked to listen back to recordings of his own activities made by Alexa but he was also able to access 1,700 audio files from a stranger when Amazon sent him a link, German trade publication c’t reported.

“This unfortunate case was the result of a human error and an isolated single case,” an Amazon spokesman said.

The first customer had initially got no reply when he told Amazon about the access to the other recordings, the report said. The files were then deleted from the link provided by Amazon but he had already downloaded them on to his computer, added the report from c’t, part of German tech publisher Heise.

 

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CRYPTOCURRENCY INDUSTRY FACES INSURANCE HURDLE TO MAINSTREAM AMBITIONS

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Cryptocurrency exchanges and traders in Asia are struggling to insure themselves against the risk of hacks and theft, a factor they claim is deterring large fund managers from investing in a nascent market yet to be embraced by regulators.

Getting the buy-in from insurers would mark an important step in crypto industry efforts to show that it has solved the problem of storing digital assets safely following the reputational damage of a series of thefts, and allow it to attract investment from mainstream asset managers.

“Most institutionally minded crypto firms want to buy proper insurance, and in many cases, getting adequate insurance coverage is a regulatory or legal requirement,” said Henri Arslanian, PwC fintech and crypto leader for Asia.

“However, getting such coverage is almost impossible despite their best efforts.”

Many asset managers are interested in digital assets. A Greenwich Associates survey, published in September, said 72% of institutional investors who responded to the research firm believe crypto has a place in the future.

Last month, Mohamed El-Erian, Allianz’s chief economic adviser said that cryptocurrencies would gain wider acceptance as institutions began to invest in the space.

Most have held off investing so far however, citing regulatory uncertainty and a lack of faith in existing market infrastructure for storing and trading digital assets following a series of hacks, as well the plunge in prices.

The total market capitalisation of crypto currencies is currently estimated at approximately US$120bil (RM502bil) compared to over US$800bil (RM3.3tril) at its peak in January.

“Institutional investors who are interested in investing in crypto will have various requirements, including reliable custody and risk management arrangements,” said Hoi Tak Leung, a senior lawyer in Ashurst’s digital economy practice.

“Insufficient insurance coverage, particularly in a volatile industry such as crypto, will be a significant impediment to greater ‘institutionalisation’ of crypto investments.”

Regulatory uncertainty is another problem for large asset managers. While crypto currencies raise a number of concerns for regulators, including money laundering risks, few have set out clear frameworks for how cryptocurrencies should be traded, and by whom.

Insurance might allay some of the regulators’ concerns around cyber security. Hong Kong’s Securities and Futures Commission recently said it was exploring regulating crypto exchanges, and signalled that the vast majority of the virtual assets held by a regulated exchange would need insurance cover.

Custody challenge

Keeping crypto assets secure involves storing a 64 character alphanumeric private key. If the key is lost, the assets are effectively lost too.

Assets can be stored online, in so-called hot wallets, which are convenient to trade though vulnerable to being hacked, or in ‘cold’ offline storage solutions, safe from hacks, but often inconvenient to access frequently.

Over US$800mil worth of crypto currencies were stolen in the first half of this year according to data from Autonomous NEXT, a financial research firm.

Some institutions have started working to solve this problem, and may provide fierce competition to the incumbent players.

This year, Fidelity, and a group including Japanese investment bank Nomura have launched platforms that will offer custody services for digital assets.

Despite the industry’s complaints, insurers say that they do offer cover. Risk advisor Aon, received some two dozen inquiries this year from exchanges and crypto vaults seeking insurance, according to Thomas Cain, regional director, commercial risk solutions, at Aon’s Asian financial services and professions group.

“It is not difficult to insure companies that hold large amounts of crypto assets, but given the newness of the asset class and the publicity some of the crypto breaches have received, applicants need to make an effort to distinguish themselves,” Cain said.

The industry also says it is getting closer to solving the custody problem.

“This year there have been a number of developments, and some providers have developed custody solutions suitable for institutional clients’ needs,” said Tony Gravanis, managing director investments at blockchain investment firm Kenetic Capital.

“Players at the top end of the market have also been able to get insurance,” he said.

But this is not the case for all.

One cryptocurrency broker, declining to be named because of the subject’s sensitivity, said insurers struggled to understand the new technology and its implications, and that even those who were prepared to provide insurance would only offer limited cover. “We’ve not yet found an insurer who will offer coverage of a meaningful enough size to make it worthwhile,” he said. – Reuters

 

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