Business & Commercial

Ethics Quote Of The Day: Charlotte Hogg, Ex-Bank of England COO

/ Jack Marshall / 2 Comments

“However, I recognise that being sorry is not enough. We, as public servants, should not merely meet but exceed the standards we expect of others. Failure to do so risks undermining the public’s trust in us, something we cannot let happen. Furthermore, my integrity has, I believe, never been questioned throughout my career. I cannot allow that to change now. I am therefore resigning from my position. I will, of course, work with you through any transition.”

—-The Bank of England’s chief operating officer and incoming Deputy Governor for Markets and Banking, Charlotte Hogg, in her letter of resignation over criticism regarding a possible conflict of interest and her failure to report it.

Charlotte Hogg, a senior Bank of England official who had been named a deputy governor, resigned this week after a Parliament committee found that she had failed to disclose a potential conflict of interest: her brother held a senior position at Barclay’s during her time at the central bank. Hogg insisted that she never breached her duties or passed along any confidential information to her brother, but she had helped draft an industry ethics code of conduct policy required a disclosure of such conflicts. This creates doubts about her integrity, judgment competence, as well as the appearance of impropriety.

The Parliamentary committee recently issued a report finding that Ms. Hogg’s professional competence “short of the very high standards” required to be deputy governor, adding that her failure to disclose her brother’s role was a “serious error of judgment.”

This is one of my favorite kinds of conflicts, because it may be only appearances at stake. What if, as is often the case (sadly), Hogg and her brother are estranged? What if she doesn’t speak to him? What if they hate each other? Never mind: the public, not knowing this,  will suspect that she might use her position to favor him or his bank, so disclosure is crucial to maintaining public trust. Not disclosing, in contrast, raises suspicions. Why didn’t she let everyone know about her brother? What was she hiding? Continue reading →

A New Way To Be Unethical On An Airplane, Courtesy of “The Hamilton Effect”

/ Jack Marshall / 7 Comments

I’m in O’Hare, with about 20 minutes to post something, and amazingly, I just witnessed something of ethics significance.

As my United flight from Sacramento was at the O’Hare  gate, with passengers waiting for the jetway to be set up, a young man stood up in the middle of the plane and launched into a loud sales pitch for his depression counseling services!

Let’s call this ‘The Hamilton Effect,” in which people assume that a captive audience is there to be inflicted with their particular rants, business promotions and other intrusions.

The flight attendants had no idea what to do.  He was behind me, and I didn’t feel like fighting my way to him, intervening, and telling him, “You’re depressing ME. Shut up. We’re not your infomercial audience, and we didn’t consent to being bombarded by propaganda or marketing blather.”

Now I’m ticked off that I didn’t. Next time, I’ll be ready. This has to be nipped in the bud.

Oh, this probably wasn’t really sparked by “Hamilton’s” ambush of Mike Pence, but I’m going to blame the production and cast anyway. And all the ethics-challenged theater professionals who applauded this breach of trust.

On another topic, David Cay Johnston,the journalist who revealed the President’s 2005 tax returns, offers a rebuttal to my recent post, here. What fun!

Ethics Observation On The Trump 2005 Tax Return

/ Jack Marshall / 195 Comments

Yesterday, MSNBC host Rachel Maddow endlessly hyped the fact that  veteran investigative reporter David Cay Johnston had obtained President Trump’s 2005 federal tax return. When it was revealed, the scoop didn’t justify the hype. Trump  paid 38 million in taxes that year,  24% of his income—not the top rate, but not “nothing,” which was the rumor Democrats were selling during the campaign.

Ethics points:

1. Whoever leaked the return broke the law, and doing so was unethical.  No, it’s not illegal for the news media to take material stolen by others and sanctify it via their First Amendment protections.  It should be though. When they do this, they aide and abet a crime, and Freedom of the Press wasn’t supposed to allow THAT. At very least, journalists should be required to reveal the names of the criminals who steal and release our proprietary documents. The publication of these makes such thefts worse, not better.

2. I don’t see why the President’s tax returns from 12 years ago has any genuine relevance to anything now. The returns were relevant to the decision of whether or not people wanted to vote for him. Now, the tax documents have no purpose, except for the insatiable Trump-bashers to have something new to bash him with. Anything will do.

3. David Cay Johnston was dishing about his “scoop” with GMA’s George Stephanopoulos, and decided to start a new rumor. He speculated that Trump leaked the return himself.  No evidence, not a drop, and yet that’s what this veteran reporter felt was justifiable to say on national TV. Gee, can we call THAT fake news?

4. Then, as he did with Maddow, the reporter went on about all the conflicts of interest that Trump’s financial dealings have created. Again, this is re-litigating the election. At this point, there is no practical way to eliminate Trump’s conflicts and the appearance of impropriety that they create, and he’s not going to bother trying. Johnston, and others, including me, never made a clear case to the public why the President’s unprecedented financial entanglements should have been disqualifying; nor did Hillary, in part because her own financial entanglements were disqualifying. Well, the train left the station, y’all. You had your chance, and botched it. Johnston, like so many of the other bitter-enders who want to turn back time, ultimately get back to, “But…but…but…we never should have elected this guy! Surely there is something we can do to undo it!”

No, there isn’t. Cut it out. Continue reading →

Comment Of The Day: “Catching Up On “Instersectionality,” And Finally Paying Attention”

/ Jack Marshall / 30 Comments

These do not exist.

My heart sank when the I saw that the extremely lively debate following yesterday’s post about “intersectionality” had sparked a posting of “White Privilege: Unpacking the Invisible Knapsack” by Paula McIntosh, who either was time traveling  from 1947 or who was awakened from a coma in 1988 and set it to paper.  The list was out of date then, and it is 29 years old now: one of my favorite aspects of perpetual victim-mongers is that they always pretend that no progress has been made in ethics and human relations, because progress puts them out of business. 

I had to debunk this thing, but there were other priorities hanging over me. Fortunately, reader Isaac took up the challenge. This is often the case in Ethics Alarms, where the remarkable reader base either assists me in doing my job, or, as in this case, does it for me, often better than I could. Isaac chose humor to do the job here, and looking over the material, that might have been the kindest course.

Here is Isaac’s epic Comment of the Day on the post, “Catching Up On “Instersectionality And Finally Paying Attention.” (I’ll have a few comments at the end.)

I wish to thank Deery for sharing about the “Invisible Knapsack” of 26 White Privileges invented by someone named McIntosh. I had never heard of it and am eager to unpack all of unseen ways that the White-spiracy has gifted me with an implicit advantage over my colored people friends. By knowing what my white privilege affords me, I can now exploit it and achieve my highest potential! Let’s dive in.

—-“1. I can if I wish arrange to be in the company of people of my race most of the time.”—-

That can’t be right, and I don’t just mean the sentence structure. My neighborhood in Riverside County, California is about 65% Latino and 15% Black. And I can’t afford to move. I like it here. But if I did want to move to Orange County or Malibu or whatever and hang around fellow Whites all day, I can’t afford it. Maybe McIntosh can connect me to the secret White Privilege Office that will hook me up with a McMansion in Irvine.

—-“2. If I should need to move, I can be pretty sure of renting or purchasing housing in an area, which I can afford and in which I would want to live.”—–

Seriously, McIntosh? I just went over this. If it costs more than a one-bedroom apartment in Perris, I CAN’T afford it. Who is McIntosh and why does she believe that being White gets you real-estate discounts?

—-“3. I can be pretty sure that my neighbors in such a location will be neutral or pleasant to me.”—-

My neighbors have been pretty cool except for the three or four people who have robbed me or smashed some of my property. Is this the realization of my White privilege or do I still have untapped benefits?

—-“4. I can go shopping alone most of the time, pretty well assured that I will not be followed or harassed.”—-

I got kicked out of a gift store once as a teenager, but to be fair, I WAS shoplifting at the time.

I’ve only been unfairly followed or harassed while shopping a few times. But I checked with some of my Brown and Black friends, and they ALSO had only been followed or harassed while shopping a few times. That number should be WAY higher for them than for me. What kind of white privilege is this? Why are my benefits not notable?

—-5. “I can turn on the television or open to the front page of the paper and see people of my race widely represented.”—-

To check my privilege in this area I turned on the television and looked at a newspaper, and was surprised to find that yes, there were quite a few white people there. Sweet, privilege! But it gets better! I checked Wikipedia and found out that White people make up almost two thirds of the population of America! Wow! How can a group of people that make up 63% of a country’s population also be seen on the television and newspapers constantly? It’s gotta be a conspiracy, baby! A sweet, sweet, white conspiracy.

—-“6. When I am told about our national heritage or about “civilization,” I am shown that people of my color made it what it is.”—- Continue reading →

A Tale Of Two Hotels: Same Problem, Different Responses

/ Jack Marshall / 8 Comments

A couple of weeks ago, I stayed at Atlanta’s sumptuous Lowe’s hotel downtown. I like the hotel a great deal, but room service at breakfast is ridiculous: essentially you might as well order the deluxe pig-out, which could feed a family of three. The way the menu is set up, you pay the over $25 for any other choice and get half as much food. This is primarily because a pot of coffee costs more than ten dollars, and only the deluxe breakfast has coffee included.

Even though all expenses were being paid by the client, I hate this, so I decided to order a couple of muffins (still about $15 without coffee, not counting tax and the automatic service charge) and tolerate the free instant coffee that is  offered by the little single cup machines in the room. I was a good plan, but the damn thing wouldn’t work. The water didn’t heat. Annoyed (no coffee, 6 AM, brilliant money-saving scheme foiled), I called the front desk to complain. They sent up a young man—he arrived in about 15 minutes, after the continental breakfast—who fiddled with the coffee machine. It was obvious that he had never seen one before.  Eventually he gave up, apologized, and left to get another one. By the time he returned, I had finished most of the muffins, but I made a cup of (lousy) coffee anyway.

Last night, I had to stay in a hotel to make sure that D.C.’s $%^&$#@! Rock and Roll Marathon didn’t stop me from getting to my early morning presentation to new D.C. bar members. The streets around the venue were blocked off, and weird traffic was expected; hard experience dictated the expense was the better part of valor. There was breakfast provided at the bar event, so all I needed was some coffee in my room to wake me up sufficiently so that I didn’t wander onto 14th street and die.

This time, the hotel was the J.W Marriott, and again the little one cup coffee machine didn’t work. Just like in Atlanta, I called the front desk, sounding even more annoyed about the inconvenience than the before. (This was unfair, of course; there is no reason the Marriott should inherit my upset with Lowe’s.) The response from the desk was identical after I described my plight: she would send someone up to my room to check on the machine. Great.

When the knock came and I opened the door, I was greeted by the head of guest services, in a uniform. He had a new coffee machine with him, and also handed me a bag containing two large cups of Starbuck’s coffee, ten creamers, napkins, utensils, and two hot pastries. He replaced the machine after confirming that it was broken, apologized profusely, and took his leave.

Wow.

Now that’s service.

Now THIS Is As Close To Genuinely Frivolous Lawsuit As You Are Likely To See…And Naturally, It Is An Attack On The President

/ Jack Marshall / 5 Comments

Publicity stunt? Whatever would make you think this lawsuit is a publicity stunt???

As we have discussed here before, though we often complain of frivolous lawsuits,  even the worst law suits seldom meet the technical standard of what is “frivolous.”

The D.C. bar’s ethics rules state that…

A lawyer shall not bring or defend a proceeding, or assert or controvert an issue therein, unless there is a basis in law and fact for doing so that is not frivolous, which includes a good-faith argument for an extension, modification, or reversal of existing law.

This provides what I sometimes call “stupid lawyer” protection, on the theory that a stupid lawyer may have a sincere belief that an absurd action has a chance of prevailing, thus avoiding the rule’s rock bottom standard for “frivolous.” The recently filed lawsuit in Washington, D.C. against President Trump and the local Trump hotel, however, may be that rarest of legal birds, the truly frivolous lawsuit.

The married couple that owns  the Cork Wine Bar in Washington claim that the Trump International Hotel and the  restaurants similarly located in the Old Post Office building have an illegal advantage over other nearby establishments, like theirs, because of the association with the President.  Essentially the law suit claims that it’s all so unfair.

In addition to the res ipsa loquitur factor, which is to say that the lawsuit screams abuse of process to harass the President, we also have these suspicious factors: Continue reading →

A Very Bad Month For Price Waterhouse Coopers

/ Jack Marshall / 14 Comments

Earlier this month, Big Four accounting firm Price Waterhouse Coopers sustained a high-profile hit to its reputation when  the senior accountants the firm sent to ensure the integrity of the Oscars broadcast, a job the firm has had for more than half a century,  couldn’t manage to hand out the correct envelope at the televised ceremony’s surrounding.  Now it looks like the chaos that this botch created was a prelude to far, far worse.  For years, federal investigators have been scrutinizing Catapillar’s overseas tax affairs, examining the complex maneuvers involving billions of dollars and one of the company’s Swiss subsidiaries.

Now, a report commissioned by the government accuses the equipment manufacturing giant of carrying out a massive tax and accounting fraud involving billions of dollars. And the accounting firm Caterpillar employed to perform its audits?

The envelope please?

You guessed it.

The report, part of a wide investigation being undertaken by the United States attorney’s office for the Central District of Illinois, the IRS and the Inspector General of the F.D.I.C., thus far is neither public nor made available to Caterpillar for review.  It  describes an illegal company strategy to bring in billions of dollars from offshore affiliates while avoiding federal income taxes.  Leslie A. Robinson, an accounting professor at the Tuck School of Business at Dartmouth College and the author of the report, concluded that…

“Caterpillar did not comply with either U.S. tax law or U.S. financial reporting rules. I believe that the company’s noncompliance with these rules was deliberate and primarily with the intention of maintaining a higher share price. These actions were fraudulent rather than negligent.”

Dr. Robinson’s 85-page analysis, based on publicly available and internal financial data from Caterpillar as well as bank data tracking wire transfers from Switzerland into the United States, found that Caterpillar brought back $7.9 billion into the U.S. structured as loans, over and beyond the income that had already been taxed overseas. The company failed to report those loans for tax or accounting purposes, though under U.S. law those profits would be subject to federal taxes.

For example, the professor  found  correspondence between the company and the Securities and Exchange Commission in which Caterpillar said it had $2.5 billion  in income eligible to be brought to the United States tax-free. The company, she wrote, did not have “anywhere near” that much money still available to be brought in tax-free.

No charges have been filed yet. Last week, federal agents raided three Caterpillar buildings near its headquarters in Peoria, Ill., as part of the investigation. Caterpillar said it was cooperating with law enforcement, but denied wrongdoing. The Internal Revenue Service is currently seeking more than $2 billion in income taxes and penalties on profits earned by the Swiss unit.

Continue reading →

Ethics Train Wreck Update: Now The Dictionary People Have Boarded The Post-2016 Election Freakout

/ Jack Marshall / 26 Comments

It’s really depressing. I did not expect to see so many professions and professionals debase themselves and their ethical principles because they couldn’t deal with the results of a presidential election. . Historians. Judges. Scientists. Professors. College presidents and administrators. Performing artists. Intelligence community professionals. Judges. Journ–well, no, that one wasn’t a surprise.

My own profession, legal ethicists, booked a seat on the ethics train wreck, a development that was profoundly disappointing. Wrote one member of the profession who has remained clear -eyed while keeping his integrity, Steve Lubet in Slate,  “As a liberal Democrat, I have no sympathy for Conway’s habitual disregard for truth. As a professor of legal ethics, however, I think this complaint is dangerously misguided and has the potential to set a terrible precedent…The professors no doubt have faith in the professionalism of the District of Columbia Office of Disciplinary Counsel, but the bar authorities in other states may not always be reliably even-handed or apolitical. It is hardly inconceivable that lawyer discipline might somewhere be used as a weapon against disfavored or minority candidates, or as a means to squelch protest movements and insurgent campaigns. In the 1940s and 1950s, suspected Communists and alleged “fellow travelers” found their law licenses in jeopardy in many states. In the 1960s and 1970s, civil rights lawyers were hauled before the bar authorities in the South. The complaint against Conway is an unfortunate step back in the direction of using lawyer discipline against political enemies….”

Bingo.

Now “America’s dictionary,” Merriam-Webster, has decided that it is within its mission and purview to attack and mock the President of the United States..

Almost immediately after his election, the dictionary’s editors began trolling Trump and his administration, defined, by Merriam-Webster, as “to antagonize (others) online by deliberately posting inflammatory, irrelevant or offensive comments or other disruptive content.”

The website Acculturated has observed that on social media and its website Merriam-Webster has ridiculed the President  “for his every spelling mistake, grammatical error, and verbal gaffe. In honor of the election, they changed their header photo to a picture of a German word defined as the “collapse of a society or regime marked by catastrophic violence and disorder.” Then they highlighted what they claimed was the word most frequently looked-up, “fascism.” On Inauguration Day, they tweeted “Welp,” a word that conveys dismay or disappointment. The company also derided Betsy DeVos, Sean Spicer, Steve Bannon, and, of course, Kellyanne Conway.

This, needless to say, is not their job, their mission, or responsible professional conduct. It is, as it is for the other derailed professionals, smug virtue signalling and tribalism. Acculturated again:

[T]he dictionary’s editors are clearly partisan. They didn’t harass Hillary Clinton, and they don’t needle sports stars, celebrities, or, well . . . anyone else like they needle the President and his people.Theoretically, even that could be okay—a good, playful, occasional joke from the dictionary could have the whole country laughing. But if you mock one person too often, you start to reveal a pattern. If that pattern persists, the fun and games lose their light-hearted feel, and begin to betray bias instead.

Ya think???

Continue reading →

Comment Of The Day : “Incident At Big Bowl”

/ Jack Marshall / 9 Comments

John Billingsley has been participating here for less than two months, and this is his first Comment of the Day. He explores some of the broader labor, management and cultural  issues behind the curtain in my rueful account of  inept service at an airport fast food restaurant.

Here is John’s Comment of the Day on the post, “Incident at Big Bowl.”

I believe this is an issue that goes much deeper than it appears on the surface and Son of M and Tom M in their analyses have identified some of the issues at the root of the problem. Son of M said, “I don’t know that people at this level of employment have EVER cared or are ever going to.” There are some who care, and they can be identified when you are served by them, but I agree that most them appear not to. I think this is because our culture overall is not respectful of the people who do those jobs and so they have no reason to respect themselves as a person who performs that work.

I had the opportunity to live in Japan for about two years. That was over 40 years ago, and I still remember the complete professionalism of just about every service worker I encountered. Of course, it is a cultural thing. I wish people who provide services here could develop the attitude that it is not demeaning to be a service worker.

Tom asks, “Why is all of the blame on the employees?” Continue reading →

Comment Of The Day: “Gee, Would It Really Have Been So Hard For Democrats And The News Media To Just …Wow.”

/ Jack Marshall / 32 Comments

Spartan (“Sparty” to her friends) is a D.C. area lawyer  and professional woman, was well as the mother of girls. Thus her observations on the travails of women in the Halls of Power have special interest.

Here is Spartan’s “Comment of the Day” on post,  Gee, Would It Really Have Been So Hard For Democrats And The News Media To Just To Admit That Rep. Richmond’s ‘The President’s Female Counselor Looks Like She’s Used To Giving Blow-jobs’ Joke Was Wrong, Period? Apparently So. Wow:

I am going to criticize Ms. Conway for a minute, and I hope you all bear with me.

I am a career woman and, in fact, am the breadwinner for my family. Jack’s sister and I probably could exchange endless stories about the challenges of being a successful white collar female. I accept this as a fact in my life and recognize that I am held to a different standard without being bitter or loud about it. I did not wear red and stay home today despite the protest. In fact, I was supposed to be out of the office for meetings all day but deliberately came into the office so there would not be a presumption that I was taking part. I do not wear low cut dresses or stiletto heels. I do not sleep around the office — and never have. Continue reading →