Business & Commercial

Rushed Ethics

/ Jack Marshall / Leave a comment

Feeling pressured?

The Economist points its readers’ attentions to two studies showing the ethical benefits of delay to decision-makers. It is an important topic, with profound ethical implications. Deadlines and the perception of urgency are both what I call pre-unethical conditions, situations that so frequently lead to unethical conduct that our ethics alarms should start ringing the second we start feeling the dread of time-pressure. The Economist article notes that…

“…[ in ] an obscure article in the Academy of Management Journal by Brian Gunia of Johns Hopkins University… Mr Gunia and his three co-authors demonstrated, in a series of experiments, that slowing down makes us more ethical. When confronted with a clear choice between right and wrong, people are five times more likely to do the right thing if they have time to think about it than if they are forced to make a snap decision. Organisations with a “fast pulse” (such as banks) are more likely to suffer from ethical problems than those that move more slowly….The authors suggest that companies should make greater use of “cooling-off periods” or introduce several levels of approval for important decisions.” Continue reading →

The Economic Meltdown: Accountability Check

/ Jack Marshall / 2 Comments

The shoe fits both Parties.

The ethics story of week was the dropping of the missing shoe in the “Friends of Angelo” scandal that helped drive Democratic Senator and party leader Chris Dodd into retirement. (More here.) It fell like this:

WASHINGTON (AP) — The former Countrywide Financial Corp., whose subprime loans helped start the nation’s foreclosure crisis, made hundreds of discount loans to buy influence with members of Congress, congressional staff, top government officials and executives of troubled mortgage giant Fannie Mae, according to a House report.

What the report indicates is that the bribery of regulators and members of Congress to allow the sub-prime mortgage con-game to continue was far worse and for more widespread than anyone realized. Countrywide offered special loan deals to dozens of influential government officials to stave off regulations that might have avoided or greatly lessened the mortgage collapse that triggered the current long-term economic crisis: 

“Documents and testimony obtained by the committee show the VIP loan program was a tool used by Countrywide to build goodwill with lawmakers and other individuals positioned to benefit the company,” the report said. “In the years that led up to the 2007 housing market decline, Countrywide VIPs were positioned to affect dozens of pieces of legislation that would have reformed Fannie” and its rival Freddie Mac, the committee said.“

More: Continue reading →

“I’m Warning You: If You Rescue That Drowning Man Over There, You’re Fired!”

/ Jack Marshall / 5 Comments

“Not your concern…”

The brain-dead and ethics-empty conduct of Jeff Ellis Management, an Orlando, Florida-based company, in its recent firing of 21-year-old lifeguard Tomas Lopez is welcome in one respect, and one respect only. It helps explain the inhuman attitude of the two Brooklyn EMT’s who stood by and watched a woman die of a heart attack as they munched bagels. It begins to explain why two Seattle security guards stood by and allowed a woman to be nearly beaten to death while they looked on. It almost explains how a crowd of people on a California shore, including firefighters, stood by as a man named Raymond Zack took nearly an hour to drown himself. It might even provide some insight into the thought processes of Penn State assistant football coach Mike McQueery, who famously observed Jerry Sandusky as he engaged in a child rape but didn’t stop it. For one of the reasons so many Americans turn off their ethics alarms, reject their humanity and flunk their duty to rescue those in peril is that there are people like  Jeff Ellis, who deem human life less important than business, policy and profit, and who will punish any employee who doesn’t feel similarly and act accordingly.

The company fired Lopez after he pulled a struggling swimmer out of the ocean on Hallandale Beach in Broward County, saving his life. The rescue, you see, occurred 1,500 feet south of the firm’s contracted boundaries for lifeguard service.  Lopez was told that a swimmer was in peril off the neighboring beach, and ran to his rescue, leaving the “protected beach” area where his services had been contracted to serve. The near-drowning victim was swimming in the “unprotected area” without lifeguards, and there’s no point, the management company reasons, to hire it to provide lifeguards if the heroes like Lopez will dive in for free. Continue reading →

Ethics Dunce: Animal Planet

/ Jack Marshall / 17 Comments

The National Oceanic and Atmospheric Administration recently felt that it was necessary to put out this statement, which reads in part:

“Mermaids — those half-human, half-fish sirens of the sea — are legendary sea creatures chronicled in maritime cultures since time immemorial…But are mermaids real? No evidence of aquatic humanoids has ever been found. Why, then, do they occupy the collective unconscious of nearly all seafaring peoples? That’s a question best left to historians, philosophers, and anthropologists.”

Why, you ask? Wasn’t the mummy of the Fiji Mermaid, a famous P.T. Barnum humbug, debunked almost two centuries ago? Yes, it was. Now, however, instead of a famous showman whom people expected to be fooling them, we have unscrupulous and irresponsible TV executives, who run channels with trustworthy names like The History Channel, Discovery and The Learning Channel, and then use these venues to make Americans even more stupid and ignorant than they already are. Continue reading →

Dan Ariely: Without Ethics, We Are Governed By Psychological Enablers of Cheating and Worse

/ Jack Marshall / 3 Comments

And it’s nothing to be proud of.

Duke behavioral scientist (or, as he likes to call himself, “behavioral economist”) Dan Ariely, has a new book out. This is a boon for my ethics classes, since I’m sure they are getting a little sick of me quoting the last one, “Predictably Irrational.” His new best seller is “The Honest Truth About Dishonesty,” and Ariely has been making the rounds of NPR and various publications promoting it. Like Malcolm Gladwell (“The Tipping Point”), Ariely writes provocative and easily digested books that seemed to be designed to make you skip the movie on airplane flights; they are not deep, but they are helpful, at promoting self-understanding if nothing else.

I’ve been saving my copy of “The Honest Truth About Dishonesty” for my next trip, but the most valuable thing about it from my perspective is that it validates the importance of developing the skills of ethical analysis. As the author explained in a recent interview, when most human beings ( Ariely pegs the percentage at a depressing 98%—and one of the two missing percentage points are people who cheat no matter what! ) human beings let their gut determine whether they are going to cheat or not, they will make their choice according to a potpourri of rationalizions and quirky psychological factors that have little to do with right and wrong.

Among the useful observations he made in his recent interview with journalist Gary Belsky: Continue reading →

The Homophobic Counselor, the Ethical Bigot, and the One-Legged Tarzan

/ Jack Marshall / 23 Comments

Jennifer Keeton was expelled from the graduate program at Georgia’s Augusta State University in 2010 because her Christian religious convictions dictate that homosexuality is sinful and voluntary conduct, rather than an innate sexual orientation. A court upheld the school’s right to expel her on the basis that her beliefs made it impossible for her to meet their counseling standards, which the court ruled were neutral, and did not discriminate against her speech or religion.

The case may raise legitimate constitutional issues. The Alliance Defense Fund (ADF), a conservative legal group, and Constitutional Law professor Eugene Volokh (of Volokh Conspiracy fame) are assisting Keaton as she attempts to get reinstated. Ethically, however, I don’t think she has a leg to stand on.
In fact, I think her position resembles the old Dudley Moore-Peter Cook comedy routine where Moore is one-legged amputee who cries foul at being “discriminated against” by a film director who refuses to consider him for the role of Tarzan:

Similarly, how can a counselor claim to be able to provide full and competent services when her attitude toward gays dictates an unsympathetic, hostile and scientifically discredited point of view? Continue reading →

The 77% Lie: Just Because a False Statistic Is Useful and Traditional Doesn’t Make It Less Unethical To Keep Using It.

/ Jack Marshall / 19 Comments

Sure, lie to us, Mr. President. As long as its for a good cause.

In 2000, CNN anchor Bernard Shaw used the statistic that “women are paid only 77 cents for every dollar men receive for the same work” in a question to Joe Lieberman during the Vice Presidential candidates debate, prompting me to turn or the TV and write a letter to CNN. The statistic had long been debunked as misleading and inaccurate for years by every objective observer who examined it. The unspoken assumption that figure is meant to convey is that this supposed gap reflects sexism in the workplace. It dates from the early days of NOW and the feminist push for the Equal Rights Amendment, an activist-concocted lie, like many of the global warming “facts” mouthed by Al Gore, designed to simplify a complex phenomenon into something unequivocally persuasive. For Shaw, a journalist, to repeat a false and misleading statistic as fact in a nationally televised debate was inexcusable, and irresponsible journalism.

Did I mention that this was in 2000?

The 77% stat is one of my two pet fake statistics (the other being the statement that 50% of all U.S. marriages end in divorce, used by culture warriors on both the left and right), and I have vowed not to let either pass without a red flag until I either drop dead or people stop lying. So I don’t care to hear, thank you, about how I’m picking on the President Obama when Mitt Romney has been using some misleading facts too. I know he has. But when a President of the United States whose supporters laud as a genius and scholar, and who pledged not to mislead the American people promotes his campaign with a widely publicized statistic that he has to know misinforms the public, I believe that’s alarming, insulting, and infuriating.  The fact that Democrats and feminists have been using the same lie for over three decades doesn’t make it less offensive, but more. Continue reading →

Comment of the Day: “Comment of the Day on ‘Young, Gullible, Lazy, Unimaginative and Unbelievable: I Wonder Why This Lawyer Has Trouble Finding A Job?'”

/ Jack Marshall / 9 Comments

I couldn’t resist this one.

The thread on my post about an Occupy Wall Street protester who apparently was a law school grad and who held a hand-lettered sign blaming his failure to find work, not on the fact that he was standing around in a park holding a sign, but on his law school, has uncovered some unpleasant truths, such as…

  • Law schools are giving degrees to a lot of people who don’t know what to do with them
  • A lot of law school grads have not acquired some of the basic skills, like unbiased analysis, that their training was supposed to convey
  • A striking number of law school graduates identify with whiny unemployed 20-lear-olds holding signs
  • Too many people want to be lawyers for the money, rather than to serve a higher social function
  • Personal accountability is on the wane in America
  • People will believe the damnedest things if it will prevent them from accepting responsibility for their own plight, and
  • Confirmation bias is a frightening phenomenon.

Embodying many of these qualities was the recent post of someone with the apparently ethnic name of Iwantoremainanonymous-–Indian, perhaps?—who  had many observations typical of the thread that I unfortunately cannot permit to be posted, because he not only defied  the Ethics Alarms no anonymous comments rule, but, in his wealth of legal knowledge, disputes that I even have the right to make such rules.

Here is his jaw-dropping, incomplete Comment of the Day on “Comment of the Day on ‘Young, Gullible, Lazy, Unimaginative and Unbelievable: I Wonder Why This Lawyer Has Trouble Finding A Job?'”: Continue reading →

Comment of the Day: “Ethics Quiz: The Bank, the Addict, and the Broken Egg.”

/ Jack Marshall / 10 Comments

The recent post about Ronald Page, the gambling addict given an open, no limits ATM privilege by Bank of America, with predictable results, suggests two opposite reactions. That’s why it was an Ethics Quiz. I expected my answer that it would be wrong to imprison Page for a crime committed because BOA’s negligence triggered his addictive behavior to be countered by the response Karl Penny expresses, persuasively, here. This is his Comment of the Day on “Ethics Quiz: The Bank, the Addict, and the Broken Egg.”

“Jack, I do volunteer work in prisons with people who have all sorts of substance abuse issues. In addition, I grew up in a family of alcoholics. I say that not to garner sympathy or whatever, but to establish credentials, however unofficial. Addicts know what they are doing, even while they are doing it, they know it. They know it when they are sober, and they know it when they’re drunk (alcoholics, gamblers, drug abusers, etc—they’re all drunks—not very PC, but brutally honest). They are human beings imbued with all that goes into being human and, as such, they command my compassion and concern. But. They know. Continue reading →

Ethics Quiz: The Bank, the Addict, and the Broken Egg

/ Jack Marshall / 26 Comments

There was a little software problem when Bank of America acquired LaSalle Bank and the two were transferring account data. As a result, LaSalle depositor Ronald Page found that he could make unlimited ATM cash overdraft withdrawals, even though he had only $300 in his checking account.  This tempting state of affairs lasted for seventeen days, and then from December 1, 2008 to May 31, 2009, Page gambled like a man on fire.  Unfortunately for Page and Bank of America—but fortunately for several casinos—Page is a gambling addict. He withdrew, and gambled away, $1,543,104.00

Now the U.S. Attorney’s Office in Detroit says he is seeking to send him to jail for 15 months  after he pleaded guilty to charges of theft of bank funds. He is also going to be required to pay back the money, with interest, guaranteeing poverty for life.

Your Ethics Alarms Ethics Quiz question:

Is this fair? Continue reading →