Accountability for the Rich and Famous: A Soft Landing for an Ex-Prince

In ancient Greek tragedy, it was not uncommon for a god or goddess to perform the function of a Greek (i.e., conscience) chorus at the end of a play while being pulled by pullies high above the stage. Deus ex machina is the Latin phrase, which meant, a deity out from pullies. We get machine, mechanism, and even engine from the Latin word, machina. A movie entitled Ex Machina is on an AI android that seems full of life, even miraculous, from “pullies” inside it’s “body.” Ex-Prince Andrew of the (seceded) sovereign state of UK, or “Britain” informally, seemed to fly about the other actors in being able to land, rent-free, fittingly around Christmas, 2025, at the monarch’s Sandringham estate in eastern Britain, still rent-free, and with King Charles funding his brother. Considering that Andrew Windsor should arguably been sent to prison for having sex with a 17 year-old prostitute in the employ of the infamous Epstein, and that a large settlement paid by Queen Elizabeth II made Giuffre’s charges go away, as if magically, Andrew not only landed on his feet, but without touching the ground where us mere mortals make our way through life to survive and perhaps prosper.

The full essay is at "Accountability for the Rich and Famous."

Beyond Climate Change: Starbucks Awash in Cash

While it may be tempting to go after companies for hypocrisy on corporate social responsibility, even deeper criticism may be closer to the bottom line, financially. Even though social media castigated Starbucks for its impact on carbon emissions in agreeing to fly its Southern Californian CEO Brian Niccol to Seattle on a company plane each week, I submit that the amount of spending entailed raises questions about cost-containment and even cast some doubt on whether the company’s price increases in 2024 were wholly justified, and thus even on whether the industry was competitive or an oligarchy.

The full essay is at "Beyond Climate Change: Starbucks Awash in Cash."

On the Reputational Capital of a Business Leader on a Societal Stage

Is it better that companies be publicly or privately held? Such a question is of such magnitude that glossy, simplistic answers should be eschewed. This is not to say that the answer is situational in nature. Rather, it is more likely that each comes with pluses and minuses from the perspective of an economic system as a whole. As business “leaders” give their advice, it is important to keep in mind whether any personal or institutional conflicts of interest exist and thus could warp the space itself of the advice. Yes, I am intimating Einstein’s theory of general relativity here. Rather than provide an answer without having studied the matter sufficiently, I will provide a way to look at the advice given by Jamie Dimon, CEO of JPMorgan Chase.

The full essay is at "Reputational Capital of a Business Leader."

Perception-Based Healthy Reputational Capital as a Strategic Competitive Advantage: The Case of CVS Health

In 2014, CVS drug-stores stopped selling tobacco products. The strategic choice rendered CVS Health more internally consistent on wellness. To be sure, the company continued to sell alcohol products, such as wine and hard liquor, which are harmful to human health. Yet the incremental correction was significant both in regard to the short-term hits to the bottom-line and the salubrious contribution to the health of customers. If the share of revenue (and profit) from the sale of alcohol increased in the meantime to make up the difference, the net effect on the bottom-line could have been zero or even positive, and the net impact on the health of customers and the company’s healthy image could also have been nugatory or even negative. Writing in 2019, however, Larry Merlo, President and CEO of CVS Health, saw a perfect convergence of the long-term bottom-line and making a contribution to society even at the expense of short-term revenue.

The full essay is at "Perception-Based Healthy Reputational Capital."

“No Loans” on Gun Sales: G.E. as Socially Responsible or Financially Savvy?

In the wake of the Sandy Hook school shooting in Newton, Connecticut in late 2012, General Electric announced that the company would no longer finance consumers’ gun purchases. Russell Wilkerson, a G.E. spokesman, wrote in an email that the new policy was being adopted “in light of industry changes, new legislation and tragic events that have caused widespread re-examination of policies on fire-arms.” In other words, the policy shift was not simply a reaction to Sandy Hook. Rather, the company’s executives were adapting to changes in the organization’s environment, including the industry itself. This opens up the question of whether the new policy can be classified under the rubric of corporate social responsibility (CSR). Perhaps the adaptation was simply good business, with the appearance of “CSR” adding some reputational capital through a good public-relations campaign.

Do business principles mandate treating this product like any other?  Source: NBC News

The full essay is at "Corporate Social Responsibility at G.E."

Facebook Secretly Shared Users' Friend's Data with Business Partners: A Case of Betrayal

According to The New York Times at the end of 2018, internal documents generated at Facebook in 2017 showed that the company “gave Microsoft, Amazon, Spotify, and others far greater access to people’s data” even after having raised a privacy wall than Facebook had disclosed.[1] That is, Facebook effectively exempted some of its business partners from the company’s privacy rules without notifying users. In many quarters, this would be called lying, which in turn would suggest a sordid management at Facebook. The more subtle astonishment, I submit, is that 2.2 billion users had stayed with Facebook after the hidden use of personal data for political purposes. The partnership between Facebook and Cambridge Analytica had hardly been made in heaven. Why such enduring trust in spite of external data being clear grounds for losing trust and giving up using Facebook? How many betrayals would be necessary? In literal marriages, trust can be lost “like that!” Similarly, when a child even unconsciously loses trust for her parents, the solid basis of trust in a normal parent-child relationship is lost most likely forever. Why has Facebook—a distant business punctuated by lies—get a pass?

The full essay is at "Facebook Secretly Betrayed Users."

See also the booklet, Taking the Face Off Facebook, available at Amazon.

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1. Gabriel Dance, Michael LaForgia, and Nicholas Confessore, “As Facebook Raised a Privacy Wall, It Carved an Opening for Tech Giants,” The New York Times, December 18, 2018.

Saving the Fisheries: Greenpeace Praised Safeway for its Ethical and Stately Leadership

In April 2011, Greenpeace gave fifteen supermarket chains a passing grade; five others failed. Surprisingly, Safeway came out on top, above even Whole Foods. Safeway pledged to stop selling Chilean sea bass (Patagonian toothfish) because current fishing levels are unsustainable. Furthermore, the grocer called on governing bodies to declare the area in the southern Antarctic where the bass is fished a marine reserve. According to Casson Trenor of Greenpeace, such an act of “corporate marine activism” had “never been done before.” Safeway also discontinued the sale of orange mughy, which is unsustainably being fished in the deep sea off New Zealand.  In fact, the company stopped adding red-list species to its inventory.


The full essay is at "GreenpeacePraised Safeway."

The Gettysburg Address: Shaped by Small Pox?

By the time Lincoln was back on the train returning to Washington, he was down with a high fever from Small Pox. I’m thinking the illness did not grip the president the second he stepped on the train. Already distraught over Mary falling off a horse-carriage, his son Tad taken grievously ill, and the old, tired war, the president was almost certainly already stricken when he delivered the address and perhaps even when he wrote it the day and evening before. I suspect that the Gettysburg Address would not have been only 272 words long had Lincoln been well.

The full essay is at "The Gettysburg Address."

Does Refusing Rolling Stone Magazine's Use of a Criminal's Picture For Marketing Purposes Violate Corporate Social Responsibility?

In 2013, the editors at Rolling Stone must have been kicking themselves after several retail chains announced that they would not be selling the issue that displays Dzhokhar Tsarnaev as a young hottie. Criminal charges had been made against him for the Boston marathon bombing that took place in April of that year. Selling a magazine by playing off the good looks of a terrorist was more than several—but not all—retailers could stand. Were the offended retailers being socially responsible, or is the matter of CSR not as clear-cut as has typically been assumed.

The full essay is at "CSR or Not: Refusing to Sell a Magazine Whose Marketing Includes Use of a Criminal."

The Underbelly of Corporate Charity as Corporate Social Responsibility

Why do corporate managements spend corporate money on charities? The obvious reason is to reduce the amount of corporate income tax due. Yet another motive, not as transparent, has to do with reputational capital, and that motive may also explain corporate social responsibility.

  Bernie Madoff, surrounded by police, after having been arrested. Wikimedia Commons

The full essay is at "Corporate Charity as Social Responsibility?"

Christian Leadership Navigating Geopolitics: Pope Francis in Myanmar amid Ethnic Cleansing

With the U.N. having “denounced the murder, rape and pillaging of the Rohingya in western Myanmar as ethnic cleansing,” Pope Francis had to “strike a careful balance” during his visit to the country in late 2017 “by maintaining his moral authority without endangering his tiny local flock.[1] Even the decision to meet first with Gen. Min Aung Hlaing, the commander of the military that had “driven more than 620,000 Rohingya Muslims out of the country” could be taken as a compromise of the Pope’s moral authority because Francis would met with the Nobel Peace Prize laureate and de facto leader of the government, Daw Aung San Suu Kyi, the next day.[2] That the local Cardinal had urged the Pope not to even use the word Rohingya during the visit pointed in the direction away from the Pope acting as a moral compass and thus to a hit to his reputation as a leader of principle rather than expediency.

The full essay is at "Pope Francis as a Christian Leader."

1. Jason Horowitz, “Pope Francis Arrives in a Myanmar Tarnished by Rohingya Crackdown,” The New York Times, November 27, 2017.

2. Ibid.

How to Regain Reputational Capital: The Case of Wells Fargo

How does a firm rebound from the toll taken in reputational capital from a track-record of unethical practices? Paying $175 million to settle accusations without admitting any wrongdoing, such as Wells Fargo did in 2012, does not suffice, but neither does merely admitting culpability without real change going forward. The case of Wells Fargo may provide an explanation for how reputation recovers.

The full essay is in Cases of Unethical Business, available in print and as an ebook at Amazon.com.  

Squandering a Tradition of Ethical Leadership instead of Protecting the Accrued Reputational Capital: The Case of Ratan Tata in India

In India, Ratan Tata was a revered figure, dubbed Mr. Clean, until the end of 2016, by which time serious allegations of financial improprieties had cut into the stellar reputations of both the man and the famous company founded by J.N. Tata, who had intentionally applied his Parsee ethic to the founding of India’s first steel company with a zero tolerance for corruption. Generally speaking, strategic ethical-leadership and even the resulting reputational capital depend on the persona of whoever is in charge of a company, and not even family linage can be counted on to perpetuate a culture of ethical leadership and protect a company’s accrued reputational capital.

The full essay is in Cases of Unethical Business: A Malignant Mentality of Mendacity, available in print and as an ebook at Amazon.

Inferno: A Sequel that Goes Up in Flames

With the allure of additional profits to be had, Hollywood has been all too willing to torch high-quality brands as if with perfect impunity. A case in point is the film, Inferno, which followed The De Vinci Code and Angels & Demons in the Robert Langdon film series spanning ten years (2006-2016) based on novels by Dan Brown.

The full essay is at "Inferno."

Apple’s CEO Manufactures a Human Right

People with disabilities represented 19% of the U.S. population in 2015—exactly 25 years after the Americans with Disabilities Act (ADA) became a federal law.[1] With computer technology being by then integral to daily life, the matter of accessibility came to the fore under the normative principle of equal, or universal, access. With major tech companies getting behind this banner, one question is whether they did so simply to sell more computers and software—better access translating into more customers. I contend that the stronger the normative claim being made, the greater the exploitation of the underlying conflict of interest.

The full essay is at “Apple’s CEO.”

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[1] “IOD Report Finds Significant Health Disparities for People with Disabilities,” Institute on Disability/UCED, August 25, 2011.

FIFA’s Corporate Sponsors: Reliable Ethical Change-Agents?

In the wake of the U.S. Justice Department’s initial arrests of FIFA officials in May 2015 on corruption charges, could the public reasonably expect FIFA’s corporate sponsors to pressure the international governing body of footfall (soccer in the U.S., where “football” is reserved for “subconcussions being inherent to a sport”)? If so, would the pressure be sufficient to rid the powerful international organization of its squalid officials and practices? I contend that these questions come down to how the power was divided at the time between the sponsors and the organization, rather than to the sponsors’ respective ethical positions or even how strongly the executives feel about ethics in business, including FIFA. 

The full essay is in Cases of Unethical Business: A Malignant Mentality of Mendacity, available in print and as an ebook at Amazon.com.

Opportunity and Income Inequality at McDonalds

In his text, Capital in the Twenty-First Century, Thomas Piketty claims that economic inequality increases societally when the rate of return on capital exceeds the growth rate in national income or GNP. Rather than being an aberration, this condition tends to be the case, the economist contends. To be sure, expanding opportunity can mitigate the increasing inequality, but the “floorboard” is slanted and thus is bound to favor capital over labor. Whereas Marx thought the tendency is unlimited in extent, Piketty argues that at some point the inequality of wealth will stop worsening. This idea seems like Einstein’s thesis that nothing can go faster than the speed of light.  In the light of Piketty’s theory, we can perhaps read more into Don Thompson’s response as workers were protesting the company’s shareholder meeting on May 22, 2014. In short, the CEO illustrates not only a preference for capital over labor in line with ROI>income-increase, but also the weakness in increased opportunity as a mitigating factor.

The full essay is at "McDonalds and Income Inequality: The Role of Opportunity"

The State of the Union Address: The Presidency as Presiding or Partisan?

On The O’Reilly Factor on the evening of Obama’s health-care “summit” at the White House in 2009, Bill O’Reilly told Laura Ingrahams that the president had done an adequate job in moderating the discussion.  Laura replied, “He is not a moderator; he is the President of the United States.”  O'Reilly provided his own perspective, in admitting that “moderating is not enough in the long-run because the country wants leadership.” The host was only partially correct.

Material from this essay has been incorporated in The Essence of Leadership, which is available at Amazon in print and as an ebook.

McDonald’s Strategic Use of Its Charity: Clowning around with Ethics?

Corporations have undoubtedly oriented their philanthropy to take advantage of the potential synergy with marketing their products and services. This “revelation” should not surprise anyone in modernity. Even so, overdoing any convergence to maximize profits is certainly open to ethical critique, even if leaning excessively on strategic interest at the expense of reputational capital is perfectly legal. This point ought to impress itself on the frontal lobe of any dean who hires lawyers to teach business ethics. In this essay, I focus on McDonald’s funding of its own charitable organization, McDonald House Charities. Has the corporation’s financial contribution been sufficient, ethically speaking, to justify the resulting reputational capital, marketing synergies, and long-term profitability?


The full essay is in The full essay is in Cases of Unethical Business: A Malignant Mentality of Mendacity, available in print and as an ebook at Amazon.com.

Corporate Social Responsibility and Reputational Capital: JPMorgan Facing Criminal Investigation

After years of claiming that no criminality had been involved in the securitization and sales of subprime-mortgage-based bonds, the U.S. Department of Justice began to change its tune by mid-2013. The Justice Department was investigating the $2.6 trillion-in-assets JPMorgan Chase bank over its sale of mortgage securities from 2005 to 2007. The government was investigating other large financial institutions too, but the damage to JPMorgan’s reputation could easily dwarf such impacts on the other big banks. For this reason, JPMorgan’s executives, rather than having no comment as the bank released the news in quarterly filings, should have “taken the bull by the horns” by acting proactively in terms of corporate social responsibility.

"Ok, I lied to clients about the bonds, but we had a deal: No Jail Time!"  Image Source: serenity-international.com

The full essay is at "JPMorgan: An Unethical Monstrosity?"

Recommended Reading: "A Systemic and Ethical Analysis of the Financial Crisis"

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