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

 

"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

"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

Ethics Dunce: Ex-Washington Nationals Manager Jim Riggleman

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 Chivalry Curse, the President, and the Dazzling Smile

The Chair of the Democratic National Committee

The Republicans seldom look more silly—and politics seldom looks more cynical— than when the GOP complains that the media or liberal interest groups are ignoring conduct by a progressive politician that they would vociferously criticize if a conservative politician behaved similarly, even though the Republicans themselves see nothing wrong with the conduct, and would scream that the criticism was unfair if it was focused on a conservative. This is yet another of the funhouse mirror versions of the Golden Rule in action, being employed for a dubious “Gotcha!”: “Do Unto Others As You Would Do Unto Me, Even Though If You Did That Unto Me, I Would Condemn You For It.”

It is the game Republican women’s groups and  conservative pundits are playing now, because the National Organization for Women hasn’t rapped the knuckles of President Obama for calling Rep. Debbie Wasserman-Schultz (D.-Fla.), the Democratic National Committee Chair, “cute.”

Wendy Wright, president of Concerned Women for America (a conservative women’s organization), called out NOW on its double standard, and said,“Of all people who ought to be offended at President Obama’s statement it should be an ardent feminist like Wasserman-Schultz. Isn’t objectifying women by their looks a mortal sin among feminists?” Charlotte Hayes, a senior fellow at the Independent Women’s Forum, the conservative twin of NOW, argued, “If a conservative had said this, [NOW] might have gone quite crazy. The Democrats might have gone quite crazy and tried to have his head on a platter. I guess Democrats could get really mad because you say a woman has a charming smile.”

But, she added, “I’m not one of those people who gets mad if you said I have a charming smile. I would be flattered.”

For its part, NOW has said that it has more pressing matters than criticizing a major ally’s politically incorrect gaffe, much as it couldn’t be bothered to criticize Bill Maher for calling Sarah Palin a “dumb twat” or MSNBC’s Ed Schultz for describing conservative pundit and single mother Laura Ingraham as a “right wing slut.” The President and the woman with the cute smile, meanwhile, are ignoring the whole thing.
Here is the irony, and the problem: they are all wrong. Continue reading

Comment of the Day on “Girl Talk and Bigotry Ethics…”

We had it coming, apparently...

This comment, from new visitor Linda, exemplifies the kind of thinking that too many Americans believe pass for “ethics.”  In response to my post about a Christiane Amanpour-led  panel on her Sunday morning public issues show that celebrated male-bashing and gender bias, Linda’s response is essentially…

1. You “men” have done worse to us.

2. We have the right to get even.

3. You can dish it out but you can’t take it.

4. We have the right to be bigots too.

Indeed women do have the right to be bigots, but journalists like Amanpour abuse their own First Amendment rights when they use the freedom of the press to advance naked bigotry, and women like her panelists disgrace their own principles when they move from seeking fair and equal treatment for themselves to asserting superiority and advocating gender bias. Continue reading

Girl Talk and Bigotry Ethics: Celebrating One-Way Gender Bias on ABC

Christiane Amanpour just led a jaw-dropping roundtable discussion on her ABC Sunday morning talk show, “This Week with Christiane Amanpour,”as three female guest commentators ( Torie Clarke, the former assistant secretary of defense for public affairs in the Bush administration: Cecilia Attias, the former first lady of France and founder of Cecilia Attias Foundation for Women, and ABC’s Claire Shipman)
and Christiane discussed how the convergence of  Former IMF director Dominique Strauss-Kahn’s attempted rape charges and Rep. Anthony Weiner’s travails has created a possible tipping point, in which the nation will finally come to the realization of a fact that these women have known all along: women are just plain better than men when it comes to leadership, management, decision-making, and conflict resolution.

The sweeping generalities, stereotyping, and flat pronouncements of male inferiority were unrestrained. Continue reading

Comment of the Day on “Ethics Triple Dunces…”

[In his Comment of the Day, Jeffrey Field endorses the actions of both the teacher and the superintendent that I labeled “ethics triple dunces” for making students write letters lobbying for more money in school budgets, raises some other provocative ethics issues related to teacher and student conduct, and questions my indictment of the ethics of the teaching profession. I think he’s wrong on every count (you can read my response with my original post), but it’s a terrific comment.]

“When I was a 5th grade teacher teacher at Clements school in North Alabama, the all-white Limestone County School Board voted to allow students the Martin Luther King holiday, but teachers would be required to work that day. So, partially in self interest and partially in empathy of the small percentage of black teachers, I got my 5th grade class to write letters to the board asking them to reconsider. Long story short, the board reversed position and everybody got a day off.

“Yes, I used this as a writing exercise, and I offer no excuses. You see, too many times teachers have students write a paper with no real purpose in mind. In this case, my students had a real purpose in penning a persuasive letter to the people who ran the schools (btw – no one was required to write the letter, but they all did). And boy, you should have seen the smiles and heard the whoops of joy the morning the Athens News Courier ran a story saying the board had reconsidered its position. Continue reading

Ethics TRIPLE Dunces: Tramway Elementary Teacher Melanie Hawes and Lee County Board of Education Superintendant Jeff Moss

"MUST...WRITE...LETTER ....TO...DAD....

North Carolina state legislator Mike Stone is a budget hawk, and is supporting a budget-cutting proposal that could eliminate 9,300 positions in the public schools. It’s a contentious issue, and the representative has received many letters—including a plaintive one from his own third grader daughter, a student at Tramway Elementary, who was one of several students in her class directed by teacher Melanie Hawes to write to the  Republican and plead with him to save the jobs of their two teacher assistants.

“Our school doesn’t want to lose them,” she wrote. “Please put the budget higher, dad.”

Ugh. Ethics foul; in fact, three of them:

1. It is unethical for teachers to indoctrinate their students in political positions in which the teachers have a personal interest.

2. It is unethical to exploit children as lobbying tools, under the pretense of educating them.

3. It is extremely unethical to recruit a legislator’s 8-year-old daughter to carry a lobbying message. Continue reading

Those Military Baggage Fees: Bad Journalism and Bad PR, Not Bad Ethics

The 24 hour news cycle and blogger feeding frenzy often produce snap ethical judgments that defy the facts, logic, and fairness. Today’s example: the supposed “outrage” of Delta Air Lines making Army reservists returning from combat in Afghanistan pay excess-bag fees. A Colorado soldier posted a YouTube video complaining that their unit had to pay $2,800 for extra checked bags, and you would have thought the airlines made the soldiers fly while strapped to the wing. “You’re not going to believe this!” said “Fox and Friends” goof Steve Doocy, introdoocying the story as if it was an act of domestic terrorism. There were similar expressions of horror on CNN’s Headline News and on the local news in Wilmington, Delaware, where I was staying yesterday while doing a musical ethics program for the Wilmington Bar. And yet…

Delta did nothing wrong or inappropriate.

The staff followed policy. What were they supposed to do, spontaneously waive thousands of dollars in luggage fees out of respect for our soldiers…and have to make it up out of their own pay? The military already gets a substantial break on checked baggage; the soldiers were complaining about having to pay for bags that exceeded Delta’s limit for waiving the fees on soldiers’ bags. But if the flights are related to the soldiers’ duties, why are the domestic airlines responsible for paying their expenses? (By the way, what the soldiers don’t pay for gets passed in costs to the non-military passengers.) Simple answer: the domestic airlines are not responsible, and should not be.

When I travel on business dictated by a client or employer, the client or employer pays my costs…just like the U.S. Government pays the travel expenses of soldiers flying to and from deployments. That’s right: soldiers get reimbursements from the military for additional costs if their orders require the expense and they submit receipts. Why, then, was it Delta’s responsibility to pick up the tab for these soldiers’ extra bags, and proof of evil corporate America’s unpatriotic greed that they asked the soldiers for the already-discounted fees for excess luggage instead?

I repeat: It wasn’t. A couple of soldiers didn’t know their own expense reimbursement procedures, used YouTube to make a misrepresentation go viral, and the media indulges its reflex reaction to fault businesses and fall worshiping at the boots of our young warriors. Nobody bothered to think, much less check facts, before condemning the Delta. Terrified, as ever, of any negative publicity, deserved or not, Delta abjectly apologized (for doing nothing wrong), and was followed by other carriers in eliminating bag fees to avoid getting the stink-eye from Bill O’Reilly. Delta said it would allow four bags for free. United said it had increased the number of free military checked bags from three to four. American said it will allow five free bags instead of three for military personnel. This is nice enough, of course, but it is pure public relations nonsense.

These airlines will charge seniors traveling by necessity to an assisted living complex for every bag they check, and the military isn’t going to pay their expenses once they gut the receipts. Do the airlines let military veterans check their bags for free?  Priests and nuns, who have taken vows of poverty? Handicapped travelers, who are unable to carry on heavy bags? The disabled only get two free bags, at best, before they are charged 50 bucks per additional piece. How about pregnant women? The unemployed, relocating to a new city to look for jobs…any breaks for ? Ethically, there are much more compelling arguments for giving breaks to any of these flyers than active duty soldiers, who are going to be reimbursed by the military anyway, and should be.

I am not sure even that would be appropriate, however. I don’t think that the airlines should be in the business of charging different fees to travelers in different circumstances; it requires value judgments that I do not trust the airlines to make fairly or rationally. Next we’ll be seeing waived bag fees for registered Republicans, attractive blondes and vegans, or whoever screams the loudest or has the most vocal lobby. The proper, ethical and fair way to do business is to have the same rules for everyone.

Except Steve Doocy and the rest of the media. Charge them double.

Ethics Hero: Lincoln School in Spring Valley, Illinois

Thanks to Lincoln School, this isn't me. Yet.

Thank you, oh thank you, Lincoln School in Spring Valley, Illinois! Your superb and inspiring decision has stopped me, for the moment at least, from seeking species reassignment surgery. My membership in the human race has been an embarrassment to be of late, and I had been seeking alternatives. You give me hope.

Spring Valley’s Lincoln School gymnasium held a day of appreciation this week for custodian Edward “Red” Nestler,  88, who will retire on June 30. To his surprise, Red did not receive just a free lunch, or a watch, or a jacket, or a plaque in appreciation and commemoration of his many years with the school, a journey that began when he was a student there in the 1930s. On his “day,” Red learned that the school board, responding to a petition from students and staff, had voted to name the school gymnasium in his honor. Continue reading