Category: business ethics

Casino Banking

On By southwerkIn business ethics1 Comment

For most of American history, banking was a vital part of economic growth. Bank loans provided the capital for small businesses and government to build factories, stores, highways and other public works. This is no longer the bank’s major function. While bank lending is still a critical part of the function of banks as far as the welfare of the nation is concerned, the profits are elsewhere.

It is hardcore speculation, casino capitalism, where the real money is made. This is not wealth creation, it is more similar to the board game, monopoly, you try to make money speculating on property although in the modern sense this is more likely stocks, mutual funds, derivatives, etc. This is not a benefit to the economy. It is a drag and a danger to the larger economy. When the financial sector loses, the taxpayer picks up the losses, while taxpayers share nothing in the winnings. This is because the nation insures deposits and because changes in the law in 1999 allows banks to speculate with these federally insured funds – Corporate welfare on a scale of trillions of dollars.

This gambling has far reaching societal effects. Those who benefit from this no way to lose game make more and more money while those who insure them against loss make less and less.

From the New York Times Article – Scrutinizing the Elite, Whether They Like It or Not –

Olivier Godechot, a French academic on the sociology panel, presented research that quantified just how skewed the increase in wealth at the very top has become. Mr. Godechot, a researcher at the National Center for Scientific Research in France, said that two professions — finance and business services — accounted for almost all of the increase in income inequality.

Professor Godechot has put his finger on it. Our society has focused, fixated on finance as the only mode of economic growth. Everything else from services to manufacturing are poor relations whose share in the wealth and even the concern of the government continues to dwindle.

Because of these changes we have an enormous inequality of income in the United States. From wikipedia –

Americans have the highest income inequality in the rich world and over the past 20–30 years Americans have also experienced the greatest increase in income inequality among rich nations. The more detailed the data we can use to observe this change, the more skewed the change appears to be… the majority of large gains are indeed at the top of the distribution.

The big incomes in America are strongly aligned with the world of finance. So, many of the great incomes in the United States are associated with a socially negative activity that not only produces no value to the large economy but actively endangers the economy through its taxpayer guaranteed bets.

It this wasn’t bad enough, hundreds of thousands of graduates from the most expensive and prestigious universities in the United States pursue careers in this field often starting at a quarter of a million dollars in annual salary, a massive diversion of talent from every other field of endeavor. So, our focus on finance weakens the nation and diverts its future leadership into the same unproductive path resulting in further devastating losses to society as a whole.

What can be done? Well, we could consider making things. We could make actual products in this country, televisions, stereos, building materials, etc. We could base our economy on things of value. We could rise in morality and ethics to a point where the idea of making money by financial speculation becomes an abomination to any upright citizen with even a smattering of civic conscience.

We will do it. Either by choice or by necessity.

You see, the financial way of making money, this casino capitalism, when applied to a society like ours is a disaster that unfolds over the years. It hollows out our country diverting the money that would have built manufacturing and countless other useful investment, diverting the young from useful and productive enterprise and diverting the attention of society away from the important endeavors of life and nation building and into a life of profit based on speculation. Why work, when you can gamble with other people’s money?

When this cardboard edifice falls, once again we will find virtue in the making of value.

James Pilant

(This is a revised version of an earlier post.)

Do you want to pay more for internet? (via yourkeyed)

On By southwerkIn business ethics

I have been appalled at the FCC’s decision making on the matter of net neutrality. Essentially they have abandoned it. The way is open for a corporate division of the internet. It should not be long before web sites will have to pay money for fast service while those unable to pay will sink into obscurity and then disappear. Consumers will (as always) bear the costs of these changes. Your use of the internet will become something like the cable industry with their multiple packages of different channel combinations. You will pay more for certain kinds of services, in particular, a fast internet connection.

The fight over net neutrality continues. Some sites like yourkeyed are still slugging. I like this web site’s spirit and appreciate its call to action.

I hope you hear that call and want to take part.

James Pilant

Do you want to pay more for internet? [Alright folks, I’ve been mentally hoarding my entries all month, I was going to talk about KSW programming this season, Vancouver, underground networks, gender politics, more things about desire and drive and human existence, yada yada yada., all those juicy things… but it all might be futile when no one will be able to afford the internet:] Do you want to PAY MORE for Internet?  Do you want the telecommunication companies, that already rip yo … Read More

via yourkeyed

Poverty and its negative effects, and means of eliminating it in Islam (via Islam: Message of Peace)

On By southwerkIn business ethics3 Comments
 

 

 

Islam by country

 I have a special list of web sites, one set of favorites I check on every day. There are only a handful of web sites listed. It is the beginning of my search for relevant subjects each day. Islam: Message of Peace is one of those web sites.

 

Poverty is a matter of business ethics since in the developed world, poverty is closely related to business practices and also related to business philosophies that have worked their way into the political spectrum. Islam: Message of Peace addresses these kinds of issues through religious texts and commentaries. The approach is often very different from the academic, political and religious ideas of the Western world. I find that both refreshing and a possible source of potent ideas.

Since I value this kind of material, it should be obvious that I do not believe that the followers of Mohammed are all terrorists. I find much to praise in the religion of Islam and it is only fair to give people credit for the good and great things they do.  At the time of the Crusades, the follower of Islam had universities (Madrasa), and in those schools was the most advanced knowledge of medicine and mathematics in the world. It is through their libraries that Aristotle’s and other philosophers’ writings were rediscovered. Those potent ideas led to the Renaissance and the current civilization of the West. If you benefit from a doctor visit, value the ideas of the Ancient Greeks (like democracy), or balance a checkbook with Hindu-Arabic numerals, you can thank the civilization of Islam. If you as a civilized human seek intelligent answers to difficult questions, this is a good place to look.

Let’s look at what Islam has to say about ending poverty – (this is a portion of the article, please click on the link to read all of it)

 
Praise be to Allaah.   

Firstly: 
Poverty is one of the calamities that Allaah has decreed should happen, either to a specific person or a family or a society. Poverty has negative effects on people’s beliefs and conduct. Immoral behaviour becomes widespread to a large extent because of poverty, as a means of meeting people’s needs, so theft, murder, zina and sale of haraam things become widespread. 
Undoubtedly these things have a negative effect on individuals and societies. Allaah tells us that some of the mushrikeen used to kill their children, the apples of their eyes, either because of the poverty in which they were living or for fear of poverty that might befall them. Allaah says of the first case (interpretation of the meaning): 
“kill not your children because of poverty — We provide sustenance for you and for them”
[al-An’aam 6:151] 
And He says of the second case (interpretation of the meaning): 
“And kill not your children for fear of poverty. We shall provide for them as well as for you. Surely, the killing of them is a great sin”
[al-Isra’ 17:31] 
In al-Saheehayn there is narrated the story of a woman of the Children of Israel who, when she needed money and felt under pressure, she could not find anyone but her paternal cousin who wanted to have his way with her in return for giving her money. Then Allaah saved her from that after she reminded him of Allaah and told him to fear Him. 
Whatever the case, it is well known that poverty leads to crimes and corruption. Many nations suffer from it and are looking for solutions to this problem, but to no avail, and there is no solution except in Islam, which brought rulings for all people until the Hour begins. 
Secondly: 
The means that have been prescribed by Islam to solve the problem of poverty and combat it are as follows: 
1 – Teaching people to believe truly that provision comes from Allaah and that He is the Provider (al-Razzaaq), and every calamity that Allaah decrees is for a reason, and that the poor Muslim should be patient in bearing his calamity and strive to relieve himself and his family of poverty. 
Allaah says (interpretation of the meaning): 
“Verily, Allaah is the All‑Provider, Owner of Power, the Most Strong”

Third Way Comments on Foreclosure Fraud Policy in the Post-Ibanez Landscape (via Rortybomb)

On By southwerkIn business ethics4 Comments

Once again another policy recommendation that would free the banks and their mortgage foreclosure lackeys for any responsibility for their acts. It never stops. It never will. A citizen would be found in contempt and thrown in jail for what they have done. A citizen would have been tried in court for selling property they did not own and covicted of fraud. And if a citizen went to court and said we don’t need any legal documents from the court house, we have a computer system, they would be laughed to scorn.

Read Rortybomb and get the full scope of these apologists’ recommendations.

James Pilant

You can tell that the landscape is changing.  Third Way has just released a memo titled Fixing “Foreclosure-gate” which details out a policy solution to the current foreclosure fraud crisis. That the post-Ibenez landscape is so drastically different that groups are mobilizing in a policy way should tell us that things may move in Congress, and we need to be ready. There’s been some fantastic writing on the memo that I’ll point you to – Yves Smith … Read More

via Rortybomb

HR and workplace bullying: A revealing online conversation (via Minding the Workplace)

On By southwerkIn business ethics1 Comment

Workplace bullying is not a big deal. That’s a ridiculous statement. I’ve seen workplace bullying and heard stories from others. It is a serious problem.

David Yamada talks about bullying deniers in this current post. Reading it I worked up some outrage. I think it is likely you will too.

James Pilant

In a recent blog article assessing the anti-bullying movement in 2010, I stated that we saw both breakthroughs and backlash during the past year. This post reports an example of the latter. I call to your attention a recent, revealing online exchange about workplace bullying, employers, and human resources that took place on the discussion board of Workforce Management (link here). Several self-identified HR folks suggested that: concerns about w … Read More

via Minding the Workplace

Glock Pistols, Ethics and CSR (via The Business Ethics Blog)

On By southwerkIn business ethics1 Comment

This is a particularly timely essay from The Business Ethics Blog.

(I have a confession to make. When I saw that Professor MacDonald had a post on this subject, I went to the site and immediately hit the reblog button. I hadn’t read it. I had complete confidence that MacDonald would write a good post. I have read it now and, of course, it’s excellent and I recommend it to you.)

James Pilant

P.S. I once owned a seven shot Glock, the thinner concealable version.

Glock Pistols, Ethics and CSR It’s been a week now since the Tuscon, Arizona killings in which Jared Lee Loughner apparently emptied the high-capacity magazine of his 9 mm pistol. Plenty has already been written about the awful killing. Inevitably, some of it has focused on the weapon he carried, namely the Glock. According to Wikipedia’s Glock page, The Glock is a series of semi-automatic pistols designed and produced by Glock Ges.m.b.H., located in Deutsch-Wagram, Austria. … Read More

via The Business Ethics Blog

Professional License Admissions (via New Orleans Criminal Law)

On By southwerkIn business ethics

To promote professional ethics, many professions have requirments for admission that are not matters of academic degree or training. Such things as a good credit rating, no felonies, no violent misdemeanors, etc. This posting offers advice for the applicant to a profession with a ethics component.

I recommend it to your attention.

James Pilant

My friend Cameron Landry says, “Don’t let your past haunt you.”  As part of my practice, I take great pride in the representation of those who are seeking admission to a professional board.  As an attorney, who as applied to two different bars, Florida and Louisiana, I’m personally aware of the feeling of uneasiness that many face when they apply to become doctors, nurses, cpa’s, or attorneys.  My clients in this area of my practice are all smart … Read More

via New Orleans Criminal Law

Political Rhetoric and the Ethics of Killing. (via Jacob Sandry’s Gap Year Blog)

On By southwerkIn business ethics

Does it seem at times as if the killer in a national tragedy gets far more attention than the victims? Does it seem at times, that the television is just screaming at you, telling you that if only you would go and do something really interesting with a major weapon, you too could be famous?

There are definitely more ethical ways to cover these unfortunate events. I would discuss them but it would interest you only a little and have no effect whatever on the media which is reaping billions of dollars of profit from their, “If It Bleeds It Leads,” philosophy.

There are people like me who are fed up and here is one of them –

I am delighted to quote Jacob Sandry from his blog, Jacob Sandry’s Gap Year Blog –

I hate the news media. HATE. The other night I was with some friends and CNN was on. Literally for an hour straight (and based on my extrapolations it was probably more while we weren’t watching) there was 5 minutes of information and pictures about Jared Loughner repetitively displayed on the screen. This disgusted me. SOMEONE WHO COMMITS A HORRIBLE ATROCITY DOES NOT DESERVE IMMENSE MEDIA COVERAGE EVEN IF IT IS FOR BEING EVIL. If anything, that media coverage should be devoted to the victims and their families. AND the heroic people who tackled Loughner and prevented him from doing any more harm. (I’m not naïve enough to not realize that CNN and all other major news networks are profit driven and shock news is more viscerally gripping than a memorial. And this is why I hate news media) Also, the Loughner family is probably facing as much pain and hardship as any family can possibly face right now, and it is incredibly crass of the media to be incessantly surrounding their house and trying to get interviews. That’s terrible, let them be.

(This is a good blog. He likes to write and you can tell he writes as his thought roll through his mind. It gives the writing a continuous motion that makes the reader feel that he and the author are sharing the same thoughts simultaneously.

Now, beware while Mr. Sandry can be funny, he chooses serious topics more than a little often.

For a visit, go here.)

James Pilant

Tax Havens Devastating To National Sovereignty

On By southwerkIn business ethics

From the web site, Thriven’s Blog.

The blog post is a review of the book, Nicholas Shaxson’s  – Treasure Islands: Uncovering the Damage of Offshore Banking and Tax Havens 

Tax havens are the ultimate source of strength for our global elites. Just as European nobles once consolidated their unaccountable powers in fortified castles, to better subjugate and extract tribute from the surrounding peasantry, so financial capital has coalesced in their modern equivalent today: the tax havens. In these fortified nodes of secret, unaccountable political and economic power, financial and criminal interests have come together to capture local political systems and turn the havens into their own private law-making factories, protected against outside interference by the world’s most powerful countries – most especially Britain. Treasure Islands will, for the first time, show the blood and guts of just how they do it.

The nations of the world are harmed by the evasion of their laws and taxes made possible by tax havens. The tax money is important but more important is the ability to threaten governments to force actions that multinational corporations such as investment banks wish done.

These escape routes transform the merely powerful into the untouchable. “Don’t tax or regulate us or we will flee offshore!” the financiers cry, and elected politicians around the world crawl on their bellies and capitulate. And so tax havens lead a global race to the bottom to offer deeper secrecy, ever laxer financial regulations, and ever more sophisticated tax loopholes. They have become the silent battering rams of financial deregulation, forcing countries to remove financial regulations, to cut taxes and restraints on the wealthy, and to shift all the risks, costs and taxes onto the backs of the rest of us. In the process democracy unravels and the offshore system pushes ever further onshore. The world’s two most important tax havens today are United States and Britain.

But the world is not without means to remedy the situation. In the late 1700’s piracy flourished because nations found it advantageous to use them against their enemies. Pirates often employed as privateers fattened the treasury of the nations hiring them and did harm to their enemies.

But over time, it became obvious that the benefits of piracy were outweighed by the faults.

So, nations by treaty and policy ran the pirates out of business.

The United States in concert with the European Union, China and other nations could by agreement make this kind of tax haven impossible to maintain or at the very least difficult.

It has been a daunting task to motivate the government of the United States to act against the interests of these larger corporations particularly the financial ones, but the future of this nation may well depend on those tax dollars and enforcing the national interest.

James Pilant

I wish to thank homophilosophicus for calling my attention to Thriven’s Blog.

An Education Of Greed Destroys Nations

On By southwerkIn business ethics2 Comments
From the Independent.ie (Ireland), Anto Kerins writes –
Our graduates need an understanding of, and a facility for, effective regulations, appropriate rules and ethical frameworks to guide organisational behaviour so as to ensure the safety and vibrancy of our economy and society.
 
 

 

From producing graduates who absorbed the mantra of deregulation and light-touch rules, we must now imbue them with the importance of ethical and regulatory frameworks and the ability to distinguish between rules that keep us safe, solvent and effective and those that just take up time.
 
 
 

 

 

 

Ireland has just experienced an ethics meltdown in the financial sector. I believe they are taking much stronger action than we have contemplated to solve the problem. I do not believe their anger is leaving any time soon. They have no beltway “wisdom” that is everything is okay except for those whiny unemployed. There is a determination for this to never happen again.

Read further –

While the economic and regulatory wings of Government are now desperately trying to get us out of the hole we are in, it is mainly to education that we look to ensure this crisis never happens again. Although the Government and its agencies are feverishly working to bed down a powerful and effective regulatory regime to keep us afloat, it is to education that we look to encourage the long-term development and sustenance of this framework.

I’m reading through the Hunt Report. It is not like anything I have seen in the United States. We have been all about job training and getting rid of those annoying history, philosophy, art and literature classes. The Hunt Report emphasizes the need for more of these, not less. I’ll be posting on this later.


James Pilant