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.
Saturday, March 19, 2016
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."
Thursday, October 1, 2015
Pope Francis Addresses the U.N.: A Religious Rationale for Reducing Carbon Emissions
Pope Francis declared to more
than 100 world leaders and diplomats at the United Nations in late September
2015 that a "right of the environment" exists and that our species
has no authority to abuse it or render it unfit for human habitation.[1] In stressing that urgent action is needed to
halt the destruction of God's creation, he made explicit reference to a
religious basis for his moral claim. He said the universe is the result of a
"loving decision by the creator, who permits man respectfully to use
creation for the good of his fellow men and for the glory of the creator: He is
not authorized to abuse it, much less destroy it."[2]
This statement may overplay both the religious nature of the basis and the
destruction. I turn now to parsing the statement in three parts, after which I
will supply the basis of the pope’s religious rationale, which is narrower than
he suggested in his speech.
The complete essay is at “Pope
Francis at the U.N. on Climate Change.”
Pope Francis addressing the United Nations' General Assembly. (Bryan Thomas/Getty)
[1]
Nicole Winfield and Jennifer Peltz, “Pope
Beseeches World Leaders to Protect the Environment,” Associated Press,
September 25, 2015.
[2] Ibid.
Tuesday, September 29, 2015
Business Implications of Power in Mergers: The Case of the New United Airlines
Ideally, a merger combines the best features of one company
with those of another company such that the whole is of greater value than the
sum of the two parts. Optimal combination as such may imply or at least depend
on a rough power-balance between the two adjoining companies, for otherwise
distended dominance could translate into the worst of one company (i.e., the
dominate one) being foisted onto the merged entity. The opportunity cost, or
benefit lost in going with the worst of the dominant company, could be measured
by the extent to which the same function in the other company is better than
that of the dominant company. Put another way, it would make no sense to go
into a merger planning to let each company continue to do what it does worse
than the other. Sadly, power can eclipse economic criteria even in a company.
The merger of Continental Airlines and United Airlines provides a case in
point.
The complete essay is at “Power
over Business Effectiveness in the United Merger.”
United's "Love in the Air" promotion highlighting couples who met in the air. The case of the winning couple pictured here just happens to involve an "upgrade." The love in the air does not refer here to the employees on board or at the gate, even though the impression intended may be that flying United is a loving experience. (United Airlines)
Sunday, September 27, 2015
Great Lakes Water in the U.S.: Treating a Union as a State
Squabbling amongst states in a federal system may be an
inherent feature of federalism. How much the jealousies and petty interests
manifest in terms of policies may depend on the balance of power between the
federation itself and its member-states. In the case of the E.U., the spat at
the state level over how to allocate the tens of thousands of refugees from the
Middle East and Northern Africa effectively stymied federal action that could
have assuaged the angst. It is no accident that the state governments hold most
of the governmental sovereignty in the E.U. federal system. By contrast, the
case of the U.S. demonstrates that nearly consolidated power at a federal level
can obviate, or stifle, strife between state governments. This alternative is
not optimal either, for interstate differences tend to be ignored, resulting in
increasing pressure on the federal system itself. How to handle municipal
requests for drinking water from Lake Michigan is a case in point.
Tuesday, September 22, 2015
A Subtle Conflict of Interest in Obama’s Nominee for FDA Commissioner
Robert Califf, U.S. President Barak Obama’s nominee in 2015
to head the federal Food and Drug Administration (FDA), had received consulting
fees of roughly $205,000 between 2009 and early 2015 from drug companies and a
medical-device maker.[1]
He donated the money he had made since around 2005 to nonprofit groups, and he
had ceased all such work before he became the FDA deputy commissioner for
medical products and tobacco. The question is whether he would have a conflict
of interest in taking the helm at the regulatory agency that puts the public’s
interest above those of the regulated companies. I contend that such a conflict
is indeed entailed, though not on account of the money he received or any
relationships he had developed with people at the companies.
The complete essay is
at “FDA
Nominee Conflict-of-Interest.”
[1]
Drug companies spent an additional $21,000 reimbursing the cardiologist for
travel, meals, and other expenses. Joseph Walker, “FDA Nominee Received
Industry Fees,” The Wall Street Journal,
September 19-20, 2015.
Saturday, September 19, 2015
Bank of America Board Ignores a Binding Resolution: Fiduciaries Seizing Power from Shareholders
Corporate board directors have a fiduciary duty to act in
the shareholders’ financial interest. What if a board’s directors think they
know better that the stockholders as to their interest? In such a case, the
directors would be acting like elected representatives who vote contrary to the
wishes of their constituents for their own good. While valid from the
standpoint of representative democracy, I’m not sure the principle has
legitimacy in the corporate context, wherein property-rights are being
represented. Simply put, an owner gets to decide how his or her wealth is used,
within legal parameters of course. The case of Bank of America’s board may
suggest that directors essentially work for their managements while being shamelessly
dismissive of even binding directives from the stockholders as a group.
The complete essay is at “Corporate
Governance at Bank of America.”
The man of the hour. Brian Moynihan, Chair and CEO of Bank of America as of 2015. His power exceeded even that of the stockholders, whose concentrated wealth he managed. Lest it be maintained that a CEO with such power optimizes corporate earnings, consider that his predecessor, Ken Lewis, had the bank purchase Countrywide, whose fraudulent mortgages played a vital role in bringing about the financial crisis of 2008. Perhaps CEO/chair duality is of value simply in reducing a corporation's systemic risk. Hence, Congress may legitimately intervene.(Simon Dawson/Getty Images)
Friday, September 18, 2015
Pope Francis Puts Up A Syrian Refugee Family: An Opportunity to Clean House
During wars, houses of worship have become temporary
hospitals meeting very practical needs. Caring for the suffering is
particularly close to the message and example that Jesus provided. In response
to Pope Francis’s call for each parish in Europe to take in at least one
refugee family amid the tremendous influx of mostly Syrian refugees in 2015,
the pope himself arranged to take in a family. Leading by example is certainly
fitting for a follower of Jesus. I submit that the pope could have gone even
further to drive home the message of what it means to be a Christian.
The complete essay is at “Pope
Francis Puts Up Syrian Refugee Family.”
Pope Francis washing the feet of men and women in a juvenile detention center on Holy Thursday in 2013. That he washed women's feet flustered some people in the Vatican who missed the main point of the ritual.
Wednesday, September 16, 2015
Gay Marriage: God’s Law, Legal Reasoning, and Ideology
Mixing religion,
jurisprudence, and ideology together is one potent drink. Ingestion can cause
palpable heart-burn as well as migraine headaches. In the case of gay marriage
in the U.S., sorting out and evaluating the three elements can be rife with
controversy and thus confusion. In this essay, I discuss the county clerk in
Kentucky who refused to grant marriage licenses to gay couples because doing so
would violate God’s law and thus betray Jesus. Her religious rationale makes
for interesting legal reasoning. I then look at the U.S. Supreme Court’s
gay-marriage decision. I contend that a natural-right (and thus human right)
basis clashes with ideological anger. Human nature itself is on display
throughout, particularly as it wades into religion, legal reasoning, and
ideology.
The complete essay is at “Gay
Marriage: God’s Law, Legal Reasoning, and Ideology.”
Monday, September 14, 2015
Why the E.U. is Compromised in Handling the Refugee Crisis
At least four E.U. states, including Hungary, the Czech
Republic, Slovakia, and Poland, rejected a federal plan on September 11, 2015
that would have imposed refugee quotas on the states. The failure to come up
with a fair allocation of migrants by state threatened to undo the borderless
travel within the E.U. The tremendous influx of mostly Syrian refugees exacerbated
differences between the states; given their power even at the federal level of
the E.U., the infighting was a risk to the viability of the E.U. itself. I
contend that structural flaws in the E.U. itself unnecessarily compromised the
Union from quashing the risk to itself by solving the refugee problem. The
state governments were clearly not in unison in dealing with the problem
themselves.
Refugees held up in Hungary because the state's government was overwhelmed. Why didn't the E.U. step in to help? (Mauricio Limo/NYT).
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