We Bankers Said We’re Sorry — Now Buzz Off

Alain Sherter writes a column called Financial Folly. His latest essay is entitled – Barclays CEO: We Bankers Said We’re Sorry — Now Buzz Off.

New Barclays (BCS) CEO Bob Diamond is tired of apologizing for the economic damage big banks have wrought in recent years. As he told members of Britain’s Parliament during a hearing on possible restrictions on banker pay:

“There was a period of remorse and apology for banks. I think that period is over,” Diamond told the Treasury Select Committee.

“Frankly, the biggest issue is how do we put some of the blame game behind us? There’s been apologies and remorse, now we need to build some confidence,” he added.

Seems to me Diamond, who took over last fall as chief executive at the U.K. banking giant, is skipping a step between expressing regret and rebuilding confidence. Tip of my tongue…. Ah, yes: reform. That includes restricting the kind of compensation that inclines bankers to let it roll. And since we’re nitpicking here, I don’t remember many financial executives exactly hanging their heads in shame over their role in the meltdown.

I don’t recall any real apologies or confessions of wrong doing or regret for what happened.

The general perception of the financial community is that they were profitable before the disaster, they didn’t really need the bailout and what was all the fuss about in the first place?

You may think I am exaggerating or misinformed about that my analysis of the attitude of the banking community. I truly wish I was wrong.

We have a financial class that not only can do no wrong whatever, but have no responsibility for anyone in this country at any time, under any circumstances. In their minds, they are worthy, the rest are not.

Their sense of entitlement is beyond most American’s comprehension.

If I had not heard these things said myself, I would have difficulty believing them.

James Pilant

Goldman Sachs Lies

From the Huffington Post

Wall Street giant Goldman Sachs generated at least 18 percent of its revenues last year through trading and investing for its own benefit, according to a regulatory filing made Tuesday detailing the first nine months, flatly contradicting the firm’s previous claims that such speculative activity made up a much smaller slice of its business.

In recent months, as Goldman has fended off widespread accusations that it has become the leading example of the gambling culture permeating Wall Street — placing bets for its own profit rather than engaging in old-fashioned banking services — the company has insisted that trading made up no more than one-tenth of its revenues.

During a conference call last year, the firm’s chief financial officer, David Viniar, described the company’s private trades as comprising “10-ish type of percent” of its total revenues.

But the company’s disclosures filed Tuesday with the Securities and Exchange Commission revealed that trading and investing comprises almost twice that percentage.

Maybe in the minds at Goldman Sachs, “tenish percent” can go up to 18 or 19 percent. It’s just a little white lie, unless of course, you’re one of the biggest financial trading houses on earth; unless you’re trying to reassure your investors that you don’t spend most of your time and their money by playing them for fools.

The temptation to make incredible sums of money by using the inside knowledge of your clients investments is difficult to overcome. The temptation to deliberately damage your clients’ interests by betting against their investments is also difficult to overcome. These temptations are why the proportion of proprietary trading is so important. The more proprietary trading, the harder it is to believe that the investors are not getting stiffed.

So, this lie is significant. It tells us a lot about an investment company and its standards.

I get the impression that the long term has only a certain amount of importance. The level of proprietary trading would be lower if the firm were maximizing its long term postion by reassuring investors of the security of their investments. The numbers indicate a drive toward short term, quarterly and yearly, profits.

Business ethics, how much are we looking at?

James Pilant

Would You Like Your Surgery On Network Television?

(This article appeared originally in June of 2010. It wasn’t properly tagged and I am resubmitting it so Google can see it.)

An quite intelligent gentleman sent me an e-mail asking what I thought ethically about TV crews filming real cases up to and including surgery. He referred to two articles, Doctors on the Cutting Edge of Reality (The Boston Globe), and ABC’s ‘Boston Med’ shows the painful reality of surgery at the heart of 3 Massachusetts hospitals, (The New York Daily News).

The program is “Boston Med,” an eight part documentary filmed by ABC. The newspaper article from the Boston Globe quotes George Annas and Arthur L. Caplan. Both express ethical concerns about the program suggesting that the program is inappropriate and exploitative. Inappropriate because filming changes the acts of the filmed. Exploitative because these patients did not come to the hospital with the intent of being in a film.

Now, the tricky part, is this ethical or unethical based on my judgment? After all, that is what the gentleman asked me. I will discuss the two kinds of objects posed by the critics quoted by the Globe. Is the filming inappropriate or exploitative?

I do not believe such filming is inappropriate. Being filmed is rapidly becoming a constant. Cameras are located at businesses and parking areas. There are also cameras at public facilities likes parks and bridges. I could go on listing where business or government cameras might be found. In addition, personal cameras either individually or part of a another apparatus like a cell phone are also very common. So, my first claim is that being filmed is a cultural phenomenon. I believe that we are in a sea change period of cultural change in which it is rapidly becoming accepted behavior. That does not totally resolve the issue. We are not totally accustomed to being filmed yet. So, the next element is consent.

It is clear from the articles that the institutions, the professionals and the patients had signed waivers. It is entirely possible to improperly influence all of the different levels of personnel and patients to get their consent. However, a television network has enormous experience in these matters and with what can be only described as an alert and experienced legal department. My opinion is that no lawyer would allow the program to go forward with his strong participation and with all possible safeguards.

Does being filmed change human behavior? I would say almost certainly. We always do things differently if we are being observed. We care what other people think. We can become self-conscious. Strangely that really isn’t the ethical question here. The ethical question is, “Does this change technical competence or medical judgment for the worse?” I know of no such evidence. My personal experience is that when watched, I am more careful, take greater pains and think more about what I am doing. (If anyone reading this post has any study or data that suggests that being filmed is detrimental to performance, I want to know where to find that study. I want to read it and thoroughly understand it. That study would be vital and would undoubtedly change the procedures of knowingly filmed observations.)

Exploitation is more difficult. Where do you cross the line between objective reporting and using people? The network will make a great deal of money from these programs. The hospital and the doctors as part of the hospital are essentially participating in public relations program which will enhance the reputation and thus, the value of the institution.

The patients are not part of this. They do not profit and their stories, the intimate details of their medical records and and procedures, are used by the network to make money. This is exploitation. These patients are not a routine participants. The very nature of the television strongly suggests that the reason they would choose these particular stories is that they are not routine. And even if their stories are in some sense routine, they are still individual stories, critical elements of their life stories.

You could argue that in our strange celebrity culture, the very fact of appearing on television is in some sense compensation. “In some sense” doesn’t cut it. There are people who genuinely enjoy their jobs, they like what they do and many enjoy being seen doing it. They still expect to get paid. There is a difference between the urge to appear on Jerry Springer and having a serious medical problem brought before the public.

The patients should be paid or compensated in some other way. There should be some value given for the value that was taken. It is not the custom to share our medical problems, treatments and individual stories with millions of strangers. These stories are the personal property of the patients, not the hospital and not the doctors. As a society we have already acknowledged the vital nature of medical record privacy in the form of HIPAA, The Health Insurance Portability and Accountability Act of 1996.

It is obvious from these accounts that the patients voluntarily signed away their rights and allowed the network access to their stories. What has been done here and is being done is legal. But being in compliance with the law is not the measure of ethical responsibility or, what is most important, what is right and wrong.

James Pilant

Chris MacDonald defines ethics (via John Ayo Olaghere)

I read Chris MacDonald’s blog, The Business Ethics Blog, regularly but somehow I missed his definitions of business ethics and ethics. Mr. Olaghere spotted the definitions and kindly posted them. Thanks!

James Pilant

Chris MacDonald, Ph.D. of The Business Ethics Blog defines ethics and business ethics. He  teaches  Philosophy, including business ethics, at Saint Mary’s University in Halifax, Canada, and a Nonresident Senior Fellow at Duke University’s Kenan Institute for Ethics. He is a member of the Editorial Board of the Journal of Business Ethics. He has been named one of the “100 Most Influential People in Business Ethics”, two years in a row. “Ethics” ca … Read More

via John Ayo Olaghere

Banks Suffer Major Setback

When foreclosing on mortgages the banks have been skipping the rule of law. They have not followed the rules for the transfer of property preferring to pretend that their electronic records are a viable substitute. I never believed the courts would go along with that and the Massachusetts court did not. Here’s the story from that excellent blog, Rortybomb.

From RortybombBig Week in Foreclosure News

The biggest news is the decision in Massachusetts’ “Ibanez case”, where the Massachusetts Supreme Court voided the seizures of two homes by Wells Fargo and US Bank based on their inability to show that they owned the mortgages at the time of foreclosure. Tracy Alloway walks you through the case, David Dayen has more including the PDF of the decision, and analysis from Yves Smith and Felix Salmon.

From the opinion: “Where, as here, mortgage loans are pooled together in a trust and converted into mortgage-backed securities, the underlying promissory notes serve as financial instruments generating a potential income stream for investors, but the mortgages securing these notes are still legal title to someone’s home or farm and must be treated as such.”

They ruled through Massachusetts law instead of New York law, so no answers on looming New York trust law. Bank stocks are down. This is likely to have major implications down the road. We’ll have more on this opinion later.

I do not believe the ruling will stand. Congress will ride to the rescue of the banks legalizing their reckless disregard for state law and afflicting the suffering homeowners with even more pain. Congress will enact it. Obama will sign it. He will then explain it as a major legislative victory. Everything he does merits a press release and a couple of morning show appearances demonstrating his successful legislative record.

I wish there was someone somewhere who was as concerned with the rights and privileges of the American middle class and less concerned with the welfare of the banks.

James Pilant

Witches Curse Government

From MSNBC

Everyone curses the tax man, but Romanian witches angry about having to pay up for the first time are planning to use cat excrement and dead dogs to cast spells on the president and government.

Also among Romania’s newest taxpayers are fortune tellers — but they probably should have seen it coming.

Superstitions are no laughing matter in Romania — the land of the medieval ruler who inspired the “Dracula” tale — and have been part of its culture for centuries. President Traian Basescu and his aides have been known to wear purple on certain days, supposedly to ward off evil.

Personally, I’m waiting for Dracula to react to the new taxes.

James Pilant

Recommended Business Ethics Blogs

This is my list of the Business Ethics Blogs that I have been impressed with. Some of these blogs are controversial choices but  I went and looked at some other lists and was pretty shocked by what they thought was relevant. It seems there is no fixed criteria, so I will try to choose as best I can.

My selection process ran like this. I’ve been blogging on this web site for more than a year. I’ve had the pleasure of meeting many other bloggers and many were involved in one way or another with business ethics. So, I already had the beginnings of a list from my web contacts and regularly cruising the net for similar web sites to mine. In addition for this project I went to Google and read the first 1200 entries under the search, business ethics blog, and then 2000 entries under the search, business ethics. Nevertheless I do not believe for a moment that this list is complete or will make everyone happy.

If you want to be on it and you’re not, let me know. If you want your blog removed or some particular thing said about it, you should let me know that as well. I have no objection to any reasonable claim. In fact, whether you wish to criticize or praise, comment! The only thing you might want to know when you comment is that I often post comments as blog entries. Now before you assume that I am going to butcher your comment, be aware that I print every word, every comma, exactly as it was written and in full. I may disagree with you but I will not rearrange your writing to diminish the power of your words.

These are in no particular order. Developing criteria to rank these web sites would be a major endeavor, and sure to displease a lot of people. I think I will just content myself with a list.

This list is going to evolve over time so that criticism and recommendations can be incorporated. It is also important that I keep learning about new blogs and new writers and perhaps some older blogs that I missed.

1. Occasional Links & Commentary

This is David F. Ruccio’s Blog. I freely admit being a little dazzled by this web site. The graphic are amazing. It’s all cutting edge and professional looking. I think I could get an inferiority complex if I visit too often. The writing is interesting enlivened by attractive and easily read graphs. Great web site.

2. Lauren Bloom’s Blog, Business Ethics Speaker and Consultant

Ms. Bloom has been in the ethics field for a considerable length of time. This is how she describes herself in her blog:

Beginning in 1992, Lauren spent more than fourteen years as General Counsel of the American Academy of Actuaries, where her practice focused on teaching professionals how to incorporate high ethical standards and principles of good governance into their professional activities. Lauren played a pivotal role in the development and enforcement of the U.S. actuarial profession’s code of conduct and standards of qualification and practice. She also consulted with the International Actuarial Association on its project to develop the first international standards of practice for actuaries. She is widely published in the actuarial profession’s publications, and continues to speak to actuarial firms and association meetings around the United States.

The web site is designed as a practical guide for ethics.

3. The Big Picture Barry Ritholt’s Blog

I like his intro –

The blog is a compendium of what a Wall Street money manager is looking at, thinking about, and writing on. It is written by me (& the crew) for people ranging from investment professionals to media to anyone else interested in investing, markets, and the economy.

It is, by design, laden with facts, statistics, and informed, data-driven opinions. We avoid the squishy, touchy-feely “I think/hope/want” type of fact free analysis so prevalent in the media and on Wall Street.

4. Ethics Forum This web site is written by Alice C. Linsley.

The writing is intelligent. The author is not afraid to write in depth about their subject and writes often. This tends much more to philosophy than to business ethics but there are a good number of articles directly devoted to the subject. Great blog.

5. Chris MacDonald’s The Business Ethics Blog Professor MacDonald’s blog was one of the first ethics sites devoted to business ethics that I found when I started writing my own blog. When I looked around the web trying to find how to do a successful blog I ran continually into his postings. He had been everywhere first. I think this indicates an aggressive intelligence and a willingness to take pains. I cannot pretend neutrality on MacDonald’s work. I have 32 posts recommending one of his essays or his writing in general. I did say one thing about him that sums up a great deal about his blog. I once pointed out that if you wanted the equivalent of a college course in business ethics you only had to read his web postings for a few months.

6. Business Ethics.ca, The Canadian Resource for Business Ethics

This is one of Chris MacDonald’s blogs. If you want Canadian ethics site, probably the ultimate web site. However, considering the power of his principal web site, I want to recommend that you go there first.

7. Compliance Building

Doug Cornelius writes this blog. It’s written in an informal way. It is often amusing as well as informative. For instance, for the Christmas season, he has a blog entry discussing the ethics of Santa Claus. It’s updated often and quite intelligent.

Here’s a quote from his post on the Facebook – Goldman Sachs deal –

To me it sounds like Facebook and Goldman have come up with an ingenious solution to the address the capital needs for Facebook and to avoid a public offering of stock. I assume the Goldman investment and its new fund will be used to provide some capital for expansion and growth. I also suspect that some of it will be used to cash out early investors, purchase employee stock, and repurchase stock that has been privately traded. Gobbling up the stock would be an opportunity to keep the number of investors well below the 499 trigger point. Early investors may take their money and run.

8. Business Ethics: The Magazine of Corporate Responsibility

This web magazine is operated by Michael Connor. It is more focused on what corporations should do in ethical dilemmas and often veers into public relations tactics. Nevertheless, some good ethical writing, clever articles and much useful information. The blog dates from 2009 and is updated very regularly.

Here’s the self description from the blog –

A lot has changed in the more than two decades since Business Ethics was founded. Ethics and governance have emerged as front-page news and lead agenda items in corporate board rooms and the halls of Congress. Good corporate citizenship is now studied, advocated and sometimes practiced. Sustainability has become a goal for well-meaning small businesses as well as many of the Fortune 500. Whether that represents real progress is open to debate. The continuing fallout from the recent economic and financial crises is a constant reminder that many systems are not working. There’s plenty to discuss. Business Ethics aims to serve as a guide.

Sam Antar

9. White Collar Fraud

This is the intro to Sam Antar’s White Collar Fraud web site –

There is a saying, “It takes one to know one.” I am a convicted felon, former CPA, and former criminal CFO of Crazy Eddie. Today, I advise law enforcement agencies, professionals, and businesses how to identify fraud and train them to catch the crooks. This blog discusses white-collar crime, securities fraud, financial reporting irregularities, Sarbanes-Oxley, corruption, and other related topics. Irregularities reported here are referred to appropriate government agencies as a whistleblower.

This is a better summation than anything I am likely to write about the blog.

10. Foreclosure Blues

Foreclosureblues is the best foreclosure site on the web. It is edited by Jake Naumer. It’s updated regularly and it’s content is updated regularly. Their choice of material is excellent. The site posts consist of often vital and useful information salted with outrage over the injustice involved. I strongly advocate this blog.

There is a lot of dynamic writing on this sight. It often has the feel of the breaking news in this highly controversial area. Look at this writing sample –

If, in fact, there exists widespread legal failure of securitized mortgage pools, as Mr. Rosner, theorizes, then we are possibly facing the Apocalypse Scenario, calling into question the legal and financial soundness of a large portion of the U.S. securitized mortgage market. Securitized mortgages comprise over half, or $8.9 trillion, of the $14.2 trillion in total U.S. mortgage debt outstanding.

“It may mean investors who think they bought mortgage- backed securities bought securities that aren’t backed by anything,” said Kurt Eggert, a professor at Chapman University School of Law in Orange, California. Well, that’s already happened. Check out this lawsuit by MBIA Insurance against Credit Suisse 0ver a bad securitization loan deal.

11. Minding the Workplace, the New Workplace Institute Blog, hosted by David Yamada.

This is one of my favorite blogs. It has lively writing and a sense of mission. David Yamada often focuses on workplace bullying as an issue. He pushes for legislation and other actions in dealing with this problem.

From the blogs “about” page –

This blog is dedicated to news and commentary about work and employment relations.  Dignity at work, workplace bullying, employment & labor law, and psychologically healthy work environments are recurring themes.

12. Ethical Houston

Important disclosure – I consider Franklin Olson to be a friend, so I am biased. I have exchanged e-mails and asked him if he would like to blog on my site.

You may assume safely that I like his writing and value his opinions. His latest writing is on Aristotle and considering my recent explorations into the subject, I feel very pleased about his choice of topic. His articles are guite intelligent, considerably in depth, and written from a Christian perspective. My only complaint is he doesn’t write on a regular schedule. I recommend his site.

13. Ethics Sage (Steven Mintz)

I like Steven Mintz. I like his writing. The evidence of his personal conduct and thought indicate a man whose writing reflects high values. I consider him a benefit to the field of ethics. Another disclosure – we have exchanged thoughts through the medium of the web and he has gone to the trouble of writing me a blog response explaining in some detail the thought of Aristotle. I consider this a favor of a very high order. From my reading of it, he explained it clearly and accurately off the top of his head, his thoughts laid clearly as they had been shaped by teaching the subject over some years. I teach myself and I recognize the accomplishment.

His site is one of the strongest that I have seen on the web when it comes to ethical discussions of current events. For any student this is a treasure of usable research topics and for any casual reader, intelligent comment. You should read this blog.

14. Christopher Lind: The Moral Economy Column

Professor Lind has a book out called, Rumours of a Moral Economy. Follow his links from his blog to find other books and a number of publications.

Here’s an example of his writing –

Relationships on university campuses across Canada are becoming increasingly strained. The long term pressure is a lack of funding to match increasing enrollments. However, faced with that pressure many universities have engaged in behaviours that are neither fair nor transparent. For example, the underfunding of students has reached such a critical level that over 90% of Canadian universities now have food banks on campus. The University of Alberta has had one since 1991, now even the University of Lethbridge has one.

Hundreds of thousands of students rely on student loans to pay their tuition. The governments transmit these funds to the students through the universities who charge the students an administrative fee in turn. I know of one regional Canadian university who budgets almost a quarter of a million dollars annually to be received from these fees. Why should the poorest students be subsidizing the universities with borrowed money? These are the ones relying on food banks to eat. This practice is neither transparent nor fair.

15. Business Ethics Memo Julian Friedland’s blog is well written and fun. I like his attitude. He often aims at current events with great accuracy.

Here’s an example of his writing –

Personally, I’ve always been suspicious of the ethics of for-profit microlending. Its defenders claim that if it were limited to non-profit philanthropy, there would be much less money available to aid the myriad poor villagers in the developing world where it is desperately needed. Capitalism begets capital.

That sounds like a decent utilitarian argument. Trouble is, from a more principle-based position, there is something unseemly about saddling the working poor with interest rates so high they would be considered usurious in the U.S. Indeed, several U.S. states have regulated payday lending rates to below half (24%-36%) of what is common in international microcredit (80%-100% or more). The Federal government makes it illegal to sell payday loans to military personnel at higher than 36% interest.

16. Ethics Alarms

Here’s an example of his writing –

One of the core principles of ethical conduct is that an individual who finds himself in a position to stop wrongdoing has an obligation to do so, regardless of whether he caused the problem or has an official or professional duty to discharge. Fix the problem. Ask questions, blow the whistle, confront the wrongdoer, pressure officials, call in authorities…whatever it takes.  So many of the scandals and disasters we have witnessed in the past— the home mortgage meltdown, the Enron implosion, Abu Ghraib, Bernie Madoff’s scheme, baseball’s steroid scandal, the Catholic Church’s child molestation cover-up, and too many more to list—would have been ended far sooner if someone on the scene had followed through on this ethical imperative.  We don’t know who those people who ducked their responsibilities are; all we know is that lives were ruined because they chose to be passive, and not to act.

17. Christian Business Ethics Bobby Miller’s web site is a rare example of a Christian Ethics web site. When you run a search for Christian business ethics, you get a multitude of hits. The great majority are useless. This one is a good one.

Here’s an example from Miller’s writing.

Take for example, a saying that a lot of business executives and entrepreneurs use to cover-up or fluff-over the evil of their decisions, when made, affects individuals on every personal level. They utter these dreaded words, “It’s not personal, it’s only business”. I personally hate that. Of course it’s personal. When a father or mother goes home and say to their spouse and look into the eyes of their children that they’ve been terminated from work, you bet your bottom dollar that it’s personal. They are hurt and disappointed. Hope is removed from before them. They know that there are going to be rough time ahead. They know that some of the privileges that they had grown accustomed to will fade away in a snap. I thinks it’s a cowardice way of the one severing the relationship truly saying, “I don’t care how my decisions affects you. My business needs, my profit margin, my image or goals are more important that your welfare, or your family’s welfare”. Let me be clear, I am not saying that some executive decisions are not justified. Many [if not most] are justified. What I am talking about is how some employers of late, took advantage of the recent downturn in the economy as a justification to unnecessarily lay-off or fire some of their employees that were faithful servants of their firms, performing their jobs at optimum levels, just to increase the bottom line. At the root cause of their motivation to terminate the employment of these individuals was unashamed greed, on display for all to see.

18. Engineering Ethics Blog Karl Stephan’s blog is excellent writing. But what makes it even better is that he brings an engineering perspective coupled with an ability to explain the subject to those outside the field. I remember his discussion of the technical aspects of the Gulf disaster. He explained what happened in a way that gave me a deeper understanding of the problems inherent in that kind of drilling.

19. Blog: Business Ethics – David Gebler I have enjoyed Gebler’s blog for some time now. I think all interested in the field of ethics should add it to their favorites.

Here’s an example from Gebler’s writing –

Last week GlaxoSmithKline settled a claim with the US Justice Department for $750 million. However, what really made the news was that whistleblower Cheryl Eckard stood to receive $96 million for her efforts.

The concern, as raised in today’s Wall Street Journal, is that with such a potential goldmine on the back end, potential whistleblowers will be going straight to the feds before working through internal channels. For over 20 years major organizations have built extensive ethics and compliance infrastructures, including helplines and ethics training that details the suggested ways to report misconduct.

20. Practical Ethics, Ethical Perspectives on the News This is the University of Oxford’s blog on ethics in the news. As you can imagine the writing is of high quality with many authors.

Here’s an example from the blog written by Bennett Foddy

A new report released by the US Surgeon General last month reminds us that cigarettes are designed with addiction in mind. Tobacco companies infuse tobacco with ammonia so that the nicotine crosses the membranes in the lungs faster, reducing the delay between inhalation and pharmacological effect. They add flavourings like chocolate and vanilla to the blend, knowing that smokers will be more likely to smell something in their food that they associate with smoking, and to feel like lighting up. These tricks are a source of moral outrage for many of us; it seems as though the tobacco companies are exploiting weaknesses in our biology to make us buy things we would not otherwise have bought, and to do things we would not otherwise have done (or would not have done so much). And tobacco executives have often denied engaging in these kinds of tactics.

21. Gael O’Brien The Week in Ethics: Columns in Ethics, Leadership and Life. Gael O’Brien has been writing this blog since 2009. Her “about” blog section describes her this way – Gael O’Brien is a consultant, presenter, author and thought leader on topics related to leadership, ethics, trust, reputation, values, and strategic direction.

Here’s an example of her writing –

McDonald’s may be doing a great deal to address criticism about the link of its food to obesity. And they are only one of a legion of fast food restaurants that offer high sodium, high fat, high sugar, and high calorie foods.

However, there is a tremendous need for leadership here to create healthier ways to prepare food and to offer healthier menus. Kids’ nutrition is a first step. McDonald’s is well positioned to provide that leadership. The lawsuit  isn’t the challenge. The challenge is to find answers to creating healthier food and still be a financially successful company.

Given the enormous power McDonald’s has to shape what is fun and cool to eat, what if they redirected their energy to developing innovative solutions to inexpensive, good-to-eat food that is actually good for children?

22. Rogue Columnist: A Pen Warmed in Hell  This is a big favorite of mine. Jon Talton is outraged by a lot that goes on. So do I. I put him in the business ethics blogs because of his persistent criticism of business practices in Arizona. He doesn’t blog on the subject that often but when he does, it is memorable.

Here’s an example

I overheard this conversation: “Is there some way I can short Arizona? I asked my broker and she said she will be on a conference call next week with a manager of two funds that invest in Arizona munis who are considering selling the entire portfolio…” And yet, Arizona hasn’t yet paid the full price for the Kookocracy being in power, for its cruel policies, for its inflaming hatred and violence. The national college football championship will be played at the stadium in Glendale, built with taxpayer money to enrich private sprawl developers. Tourism has apparently rebounded from the anti-immigrant law. Arizona just gets away with it and too much of what passes for the leadership in the state just goes with the flow. The vulnerable and sick, the working poor, the competitive future — these all pay the price. Gabby Giffords, a smart centrist who supported gun rights, paid. So did federal Judge John Roll, who had received threats from the white-right over immigration rulings. But when will Arizona pay for what it has become?

23. Thinking Ethics Beth Krasna edits this exploration of ethics issues. Now beware, a quick look indicates only a handful of posts. You have to go to the categories column on the right side of the page and click on the appropriate topic to pull up those kinds of posts. Once you know to do that, you find a great deal of material.

24. Chapman Sife: Business Ethics Blog

This is a Facebook site which is an unusual choice for me but the students and other contributors range the Internet and find some fascinating stuff. Because of this, I include it. It’s good site in terms of its exploration of other articles and other thoughts.

25. Too Much, A Commentary on Excess and Inequality

Each and every week, Too Much explores excess and inequality, in the United States and throughout the world. We cover a wide swatch of territory, everything from the latest executive pay outrage to the most current research insights on how staggering income and wealth divides are impacting our health and our happiness.

This blog calls for income equality and regularly publishes blog entries rich on supporting data and history as some informative and clearly presented graphs. I believe the wide class differences in wealth in the United States are destroying democracy and damaging the fabric of society. Thus, I see it as pursuing ethical business policies. So, it gets included.

Ethics Hero: Attorney Greg Adler (via Ethics Alarms)

Jack Marshal in his blog, Ethics Alarms has a fascinating story of a crusading attorney who taught two shady “entrepeneurs” a lesson. But better than that Jack Marshal has a paragraph that deserves attention and maybe preservation as an ethics quote –

One of the core principles of ethical conduct is that an individual who finds himself in a position to stop wrongdoing has an obligation to do so, regardless of whether he caused the problem or has an official or professional duty to discharge. Fix the problem. Ask questions, blow the whistle, confront the wrongdoer, pressure officials, call in authorities…whatever it takes.  So many of the scandals and disasters we have witnessed in the past— the home mortgage meltdown, the Enron implosion, Abu Ghraib, Bernie Madoff’s scheme, baseball’s steroid scandal, the Catholic Church’s child molestation cover-up, and too many more to list—would have been ended far sooner if someone on the scene had followed through on this ethical imperative.  We don’t know who those people who ducked their responsibilities are; all we know is that lives were ruined because they chose to be passive, and not to act.
Read the full article –

Vincent Cardinalli had been running a remarkably lucrative and heartless scam for years in Santa Clara, California, filing phony lawsuits against innocent citizens for towing and storage fees on vehicles they no longer owned or, in some cases, never owned. He was aided by a commissioner who routinely sided with him in the suits while ignoring obvious signs of a swindle. Cardinalli’s salad days ended, however, because a young lawyer decided to do … Read More

via Ethics Alarms

What Am I Doing? [1.10] (via Staying In Focus)

I also think that much of what Neitzsche said is silly. Staying in Focus is well written and fun. This essay discusses many ethical missteps in the restaurant industry. It is often funny certainly filled with good stories.

Of course, I am interested in business ethics and this gentleman has a lot to say that I like. So please give him some attention.

James Pilant

What Am I Doing? [1.10] I always thought Friedrich Nietzsche should get punched in the face for writing "that which does not kill us makes us stronger" in his book Twilight of Idols (I bet he'd be a hipster if he was alive today… that wuss).  After this past week, however, that crazy philosopher might have been on to something. I've had a lot to reflect on this past week, thinking about business relationships and how vital a role they play in our daily operations and … Read More

via Staying In Focus

5 Most Costly Lies in Finance (via Kathy Kristof at CBS Money Watch)

Kathy Kristof
I am not always kind to Ms. Kristof. I find her writing fluffy with topics better associated with one of those women’s magazines like “Seven Better Ways to Make Your Man Appreciate You.”

Nevertheless I like this one and she has a done a service by hitting the golden oldies in business lies. I teach college and am often surprised how few of my students understand the most basic lies, cons and fallacious offers in the business world.

Here’s an excerpt. –

Unfortunately this confusing Wall Street-speak could put you in in a fog when approaching financial transactions. And that can make you vulnerable to people who would like to trick you out of your money. When salesmen and con artists see that your normal radar for bad advice, toxic investments and outright scams is getting nothing but fog (the potential result of all the hot air on Wall Street), they ramp up clever lies to separate you from your cash.

I recommend you go to CBS and read the five lies. You might say something nice about Ms. Kristof while you are there.

James Pilant