Economics correspondent Charlotte Denny writes that coffee giant Nestle was forced into a "humiliating u-turn" last night after public outrage forced it to drop its $6m compensation claim against Ethiopia for assets seized in the 1970s.  Talks between the world's largest coffee company - which posted sales of nearly $60bn last year - and the Ethiopian government have resulted in Nestle accepting Addis Ababa's offer of a $1.5m (£926,000) settlement which will be handed over to the country's famine relief effort.  Guardian editor Alan Rushbridger said it was a triumph for public opinion.  After the paper highlighted the company' compensation claim, Rushbridge said that "over 40,000 people wrote to Nestle outraged at their claim on the Ethiopian government.  Corporate greed has buckled in the face of adverse publicity and direct action."  Phil Bloomer, a senior analyst at Oxfam said:  "This is a welcome result because it shows that Nestle is not immune to public pressure.  Now Nestle has got another challenge to prove today's decision was not just a face-saving exercise; it must demonstrate a commitment to ethical purchasing by eliminating the misery at the bottom of its supply chain." 

Full story: http://www.guardian.co.uk/international/story/0,3604,881336,00.html