Stuart R. Ross, a non-practicing lawyer who, among other dealings, once owned a chunk of the Smurfs franchise, ran out of his own money and began pestering his successful son-in-law, David S. Blitzer, for investment capital. After Ross blew through the tens of thousands of dollars he got from Blitzer, he demanded more, and Blitzer, a senior managing director of The Blackstone Group, told him that he wasn’t getting any more. So Ross adopted another strategy: he told his daughter’s husband, through repeated e-mails and phone calls, that he would reveal unidentified, career-wrecking secrets about Blitzer if Blitzer didn’t hand over more money—$5.5 million, to be precise. Continue reading
Business & Commercial
The Counterfeit Classic Musical Act Problem
It isn’t new, and there is no way to stop it, but we need to complain a little louder about the false promotion of counterfeit musical acts for concerts and fairs. It may be legal, but it is misleading and dishonest. Continue reading
Unethical Quote of the Week
“The world is full of imperfect people; if everyone who ever fudged an expense report or flirted with an outside contractor were fired, there wouldn’t be many people left in the American work force. This is not to say that Mr. Hurd should be let off the hook for, in his words, failing “to live up to the standards and principles of trust, respect and integrity that I have espoused at H.P.” But a firing offense? Really? “ —New York Times business columnist Joe Nocera, in commentary concluding that Hewlett Packard’s stated justifications for firing CEO Mark Hurd— an inappropriate relationship with an adult film star he had hired as a consultant, and his “fudged” expense reports employed to hide his indiscretion—were a pretense. Nocera argues that Hurd was intensely disliked and distrusted throughout the company, and was perceived as being willing to cut core H.P. activities in order to enrich himself.
Nocera might well be correct that H.P.’s reasons for firing Hurd were not what the company claimed them to be. His conclusion, however, that what Hurd did was not a “firing offense” tells us a great deal about the skewed ethical mindset of the corporate culture in America, with which Nocera, as one who has been immersed in it for decades, is clearly infected. Continue reading
A Commercial for Liars: Tide..with Acti-lift!
Yes, Procter and Gamble, makers of Tide laundry detergent, thinks lying is cute, and that Americans will run out and buy a product advertised as useful for assisting lies.
And who knows? Maybe they’re right. We certainly wouldn’t expect a corporation or an ad agency to see anything wrong with lying, since it is business as usual for them. They probably don’t even realize such messages are corrupting.
The new TV ad for Tide and its new “Acti-Lift” secret ingredient (It’s called “Closet Raid”; you can see it here…) shows the heart-warming saga of a teenage girl who trustingly asks her mom whether she borrowed a favorite green blouse. Continue reading
Steven Slater And The Rest of the Story: No Surprises
Occasionally, there is cosmic justice. The astounding number of bloggers, media commentators and ordinary working folks who have expressed admiration for Steven Slater, the irresponsible and unprofessional flight attendant who threw a tantrum of Adam Sandler proportions at the end of a recent Jet Blue flight, appears to have been itching for a confrontation throughout the flight, and had behaved is a rude and provocative manner to more than one passenger.
Well, of course. Continue reading
Ethics, Ethics, Everywhere…
Stories with ethical implications are popping up everywhere, in many fields. I’m running hard to keep up; if you want to join the race, here are some recent developments and notes:
- A prominent Harvard professor and respected researcher just retracted a major paper and has been put on leave, as an investigation showed irregularities in his methods and results. “This retraction creates a quandary for those of us in the field about whether other results are to be trusted as well, especially since there are other papers currently being reconsidered by other journals as well,’’ wrote one scientist. “If scientists can’t trust published papers, the whole process breaks down.’’
- A Wisconsin lawyer bought a farm from his own client in a bankruptcy matter, a classic conflict of interest. The lawyer’s defense was amusing: since his license had been suspended, he no longer had a fiduciary duty to his now former client. The court canceled the sale. The story is on the Legal Profession Blog.
- The excellent Sunlight Foundation has strong commentary regarding the lack of genuine ethics oversight at the White House. Continue reading
Oracle’s CEO Reminds Us Why We Can’t Trust Big Business
Lawrence J. Ellison, the chief executive of Oracle, ridiculed Hewlett-Packard’s directors for forcing the resignation of the H.P. chief executive, Mark V. Hurd.
We all owe a debt of gratitude to Ellison, for his attempt to defend a fellow CEO and friend is an abject lesson in why large corporations have to be watched carefully. Too many of them are run by those like Mr. Hurd, who believe that making his company lots of money entitle him to break rules and cut corners in ways that their companies tells their subordinates are violation of company policy and business ethics. And far too many board members of big corporations are like Mr. Ellison, not only excusing this attitude, but endorsing it. Continue reading
Ethics Dunces: Steven Slater Defenders
You probably have heard about Steven Slater, the Jet Blue flight attendant who snapped like dry twig when a female passenger refused to sit as instructed after a landing at New York’s JFK Airport, pulled out her luggage from the overhead compartment, bonking him on the head, then refused to apologize and cursed at him. Slater, emulating a scene from a Chris Farley movie that never got made, took to the public address system to curse out all the passengers, grabbed a beer, launched the emergency chute, slid down it, and fled the plane and the airport.
He was later arrested at home. Sources told NBC that he was “having a bad day.”
No kidding. Continue reading
The Strange Case of the Starving Lawyer
Newly minted and unemployed lawyer Ethan Haines has gone on a hunger strike in the name of all unemployed former law students, to protest misleading law school employment statistics, commercial school rankings, and antiquated career counseling programs. “I designated myself class representative since these students are not able to come forward themselves, for fear that vocalizing their concerns will negatively affect their careers,” he writes on his website. He is alerting various law schools about his Dick Gregory-style protest, intending “to bring awareness to the concerns of law students and recent law graduates by having them addressed by law school administrators. Their primary concerns are inaccurate employment statistics, ineffective career counseling, and rising tuition costs.” The strike, he says, “was motivated by a recent American Bar Association (ABA) investigate Report, which concluded that educational leaders are unable to timely combat the adverse affects of U.S. News’ rankings on legal education.” Continue reading