The Senate Closes an Unethical Tax Loophole

When a defendant corporation is hit with punitive damages in a jury verdict, that means that in addition to causing the plaintiff’s injuries or damages, the corporation also was guilty of wrongdoing. Punitive damages are large amounts of money that the losing defendant must pay over and above compensatory damages, in order to make it too expensive for the company to keep doing what caused the original problem. This is one of the virtues of the civil justice system. Thanks to punitive damages, a lawsuit by a single injured party can result in a sufficiently painful financial penalty that the corporation has a significant incentive to reform.

So why do the tax laws allow companies to use punitive damages as tax deductions, since it 1) lowers tax revenues and 2) makes the damages less expensive, less painful, and less of an incentive to correct unsafe, dangerous or dishonest practices? Continue reading →

Doritos, Web Hoaxes, and the Need For An Ethical Consensus

AOL reports:

“A fake coupon for a free bag of Doritos has gone viral, leaving consumers angry when they can’t cash it in, retailers holding the bag if they do redeem it and Frito-Lay dealing with damage to its image. The scam problem has increased in the past few weeks as more and more people e-mailed the coupon to one another. And though a $5 bag of chips may not sound like a big problem, Frito-Lay spokeswoman Aurora Gonzalez said the losses could end up in the multimillions: The dollar value of fake coupons submitted in recent weeks equaled 5 percent of Frito-Lay’s real coupon offerings for all of 2009, she said.”

Pretty funny, huh? Continue reading →

Apology and Correction: Wrong Link!

I just learned that I somehow managed to link to the wrong video in the post about the Seattle officer punching the girl in the face. If you linked to that, you really must have wondered what the fuss was about. I apologize for my incompetence, and thank Lauren Larson for alerting me. It’s fixed now. Not my incompetence, of course, but the link.

On to the next mistake…

The Incredibly Unethical BP Boycott

Readers of Ethics Alarms know that I think boycotting is at best economic bullying, at worst a non-violent form of terrorism, and generally unethical except in cases so rare that they are difficult to imagine. The current BP boycott is close to the worst variety, blunt and destructive mob anger akin to the reaction of the excitable citizens of Homer Simpson’s Springfield, whose solution to every crisis seems to be a riot.

BP was outrageously and perhaps criminally negligent in creating the conditions that led to the Gulf oil spill, and it is right and just that the burden of accountability and responsibility has fallen on them. And it certainly has fallen on them: as much as every citizen of the United States may want to personally kick the company while it is prone, the fact is that the dire consequences of its misconduct are already overwhelming, both long and short-term. Right now, the Gulf states are still dependent on the diligence and expertise of the company to try to limit the damage it has caused, and the company is, if only for its own survival, doing the best it can to succeed. This fact alone would make a public boycott of BP at this time senseless and counter-productive.

The boycott is also unfair. Continue reading →

The Ethics of Booing Manny Ramirez

As it so often does, the world of sport is presenting us with a clear ethical conflict tomorrow night—one of those times when we have to prioritize ethical values, and decide which is more important in our culture, because if we meet one, we violate another.

Manny Ramirez will be returning to Boston’s Fenway Park in a Dodger uniform, as Boston hosts Los Angeles in an inter-league contest. Continue reading →

“Seattle Cop Punches Girl In Face!” Ethical?

YouTube is a wonderful resource that enriches our entertainment, makes us laugh, holds people in the public eye accountable for their actions, and give us better access to current events than ever before. In the area of police conduct, it has exposed abuses that might have otherwise escaped scrutiny. It is also eventually going to get a police officer killed.

The viral video of a Seattle cop punching a teenaged girl in the face has been getting the Rodney King treatment from the broadcast media and the web, with the immediate assumption that his actions are per se proof of police brutality and excessive force. All the societal hot buttons are stacked against the cop: he punches a woman (“You don’t hit a girl!“); she’s a teen (It’s an adult beating a child!); she’s black, and he’s white (Racism!); the underlying offense that triggered the incident was as minor as you can get. (“Jaywalking?”) Predictable, the sensation-hunting news outlets and the usual knee-jerk critics of the police (the N.A.A.C.P. and the A.C.L.U.) have pounced. This is neither a fair nor a competent way to examine a complex incident. Continue reading →

Obama’s Ethics Foul: A False Pledge

Lost in the furor over the insulting “small  people” characterization by BP’s hapless Chairman was a seriously unethical statement by President Obama. If the President is lucky, nobody will remember it. He hasn’t been very lucky lately, however.

As with Hurricane Katrina and President Bush, the Gulf oil spill has subjected President Obama to some unfair public expectations, some of which stem from a basic misunderstanding of Presidential power. (There have also been his genuine failures to meet reasonable expectations based on correct assumptions about Presidential leadership—but that is another topic.) Unfortunately, President Obama brings this upon himself by habitually over-stating his influence over people and events that he can not really control. He did this again, when he announced BP’s agreement to establish a 20 billion dollar fund to address the leaking oil’s damage to the Gulf region, its businesses and its inhabitants: Continue reading →

Sharron Angle, Responsible Leadership, and the Unforgivable

It all comes down to trust.

There are some things candidates for office do or say that render them permanently untrustworthy, and no apologies, however well-crafted and sincere, can change it. That is because there are some ethical boundaries a trustworthy individual literally will never cross. For example, Richard Blumenthal’s repeated claims that he was a Vietnam combat veteran fall below the minimum level of integrity, respect and honesty required for trustworthiness. Former Senator John Edwards has lied so often in public and private that no reasonable person should trust him to hold a leadership position.

Sharron Angle, the Tea Party darling who will be opposing Sen. Harry Reid for the Nevada Senate seat in November, also falls beneath that minimum level. This is not because of her hard, hard right positions advocating the abolishment of government-run Social Security, Medicare and the Department of Education. Those are legitimate topics for debate. But a recent interview with conservative radio talk show host Lars Larson has come to light in which Angle, then the longest of shots to win the Nevada Republican primary, said this: Continue reading →

Credential Deceit From Rand Paul

Rand Paul’s resume dishonesty is not in the same league with Richard Blumenthal claiming Vietnam service that wasn’t. It is closer in unethical heft to Illinois Republican Senate candidate Mark Kirk’s representation of a group military award as in individual one on his resume. Still, if candidates for national office show a penchant for dishonesty and deceit before they are elected, what can we expect later, when they have the keys to the candy store and genuine power? Continue reading →

Ethics Dunce: North Carolina Rep. Bob Etheridge

This video is remarkable and disturbing.

Rep. Bob Etheridge, (D-N.C.) was walking down a Washington street when he was approached by a student holding a cell phone camera. The young man asked the Congressman about his views on President Obama’s agenda. Etheridge angrily demanded to know who the student was, tried to snatch the phone, and then assaulted and battered him. Continue reading →