Business & Commercial

Greg Smith’s Urgent Ethics Alarm

/ Jack Marshall / 2 Comments

“Today is my last day at Goldman Sachs. After almost 12 years at the firm — first as a summer intern while at Stanford, then in New York for 10 years, and now in London — I believe I have worked here long enough to understand the trajectory of its culture, its people and its identity. And I can honestly say that the environment now is as toxic and destructive as I have ever seen it”

This, says Greg Smith, is how the leadership of Goldman Sachs sees its clients.

With that, Goldman Sach’s executive Greg Smith began his remarkable op-ed in the New York Times, sending his former employers into crisis mode, panicking investors, and setting the financial, political and journalistic worlds buzzing. Obviously, it was an exposé about ethics as much as anything else.  Smith described a corporation-wide breach of trust with clients, a culture in which leadership openly derided those the company pledged to serve as “muppets,” and apparently, sheep to be sheared:

“It makes me ill how callously people talk about ripping their clients off… I don’t know of any illegal behavior, but will people push the envelope and pitch lucrative and complicated products to clients even if they are not the simplest investments or the ones most directly aligned with the client’s goals? Absolutely. Every day, in fact.”

Smith cites a breakdown in leadership, resulting in a corruption of values: Continue reading →

Presenting 2012’s “Most Ethical Companies”

/ Jack Marshall / 2 Comments

The World’s Most Ethical (WME) Companies designation recognizes companies that truly go beyond making statements about doing business “ethically” and translate those words into action. WME honorees not only promote ethical business standards and practices internally, they exceed legal compliance minimums and shape future industry standards by introducing best practices today.

Ethisphere, which recognizes corporations that set a good example for ethical business practices internally and in their business dealings, puts out an annual list of its “World’s Most Ethical Companies.” This year a record 145 companies, including more than three dozen industries, from aerospace to wind power, made the list. Ethisphere notes that since the list’s inception, more than 20 companies have made the list all six years including, including Aflac, American Express, Fluor, General Electric, Milliken & Company, Patagonia, Rabobank and Starbucks, among others.

You can read the list of 2012 honorees here.

(Thanks to Ira Levy for the link.)

“Luck,” Causation, and the Complex Computation of Mixed Motivations

/ Jack Marshall / 2 Comments

Was it good luck, or bad luck?

HBO has announced that it is cancelling “Luck,” its well-reviewed series about corruption in the sport of professional horse-racing. Why? Well, that’s an interesting question.

The immediate impetus for the decision was the death of a one of the horses used in the series. It was the third horse to die, so the announcement took the form of a sensitive and humane decision based on concerns for the animals. “While we maintained the highest safety standards possible, accidents unfortunately happen and it is impossible to guarantee they won’t in the future,” HBO’s statement said. “Accordingly, we have reached this difficult decision.”

I was initially impressed, but a couple of things about the move, which seemed uncharacteristically ethical by show business standards, bothered me. “Luck” was much-praised but low-rated, despite a cast headed by Dustin Hoffman and Nick Nolte and a production team headed by respected film director Michael Mann. Though it had been renewed for a second season, some felt that the renewal was dictated by a corporate decision not to embarrass its Hollywood royalty. Continue reading →

The Ethics Verdict on the Homeless Hotspot Project

/ Jack Marshall / 22 Comments

BBH Labs, the innovation unit of the international marketing agency BBH, hired members of the Austin, Texas homeless population to walk around carrying mobile Wi-Fi devices, offering high-speed Internet access in exchange for donations. Thirteen volunteers from a homeless shelter were hooked up to the devices, given business cards and put in shirts with messages that designated them as human connections. “I’m Rudolph, a 4G Hotspot” read the label on the homeless man on the New York Post’s front page with the lead, “HOT BUMS!”

The Walking Hotspots—now there’s a new horror series for AMC when they run out of zombies— were told to go to the most densely packed areas of the South by Southwest high-tech festival in Austin, Texas, where the technology trend-devouring conventioners often overwhelm the cellular networks with their smart phones. Attendees were told they could go up to a Homeless Hotspot and log on to his 4G network using the number on his T-shirt. A two-dollar contribution to the homeless man was the suggested payment for 15 minutes of service. BBH Labs paid  the wired-up homeless $20 a day, and they were also able to keep whatever customers donated.

What BBH called its “charitable  experiment” ended yesterday with the conference, and with all participants seemingly thrilled. The “Homeless Hotspot” gimmick got nationwide publicity, thirteen homeless men made some money, and conference participants got great connectivity…so why were so many people upset? Continue reading →

One Small Step For Honesty, Integrity and Freedom of Expression, One Small Defeat for Really Dumb Political Correctness

/ Jack Marshall / 32 Comments

Wait---WHAT'S THAT ON THE JERSEY??? NOOOOOOOO!!!!

The Houston Astros will be celebrating their 50th anniversary this baseball season. It hasn’t been a great half-century for the Astros—the team only made it to one World Series and lost in a four game sweep; its stadium was once named “Enron Field,” and the team was responsible for the introduction of fake grass to the sport—but they are still here, and that’s something. The planned celebration was to include the release of authentic jerseys from the first edition of the team in 1962, when they were called the Houston Colt 45’s. The 2012 Astros were going to play a game in those jerseys, but Major League Baseball decreed that the original logo couldn’t appear on the shirt—because it was a pistol.

This is the kind of political correctness nonsense that borders on attempted mind-control. Treating pictures of guns as if they are some kind of cultural contagion is not only offensive and silly, in this case it is air-brushing history. The original logo was what it was. A picture of a gun is quite appropriate, since the team was named after a gun. Honestly—what lunatic came up with this edict, and how come he or she wasn’t thrown into a padded room? Continue reading →

Actor Ethics: Welcome to Colombia!

/ Jack Marshall / 6 Comments

Yes, Sarah Bernhardt was probably unethical too. Actors!

I just blacklisted an actor, at least as far as my theater company is concerned, and I feel badly about it, because I don’t like banishing artists even when they deserve it. This individual did deserve it, however.

I held auditions a couple of months ago for a very difficult and complex production requiring special talents and a large cast. The turn-out was excellent, and the quality of talent was superb, with the actors obviously excited about the project. Since the script needs to be tailored to individual performers, the fear of an actor dropping out after being cast was especially strong (the maxim in the theater community is “cast early, cast often…”), so I took the unusual step of asking every auditioner who had a good chance of being cast to be honest about their commitment to the show. “If you want to be considered for this project,” I said, “I need to have your assurance that you are serious about it and will not tell me, after we have decided to cast you, that you have changed your mind. The show is like a big jigsaw puzzle, and casting you will affect whether we cast other actors, not just in your role but in roles that interact with yours. And I definitely do not want to cast someone who is going to turn around in a week or a month and say, ‘Sorry, I got a better offer.’ This is a commitment, and if we are committing to you, I need to know that you are committing to us.”

When the offers went out, a few actors nonetheless refused. One had just learned that she needed to seek more lucrative employment because her husband had been laid off; another had union problems. Over the next several months, there was another major loss, as an actress whom I had cast even before auditions—right before the delivery of her first child—told me that parenthood was more involving in reality than she had predicted when she committed to jumping into a major role so soon. I had thought this might happen, and, frankly, now felt that she was making the right decision.  I told her: “As a director, I was happy to let you be irresponsible for the benefit of my show, but as a parent, I’m glad your priorities are straight.”

The other day, however, one of the actors who had gladly accepted a role sent our producer a terse e-mail saying:

“Unfortunately, I can no longer do the show.  Thank you so much for all your help with everything; I’m very sorry for the inconvenience.” Continue reading →

Comment of the Day: “Ethics Train Wreck Extra: the Lawyer, the Advisor, and the Kennedy”

/ Jack Marshall / 8 Comments

Let's give a warm, Ethics Alarms welcome to attorney MAX KENNERLY!

Max Kennerly, the attorney who has argued that Sandra Fluke could legitimately sue talk show host Rush Limbaugh for his on-air insults, rebuts the Ethics Alarms post finding his argument disturbing. I’ll have a response at the end. Here is his Comment of the Day on “Ethics Train Wreck Extra: the Lawyer, the Advisor, and the Kennedy”:

“Who said anything about “silencing?” Defamation is a civil claim that, when proven, results in a monetary judgment, nothing more. Limbaugh’s still free to say what he wants.

“I assume your response to the “it’s not silencing” argument is something like, “he’s not technically silenced, but his speech is chilled.” To that, I ask which scenario is more chilling: Continue reading →

Ethics Hero: —Wait For It—Rush Limbaugh!

/ Jack Marshall / 14 Comments

No, not for that!

For this:

Odd...one would think that a bed company would be familiar with this expression. Well, NOW it is!

After Rush Limbaugh’s personal attack on Sandra Fluke for her testimony before some House Democrats generated furious backlash and activist threats of boycotts of his sponsors, Sleep Train, which calls itself  “the No. 1 Bedding Specialist on the West Coast, and most recognized mattress retailer in the region,” announced that it was ceasing its advertising on Limbaugh’s daily radio show. It had been a national sponsor for 25 years. “As a diverse company, Sleep Train does not condone such negative comments directed toward any person,” the company said in a statement. “We have currently pulled our ads with Rush Limbaugh.”

Sleep Train is, to use the vernacular, a corporate worm. It began advertising with Limbaugh when it was a small company, and he has treated it well. At a moment when the talk show host was under attack by political opponents who want to get him off the air and be free of influential political commentary that often spears their cherished objectives, the company not only abandoned Limbaugh but kicked him when he was down. It was also deceitful about it: while it’s announcement sounded unequivocal, in fact it had only suspended its ads rather than withdrawn as a sponsor. Continue reading →

The NFL, Battling Its Own Sick Culture

/ Jack Marshall / 8 Comments

"OK, it's a deal then: we put this guy in the hospital, and split the bounty 50-50..."

The last Super Bowl was phenomenally successful, as its audience size shattered previous records. Yet for many years, I have not been able to enjoy the sport, because of the unethical conflict at its core. Pro football’s appeal and swagger is based on violence, and we now know that the violence damages its players to an unacceptable extent. The players are paid both to accept the crippling and often-life shortening abuse, as well as administer it. For this former fan, that makes football too close to boxing from an ethical perspective. If the NFL is paying  players to do permanent harm to each other, then so are the fans that pay the NFL.  Sorry: there are too many other forms of entertainment that don’t require me to endorse and subsidize brutality. Thus I was not surprised to read this, in the New York Times:

“During the past three seasons, while the National Football League has been changing rules and levying fines in an effort to improve player safety, members of the New Orleans Saints’ defense maintained a lucrative bounty system that paid players for injuring opponents, according to an extensive investigation by the N.F.L. The bounty system was financed mostly by players — as many as 27 of them — and was administered by the former defensive coordinator Gregg Williams, who also contributed money to the pool. The N.F.L. said that neither Coach Sean Payton nor General Manager Mickey Loomis did anything to stop the bounties when they were made aware of them or when they learned of the league’s investigation.  According to the league, Loomis did not even stop the bounties when ordered to by the team’s owner. “

This practice is not only unethical and against NFL rules, it is criminal.  Continue reading →

Kind and Exploitive: SNL Performs A Rare Ethical Unethical Act

/ Jack Marshall / 5 Comments

Lindsay Lohan, when everything was possible, and the future was bright.

Tomorrow, Saturday Night Live is bringing back Lindsay Lohan as Guest Host. This a decision that defies ethical analysis. On one hand, it is certain to be a ratings winner, as the curious will tune in to see if Lohan has a meltdown, look prematurely aged by her various addictions, or does or says something that continues her five year-run of self-destructive behavior. Lindsay is almost finished with her court-ordered rehab and community service, but her status in show business could hardly be much lower. She is widely regarded as uninsurable, and a candidate for a relapse at any time. Since the lapsed child star last hosted SNL, she has stood trial for grand theft, been held in contempt of court, been sentenced to jail twice, and made the classic desperation career move of posing nude for Playboy, a last ditch tactic that 1) almost never works, and 2) is usually reserved for fading pop stars and marginal TV actresses in  their thirties, not a 25-year-olds.who should be in her career prime. If there ever was a ratings-motivated “let’s give the people a train wreck to gawk at” call, this was it. Continue reading →