Category: business ethics

The America I Grew Up In

On By southwerkIn business ethics, Capitalism, Economic measurement, ethics, Government Failure

This is a quote from Rogue Columnist –

I grew up in an America that had created the greatest middle class in the history of the world, a great civilization not just a great market. Where people were citizens, not consumers. Where we landed men on the moon and would always be on the forefront. Where Martin Luther King Jr. said, “Let justice roll down like waters and righteousness like a mighty stream…” And we worked for that. But we’ve become a different America and different Americans. For King warned, “A nation or civilization that continues to produce soft-minded men purchases its own spiritual death on the installment plan.”

I fully agree. I believe in the unity of citizenship and a cooperative ethic recognizing that we are all in this together particularly in these very bad times.

James Pilant

Suggested Rules For Corporate “Moral” Decision Making

On By southwerkIn business ethics, Capitalism, Corporate Social Responsibility, ethics, Philosophy of Business3 Comments

Badaracco is presenting a theory of ethics that I have seen in textbooks before. I’m not impressed. The first has got to be the shallowest possible interpretation of Utilitarianism as well as an equally inadequate exposition of the principle of rights. Then there is “what will people think.” My reputation is all. And we can’t live in a fantasyland. Wow, I betcha that Bible and the Western Civilization stuff got nailed there.

Of course, I guess you have to make it simple for the masses of the corporate relativists in the crowd.

Oh, well, read it for what’s it is worth –

The conference’s concluding keynote speaker, Joseph Badaracco, Professor of Business Ethics at Harvard Business School, presented the assembled CIOs a practical guide to making ethical decisions—not in case of right versus wrong, because that’s easy—but in right versus right, because that’s hard.

Badaracco suggested four ways to think about each decision:

1. Will it produce the greatest good for the greatest number of people? That’s a good place to start, Badaracco said, but it’s not sufficient.
2. What are the rights of the people involved? For example, if a Nobel Prize winner, on the verge of discovering a cure for cancer, needs your heart, having it cut out of your chest against your will would, ultimately, produce a great deal of good for a great number of people, but it would certainly violate your rights. Not to mention establishing a grisly precedent.
3. What will the decision say about your values, your character, and the values and character of your organization? Leaders need to represent the values they hold dear. However, simply focusing on how the decision reflects upon you can be short-sighted at best, priggish at worst. Finally,
4. What will work in the real world? Leaders cannot afford to live in fantasyland.

All these questions eventually need to be answered, and one can spend a long time thinking about them. But say you don’t have a lot of time? Badaracco offered a quick three-step process:

1. The newspaper test. How will you feel if your decision hit the front page of tomorrow’s newspaper?
2. The Golden Rule. How would you feel if someone else made the decision about you?
3. The obituary test. How would you like the people you respect to look back at your decision?

Shareholder Power?

On By southwerkIn business ethics, Capitalism, Economic measurement, ethics, Government Failure, Philosophy of Business, shareholder

One again, I’m going to lament that the people who own the corporations don’t seem to have any actual control over them. Let me quote Nouriel Roubini from his excellent essay, Gordon Gecko Reborn.

There are also massive agency problems in the financial system, because principals (such as shareholders) cannot properly monitor the actions of agents (CEOs, managers, traders, bankers) that pursue their own interest. Moreover, the problem is not just that long-term shareholders are shafted by greedy short-term agents; even the shareholders have agency problems. If financial institutions do not have enough capital, and shareholders don’t have enough of their own skin in the game, they will push CEOs and bankers to take on too much leverage and risks, because their own net worth is not at stake.

At the same time, there is a double agency problem, as the ultimate shareholders – individual shareholders – don’t directly control boards and CEOs. These shareholders are represented by institutional investors (pension funds, etc.) whose interests, agendas, and cozy relationships often align them more closely with firms’ CEOs and managers. Thus, repeated financial crises are also the result of a failed system of corporate governance.

That’s what I think too.

Simple statement – We hear over and over again about property rights but start talking about actual shareholder control, power held by the actual property owners, howls of outrage cloud the horizon.

The people that own the corporations should have say about what they do.

James Pilant

Corporate Crime – Travesties Of Justice

On By southwerkIn business ethics, Capitalism, Economic measurement, ethics, Government Failure

Watch this video where Mokhiber explains how corporates avoid penalties for their crimes.

Is Corporate Crime Simply The Way Things Are?

On By southwerkIn business ethics, Capitalism, Economic measurement, ethics2 Comments

Parenti claims corporate crime is far more endemic than commonly thought. Parenti’s reporting of corporate crimes and their penalties is scathing.

Net Netrality Endangered By The Mushy Middle!

On By southwerkIn business ethics, Capitalism, ethics, Government Failure, Privatization

Americans are conditioned by their upbringing to compromise, to share, and to make deals. This makes it easier to get along with people and facilitates the development of relationships. But anyone who has eaten an entire bag of M&M’s knows that there can be too much of a good thing.

Now, there are people in this society, some of them famous, who say over and over again, that what we ought to do, is get the two sides together and compromise.

Net neutrality is the current target of these people. Now, here are our choices, we can allow corporate ownership of the internet or we can maintain it as a public property, so to speak, allowing all equal access. I have to tell you, I don’t see a lot of middle ground. They say if the internet goes to corporate ownership, we will have the right to complain. Well, I have the right to complain about lots of stuff, but the people who are concerned with my complaints are not many. More to the point, throw my complaint up against the power and influence of a giant multi national corporation and that phrase about snowballs and the nether regions leaps to mind.

It’s not hard for me to figure that this web site with no advertisement and no income production is not going to be a priority for a corporate controlled internet. I will wind up with long, long waits for those wishing to see my site and for many there will be no wait at all because they will never be able to see my site. My voice will disappear. That gives me a stake in the outcome and it doesn’t make me friendly to a compromise that really allows no other option but surrender to private ownership of the internet.

Sometimes, you can’t compromise. Sometimes, you can’t give int.

This is one of those times.

James Pilant

Corporate Criminals Talk About Going To Prison

On By southwerkIn business ethics, Capitalism, ethics

This is a little about four and half minute video where “white collar” criminals talk about the experience of going to prison. There isn’t really much for me to say. The film speaks for itself.

Reader Comment – ANDREW!

On By southwerkIn business ethics, ethics

Andrew comments on my web post, Earn Thousands At Home – Set Up Your Own Internet Company – Oh, Good Grief, You’d Think This One Would Get Old!

As usual he is perceptive and intelligent. Here is what he had to say –

Where there is desperation and the hope of reaping huge benefit with minimal effort, there will be scam artists there to pray on those feelings. Unfortunately, this is nothing new.

I grew up in a small town right outside of Augusta, GA. On the other side of Augusta was (still is) a community of gypsies who still rip off anyone they can get their claws on. Every year, all of the men and some of the women pack up and travel from town to town. In each town, they will go door to door advertising a particular service. A favorite of theirs is gutter cleaning and/or replacement. They will target the elderly and tell them that their gutters need to be replaced and they can do it “cheaper than the competition”. They will take several hundred dollars from these old people and instead of actually replacing the gutters, they will spend a few hours taking them down, cleaning them out a little and making them look new, and putting the same old gutters back up.

That is an example of one of their less sinister scams. They get much worse. If something seems too good to be true, then it probably is!

Julian Friedland (Business Ethics Memo) Comments On My Blog

On By southwerkIn business ethics, Capitalism, ethics, Teaching2 Comments

Julian Friedland maintains a blog, Business Ethics Memo. I had occasion to write and he wrote back.

This is what he had to say –

Hi James,

Thanks for the link and compliment. I would be curious to know what academic training you have, i.e. business, philosophy, etc.

Your blog is engaging some of the most important and timely issues today. However, I would council you to beware of your tone, which can be a tad shrill at times.

Instead of name calling (“incredibly stupid,” “evil” etc.) you might consider taking a more charitable view of the other side, which might help take the debate to a deeper level and alienate fewer readers. For example, there are reasons schools are invading student privacy, and some might be legitimate. How do we determine the difference here?

I know folks are shouting more and more in media these days (especially on the right), but I think educators like us should strive to maintain a better example. That said, I am all for calling a spade a spade from time to time. But in my humble opinion, that can be done without name calling.

Also, you might consider opening up the blog to comments.

BTW: I am writing an article on some of the citizens united implications for increased CSR. It’s entitled Sustainability, Public Health, and the Corporate Duty to Assist.

Did you catch my piece in the Chronicle of Higher Ed last November? It’s subscription only (linked on my blog) so in case your library doesn’t offer access, I’m pasting it below.

Best,

Julian

Earn Thousands At Home – Set Up Your Own Internet Company – Oh, Good Grief, You’d Think This One Would Get Old!

On By southwerkIn business ethics, Capitalism, ethics3 Comments

But it doesn’t and people still wind up losing thousands of dollars and sometimes, their life savings. I am including a video explaining one of the basic internet offers. It has two of the basic elements of these kinds of deals. First, it is a retiree. The elderly are a favorite target. They tend to have savings or equity in a home. They are often lonely. Their children have moved away. Their friends have gone to retirement homes or just can’t get around. The second element (one that as a business law teacher drives me crazy), he didn’t read the contract. Basic Rule. Read the contract, okay!!

It’s nice non-boring professional newscast video a little more than four minutes long. It has a lot of useful information and I know something about scams.