The world’s financial sector may be excessively sensitive to increasing uncertainty associated with major changes—that is, changes that impact how large institutions, including governments, relate to each other. In such cases, so much is at stake that forces (i.e., the major powers) tend to manage the large-scale change with a minimum of disturbance. In short, the status quo has too much at stake for the market’s feared uncertainty to actualize. The British referendum on whether the E.U. state should secede is a case in point.
Thursday, August 25, 2016
Big Soda Campaigning against a Proposed Tax in San Francisco: A Vested Interest Thwarting Democracy?
With a proposed 1-cent per ounce tax on sweetened
beverages such as soda-pop on the 2016 ballot in Oakland and San Francisco, the
effected industry reserved about $9.5 million in television-ad time.[1]
As of August 10th, the American Beverage Association had already
spent $747,267 on campaign consultants and advertisements against the proposed
tax in Oakland, whereas supporters of the proposal had spent only $23,297.[2]
The imbalance itself could mean that business was subverting democracy by
overwhelming voters. If big-soda’s ads were unethical as the pro-tax camp
contended, the subversion would be especially harmful.
The full essay is at "Big Soda Campaigning."
1. Michael McLaughlin, “Big
Soda Spends Millions on ‘Unethical’ San Francisco Area Ads Fighting Drink Taxes,”
The Huffington Post, August 24, 2016.
2. Darwin Graham, “Big
Soda Is Spending Big Money Against Oakland Surary Beverage Tax Proposal,” East Bay Express, August 10, 2016.
Wednesday, August 24, 2016
Apollo Global Flew Too Close to the Sun: Personal and Institutional Conflicts of Interest
I submit that people tend to get more upset over the exploitation of personal conflicts of interest than the institutional sort. That is to say, our blood boils when we learn of another person contravening a duty in order to gain financially, yet we don’t mind when a CPA firm falsely gives a qualified opinion on an audit so the company being audited will continue with that audit firm the following year. Logically, as the money involved is more in the case of the CPA firm and individuals within the firm stand to benefit personally as the firm is enriched by the continued business, yet even so, we cannot stand direct personal enrichment resulting from a conflict of interest. In August, 2016, Apollo Global, a large private equity firm, settled with the SEC. Both personal and institutional conflicts of interest brought on the $53 million fine. Hence, this case is useful in comparing the two sorts of conflicts of interest.
The full essay is at Institutional Conflicts of Interest, available in print and as an ebook at Amazon.
Monday, August 22, 2016
Homeless “Campers” Starting Wildfires: Outside the Social Contract
Nederland, Colorado. A town in Boulder County that had embraced
marijuana dispensaries for profit, found itself just outside a wildfire that
burned 600 acres in July, 2016. Two homeless men were charged with
fourth-degree arson for failing to put out their camp fire. The townsfolk
reacted in anger, pointing to the increasing number of homeless people in the
nearby national forest. Officials had been forced to deal with “more emergency
calls, drug overdoses, illegal fires and trash piles deep in the woods.”[1]
Some residents urged the U.S. Forest Service to crack down on the homeless by imposing
tighter rules on camping, or banning it altogether in certain parts of the
woods most popular with the homeless. An analysis drawing on the political
philosophy of Thomas Hobbes, a seventeenth-century English philosopher can be
employed to reveal a broader perspective on the problem.
The full essay is at "Homeless Campers."
1. Jack
Healy, “As Homeless Find Refuge in Forests, ‘Anger is Palpable’ in Nearby
Towns,” The New York Times, August
21, 2016.
Thursday, July 14, 2016
Hillary Clinton's Extreme Reckless with National Security: A Rigged Justrice Department or Falling Short of Gross Negligence?
In July, 2016, the FBI came to the conclusion that while Hillary Clinton was serving as U.S. Secretary of State, she risked classified information by using private computer servers for email and other purposes. The FBI’s director explicitly stated that she had been extremely reckless. In legal terms, that means gross negligence. At the time, a 99-year-old statute whereby gross negligence is sufficient for a fine or imprisonment of up to ten years was still on the books. Whether or not the person knew the actions were wrong is not relevant to the statute, and thus the enforcement. So it was perplexing to a significant number of Americans—including prosecutors and other lawyers—that the FBI director did not recommend prosecution. Crucially, extremely reckless is the same as gross negligence in legal terms.
The full essay is at "Extreme Recklessness."
On the Business Ethics and Technology of Self-Driving Cars at Tesla
During the summer of 2016, Tesla was under fire with charges regarding the technology and ethics. Both of these issues can be put into a wider perspective in the company’s favor. Put another way, both technological and ethical analyses can be enhanced by putting the specific problems within a larger perspective—even in terms of time.
The full essay is in Cases of Unethical Business: A Malignant Mentality of Mendacity, available in print and as an ebook at Amazon.
Sunday, March 27, 2016
Christianity as Distinctly Religious: A New Species?
The human mind
naturally tends to make (and remake) religion into familiar terms, while
resisting the wholly other as such. As David Hume explains, the human mind is
naturally drawn to what is familiar to itself; considerably more effort is
required to hold onto the notion of pure divine simplicity without adding
ornaments. Sociological phenomena such as father-son relationships and the role
of a son are more familiar than the Son as Logos and agape.[1] The
resurrection is typically thought of in supernatural physiological and
historical terms, rather than as whose meaning is distinctly religious and,
furthermore, is part of a religious narrative. The Trinity as existing in
reality metaphysically is easier to understand than the Trinity as transcending
reality, as it’s source rather than its substance. God as the first cause of
the Big Bang is easier to grasp than God as the source or condition of
Creation. These all-too-easy category mistakes are particularly problematic in
that they obscure religion as distinctly religious.
1. For
more on this point and that of David Hume, see ch. 12 of God’s
Gold: Beneath the Shifting Sands of Christian Thought on Profit-Seeking and
Wealth.
Saturday, March 26, 2016
From Being “Real” to Mythic: Do Religions have Lifespans?
Thousands
of years ago, Greeks acted out narratives from what we now refer to as myths.
The word myth connotes a religious
narrative that has long-ago expired from being believed to be actual. Of course, no Christian in
modern times would refer to the Passion as a myth; to refer to the crucifixion
and resurrection as mythic would be insulting. Yet as a society increasingly
secularizes, the events in the religious story gradually give up their
all-embracing signature. As Good Friday or Easter becomes “just another day” for more and more people in the increasingly secular West in particular, the respective events lose their hegemony in defining for people in their daily lives what the Friday and Sunday are about. That is, the events "deflate" from being perceived as all-embracing in the sense of defining the significance of the days. If sufficiently relegated, the story itself can more easily be viewed as myth, rather than real. Notice religion’s appeal here to history or at least empiricism as a validator.
Without such a basis intact, religious events are somehow less real in a religious
sense of meaning.[1]
In fact, a religion’s situs in a society can go from default-status to ultimately being replaced. Nietzsche’s “God is dead” in the late nineteenth-century prefigured the rise of secularization—the discrediting of the reigning concept of the deity by ascribing the vice of vengeance to it inexorably deflating the Abrahamic religions. Particularly astonishing is not the fact that religions have lifespans, but, rather, that any given religion in decline can endure an incredible amount of time at that stage. This phenomenon can prompt a person to wonder whether the religions are not human, all too human.
In fact, a religion’s situs in a society can go from default-status to ultimately being replaced. Nietzsche’s “God is dead” in the late nineteenth-century prefigured the rise of secularization—the discrediting of the reigning concept of the deity by ascribing the vice of vengeance to it inexorably deflating the Abrahamic religions. Particularly astonishing is not the fact that religions have lifespans, but, rather, that any given religion in decline can endure an incredible amount of time at that stage. This phenomenon can prompt a person to wonder whether the religions are not human, all too human.
The full essay is at "Religion and Myth."
1. Here
I’m relying on ch. 12 of my book, “God’s
Gold.” In that chapter, I contend that religion overreaches in claiming
history for itself. For a religion to use history as a sort of anchor is to
make a category mistake.
Saturday, March 19, 2016
SEC Investigating Hedge-Fund Priest: Christianity’s Pro-Wealth Paradigm Lapsing into Greed?
It is against U.S. securities law to knowingly make false statements or publish false information about a company you are shorting (selling stock now and buying the shares later, hence betting the stock price will go down). In other words, you can’t try to drive the company’s stock price down you are shorting so you can profit from the trade. Besides being illegal, the practice is unethical. Just go to Kant for that! The guy was fanatical against lying.
You wouldn’t expect to read, therefore, that the SEC is investigating a Greek Orthodox priest who sidelines as a hedge-fund manager for trashing commercial reputations in order to make money off shorting stock. BloombergBusiness reported on March 18, 2016 that the SEC was “examining whether the Reverend Emmanuel Lemelson of Massachusetts made false statements about companies he was shorting.”[1]
He reportedly referred to his trading skills as a “gift from God.”[2]
Such a claim is on a slippery slope, theologically speaking.
The full essay is at "SEC Investigating Pro-Wealth Christianity."
1. Matt
Robinson, “Hedge
Fund Priest’s Trades Probed by Wall Street Cop,” BloombergBusiness, March 18, 2016.
2. Ibid.
Thursday, March 10, 2016
Picking a U.S. President: Excessive and Insufficient Democracy
Even as the Electoral College has never performed as intended, that the delegates at the U.S. federal constitutional convention devised it can help us to flesh out some of the hidden, or overlooked, deficiencies in how a U.S. president is selected in the twenty-first century. In short, societal blind-spots pertaining to the electoral process can be made transparent by considering the rationales that went into the Electoral College as it was intended.
The rest of the essay is at "Picking a U.S. President."
The rest of the essay is at "Picking a U.S. President."
Sunday, February 14, 2016
Adolf Eichmann: Justice or Retribution by the Victims?
In February, 2016, 94-year-old Reinhold Hanning, a former guard at Auschwitz, went on trial in Detmold, Germany for being an accessory to the murder of at least 170,000 people. Back in 1961, Adolf Eichmann had been tried in Jerusalem for crimes against the Jewish people. I submit that the situs for the Hanning trial is proper ethically and legally, which is to say that Eichmann too should have been tried in Germany rather than in Israel.
The full essay is at "Adolf Eichmann."
Monday, January 4, 2016
Increasing Complexity and More Energy in the Context of Evolutionary Biology
In “the story of increasing complexity and then decreasing
complexity,” we find complexity in “privileged localities” where “intense local
flows of energy that are dissipated elsewhere, where things are less complex. .
. . So increasing entropy in one region seems to allow decreasing entropy—that is
to say, increasing complexity—in some very special regions, such as the surface
of our Earth.”[1] Differentials
in the universe began in the random, unpredictable differences at the
sub-atomic level at the very beginning of the Big Bang. It took 380,000 years for tiny differentials
in temperatures and mass-densities to show up in the cosmic radiation
background. Since then, much steeper energy-gradients have developed, and these have enabled greater complexity to arise and subsist.
Contemplating the enigma, wherein increased complexity and
the associated additional energy required occurs amid a more general entropic
process of a flattening out or dispersion of energy in the universe as a whole,
can lead to the question of whether the level of complexity now extant in human
civilization is a work in progress or a pinnacle. That is to say, will hitherto
undiscovered sources of energy boost human arrangements and infrastructure—artifices
of human intentionality—to higher levels of complexity? At a much longer
temporal scale, will the Milky Way gain in energy and complexity as a result of
incorporating a passing galaxy? In both cases, I marvel at the enigma wherein
steeper energy gradients serve as more efficient energy conduits on the way to
an entropic final destination.
This history of life on Earth is a tale of increasing biological complexity. A single cell is more complex than is the Sun and our planet. From the Cambrian period, the diversity of plant and animal organisms has expanded so much from the common one-celled ancestor that we can say with Plotinus, "(I)t is a wonder how the multiplicity of life derives from what is not multiplicity, and the multiplicity would not have existed unless what was not multiplicity had not existed before the multiplicity."[2] What we typically forget is that with each increase in biological complexity, more free energy is necessary to sustain it.
This history of life on Earth is a tale of increasing biological complexity. A single cell is more complex than is the Sun and our planet. From the Cambrian period, the diversity of plant and animal organisms has expanded so much from the common one-celled ancestor that we can say with Plotinus, "(I)t is a wonder how the multiplicity of life derives from what is not multiplicity, and the multiplicity would not have existed unless what was not multiplicity had not existed before the multiplicity."[2] What we typically forget is that with each increase in biological complexity, more free energy is necessary to sustain it.
In human history, the capture of energy from the Sun for our
species’ use has increased dramatically from the hunter-gatherer days to today.
The leap afforded by the Neolithic Revolution, when nomads—taking advantage of “Garden
of Eden” conditions—began sedentary, agricultural lives, is dwarfed by the tremendous
jump in energy-usage from fossil fuels in the Industrial Revolution. The change
in technological and organizational complexity due to the Industrial Revolution
far exceeds the increase in complexity that came as a result of the Neolithic
Revolution.
Because 95% of our species’ time on Earth was spent in the
hunter-gatherer, small clan, social arrangement, the incredible leap in energy
usage (now 100 times what is needed for survival, per capita) from fossil fuels
whose stored energy far exceeds the potential energy of animals and human labor,
and the related leap in complexity in spheres such as business, government, and
society (e.g., large cities) during and after the Industrial Revolution makes
us fish out of water, evolutionarily speaking. That is to say, natural
selection—the mechanism discovered by Darwin whereby a changed environment “selects”
mutations that are more favorable to it—has not had enough time to adjust our
species to the world that we have created.
For instance, we are “hard-wired” for having contact with up
to 150 people because that’s how big clans got during 95% of the time that
natural selection has had to fashion our species via incremental alterations or
adjustments. We are fish out of water in the cities we ourselves have built.
Similarly, natural selection is too long-paced to alter our innate
short-sightedness such that we can apply collective learning to obviate the
threats to our species’ survival from our energy use, such as in climate change.
In short, the increasingly large leaps in the steepness of the energy gradients
enabled by our successively rich energy-sources have by now outstripped the
energy of our evolutionary biology being able to “catch up.” Put another way,
our amazingly complex biology—far from the Cambrian Revolution that led to the
diversification of life—is not in sync with the complexity that we have
constructed to make our lives easier and even happier.
[1]
David Christian, “Big History” Lecture (2015).
[2] Plotinus, The Enneads, III.8[3]10.
[2] Plotinus, The Enneads, III.8[3]10.
Sunday, January 3, 2016
On the Key Role of Energy in the Industrial Revolution
Reading from Peter Stearns' "The Industrial Revolution in World History," I'm intrigued with the twin elements of fossil fuels to power the machinery and organizational management to organize the production process, including the continued use of human energy/labor. I suppose Descartes' "mind-body" dualism is getting in the way of my understanding of the industrial revolution from the standpoint of the leap of energy and the related increase in complexity.
The full essay is at "Key Role of Energy."
The full essay is at "Key Role of Energy."
Friday, January 1, 2016
The Big Short and Concussion: A System on Steroids
Want a glimpse of the "powers that be," American-style? Three films--"The Big Short," "Concussion," and "Spotlight"--together form a perfect storm that in theory could trigger resistance. More practically speaking, the films are likely to result in more departmentalization, psychologically speaking.
The full essay is at "The Big Short and Concussion."
Wednesday, December 30, 2015
On the Financial Crisis of 2008: Why Business Ethics Failed
I submit that the academic field of business ethics failed in not being able to anticipate the fraud and exploited conflicts of interest that precipitated the financial crisis of 2008. That is to say, business-ethics scholars, including myself, failed utterly. To the extent that the general public relies on us to shoot off flairs in advance of a high likelihood of icebergs in the water ahead, we failed in our social responsibility, ironically as many of us were admonishing corporate managers to be socially responsible. Many who did so used could use their programs as advertisements or even window-dressing. In this essay, I point to some of the academic reasons why business-ethics scholars failed so miserably.
The full essay is at "Essays on the Financial Crisis."
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