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

How the Lack of Ethics Cripples Democracy, Reason #1: Ethical Leadership Is Neither Encouraged Nor Rewarded

 

How many elected leaders will be responsible when it means risking THIS?

Washington Post Metro columnist Robert McCartney relates the cautionary tale  of Fairfax (Va.) School Board member Liz Bradsher.  The school board, like others across the nation, was required to make some tough choices with its resources scarce and stretched to the breaking point.  The costs of renovating a high-achieving elementary school in the Fairfax County countryside  didn’t pass an objective, cost-benefit analysis, so the board voted to close it. Bradsher, whose district includes Clifton, the neighborhood served by the school, was expected to vigorously oppose the move.  But after studying the costs and enrollment forecasts, she reluctantly concluded that it made more sense to shutter the facility so the county could spend scarce renovation dollars where they would benefit more children.

She did what was best for the Fairfax community as a whole, which, as an elected official, is her duty. But rather than appreciating the courage it took to agree to close a beloved institution in her district for the greater good, she is being attacked. Anonymous postings on a popular local website have spread false rumors that she has a drinking problem and that her marriage is on the rocks. She is receiving threatening letters, and obscene e-mails.   Continue reading

Trapped in “The Ethics Zone”

Rod Serling is your guest host for this episode.

We are traveling in a realm beyond time and space, to a dimension where right and wrong are vague and indistinguishable. Witness the strange case of Roy Thomas, a Houston man trapped in a hostile maelstrom of illogical laws and imaginary daughters. He is a victim of an ethics deficit, nourished by greed and desperation, the kind that sometimes lurks in the dark corners of….

The Ethics Zone!

Submitted for your consideration, the saga of Roy Thomas, who has been forced to pay child support for a daughter he supposedly fathered  more than two decades ago, though he always maintained that the child wasn’t his. Continue reading

Comment of the Day: “Ethics Hero and Dunce: A Tale of Two Windfalls”

In a classic example of  “Be careful what you wish for,” I had been thinking about how none of the recent comments, excellent though many were, quite struck the “Comment of the Day” gong for me, and then, like the answer granted by a perverse genie, this turns up. A reader named Lawrence Reliford argues that Stephen McDow had every right to spend the money erroneously deposited in his bank account, and in the process evokes—let’s see—six rationalizations, three misconceptions, two bad analogies, one wonderful Malaprop and a partridge in a pear tree.  (I may have miscounted; this can also be an ethics quiz.) On a more depressing note, I am quite certain that a larger portion of the population than any of us would be comfortable admitting agree with Lawrence. You can find my response to his comment with the original post, here...but please feel free to write your own. Lawrence needs all the guidance he can get. Here is The Comment of the Day: 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

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

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

The FDA’s Disgust Offensive: Manipulative and Wrong

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

More Civility Confusion: Jon Huntsman’s Announcement

 

"Oh, NO...not THAT!"

To listen to the contempt and outrage expressed by conservative critics of Jon Huntsman’s official presidential campaign kick-off yesterday, one might have thought that he had pledged to conduct his quest for the presidency in Arabic. No, what infuriated Rich and Sean and Mark and the rightward bloggers who adore them is that he pledged…to be civil. Huntsman said:

“Now let me say something about civility. For the sake of the younger generation, it concerns me that civility, humanity and respect are sometimes lost in our interactions as Americans. Our political debates today are corrosive and not reflective of the belief that Abe Lincoln espoused back in his day, that we are a great country because we are a good country. You know what I mean when I say that. We will conduct this campaign on the high road. I don’t think you need to run down someone’s reputation in order to run for the Office of President. Of course we’ll have our disagreements. That’s what campaigns are all about. But I want you to know that I respect my fellow Republican candidates. And I respect the President of the United States. He and I have a difference of opinion on how to help a country we both love. But the question each of us wants the voters to answer is who will be the better President; not who’s the better American.”

The horror… Continue reading

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

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

Ethics Dunce: Keith Olbermann

Welcome back, Keith!

Keith Olbermann, the talented, arrogant, self-righteous progressive scold whose “Countdown” show on MSNBC managed to make Sean Hannity look fair and balanced, returned to the tube yesterday on Al Gore’s nascent, and apparently shameless, new TV news commentary channel, Current TV. Olbermann, who despite his rhetorical gifts is unwilling to brave dissent or ideological balance on his show (something that cannot be said, for example, of Fox News bloviator Bill O’Reilly or even Hannity), did manage to make himself seem reasonable by comparison by welcoming and fawning over guests Michael Moore and Daily Kos founder Markos Moulitsas, neither of whom ever met a progressive agenda-bolstering lie they didn’t like.

But never mind: Keith locked up his Ethics Dunce by re-introducing his “Worst Person in the World” segment, which he had solemnly, if unnecessarily, jettisoned on MSNBC to demonstrate his new commitment to civility in the wake of Rep. Giffords’ shooting in Tucson. Continue reading