Business & Commercial

How the Lack of Ethics Cripples Democracy, Reason #2: Corporate Executive Greed

/ Jack Marshall / 11 Comments

 

"Let's see...that's one schilling for Cratchet, 280 for me..."

The average compensation for chief executives of the 500 largest U.S. corporations is going up again.

According to Governance Metrics International, the average compensation for the CEOs, including salary, bonus and benefits plus the exercise of stock options, the vesting of stock grants and retirement benefits, was just under $12 million in 2010, up 18 percent from 2009. As Washington Post business writer Steve Pearlstein observes in his column this week, if you believe this is justified by market forces and common sense, “then you must also believe two things: First, that none of these guys would do the same job for a nickel less. Second, that the value of the chief executive went up 18 percent last year while the value of average workers in their companies changed very little.”  “And,” concludes Pearlstein, “if you believe that, you are a fool and an ideal candidate for an open seat on an S&P company board of directors.” Continue reading →

When Business Rejects Ethics: the Sorabella Story

/ Jack Marshall / 9 Comments

"So sorry about your wife's cancer, Carl. Let me know if there's anything we can do. Oh, by the way...you're fired."

I usually feel that organized labor rhetoric about cruel and heartless employers is archaic and exaggerated for political effect. This story, however, is almost enough to make me pick up a sign and start picketing.

Carl Sorabella, 43, got a merit raise in November for Haynes Management,  a real estate company in Wellesley, Mass., where he has worked as an accountant for almost 14 years. Then he learned that his wife, Kathy, had been diagnosed with advanced cancer. Told that the likelihood was that she had only months to live, Carl approached his boss. Sorabella explained that his wife’s illness would require him to have flexible hours as he supported her during her tests and treatment. He assured her that he would do whatever was necessary to keep his work up-to-date and complete his duties.

She fired him anyway. Continue reading →

Sorrell v. IMS Health: Legal, Ethical, and Unjust

/ Jack Marshall / 1 Comment

The case of Sorrell v. IMS Health, which the Supreme Court decided yesterday, sharply focuses the philosophical disagreement over the role of the courts in public policy. The legal question was rather straightforward; the ethical issues are complex. Is it the Court’s duty to make bad—but constitutional— laws work, or is its duty to follow the laws, and leave it to the legislature to fix their flaws?

This was a case about incompetent  lawmaking. Gladys Mensing and Julie Demahy had sued Pliva and other generic drug manufacturers in  Louisiana and Minnesota over the labels for metoclopramide, the generic version of Reglan. The drug, used to treat acid reflux, had caused them to develop a neurological movement disorder called tardive dyskinesia. None of the generic drug’s manufacturers and distributors included warnings on the labels about the danger of extended use of the medication, even though the risk was known to them. Neither did the manufacturers of the brand-name drug. The problem was that the state statutes required generic drug manufacturers to included warnings about dangerous side effects, while federal regulations required generic drugs to carry the exact same label information as their brand name equivalent.  Continue reading →

Ethics Dunce: Ex-Washington Nationals Manager Jim Riggleman

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Jim Riggleman is a major league baseball manager of modest accomplishments, one of the forty or so men in the rotating pool that teams will use to fill manager vacancies with low-risk options rather than try someone promising but with little experience. He had a one-year contract with the hapless Washington Nationals that included a team option for a second, which the manager felt the team should pick up now, rather than at the end of the season.

Riggleman believed that he had some leverage. The Nationals have been surging since star third baseman Ryan Zimmerman has returned from an injury, and are, for the first time in the team’s  short time in Washington (they were once the Montreal Expos), flirting with a winning record more than half-way through the schedule. But as is often the case with players when a club option is involved, the Nationals saw no reason to make a decision on Riggleman’s contract until the season was over. A lot can happen in three months. General manager Mike Rizzo told Riggleman he would just have to wait. That’s what a team option is, after all. The team’s option. Continue reading →

The Offensive Battle Over “Seven in Heaven Way”

/ Jack Marshall / 113 Comments

"There goes Fred, getting all religious again...."

With some hesitation, I must re-open the issue of officious inter-meddlers and grievance-mongerers who get satisfaction and empowerment from claiming to be offended by things that could not possibly harm them or genuinely infringe on their rights. The atheists are at it again.

My position has been stated here and elsewhere many times: in the absence of genuine long or short term harm, the ethical human response to a symbolic grievance is to keep one’s response proportional to the offense, which sometimes means considering how many individuals will be made miserable in order to satisfy one individual or a small group, and letting it go. Forcing a university to change the long-standing name of its football team based on a dubious argument that the name is an offense to Native Americans when most Native Americans couldn’t care less, for example, is wrong. Forcing a school to stop teaching kindergarteners to sing “Rudolf the Red-nosed Reindeer” because a Jewish parent thinks the song promotes Christianity is wrong.

Now a group of New York City atheists is demanding that their city re-name a street that was dedicated to the memory of seven firefighters killed in the Sept. 11, 2001, terrorist attacks.  Continue reading →

The FDA’s Disgust Offensive: Manipulative and Wrong

/ Jack Marshall / 27 Comments

Why stop at this?

I’ve never smoked.  My wife is a smoker and I am worried about her; I also think the tobacco industry is more or less despicable. Nevertheless, I find the new disgust-initiative by the FDA on cigarette package labeling  troubling. If it’s ethical, it only passes muster in a utilitarian balancing formula, and even then I think it opens the door to government abuse.

Thanks to a 2009 law, cigarette makers must add large, graphic warning labels depicting diseased lungs, a man exhaling smoke through a hole in his neck, a baby near a cloud of smoke, a dead body, a man wearing a black t-shirt with “I Quit” written across the chest and three other ugly images to packaging and advertising in the U.S. by October 2012. These will be accompanied by warning labels with messages like “Smoking can kill you” and “Cigarettes cause cancer.” In full, stomach-turning color, the new labels must occupy the top half of the front and back of  cigarette packs, and 20% of any cigarette ad’s space. The labels must also include the number of a national quit line and the current warning labels.

All this, yet the government allows the stuff to be sold. I don’t get it, frankly. If cigarettes are so bad that the FDA feels it has to use tactics this extreme, then it should have the courage to just ban them, like they ban other harmful substances. Continue reading →

NBC and the Death of Professional Broadcast News

/ Jack Marshall / 5 Comments

The flap over NBC’s unilateral decision to excise “God” from the Pledge of Allegiance (currently the catalyst for a somewhat off-topic debate in the comments to the Ethics Alarms post on the issue about the propriety of having God in the Pledge at all) points to the related problem of NBC’s gradual but persistent degradation on its news reporting and journalistic integrity over the last several years.  Happily, there is a blog devoted to just that, one of the many excellent ethics-related sites linked on the blogroll that nobody seems to use. It is called Nightly-Daily, where a fanatic Brian Williams foe named Norman Charles meticulously dissects NBC’s nightly news broadcasts to report on journalistic outrages. He finds them almost every night.

Regarding NBC’s U.S. Open coverage, the scene of NBC’s Pledge distortion, Charles wrote, Continue reading →

Incompetent Elected Official of the Month: Rep. Jeff Denham (R-CA)

/ Jack Marshall / 4 Comments

Rep. Jeff Denham: Now we know.

First the airlines are unfairly pilloried in the media thanks to an ignorant serviceman’s YouTube complaint about being charged excessive baggage fees for his gear….despite the fact that 1) the airlines already give servicemen  discounts on extra bags (though they shouldn’t) and 2) the fees charged will be reimbursed, just like my business travel costs are reimbursed by the people who hire me.

Now Congressman Jeff Denham (R-CA) has introduced a non-binding resolution in the House that threatens to use contracts between the military and commercial airlines to punish carriers that do not waive all baggage fees for deployed military personnel.

Rep. Denham’s resolution has its good side: now we know that he is unethical, a fool beyond redemption, and a bully as well. Continue reading →

Story Update: the Fake Law Firm’s Purpose Revealed

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Ethics Alarms honored the web site for Cromwell and Goodwin, an apparently imaginary law firm, in its

Yeah, these people always seemed a little creepy to me...

“Unethical Website” category, without being certain what unethical purpose the site served—though I had my suspicions. As many suspected, it was fishing for scamming victims, and one of them contacted The American Law Daily in May to tell his story. The Am Law Daily, to its credit, held on publishing the story until his efforts to recover the money failed, and now we can all read about it. David Tucker, a 66-year-old fire investigation scientist from London, lost roughly $6,775 to the Cromwell & Goodwin scammers, and gave the legal news publication copies of documents printed on “firm” letterhead to support his claims. You can find his account here.

Ethics Dunce: NBC

/ Jack Marshall / 82 Comments

You tell 'em, NBC...

NBC cut the words “under God” from the Pledge of Allegiance in its lead-up to its coverage of the U.S. Open at Congressional Country Club in Washington, D.C., an audacious and inexcusable unilateral kowtow to political correctness. Why did the network do it? What gave them the idea that NBC has the right to redact the official Pledge, as passed by Congress? Who are the arrogant idiots who would dare to do such a thing, and think they could get away with it?

Nobody knows, or at least, nobody is saying. The NBC brass, watching Twitter burst into flames with fully justified criticism, issued a classic non-apology apology, saying, Continue reading →