Category: Ethics in Government

By Posted on Posted in Business Ethics, Ethics in Government, Uncategorized

It doesn’t seem fair–all these years before the trial, Lay and Skilling found guilty…and then, because the verdict was under appeal, Lay’s record is apparently to be cleared (at least in the legal system) just because he happened to drop dead.

The Houston Chronicle reports that not only will his conviction be vacated, but the government’s efforts to recapture $43 million of ill-gotten gains are likely to be stymied.

Cynic that I am I have to wonder if that was really Ken Lay’s corpse; it just seems a little too convenient. I hope there’s confirmation via DNA testing.

I am not a vengeful person–but I am galled that not only did this criminal continue to live high on the hog but he escaped justice in the end–while thousands harmed by his greed were not so fortunate. Even as late as his trial, according to a widely reported news story,

Lay also defended his extravagant lifestyle, including a $200,000 yacht for wife Linda’s birthday party, despite $100 million in personal debt and saying “it was difficult to turn off that lifestyle like a spigot.”

I do take some comfort in knowing that death will not save his reputation, even if it protects the fortune of his estate (which, according t some rumors, is still a large fortune–while other sources say he was heavily in debt and there isn’t anything left).

Meanwhile, GWB’s appearance on Larry King Live puts to rest any question about the relationship between the president and Lay–a relationship that the White House tried to minimize earlier in the week:

KING: Because I mean you knew it pretty well from Texas, right? BUSH: Pretty well, pretty well. I’ve known him — I got to know him. People don’t believe this but he actually supported Ann Richardson in the ’94 campaign…Yes, he’s a good guy and so what I did — then did was we had a business council and I kept him on as the chairman of the business council and, you know, got to know him and got to see him in action. One of the things I respected him for was he was such a contributor to Houston’s civil society. He was a generous person. I’m disappointed that, you know, that there was — betrayed the trust of shareholders.

In that same transcript, Lay himself offers this rather telling bit:

We were competing with the very best and biggest companies in the world for the best talent and they loved working at Enron just like I did. But I grieve for all that they’ve lost and we, I mean even having lost what we’ve lost, I mean we are so much better off. My family is so much better off than most of them and it just, it pains me each and every day of my life.

The transcript is worth reading. While superficial as TV so often is, it gets in some very interesting quotes from a wide range of sources: Lay family friends (including the former mayor of Houston, who lauded Lay for his charitable work), employees who were cheated out of their retirement, and Skilling’s lawyer, who I found incredibly unctuous.

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By Posted on Posted in Business Ethics, Ethics in Government, Uncategorized

The poster boy for crooked business, Enron’s Kenneth “Kenny Boy” Lay, died today, just a few weeks after he was found guilty in the massive fraud/ethics case.

Already, the White House is denying that there was a genuine friendship (sound file) between Lay and George W. Bush. But Bush was a long-time high-end fundraiser for GWB, and it was in fact GWB who started calling him “Kenny Boy.” So the denials don’t have a lot of credibility.

But the real question is not whether Lay and Bush were close personal friends; the real issue is what kind of future business climate can we create together, where future Enron scandals simply don’t gain any traction.

If you’d like to help create that climate, I invite you to sign the Business Ethics Pledge.

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By Posted on Posted in Business Ethics, Ethics in Government, Uncategorized

Bush also told federal prosecutors during his June 24, 2004, interview in the Oval Office that he had directed Cheney, as part of that broader effort, to disclose highly classified intelligence information that would not only defend his administration but also discredit Wilson, the sources said.

There it is–right from the pages of the National Journal. The government has known for a year and a week that GWB directed Cheney to embarrass Wilson by illegally disclosing classified information. Cheney chose to carry out this directive, through the help of Scooter Libby and probably Karl Rove, by leaking Plame’s CIA status to friendly reporters. A total violation of the law, on top of hundreds of other violations.

Will someone please tell me why both parties aren’t setting up impeachment hearings? Some independent voices have been calling for impeachment for years–if you’d like to join them, click here. GWB and Cheney have repeatedly engaged in criminal activity. When will enough be enough?

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By Posted on Posted in Ethics in Government, Media Ethics, Uncategorized

BBC/The Guardian Investigative reporter Greg Palast first broke the story about the disenfranchisement of over 90,000 heavily Democratic Florida residents of color prior to the 2000 election–without which Gore would have been the clear victor and thus become President.

Now, he tells us that the GOP around the country systematically sent do-not-forward letters to the home addresses of soldiers stationed overseas who lived in mostly black, mostly Democratic precincts, and then when they came back as undeliverable, challenged these soldiers’ right to vote. Also targeted: residents of homeless shelters.

There’s quite a bit more, but here’s a little excerpt:

What about black soldiers? Here’s what they did. They sent, we found out – here’s now what we’ve just found out. They sent first-class letters to the homes of African-American soldiers shipped overseas. They wrote on the envelopes “Do not forward. Return to addressee.” Well, of course, they’re shipped overseas, so the letter can’t be forwarded, to Baghdad or Germany, or wherever. Letters are sent back to the Republican National Committee, filtered back out to the state committees, and then elections officials are told, ‘These people don’t live at that address. We have evidence that they’re falsely registered.’

Now, here’s the trick. You send in your absentee ballot. That is a great act of faith, probably the greatest religious act of faith since Moses walked across the Red Sea, you know, hoping that he wouldn’t get drowned. You just mail in that ballot, and soldiers – this is, remember the Republican Party made a big deal about Al Gore complaining about soldiers’ illegal absentee voting. These people knew that these soldiers couldn’t defend themselves, would not know that their ballot would not be counted, would be challenged. And there’s no way, I mean you could – from Baghdad you can fight George’s war, but you can’t fight for your ballot – massive, massive, nationwide challenge.

In places like Wisconsin, by the way, we’ve just discovered – How did they even know how to challenge these people? They were using Blackberries loaded with the names. This is one expensive multimillion-dollar operation, and by the way, Amy, it’s illegal, okay? One of the reasons why the Republican Party didn’t ‘fess up when we showed them the sheets and they said, ‘Oh, it’s donors,’ is that if you target black people, or Jewish voters, as they did in a few districts, because that’s a democratic demographic, if you challenge these people, that’s against the law. That’s against the voting rights act of 1965. It’s a felony crime, you know.

WHY do we still let these thugs and crooks stay in office?

Aside: Isn’t it ironic that Palast, an American, works for two of the most well-respected British journalism outlets. Why won’t any major US media hire him? His website and books are accessible to us, though.

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By Posted on Posted in Ethics in Government, Uncategorized

Bruce Funk was just trying to do his job! The County Clerk of Emery County, Utah for 23 years, Funk was locked out of his office and forced to resign. Why? Because he had the temerity to question whether the Diebold voting machines his county had purchased were accurate, and brought in an outside expert who in fact verified that the machines were highly manipulable and had insufficient backup.

The initial thing that led me to getting a hold of Black Box Voting was that when I re-examined the machine, I found a number of them with insufficient backup memory, some as little as four megabytes, whereas a normal machine had anywhere from 27 to 29 megabytes…

Something was worked out that if they could terminate me as the election official of Emery County, then they would recertify the machines. And so they changed my locks, effective April 1, and locked me out of my office.

This is an outrage! There have been so many election irregularities in both the 2000 and the 2004 elections that there has been a cloud of illegitimacy over the GWB administration from the beginning (a cloud made darker by the consistent misbehavior of this administration once it got into office: a sordid history of vindictive reprisals, lavish favors to friends and special interests, not just a reluctance to hear criticism but constant attacks on those who criticize, and so forth.

And yet when an a election official who has very good reason to be concerned–who knows that the backup memory is inadequate if, for instance, the plug gets knocked out of the wall socket–asks an expert to investigate, he loses his job.

Is this the America that claims to be a beacon of democracy around the world?

Shameful!

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By Posted on Posted in Business Ethics, Ethics in Government, Uncategorized

Speculation about this on the SF Chronicle blog–from a commentator who thinks the Bush administration has done a good job on corporate crime (a premise with which I strongly disagree)–but his lawyer friends who actively cover the trial think it’s a real possibility.

It wouldn’t shock me–I don’t think he’s been that concerned about his legacy, as the rampant cronyism that’s been all over his administration demonstrates.

* * * *
Shel Horowitz is the award-winning author of Principled Profit: Marketing That Puts People First and five other books, and the creator of the Business Ethics Pledge to make crooked business as unthinkable in the future as slavery is today.

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By Posted on Posted in Ethics in Government, Marketing Trends/News, Media Ethics, Uncategorized

The US House of Representatives struck a major blow against our Internet freedom the other day, voting for the so-called Communications, Opportunity, Promotion, and Enhancement Act of 2006.

This disastrous bill, if also passed by the Senate, would take away the principle of “Net Neutrality”–that every website gets to load as fast as the server can manage and be found as easily as it shows up in the search engines. A vast coalition of 752 groups on both the left and right joined forces to block this bill, but the House passed it 321-101, including 92 Democrats.

Contact your Senators NOW and speak out against this bill–or face a world in which not the government but big telecommunications corporations effectively decide which websites you will see, and promote the sites that pay them the most. The Internet has been the backbone of the independent press, one of the last bastions of people unafraid to tell the real news. We must protect our rights to view these sites, read these blogs, watch these videos–and if content providers have to pay for the privilege of having their sites accessed, that channel will dry up mighty fast. Our browsers will be sold to the highest bidder, and that will not be the alternative voices.

* * * *
Shel Horowitz is the award-winning author of Principled Profit: Marketing That Puts People First and five other books, and the creator of the Business Ethics Pledge to make crooked business as unthinkable in the future as slavery is today.

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By Posted on Posted in Business Ethics, Ethics in Government, Media Ethics, Uncategorized

How small-minded and unethical they get! the Washington Post, which offers several articles on the incident, and found these examples:

“People in Washington are morally repugnant, cheating, shifty human beings.” is softened to “I learned in Washington that there is an ‘overclass’ in this country stocked with cheating, shifty human beings that’s just as morally repugnant as our ‘underclass.’ ”

Leaving aside for a moment the question about whether you want your president’s domestic policy advisor to think that the poor are morally repugnant–he altered this quote while leaving the name of the New Times reporter on the article!

Helen Thomas was all over White House press secretary Tony Snow about the content of this quote and what kind of man Zinsmeister must be–but it wasn’t reported that she addressed the issue of changing the remarks.

On Iraq…

“To say nothing of whether it was executed well or not, but it’s brave and admirable.” The altered copy deleted any hint of presidential criticism, saying only, “It’s a brave and admirable attempt to improve the world.”

Zinsmeister says he did it to increase the accuracy of the quotes and protect the reporter, Justin Park, from embarrassment. But given the very happy thank-you note he sent to Park immediately after the piece ran, this is highly dubious.

I begin to wonder if there is anyone in the high levels of the Bush administration who actually understands ethics. Note to the administration: chutzpah is not a substitute for ethics.

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