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New CEO an outsider?

December 2, 2009 2 comments

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?

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Risky Investments by US Bank Ethical?

November 15, 2009 Leave a comment

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?

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Adding to the Stimulus

November 8, 2009 2 comments

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?

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Tainted Beef

November 2, 2009 5 comments

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?

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Mass Layoffs Ethical?

October 26, 2009 4 comments

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?

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SEC and Technology

October 21, 2009 1 comment

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?

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Who watches the watchdog?

October 14, 2009 Leave a comment

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?

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