New CEO an outsider?

GM board looks to the outside for replacement CEO

An ethical question that I have always wondered is how is it morally right to make someone a CEO that has no previous dealings with the company? I can understand if the circumstances of large executive fraud that they look elsewhere but otherwise it does seem sufficient. People poor their lives into the company rising from their entry position to upper management and when they believe that it is their turn they are mistaken. The outsiders do not know the organizational culture of the company, the people who work for it personally, or how day-to-day operations work. They have shown no previous dedication to the firm and are all of a sudden at the highest most powerful position in the entire company. Any comments on this topic?

Risky Investments by US Bank Ethical?

Insurer Woodmen files $30M lawsuit against US Bank

Woodmen of the World is filing suit against the US Bank as they invested money into risky investments when they told the Woodmen that they would invest in stable conservative investments. I believe that Woodmen have a case of unethical practices as it is apparent that the Bank might of invested riskier to take a larger margin off the top. However if the stipulations of the evidence aren’t in the contract then it is not binding and they will have a hard time proving their case in US court of law. In a principal-agent contract if the agent acts in their given duty and acts responsible to the best of their knowledge they cannot be help negligible. Woodmen of the World are trying to sure for $30M. Any opinions on the possible outcomes of the case?

Adding to the Stimulus

Obama signs bill assisting homebuyers, jobless

President Obama is adding programs to the stimulus package giving tax incentives to possible homebuyers and adding additional jobless benefits. The bill signed friday added another $24 billion to the already $787 billion stimulus. Obama stated that he made his decision after it passed through both houses and the jobless rate hit 10.2% last month. The law added an additional 14 weeks to unemployed people to receive compensation. This gives some states 99 weeks of unemployment the most in U.S. history. The unemployment benefits are said to be paid back by employers adding a federal unemployment tax to businesses. People trying to purchase a home will be given an $8,000 tax credit and the plan has been extended to next June.

The main ethical issue in the article is how much spending is needed to correct our countries financial crisis. It seems to me that the more we spend the only people that are going to pick up the bill is us. I understand we do need welfare programs for the unfourtunate but to what extent? I know that Democrats are about implementing programs but it seems to me they are giving people no motivation to work. Any ideas?

Tainted Beef

Tainted ground beef to 2 deaths may be linked

The article discusses the recent discovery of E. coli in meats distributed from North Carolina to Maine. The reported meat the was not properly tested is believed to be the cause of death for two people and the hospitalization of 16 others. The company Fairbanks Farms had to recall over 500,000 pounds of meat which will be thrown away. Officials say symptoms of the sickness will appear three to four days later.

This is a serious ethical issue if it is true that the company did not properly maintain or test the processed meat. Where has the moral standards gone if someone can’t be sure that the products purchased at their local grocery store are safe? Any comments?

Mass Layoffs Ethical?

Caterpillar cuts 2,500 workers

This article reinforces the ethical dilemma that we discussed in class concerning laying off workers. We talked about how people are let go without consideration of their performance or their livelihood just overall production costs. The company will be laying off 2,500 workers today but have gotten rid of 34,000 full-tiime workers. The explanation by the company states that their are not experiencing the demand that they were in the previous five years. Should employees have some control over their careers other than hoping that their company does well enough to keep them on board? I believe that some companies should guarantee certain workers a lifetime employment offer after so many years of superior performance. Kind of like the idea of tenure within universities. Any other ideas to make it more balanced between those who run the company and those that make-up its production?

SEC and Technology

SEC’s Tough New Offensive on Insider Trading

Recent schemes like Galleon Management and the infamous ponzi scheme of Madoff has made the SEC step their so called “game” up. The SEC is trying to get legislation passed to allow the flow of information between themselves an other agencies easier and more efficient. The recent case with Galleon Management relied heavily on informants an wire taps which is very unusual for white collar crime. The tools that they used in this case resemble that of drug and mafia investigations.

This case should let all people in the business world know that the SEC new investigations are more advanced in technology and tactics to catch insider trading and other business oriented schemes. This article relates to our discussions in class about the distribution of wealth. These rich business people keep getting richer through loopholes of the system and tricking the undereducated who lose their life savings. Do you believe that the SEC should have more power and resources to catch these white collar crimes?

Who watches the watchdog?

Treasury and Fed failed in AIG oversight!

There is a very crucial and apparent ethical dilemma in the article linked above. When an agency is granted oversight in such a huge task as the bailout it is ridiculous that individuals and groups still try to cut corners. So my question is who is to watch the watchdogs? If an agency is overseeing another then who watches them and so on? This is American tax payers money to bail out huge businesses and their is still corruption going on.

As we have learned in our text the biggest problem with organizations and even government agencies is when something happens who is to blame? They just put the blame on a mid-level manager or stall the scandal until the media gets wind of something more appealing then they continue with their normal operations. Is is human nature to be inherently bad, if so then it is safe to say that no oversight was ever completely effective. Any thoughts?

Solar Energy

Solar Power in Colorado

The article above displays how communties, business, and states as a whole are researching and embracing other forms of energy. Colorado is focusing on solar power which is a less pollutive and more conservative way to create energy for electricity. This is a growing confrontation on a global level. We cannot keep polluting the environment and diminishing our natural resources generations to follow us will pay the cost. This article goes with our recent chapter concerning corporate social responsibility. Companies and countries need to take more concern into reducing their pollutants and finding more efficient means to operate their organization. Do you think that the United States is taking the environmental situation seriously? Or do they merely pretend to to keep the EPA and other political lobbying groups happy?

Gun Control or Human Control

Ban handguns?

The United States Supreme Court has on its upcoming docket a case to decide on the prohibition of handguns should be enforced on a state and local level. The Second Amendment specifically gives Americans the right to bear arms, and has been argued unsuccessfully numerous times in the past. The advocates of gun control do not believe they have much of a chance so they will try to push other reforms to restrict gun control.

While I understand the reasons that people want gun control I just do not see it solving anything. These control advocates act like the man who robs the gas station around the corner got his gun from the local sporting good store. Most likely the citizens who are armed did so through an illegal vendor, therefore by limiting gun control you are just limiting everyday people from being able to protect themselves.

BP pays state for spill violations

BP to pay $1.7 mil

The oil company spills thousands of gallons of oil into the ocean, polluting the environment. However when it is all said and done the only thing that the government can do is give them suggestions and fines. While legislation is reaping mass amounts of cash in fines what is it doing to help this incident from reocurring over and over again. With the record amount of profits that the oil companies continue to show, you have to wonder if these fines even hurt the company. The media does more by giving the company negative publicity but people have to purchase gas anyways our society is reliant on that. Do you think their should be stiffer or even criminal penalties for these oil spills, if criminal penalties who should be charged?