conflicts of interest

The Amazing, Versatile and Unethical Goldman Sachs Code of Ethics

/ Jack Marshall / 6 Comments

Perhaps we all owe Goldman Sachs an apology. Everyone heaped outrage and ridicule the April spectacle of its executives going before the U.S. Senate and asserting under oath that they saw nothing at all unethical about intentionally selling “crappy” investment products to their trusting customers, then making money for their own firm by betting that the products would fail. Many were reminded of the tobacco executives, in the famous AP photo, all raising their hands to swear that they did not believe nicotine was addictive. After all, Goldman Sachs’s own website pledged openness, honesty, trustworthiness and integrity, saying,

“A critical part of running the marathon is acting consistently and playing a fair and honest game. ‘There’s only one thing we sell, and that’s trust.’ This applies to anything, but nowhere more than Investment Management. Clients trust us to do the right thing, and particularly when you’re in investment management and you’re appointed to manage clients’ money, they trust that you’re going to do it in a prudent manner. The worst thing you could do is breach that trust. We look for people who want to run the marathon, and who understand that trust fuels it.”

Now it seems that we were lacking a crucial document: the firm’s internal Code of Ethics, which Goldman Sachs recently made public. Under the provisions of this remarkable Code, what Goldman Sachs did to its clients wasn’t unethical at all; deceptive, conflicted, and unfair, yes…but not unethical, in the sense that it didn’t violate the Ethics Code itself. “Impossible!” you say? Ah, you underestimate the firm’s cleverness. Continue reading →

Super-Soaker Ethics at Joe Biden’s Party

/ Jack Marshall / 3 Comments

I don’t think I can do a better or more thorough job than Salon’s Glenn Greenwald at making crystal clear what is so ethically wrong with members of the Washington press corps happily frolicking with Vice President Biden, Rahm Emanuel and other administration Obama officials at Biden-hosted party, so read his column here. Not that what Greenwald says shouldn’t be immediately obvious, especially to the journalists themselves, but it obviously isn’t. I just heard Judith Miller, the former New York Times reporter turned Fox flack, laughingly say that she used to share an Amtrak car with Biden when he was a Senator to get inside information, and she didn’t see why accompanying him on a water slide was any different.

Oh, come on. Continue reading →

Avocations and Conflicts of Interest, Part II

/ Jack Marshall / Leave a comment

As if to give ethical guidance to conflicted umpire Joe West, a similarly conflicted judge has shown Country Joe the way by quitting the bench to avoid ethical conflicts.

Admittedly, the ethical issues surrounding independent filmmaker/ New Jersey Judge Kenneth Del Vecchio are a little bit different from Joe’s. One of his creative efforts was called “O.B.A.M. Nude,” and was a satirical critique of the President, though Del Vecchio played the Obama-like hero himself. A judicial ethics panel opined that his film exploits raise the specter of an ethical conflict under the Code of Judicial Conduct, presumably including the section that reads, Continue reading →

Avocations, Conflicts of Interest, and Country Joe West

/ Jack Marshall / 7 Comments

Some employers are troubled by the avocations and outside activities of employees, a concern that often deserves a  defiant “none of your business” in response. However, sometimes the concern is justified, such as when the avocation adversely reflects on the individual’s reputation to the extent that it harms his or her ability to perform, or when the avocation actually interferes with the job, such as a when a recreational rugby player keeps missing work because of injuries. Another problem is when the avocation creates a conflict of interest in which conduct that may be good for the avocation undermines the job.

The latter is exemplified by Major League Umpire Joe West, who fancies himself a country music singer and songwriter when he isn’t calling balls and strikes. As nicely narrated on the blog “It’s About the Money,” West has long been the most flamboyant and combative of umps, as proven by the fact that a lot of people know his name. Umpires aren’t supposed to be stars, celebrities or personalities: if you notice a particular umpire, it is almost always because he has made a mistake.  They are important, however. Their acuity of sight and judgment are called upon many times in every game, and can make a significant difference in scores, standings, championships and careers. Like judges, they have to be trusted, and their integrity above suspicion. “The Common Man,” who wrote the blog post, believes that West’s singing career, such as it is, creates a conflict of interest that undermines that trust, and worse, warps his judgment on the field. Continue reading →

Ethics for Bureacracies—On An Index Card

/ Jack Marshall / 1 Comment

Ethicist Bob Stone has proposed a useful and perceptive solution to the perplexing problem of lax ethics in government bureaucracies. Calling on them to adopt “a strong sense of mission and a culture of trust, with authority and responsibility shifted from the few at the top to the many front-line workers,” Stone declares that too often “what passes for ethics is merely another set of rules to comply with, and ethics training usually consists of badgering workers about bribery, conflict of interest and favoritism.”

As a solution, Bob proposes a statement of ethical principles, so brief that it would easily fit on an index card:

I will:

  • Do my best at work
  • Avoid conflict of interest
  • Speak truth to power
  • Be a good citizen
  • Shun any private gain from my employment
  • Act impartially
  • Treat others the way I would like to be treated
  • Report waste, fraud, and corruption

When in doubt, my test is can I explain my actions to my mother or to my child.

Stone recommends that leaders and managers customize this to their own organizations, print it, distribute it, and then–and this is the most important part—regularly use events and decisions to discuss ethical lessons and principles with the staff, using the Statement of Principles as the starting point.

You can read his entire essay here. I recommend it. Bob has a long and distinguished background in that Mother of All Bureaucracies, the Pentagon. He knows what he’s talking about.

“The Good Wife” Ethics Follies

/ Jack Marshall / 12 Comments

“The Good Wife,” CBS’s legal drama starring Julianna Margulies, began as an unusually nuanced show of its type that presented intriguing ethical dilemmas without crossing into David Kelley’s over-the-top Legal Theater of the Absurd. Little by little, however, the show’s willingness to ignore core legal ethics principles is becoming more pronounced. “Boom,” which aired last week, continues a trend that is ominous, considering “The Good Wife” is still in its first season. After all, the lawyers in Kelley’s “The Practice” didn’t start finding severed heads and getting charged with murder until a couple of seasons in.

If you missed “Boom,” or if you didn’t but had misplaced your A.B.A. Model Rules of Professional Conduct, here are the legal ethics howlers committed by the “Good Wife’s” attorneys: Continue reading →

Ethics Dunce: Florida House Rep. Janet Long

/ Jack Marshall / 6 Comments

Once again, an elected official is advocating the Bizarro World ethics principle that those with the greatest conflict of interest in a matter are the only ones who have standing to decide it.  Conflicts of interest create bias and interfere with objectivity. They are to be avoided whenever possible. How then does someone like Florida House of Representatives Member Janet Long, a Democrat from Pinellas County, while debating the controversial Florida law requiring women seeking an abortion to first have an ultrasound procedure, justify demanding that male legislators “stand down if you don’t have ovaries”? Continue reading →

Making Sure Your Shrink Has Only Your Needs in Mind

/ Jack Marshall / 3 Comments

Psychiatry and psychoanalysis were supposed to transform humanity for the better by allow us to understand what makes us happy, sad and crazy and to control it, rather than to let it control us. But after a century that witnessed  Woody Allen undergoing intense treatment for decades that resulted in his marrying his step-daughter (and feeling darn good about it!), the profession is increasingly resorts to a shrug and a prescription. The good news is that many of the new drugs seem to do the job a lot better than Dr. Freud’s couch; the bad is that psychiatrists are often conflicted by their financial ties to drug companies.

Writing in the current issue of the Journal of the American Medical Association, Dr. Thomas Insel, Director of the National Institutes of Health, states that American psychiatrists need to reform a “culture of influence” that has been nurtured by too many goodies offered to doctors by pharmaceutical companies and happily accepted, including big ticket items like research grants, trips, fees for writing friendly journal articles and entertainment, and smaller trinkets like coffee mugs. Continue reading →

More “The Good Wife” Ethics

/ Jack Marshall / 7 Comments

The CBS legal drama “The Good Wife” has a good cast, well-scripted stories, and apparently a preference for misleading the American public on attorney ethics. Here’s the setting for its most recent set of gaffes: attorney Alicia Florrick (Julianna Margulies) and her supervising partner are battling an evil insurance company (you didn’t really think Hollywood would stay on the health care reform sidelines, did you? With a big vote coming up? ) that refuses to pay for in utero fetal surgery necessary to save an unborn baby from certain death. The insurance company’s attorney has a strong case, but offers a deal: it will pay for the surgery if Florrick’s firm will drop a class action lawsuit against the company. The partner, Will Gardner, refuses the offer: many other desperate members of the class need to make the insurance company pay for treatment, and besides, the law firm, which is in dire financial straits, needs the income that the class action might generate.

There are three things ethically wrong here: Continue reading →

John Adams: Conflicted?

/ Jack Marshall / 1 Comment

John Adams’ heroic defense of the British soldiers accused of murder in the Boston Massacre has moved to the front of the line in the competition for favorite historical comparison to the controversy over the so-called “Al Qaeda 7,” the Justice Dept. attorneys under attack for their former representation of Gitmo prisoners. Over at The Legal Ethics Forum, law professor Richard Painter has posted a fascinating essay on John Adams’ own ethical conflicts in his most famous case, and they were far from minor. You can, and should, read it here.