The Ethics Sage Addresses Unintended Consequences


The Ethics Sage Addresses Unintended Consequences

In an article entitled, Unintended Consequences of the H1-B Visa Program and sub-titled: Are American Workers Adequately Trained to Fill High Tech Jobs?, Steven Mintz, better known as the Ethics Sage, discusses the likely impact of a coming Trump executive order.

Here is (what I think is) the most critical paragraph –

Trump is taking a short-term view of a long-term problem, which is our colleges and universities are not training an adequate number of American students to fill jobs in technology and the sciences to meet the growing needs of American companies. However, no one is addressing the real problem which is American colleges and universities give preference to foreign students, especially public institutions. The reason is they pay about four times the tuition of residents of a state. Given the magnitude of state budget cuts for public colleges and universities in the aftermath of the financial recession, foreign students are highly sought out for their financial wherewithal thereby crowding out American students.

The Ethics Sage
The Ethics Sage

As always, when I give you a brief selection from Steven’s work, you should take the opportunity to go to his site and read the whole thing. I am confident my quick summaries of his work and choice of selections never do full justice to the quality of his efforts.

I have not decided quite how to deal with the new administration and I’ll probably wait to see the executive order itself since I’m trained as an attorney, I firmly believe the devil is in the details. So, it could be just as Steven says, worse or (most likely) a whole lot worse. The drafting of these executive orders has not been impressive. In fact, there is a theory running about that they are Leninist political maneuvers designed to divert attention from the real issues while damaging and dividing enemies of the new administration. I don’t know, myself, whether this is true but I will be watching to see if a pattern forms.

Please LIKE, Favorite and re-blog if you like.

I enjoy the attention and any allies I can find who believe in business ethics are very welcome to join the struggle.

James Pilant

The Single Star Edition


The Single Star Edition

IMD will shut down discussion boards in two weeks. It appears that the site was the target of negative reaction to minority films. Below is the trailer for the documentary, I Am Not Your Negro.

I Am Not Your Negro Official Trailer 1 (2016) – James Baldwin Documentary – YouTube

Here is a review from You Tube in which the film is described as extraordinary –

I Am Not Your Negro – Official Documentary Review – YouTube

Now let me quote The Hollywood Reporter:

The decision to shut down the discussion boards comes at a time when IMDb’s user-driven feature is coming under fire.

The viability of IMDb’s user voting system has been called into question, as the ratings of movies by minority filmmakers receive a disproportionate amount of negative ratings, which are measured by stars on a scale from one to 10. Today, some Twitter users have singled out Raoul Peck’s Oscar-nominated documentary, I Am Not Your Negro, as a recent example of this issue.

The doc hit theaters today and already has received 409 one-star votes from users, compared to 318 10-star votes, with a nominal number of in-between votes.

Based on the information provided do you think that the film deserved 409 one star ratings as opposed to 318 ten star. I don’t either. It appears that the message boards are now vehicles for a new and sinister force online. The boards are now an opportunity for white supremacists and others of that ilk to damage the careers and films of minorities. The choice of giving a single star for a very bad film is now used as a weapon against very good films. The quality is not the issue. The maker is.

This is the right decision on the part of IMD. In the wake of Gamergate and other actions, it appears that the online landscape is increasingly subject to abuse. It is better to stop the boards now before the online trolling becomes more serious ultimately culminating in death threats and other abuse. Business ethics demands that this kind of trolling be stopped.

So far, my small web presence has gone unnoticed but I am a fervent believer in the equality of all human beings. And there will come a time when humanity will either become one race or diverge through technology into a variety of hybrid human species. It will be interesting to see this take place although I have little expectation of surviving to witness any great part of it.

So, it may be that someday I too will get to shut down commentary and retreat behind the heaviest online defenses I can find or like many others give up blogging altogether. But little has happened yet along those lines.

 

The Real Continuity Edition


The Real Continuity Edition

The brief selection below is from an article by Zach Carter from the Huffington Post called: Wall Street Is Even More Craven Than We Thought and sub titled: The new alliance between financial executives and Donald Trump.

Democrats used to see Jamie Dimon as one of the good guys on Wall Street. Once hailed as a “progressive” by The New Republic, the JPMorgan Chase CEO counted himself friends with two different chiefs of staff to President Barack Obama and traveled to the first black White House no less than 16 times. In 2009, The New York Times described him as “Obama’s favorite banker.” He has publicly supported same-sex marriage and the legalization of undocumented immigrants.

Dimon gave hundreds of thousands to Democratic Party candidates, the party itself, and even the Center for American Progress, a think tank advancing the ideas of Bill Clinton and Obama.

But there was Dimon on Friday, sitting at a table surrounded by other wealthy corporate executives, being praised by President Donald Trump ― a man who publicly supports war crimes and is already flirting with a constitutional crisis as he implements a campaign promise to impose “a complete and total shutdown of Muslims entering the United States.”

In my case, the title is wrong, I was under no illusion that the giant investment banks had any limit on their willingness to cut deals with anyone, anywhere, anytime. The only difference is that they were already part of the new government if it had been Hilary and now have to scramble. I find it hard to sympathize with their plight.

!!!i_00i_009_tnBut this is the American way of banking. Homeowners may be cheated out of their possessions, economies crashed, strange overseas deals and money laundering take place and yet, the American Investment banks dwell at the heart of our government shaping laws and policies. It’s like Mom and Apple Pie, if Mom and Apple Pie were immoral cancers eating out the heart of our democracy.

Let me point out that many of these Investment banks have pleaded the equivalent of no contest to charges that would put a normal human being like you or I in prison for millions and millions of years. Yet, there they are at the heart of our government cutting a new set of deals making the world safe for financial speculation of the American kind.

If Obama had pursued criminal prosecutions against the banks in the aftermath of the financial disaster of 2007, their political power might very well have been broken as they were in the aftermath of the Great Depression. Instead for many years to come they will play politicians against each other like chess pieces on a board while preying on the poor and the middle class. Obama’s failure to pursue justice against the malefactors who came within an ace of destroying our economy is his greatest failure.

The “What Now?” Edition


The “What Now?” Edition

And so we arrive at the end of the Barack Obama administration by my account and that of objective reality – a business ethics disaster. The villains who almost destroyed the world economy found not justice but money and friendship in the Obama Administration. The financial criminals who did so much to destroy the fabric and any sense of honor in this society walk the streets as free men and, in fact, take their places at the highest levels of government in our new administration. Barack Obama failed at one of the most critical duties of the President of the United States. He failed to bring evil men to justice.

And now some of those same evil men will be making policy in the new administration. That was easily predictable.

I refused to support Hilary Clinton because many of those same bankers were part of her campaign and would have been part of her administration. When given the opportunity to speak to the criminal scum that endangered our society and have destroyed the economic lives of millions – this was her approach:

Far from chiding Goldman Sachs for obstructing Democratic proposals for financial reform, Clinton appeared to sympathize with the giant investment bank. At a Goldman Sachs Alternative Investments Symposium in October 2013, Clinton almost apologized for the Dodd-Frank reform bill, explaining that it had to pass “for political reasons,” because “if you were an elected member of Congress and people in your constituency were losing jobs and shutting businesses and everybody in the press is saying it’s all the fault of Wall Street, you can’t sit idly by and do nothing.”

Of course, she tried to keep this boot licking approach secret by refusing to release the transcripts of the speeches. In the foolishly moral like me, it would seem speaking in secret with a message of government servitude to the banking industry while saying something different to us would be wrong but her lack of ethics and morality were apparent to only people like me. There were many that were willing to overlook this kind of behavior on the grounds that the other guy was worse. I decline to do so. And I made the right decision. This administration will be terrible but the kind of sustained think tank, contributor controlled, Democratic Leadership Council inspired oligarchy, could have continued for decades. She could very well have made this Neo-liberal monstrosity a permanent part of our institutions.

I do not think it is irrational behavior on my part to wait for a candidate who is willing to enforce the law against the banking industry. I do not think that expecting a President to defend the nation from those whose financial excesses endanger the common good and the economic lives of millions should be surprising or outside the bounds of our politics.

So what now, am I willing to hold Donald Trump to the same standards I expected of Barack Obama and Hilary Clinton? Yes I will. I do admit there is a level of strangeness in the new President that I find daunting. Let me explain.

I have taught for many years and I have my students write essays. A good portion choose to do no research before writing, not even the most casual internet browse. And it’s like talking to your neighbor over the offense or in the bar with a fellow drinker. They just write their gut feelings which are very often just ill conceived nonsense. And that is the sense I get from President Trump. Further, I sense no intellectual depth at all. His behavior is almost primal.

People often want to put me in some kind of ideological box. I am supposed to be a liberal or a progressive or something. People are astonished at my criticisms of Obama because “Well, isn’t he your president?” He was President of the United States and I voted for him the first time and refused to vote for him the second time. In my mind, following the party line is wrong whether it is that of the Republican Party, the Democratic Party or any other party. I am a passionate advocate for women’s equality and I have come to a point where I consider racism such despicable nonsense that those espousing it are no longer in my judgment ladies or gentlemen.

I have no illusions that the stranglehold of contributors on the Democratic Party establishment will be broken or that the Republicans will find a sense of purpose beyond winning and servitude to the wealthy.

I speak for business ethics and that is enough.

James Alan Pilant

Rick Lucke’s Guest Column!


Rick Lucke‘s Guest Column!

Fellow Blogger Rick Lucke has written a long comment which I have posted here. He’s got some good thoughts and I want to share them with all my readers.  jp

I’m not sure which part of my comment is unclear. I’ll expand a little on the individual points.

“…we have a system that betrays the concept of democracy, it undermines the concept of one-person-one-vote, and shreds the concept of majority rule.”

The concept of “democracy” is undermined by the fact that the candidate who wins the office does not often win a “majority” of votes, as we’ve seen once again in 2016. As a result, the democratic concept of one-person-one-vote is virtually neutralized by a system that not only nullifies so many votes, but also discourages so many from bothering themselves to vote. This is accomplished through the Electoral College system as well as through approaches like “closed primaries” in which only registered members of “the party” are allowed to vote to nominate a candidate, which reduces the process to a matter of something like “club membership”. The concept of political parties and factions was recognized even by the Founders as a problem and many were opposed to the idea.

Then there is the problem of “big money in politics”. The impact of big money is manifold and undeniable, despite not necessarily guaranteeing election victory.

“… this system that effectively allows the majority to be oppressed by the minority is a complete travesty.”

As we watch Trump make cabinet appointments which are in clear opposition to the majority views of various issues, we see the majority becoming oppressed by the minority. This is in direct opposition to the concept of democracy and to the protections against that oppression that the Founders attempted to provide.

“…the Democratic National Committee’s corrupt nature was exposed …”

The revelations during the Democratic primary campaign of the DNC’s clear bias in favor of one candidate over the other was, in my view, a definite strike against not only the Democrat Party, but also their preordained candidate of choice. Even as Bernie Sanders consistently drew considerably larger crowds at his rallies and was shown in virtually every poll to have a far better likelihood to defeat Trump and Clinton was shown to be more likely to lose than Sanders would be, the DNC continued to undermine Sanders and his supporters, along with the major network media outlets that seemingly did everything they could to ignore Sanders’ campaign successes.

“…neither major party candidate was qualified …”

Trump presented as an ill-informed dolt with no clear plan for governing and who, according to the former communications director of Trump’s now-defunct Super PAC, was never serious about becoming president but was, instead, merely running as a “protest candidate”. Consider the following:
====================
In an open letter to voters supporting Donald Trump in the Republican presidential primary, the former communications director of Trump’s now-defunct Super PAC said that the former reality television star not only never expected to be the Republican nominee, much less president, but never even wanted to be.

Writing for the website xojane.com, Stephanie Cegielski said that when she was brought aboard as communications director for the Make America Great Again PAC last summer, the instructions from Trump Tower were to make sure that Trump finished a respectable second in the GOP primary. It was made clear that Trump was running not as a serious contender, but as a “protest” candidate.

“I don’t think even Trump thought he would get this far,” she wrote. “And I don’t even know that he wanted to, which is perhaps the scariest prospect of all.
http://www.thefiscaltimes.com/2016/03/28/Ex-Trump-Insider-Donald-Doesn-t-Want-Be-President

The “open letter” she wrote can be found here:
http://www.xojane.com/issues/stephanie-cegielski-donald-trump-campaign-defector
=====================
Hillary Clinton’s record of being on the wrong side of virtually every issue she ever voted on or spoke in support of and then later changing her rhetoric when it suited her or evading some issues altogether prove her to be one of the worst candidates the Democrats have ever nominated. Of course, that statement depends on whether or not a person agrees with the progressive agenda Bernie Sanders presented, which Clinton began referencing after she noticed the success Sanders was having with voters.

That sort of waffling and evasionary tactics do not impart a sense of trust, thus she lost many voters from within and from outside the party. Another aspect related to undermining a sense of trust of the Democratic Primary that discouraged many from supporting Clinton was the pledging of support for Clinton by the party electors before the primary election process had taken effect.

In the end, it seems the only voters who viewed either candidate as worthy of the office were voters who were either religiously faithful to party name, Democrat or Republican, or voters who were too ill-informed to realize the lack of qualifications most of us would expect in a presidential candidate, not to mention the loss of integrity of the entire process. I see this election as a major turning point in American society – what it means for our future is impossible to know at this point.

The Steven Mintz Edition!


The Steven Mintz Edition!

The Ethics Sage
The Ethics Sage

My friend, Steven Mintz, better known as The Ethics Sage, has a beautiful new web site which can be found here. For a good number of years now, Professor Mintz has published a blog on ethics, particularly focusing originally on accounting ethics but broadening his focus as time went by.

He also has a Facebook page which like his new web site is quite beautifully laid out.

https://www.facebook.com/StevenMintzEthics

I highly recommend his work and he is a prolific author. So there is a lot to see and read.

So visit, share and add to your favorites!

James Pilant

This is Steven’s self introduction from his new web site –

Known as “The Ethics Sage” to many, Dr. Steven Mintz is a well-known Professor Emeritus from California Polytechnic State University in San Luis Obispo. His blog, The Ethics Sage, was voted number 49 out of the Top 100 Philosophy blogs and one of the top 30 blogs on CSR. Steve provides insights on workplace issues with his blog “Workplace Ethics Advice.” He has written articles for various media outlets including the Pacific Coast Business Times, Chronicle of Higher Education and The Magazine of Corporate Responsibility’s Business Ethics Online. Dr. Mintz is an ethics expert and available to speak on a variety of ethics issues including workplace ethics. . He offers courses on accounting and workplace ethics through “Geniecast.” 

Dangerous Neoliberalism Edition


Dangerous Neoliberalism Edition

Sometimes you find a paragraph that says what you would like to say brilliantly and this is one of those paragraphs.

Many times I’ve tried to explain the impact of free market fundamentalism, Hayek, Milton Friedman and Ayn Rand, all of whose combined effect might well be summed up by the word, neoliberalism.

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Dangerous Neoliberalism Edition

I strongly agree and endorse the following statement from George Monbiot in his essay from The GuardianNeoliberalism – the ideology at the root of all our problems.

“Perhaps the most dangerous impact of neoliberalism is not the economic crises it has caused, but the political crisis. As the domain of the state is reduced, our ability to change the course of our lives through voting also contracts. Instead, neoliberal theory asserts, people can exercise choice through spending. But some have more to spend than others: in the great consumer or shareholder democracy, votes are not equally distributed. The result is a disempowerment of the poor and middle. As parties of the right and former left adopt similar neoliberal policies, disempowerment turns to disenfranchisement. Large numbers of people have been shed from politics.”

I think Donald Trump is President now due in part to feelings of powerlessness on the part of the middle class due to their loss of economic and political power — and much more due to Hilary Clinton’s embrace of this maniacal philosophy more worthy of a James Bond Villain than someone wanting to be the leader of a free people.

James Pilant

The Globalisation Collapse Edition


The Globalisation Collapse Edition

It has only been a few days since Donald Trump saved a thousand jobs or so at Carrier, a company that makes air conditioners and other appliances. I have heard a great deal of criticism directed at the deal but I cannot agree.

It’s just a thousand jobs!

Oh, the criticism is generally quite correct. It’s just a thousand jobs they say and to many like Paul Krugman, that’s just a drop in the bucket. Apparently the damage done to the surrounding community is just collateral damage. There is this assumption that the forces destroying American jobs, American communities and American lives are caused by natural economic forces and simply are a matter of time. This is nonsense. Virtually every aspect of economics is either man-made or a set of policy decisions made by human beings.

The simple fact is those jobs could have been moved to Mexico at any point during the modern era to workers making a fraction of their American brethren. Why didn’t it? Because the belief system that money was a value that trumped patriotism and national borders had not yet taken root and put into policy. The current philosophy of business is that of predators and prey and it is unworthy of America and Americans.

Yeah, Trump’s agreement is a bad deal. It sets a bad precedent. And yet there are a thousand jobs that aren’t going to Mexico. Which part is history going to remember, that this is where the destruction of the American working class might be slowed or even stopped or that is was a bad deal?

i_00i_077_tnAnd that simple fact is very important. It is a gauntlet thrown in the face of classical economics and the neo-liberal elite who are either cheering on or actively participating in the destruction of the American middle class. And it has been a very successful war for their side. There is hardly a middle class job that offers any form of job security or bright future. It has been taken away.

Paul Mason writing for the Guardian suggests that liberal democracies may be on the edge of collapse comparing them to the Soviet Union in 1989. He writes

Since Trump’s victory in November 2016, it has become possible to believe a similar collapse will happen in the west, to globalisation and liberal values.

The parallels are obvious. We too have lived for 30 years under an economic system that proclaimed its own permanence. Globalisation was an unstoppable natural process; free-market economics simply the natural state of things.

But when the country that designed globalisation, imposed it and benefited from it most votes against it, you have to consider the possibility that it is going to end, and suddenly. If so, you also have to consider a possibility that – if you are a liberal, humanist democrat – may be even more shocking: that oligarchic nationalism is the default form of failing economies.

The values of lifetime employment, job security, regular hours, pension and medical insurance are doable policy. They are the policies of good people who take their responsibility to their fellow citizens, their fellow human beings seriously.

And that is business ethics, not a careful examination of the narrow subject of shrinkage on the job although that has its place. If we don’t talk about this subject from a moralistic global perspective we are always going to be losing to the amoral scum who assume the Easter Bunny like chimera of the free market will justify their evil.

James Pilant

Industrial Policy Edition


The Industrial Policy Edition

I was reading an article in Internet Magazine, The Week, by Jeff Spross (one of my very favorite writers),  entitled “Donald Trump is already picking winners and losers in business. Good,” when I realized I had found a very pointed comment regarding business ethics.i_00i_281_tn

You see we live in the age of the Chicago School of Economics, a school the school itself would argue is devoted to free men, free choice and the free market. And I would argue is devoted to the destruction of every human value not directly priceable in dollars.

One of their beliefs is that if a company wants to move American jobs overseas, that is just ducky, more power to them. Spross argues in favor of industrial policy, (the same position I take and here is a brief selection from his article directly on this point. –

First off, politics is still politics. So industrial policy still happens, but just on a “pork barrel” basis, changing from industry to industry and locality to locality. Mainstream economic skepticism didn’t kill off industrial policy, it just made it scattershot and incoherent.

It also made industrial policy far more pro-corporate. The U.S. government could use the sticks of higher taxes, tariffs, and regulation, or even the brute force of its own spending power to build up certain industries. But mainstream economics pooh-poohs this approach. So instead industrial policy defaults to carrots: tax breaks and de-regulation that entice businesses to put jobs and investments in certain places. That drives up inequality, makes it harder to pay for social programs, and gives those businesses more freedom to exploit the public. This practice is especially rife at the state level, where governments routinely offer tax breaks and such for companies to relocate within their own borders.

But mainly, skepticism of industrial policy created a world where many Americans feel like the government’s attitude toward their lives, families, and towns is benign neglect. And of course, once we abandoned industrial policy, GDP growth still slowed down, wages stagnated, unemployment became a much bigger problem, and small towns and the countryside began to die economically.

All of which is a big part of why Trump won.

For the last thirty years business and industry have united to move jobs overseas justified by an economic school of belief which thinks it has moved beyond such petty ideas as those of good and evil. Millions of Americans have lost their jobs, communities have become impoverished and the resultant concentration of economic power in the hand of the few has perverted our government.

This is evil.

We have a responsibility under Western Civilization, as fellow citizens and human beings to look after one another. We are not atoms bouncing about and only free when self interested. Life has responsibilities beyond economic predatorship.

Please think about these things. The idea that everything has its price is an easy mode of analysis that seems to make sense but do I even need to explain that subtlety, nuance, morality and ethics have their place as well?

James Pilant

The Universal Basic Income Edition


The Universal Basic Income Edition

i_286My good friend, Jason Michael McCann, has taken on this difficult topic and says this on his blog, The Random Public Journal

A Universal Basic Income is in the pipeline for a trial in Fife. People, regardless of how much they earn, will get an annual basic sum in cash to spend as they please. Experiments over the past forty years have shown that it works. Lucky Fife.

We’re all getting poorer. As it is the economy pretty much everywhere is structured in a way that benefits a tiny minority of the global population, leaving the rest of us to work for a living with stagnant wages in an environment where the cost of living is rising. What was once the dream of science fiction is increasingly becoming reality; smart technology is doing more of the jobs we used to do, giving people free time they can ill afford. Employers are selling the idea that flexi-time and zero-hours contracts suit workers better because these arrangements give us the free time we have always wanted, but there’s a catch – we have less money to spend.

Governments don’t want to broadcast the fact that the majority of people receiving state benefits are the underemployed and the underpaid – the working poor. This trend towards weaker employment contracts, fewer hours, de-unionisation, and lower pay has been developing for a few decades, and right now, all around the developed world, we are reaching crisis point. Here in Scotland this shift in the economy has put an unbearable weight on the welfare system. It is exactly the same story in England and Wales, and the Westminster government knows that it can’t go on blaming the victims for much longer. We have cottoned on to the massive wealth transfer from the bottom to the top, and we’re not going to let them off with it for much longer. Something has to give.

Now, of course, there is more from Jason but I don’t want to spoil your surprise and delight when you visit his web site for the rest.

What does this have to do with business ethics? Unfortunately what is ethical depends in part on circumstances. What is fair pay? What is a fair return for labor? If we are entering a time in which labor is almost valueless and our economy is job based, how are people to make a living and how is economy supposed to function? Is this a solution?

I don’t know. What I have seen is interesting and something along these lines may become necessary. It is obvious to me although not to too many others that modern capitalism is in crisis and perhaps even close to collapse or, more likely, reconceptualization. (Did I just invent a word??) Again, it is obvious to me that free market fundamentalism is based on flawed and nonsensical assumptions. So, reality is busily destroying the modern assumptions of globalization and international elites, and currently there is nothing to replace the current set of beliefs.

James Pilant