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Corporate Governance
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Tuesday, April 21st, 2009AIG’s use of federal bailout money to pay lavish bonuses has made the embattled insurer a favorite target for public disgust over corporate excess. It’s not that AIG was doing anything illegal, you understand. It’s just that funding personal luxury with taxpayer funds is in very, very bad taste.
You’d think that other companies [...]
Goldman Sachs wants to repay its TARP money … are we okay with that?
Tuesday, April 14th, 2009The Wall Street Journal reported today that Goldman Sachs Group Inc. has announced positive earnings ahead of schedule, hoping that its good news will provide a platform for a major stock sale. According to the Journal, Goldman hopes to raise $5 billion in stock to pay back the $10 billion in Troubled Asset Relief [...]
In an economic downturn, business ethics also decline
Wednesday, April 8th, 2009As the U.S. and world economies continue to struggle, unemployment climbs, stocks tumble and consumer prices rise, it’s a disheartening but predictable fact that ethical lapses in the workplace are probably going to get worse before they get better. A new report issued by Vangent, Inc. summarizes applied research by sociologists, criminologists and economists [...]
Was AIG’s Board of Directors asleep at the switch?
Friday, March 20th, 2009You have to pity the new CEO of embattled insurance company AIG, Edward M. Liddy, who was beaten up pretty badly this week in a Congressional hearing. Furious lawmakers pummelled Liddy with hostile questions in the wake of the revelation that AIG had paid enormous retention bonuses, some in excess of $6 million, to [...]
Was SEC Chair Christopher Cox right to dismiss self-regulation?
Thursday, October 2nd, 2008As the subprime mortgage/credit crisis continues to play out, the second-guessing has begun. The New York Times recently quoted Securities and Exchange Commission Chairman Christopher Cox as blaming the SEC’s “voluntary regulation” program for the failure. To grossly oversimplify the program, investment banks were invited, but not required, to submit to the SEC’s supervision, opting [...]
Is it ethical for failed CEOs to accept big exit pay packages?
Wednesday, September 10th, 2008Today, the federal government announced its conservatorship plan to bail out mortgage finance giants Fannie Mae and Freddie Mac. In all honesty, the government probably didn’t have much choice in the matter, because the two companies own or guarantee almost half of the mortgages in the United States. If either or both were to go [...]
Must you have a policy to enforce good ethics at your company?
Tuesday, August 12th, 2008Of late, I’ve noticed a disturbing trend growing in the world of human relations and corporate governance. Increasingly, employers seem to feel that, unless they have expressly and specifically prohibited specific unethical conduct, they can’t discipline employees who misbehave in that particular way. Consequently, if an employee lies to a customer, pilfers petty cash or bullies [...]
MSN’s Brush explains why the housing bill may not prevent future financial disasters
Monday, July 28th, 2008Over the weekend, Congress passed a massive bill designed to calm investors and pacify voters in the wake of the subprime mortgage mess. The bill provides for homeowner tax relief and a $300 billion program to prevent foreclosures. The bill also establishes a new paradigm for embattled financial giants Fannie Mae and Freddie Mac, increasing [...]
How ethical is InBev’s push to oust Anheuser-Busch’s board?
Monday, July 7th, 2008Belgian brewing company InBev, Inc. must have been mightily disappointed when the Anheuser-Busch Board of Directors of Anheuser-Busch rejected InBev’s offer to buy the American brewer, theme parks, Clydesdales, Super Bowl ads and all. The Anheuser-Busch board declined the offer on the grounds that it undervalued the company. Apparently, InBev refuses to take “no” for an [...]
Legal compliance: it’s not just a business decision
Tuesday, May 13th, 2008Lately, I’ve noticed a disturbing attitude emerging from some companies with respect to legal compliance. Maybe it’s a product of too many cost-benefit analyses, but it seems that, with increasing frequency, companies are treating legal compliance as optional rather than mandatory. They weigh the costs of getting caught against the short-term profits they can garner [...]
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