Wednesday, December 9, 2009
PHI 2604 Topics for Final Exam Chapter 6 &7 (10 & 11 old edition)
Chapter 6
1- (a) "Due care," (b) "caveat emptor."
2- Legal paternalism: the idea that the law may justifiably be used to restrict the freedom of individuals for their own good.
3- 6-point steps in consumer safety (pp. 514, 515): 1- Business should give safety the priority wanted by the product. 2- Business should abandon the misconception that accidents occur exclusively as a result of product misuse and that it is thereby absolved of all responsibilities. 3- Business should monitor the manufacturing process itself. 4- When a product is ready to be marketed, companies should have their product safety staff review their market strategy and advertising for potential safety problems.5- When a product reaches the marketplace, firms should make available to consumers written information about the product's performance. 6- Companies should investigate consumer complaints and do so quickly.
4- Express warranty: claims that sellers explicitly state (i.e, a product is shrink-proof, or require no maintenance for two years). Implied warranty: It includes the claim, implicit in any sale that a product is fit for its ordinary, intended use (this is also called merchantability).
5- Price fixing: There are 2 types: Horizontal price fixing: When competitors agree to adhere to a set price schedule, not to curt prices below a certain minimum (Mercedes Benz dealers in several states who conspired not to undercut one another with discounts). Vertical Price Fixing: When manufacturers and retailers -as opposed to direct competitors- agree to set prices.
6- Price gouging: A seller's exploiting a short-term situation in which buyers have fewer purchase options for a much-needed product by raising prices substantially.
7-Ambiguity: Use of weasel words, i.e, "help" (as in help prevents, helps fight, helps overcome, helps you feel, etc).
8- Concealment of facts: Advertisers suppress information that is unflattering to the products (i.e., prepaid phone cards with hidden costs, or the Bayer aspirin case, which for years advertised that it contained "the ingredient that doctors recommend most", or Cream cheese having "half the calories of butter" but hiding the fact that it's as high in fat as butter.
9- Exaggeration: Making hyperbolic claims unsupported by evidence, i.e., "extra pain relief," "50% stronger than aspirin," "anti-aging." There is also puffery: "King of beers, "breakfast of champions," "ultimate driving machine," etc. 10- Psychological appeals: A persuasive effort aimed primarily at emotion, not reason.
11- Ads directed at children: A typical child sees 20,000 TV commercials a year. (p. 321)
Chapter 7
1- (a) Ecology: It refers to the science of interrelationships among organisms and their environments. The operative term is "interrelationships," implying the interdependence between all entities within the environment. (b) ecosystem: refers to the total ecological community, both living and non-living. Webs of interdependency structure ecosystems. Predators and prey, producers and consumers, hosts and parasites are linked together, as mechanisms of check and balance that stabilize the system. A change in one element can have ripple effects throughout the system.
2- Environment as "instrument" (traditional view of business). Traditionally, business has considered the environment to be a free, nearly unlimited good. Air, water, land, and other natural resources from coal to beavers (trapped for their pelts in the 19th century) were seen as available for business to use indiscriminately. The view that nature is just "out there" to be used up and dominated promotes the wasteful consumption of viable natural resources.
3- Externality or spillover: Is the disparity between private (industrial) costs and social costs. Take paper, for example. The price of paper doesn't reflect the cost of producing it. Paper is under-priced and overproduced, thus leading to a misallocation of resources. This is also a moral problem, because the purchasers of paper are not paying its full cost. Instead, part of the cost of producing paper is unfairly imposed on other people. Facts: IT takes 100,000 gallons of water to make one automobile. Who pays for this damage? We suck 75 gallons of underground water for every 60 that nature puts back in.
4- Cost-benefit analysis: Is a device used to determine whether it's worthwhile to incur a particular cost. i.e., the cost of employing a particular pollution control device. Example: Imagine the estimated environmental damage of $1 million per year, and that the only technique that permits the plant to operate costs $6 million per year. Is that is the case, the cost-benefit analysis would rule against requiring the plant to introduce the new technique. It gets complicated. We must examine pros and cons. PROS: 1- reduction in air-borne pollution leading to bronchitis, lung cancer, and other respiratory diseases, 2-increase in life expectancy, 3- less environmental damage, which saves money. CONS: 1- lower corporate profits, 2- higher prices for consumers (say, the price of organic food), 3- adverse consequence for the nation's balance of payments. Ecological economics is the sicience dealing with the boundaries between environmental cost-benefit abnalysis.
Pros and cons of:
5- Regulations (take a look at p. 376, 377)
It makes use of direct public regulation and control in determining how the pollutyion bill is paid. State and federal legislation formulated by agencies such as EPA set environmental standards, which are then applied and enforced by those agencies, other bodies and the courts. ADVANTAGE: The standards are legally enforceable. Firms not meeting the standards could be fined or even shut down. DISADVANTAGES: 1- Pollution control requires a detailed investigation of pollution control technologies by the EPA, which is not easy. As a result, it may demand more from companies that they can achieve while letting others too slightly. 2- Although universal environmental standards are fair, they, by this very reason can become ineffectual. If the environment is clear, should companies be allowed to pollute up to the maximum of the standard? Which brings the problem of the particularity of each industry. On the other hand, is it reasonable to force companies that cause different amounts of environmental damage to spend the same amount of pollution abatement? 3- regulation can also take away the industry incentive to do more than the minimum required by law. No polluter has the incentive to discharge much less than the regulations allow.
6- Incentives (377, 378):
A widely supported approach to the problem of cost allocation for environmental improvement is government investment, subsidy and general economic incentive. Governments can give firms tax breaks for purchasing and using pollution control equipment, or matching grants to companies that install such devices. ADVANTAGES: 1- It minimizes government interference in business and encourages voluntary action rather than coercing compliance (as it happens with regulation). 2- By allowing firms to move at their own pace, it avoids the unfairness to firms that cannot meet the regularoty standards. 3- Incentives provide an economic reason for going beyond mere compliance.
DISADVANTAGES: 1- A voluntary program is likely to go very slow (while environmental problems are generally pressing for immediate attention). 2- The program amounts in many cases as a subsidy for polluters, with polluting firms being paid not to pollute. 3- Does the approach benefits the victims of pollution or the polluters? (the USA spends billions subsidizing the conversion of corn to ethanol, the program benefits the big business and corporations while its positive environmental impact is negligible. Worse, by reducing the amount of food produced, the subsidy has helped drive up the price of food and pay for more corporate lobbyists in Washington.
7- Price mechanisms & pollution controls (p.378, 379)
The program is designed to charge firms for the amount of pollution they produce. Also called effluent charges, it spells out the cost of a specific kind of pollution in a specific area at an specific time. Prices depend of the damage caused and so it vary from place to place. ADVANTAGES: 1- It places the cost of pollution control squarely on the polluters. The pricing mechanism penalizes, rather than compensates the polluters. For many this is fairer than incentive programs that subsidize companies to pollute. The government could charge companies for pollution permits. Another market strategy is to discharge a limited amount of pollutants and allow them to sell the right to emit pollutants. So companies with low pollution levels can make money by selling their pollution permits to companies with poorer controls. DISADVANTAGES: Pollution permits don't work in all situations. 2- The price tag for polluting seems arbitrary. What's a fair price?
In summary, although each one of these approaches -regulations, incentives, pricing mechanisms, and pollution permits- has its advantages, none is without its weak points. And becuse there appears to be no single ideal approach, a combination of all those methods is probable the best alternative.
6- Obligations to future generations: A broader view of environmental ethics considers obligations to those in other societies as well as to future generations. The point is that they deserve an environment that we don't wish for ourselves. One way to look at it is with a utilitarian perspective to enhance human happiness through time. (See more in page 382, 3839.
7- Environment as "intrinsic." See under The Value of Nature, (p. 383, 384).
1- (a) "Due care," (b) "caveat emptor."
2- Legal paternalism: the idea that the law may justifiably be used to restrict the freedom of individuals for their own good.
3- 6-point steps in consumer safety (pp. 514, 515): 1- Business should give safety the priority wanted by the product. 2- Business should abandon the misconception that accidents occur exclusively as a result of product misuse and that it is thereby absolved of all responsibilities. 3- Business should monitor the manufacturing process itself. 4- When a product is ready to be marketed, companies should have their product safety staff review their market strategy and advertising for potential safety problems.5- When a product reaches the marketplace, firms should make available to consumers written information about the product's performance. 6- Companies should investigate consumer complaints and do so quickly.
4- Express warranty: claims that sellers explicitly state (i.e, a product is shrink-proof, or require no maintenance for two years). Implied warranty: It includes the claim, implicit in any sale that a product is fit for its ordinary, intended use (this is also called merchantability).
5- Price fixing: There are 2 types: Horizontal price fixing: When competitors agree to adhere to a set price schedule, not to curt prices below a certain minimum (Mercedes Benz dealers in several states who conspired not to undercut one another with discounts). Vertical Price Fixing: When manufacturers and retailers -as opposed to direct competitors- agree to set prices.
6- Price gouging: A seller's exploiting a short-term situation in which buyers have fewer purchase options for a much-needed product by raising prices substantially.
7-Ambiguity: Use of weasel words, i.e, "help" (as in help prevents, helps fight, helps overcome, helps you feel, etc).
8- Concealment of facts: Advertisers suppress information that is unflattering to the products (i.e., prepaid phone cards with hidden costs, or the Bayer aspirin case, which for years advertised that it contained "the ingredient that doctors recommend most", or Cream cheese having "half the calories of butter" but hiding the fact that it's as high in fat as butter.
9- Exaggeration: Making hyperbolic claims unsupported by evidence, i.e., "extra pain relief," "50% stronger than aspirin," "anti-aging." There is also puffery: "King of beers, "breakfast of champions," "ultimate driving machine," etc. 10- Psychological appeals: A persuasive effort aimed primarily at emotion, not reason.
11- Ads directed at children: A typical child sees 20,000 TV commercials a year. (p. 321)
Chapter 7
1- (a) Ecology: It refers to the science of interrelationships among organisms and their environments. The operative term is "interrelationships," implying the interdependence between all entities within the environment. (b) ecosystem: refers to the total ecological community, both living and non-living. Webs of interdependency structure ecosystems. Predators and prey, producers and consumers, hosts and parasites are linked together, as mechanisms of check and balance that stabilize the system. A change in one element can have ripple effects throughout the system.
2- Environment as "instrument" (traditional view of business). Traditionally, business has considered the environment to be a free, nearly unlimited good. Air, water, land, and other natural resources from coal to beavers (trapped for their pelts in the 19th century) were seen as available for business to use indiscriminately. The view that nature is just "out there" to be used up and dominated promotes the wasteful consumption of viable natural resources.
3- Externality or spillover: Is the disparity between private (industrial) costs and social costs. Take paper, for example. The price of paper doesn't reflect the cost of producing it. Paper is under-priced and overproduced, thus leading to a misallocation of resources. This is also a moral problem, because the purchasers of paper are not paying its full cost. Instead, part of the cost of producing paper is unfairly imposed on other people. Facts: IT takes 100,000 gallons of water to make one automobile. Who pays for this damage? We suck 75 gallons of underground water for every 60 that nature puts back in.
4- Cost-benefit analysis: Is a device used to determine whether it's worthwhile to incur a particular cost. i.e., the cost of employing a particular pollution control device. Example: Imagine the estimated environmental damage of $1 million per year, and that the only technique that permits the plant to operate costs $6 million per year. Is that is the case, the cost-benefit analysis would rule against requiring the plant to introduce the new technique. It gets complicated. We must examine pros and cons. PROS: 1- reduction in air-borne pollution leading to bronchitis, lung cancer, and other respiratory diseases, 2-increase in life expectancy, 3- less environmental damage, which saves money. CONS: 1- lower corporate profits, 2- higher prices for consumers (say, the price of organic food), 3- adverse consequence for the nation's balance of payments. Ecological economics is the sicience dealing with the boundaries between environmental cost-benefit abnalysis.
Pros and cons of:
5- Regulations (take a look at p. 376, 377)
It makes use of direct public regulation and control in determining how the pollutyion bill is paid. State and federal legislation formulated by agencies such as EPA set environmental standards, which are then applied and enforced by those agencies, other bodies and the courts. ADVANTAGE: The standards are legally enforceable. Firms not meeting the standards could be fined or even shut down. DISADVANTAGES: 1- Pollution control requires a detailed investigation of pollution control technologies by the EPA, which is not easy. As a result, it may demand more from companies that they can achieve while letting others too slightly. 2- Although universal environmental standards are fair, they, by this very reason can become ineffectual. If the environment is clear, should companies be allowed to pollute up to the maximum of the standard? Which brings the problem of the particularity of each industry. On the other hand, is it reasonable to force companies that cause different amounts of environmental damage to spend the same amount of pollution abatement? 3- regulation can also take away the industry incentive to do more than the minimum required by law. No polluter has the incentive to discharge much less than the regulations allow.
6- Incentives (377, 378):
A widely supported approach to the problem of cost allocation for environmental improvement is government investment, subsidy and general economic incentive. Governments can give firms tax breaks for purchasing and using pollution control equipment, or matching grants to companies that install such devices. ADVANTAGES: 1- It minimizes government interference in business and encourages voluntary action rather than coercing compliance (as it happens with regulation). 2- By allowing firms to move at their own pace, it avoids the unfairness to firms that cannot meet the regularoty standards. 3- Incentives provide an economic reason for going beyond mere compliance.
DISADVANTAGES: 1- A voluntary program is likely to go very slow (while environmental problems are generally pressing for immediate attention). 2- The program amounts in many cases as a subsidy for polluters, with polluting firms being paid not to pollute. 3- Does the approach benefits the victims of pollution or the polluters? (the USA spends billions subsidizing the conversion of corn to ethanol, the program benefits the big business and corporations while its positive environmental impact is negligible. Worse, by reducing the amount of food produced, the subsidy has helped drive up the price of food and pay for more corporate lobbyists in Washington.
7- Price mechanisms & pollution controls (p.378, 379)
The program is designed to charge firms for the amount of pollution they produce. Also called effluent charges, it spells out the cost of a specific kind of pollution in a specific area at an specific time. Prices depend of the damage caused and so it vary from place to place. ADVANTAGES: 1- It places the cost of pollution control squarely on the polluters. The pricing mechanism penalizes, rather than compensates the polluters. For many this is fairer than incentive programs that subsidize companies to pollute. The government could charge companies for pollution permits. Another market strategy is to discharge a limited amount of pollutants and allow them to sell the right to emit pollutants. So companies with low pollution levels can make money by selling their pollution permits to companies with poorer controls. DISADVANTAGES: Pollution permits don't work in all situations. 2- The price tag for polluting seems arbitrary. What's a fair price?
In summary, although each one of these approaches -regulations, incentives, pricing mechanisms, and pollution permits- has its advantages, none is without its weak points. And becuse there appears to be no single ideal approach, a combination of all those methods is probable the best alternative.
6- Obligations to future generations: A broader view of environmental ethics considers obligations to those in other societies as well as to future generations. The point is that they deserve an environment that we don't wish for ourselves. One way to look at it is with a utilitarian perspective to enhance human happiness through time. (See more in page 382, 3839.
7- Environment as "intrinsic." See under The Value of Nature, (p. 383, 384).
PHI 2604 Book link (Final review)
PHI 2604 Book Link: Moral Issues in Business Link. To the left of the page, you have the chapters (10-11). Check each of the tutorial exams. Play with it and have fun. I may use some of these questions for the final. (Don't forget to bring your scantron sheets to the exam).
Monday, December 7, 2009
She put the customer's interest first and was fired
Bank of America fired Jackie Ramos after she took a stand against the bank's $15 "convenience" charges and $39 over-the-limit fees so she could sleep better at night.
"There was something inherently evil about my job," the 23-year-old said in a YouTube video she uploaded on Nov. 27, two days after her termination.
Ramos, of Fairburn, Ga., worked as a "customer advocate," which involved calling people who fall behind on credit card payments and either encouraging them to pay or modifying their accounts. But not all customers qualify for modification programs that will help them, and Ramos grew tired of saying no after six months on the job. "So I stopped denying people," said Ramos. "I helped people get on programs that they didn't necessarily qualify for but who definitely needed the help."
Bank of America declined to comment on Ramos's video but confirmed her account of the firing. "Ms. Ramos clearly violated some bank policies, particularly around misrepresenting customer information," said spokesman Tony Allen. "Perhaps more egregious, she encouraged customers to misrepresent their information."
"There was something inherently evil about my job," the 23-year-old said in a YouTube video she uploaded on Nov. 27, two days after her termination.
Ramos, of Fairburn, Ga., worked as a "customer advocate," which involved calling people who fall behind on credit card payments and either encouraging them to pay or modifying their accounts. But not all customers qualify for modification programs that will help them, and Ramos grew tired of saying no after six months on the job. "So I stopped denying people," said Ramos. "I helped people get on programs that they didn't necessarily qualify for but who definitely needed the help."
Bank of America declined to comment on Ramos's video but confirmed her account of the firing. "Ms. Ramos clearly violated some bank policies, particularly around misrepresenting customer information," said spokesman Tony Allen. "Perhaps more egregious, she encouraged customers to misrepresent their information."
Monday, November 30, 2009
Classwork this Wednesday
For this Wednesday, we'll do what was left from last class in classwork. Take a look at Reading 6.1 (p. 337). See ya.
Sunday, November 29, 2009
PHI 2604 W, 5:40PM
THIS IS THE PLACE TO POST YOUR LAST ASSIGNMENT/COMMENTS: YOU HAVE A WEEK (UNTIL SUNDAY DECEMBER 6, 10PM) TO POST YOUR COMMENTS. PLEASE, SIGN YOUR NAME AT THE BOTTOM OF YOUR COMMENT.
Last assignment
The next assignment deals with the issue of sex exploitation against women. Here are some links for you to get an idea of what's going on:
Cheated out of childhood in Russia.
Rape in Japan.
Sex slaves in Italy.
Child sex workers in Nepal.
Child prostitution in South Africa.
You don't have to go overseas. Sex exploitation happens in our own backyard.
Although the evidence is overwhelming, but why do we still struggle with these horrible issues in the Twenty-First Century?
Here is the wikipedia entry on prostitution, which brings the bigger issue of human trafficking.
Prostitution in the United States. (see that there are different kinds, from brothel, to escort to child prostitution).
_____________
Following the guidelines of the previous assignment, I'd like you to comment on the ethical issues involving the sexual exploitation of women.
Some interesting facts you should know:
1- "About 80% of women in prostitution have been the victim of a rape. It's hard to talk about this because..the experience of prostitution is just like rape. Prostitutes are raped, on the average, eight to ten times per year. They are the most raped class of women in the history of our planet. " (Susan Kay Hunter and K.C. Reed, July, 1990 "Taking the side of bought and sold rape," speech at National Coalition against Sexual Assault, Washington, D.C. ). Other studies report 68% to 70% of women in prostitution being raped (M Silbert, "Compounding factors in the rape of street prostitutes," in A.W. Burgess, ed., Rape and Sexual Assault II, Garland Publishing, 1988; Melissa Farley and Howard Barkan, "Prostitution, Violence, and Post-traumatic Stress Disorder," 1998, Women & Health.
2- Prostitution is an act of violence against women which is intrinsically traumatizing. In a study of 475 people in prostitution (including women, men, and the transgendered) from five countries (South Africa, Thailand, Turkey, USA, and Zambia):
62% reported having been raped in prostitution.
73% reported having experienced physical assault in prostitution.
72% were currently or formerly homeless.
92% stated that they wanted to escape prostitution immediately.
(Melissa Farley, Isin Baral, Merab Kiremire, Ufuk Sezgin, "Prostitution in Five Countries: Violence and Post-traumatic Stress Disorder" (1998) Feminism & Psychology 8 (4): 405-426.
3- Many of the health problems of women in prostitution are a direct result of violence. For example, several women had their ribs broken by the police in Istanbul, a woman in San Francisco broke her hips jumping out of a car when a john was attempting to kidnap her. Many women had their teeth knocked out by pimps and johns. (Melissa Farley, unpublished manuscript, 2000). One woman (in another study) said about her health: "I’ve had three broken arms, nose broken twice, [and] I’m partially deaf in one ear….I have a small
fragment of a bone floating in my head that gives me migraines. I’ve had a fractured skull. My legs ain’t worth shit no more; my toes have been broken. My feet, bottom of my feet, have been burned; they've been whopped with a hot iron and clothes hanger… the hair on my pussy had been burned off at one time…I have scars. I’ve been cut with a knife, beat with guns, two by fours. There hasn’t been a place on my body that hasn’t been bruised somehow, some way, some big, some small." (Giobbe, E. (1992) Juvenile Prostitution: Profile of Recruitment in Ann W. Burgess (ed.) Child Trauma: Issues & Research.Garland Publishing Inc, New York, page 126).
4- The commercial sex industry includes street prostitution, massage brothels, escort services, out-call services, strip clubs, lap-dancing, phone sex, adult and child pornography, video and internet pornography, and prostitution tourism. Most women who are in prostitution for longer than a few months drift among these various permutations of the commercial sex industry. All prostitution causes harm to women. Whether it is being sold by one’s family to a brothel, or whether it is being sexually abused in one’s family, running away from home, and then being pimped by one’s boyfriend, or whether one is in college and needs to pay for next semester’s tuition and one works at a strip club behind glass where men never actually touch you – all these forms of prostitution hurt the women in it. (Melissa Farley, paper presented at the 11th International Congress on Women’s Health Issues, University of California College of Nursing, San Francisco. 1-28-2000)
If you have any questions, post them here.
Cheated out of childhood in Russia.
Rape in Japan.
Sex slaves in Italy.
Child sex workers in Nepal.
Child prostitution in South Africa.
You don't have to go overseas. Sex exploitation happens in our own backyard.
Although the evidence is overwhelming, but why do we still struggle with these horrible issues in the Twenty-First Century?
Here is the wikipedia entry on prostitution, which brings the bigger issue of human trafficking.
Prostitution in the United States. (see that there are different kinds, from brothel, to escort to child prostitution).
_____________
Following the guidelines of the previous assignment, I'd like you to comment on the ethical issues involving the sexual exploitation of women.
Some interesting facts you should know:
1- "About 80% of women in prostitution have been the victim of a rape. It's hard to talk about this because..the experience of prostitution is just like rape. Prostitutes are raped, on the average, eight to ten times per year. They are the most raped class of women in the history of our planet. " (Susan Kay Hunter and K.C. Reed, July, 1990 "Taking the side of bought and sold rape," speech at National Coalition against Sexual Assault, Washington, D.C. ). Other studies report 68% to 70% of women in prostitution being raped (M Silbert, "Compounding factors in the rape of street prostitutes," in A.W. Burgess, ed., Rape and Sexual Assault II, Garland Publishing, 1988; Melissa Farley and Howard Barkan, "Prostitution, Violence, and Post-traumatic Stress Disorder," 1998, Women & Health.
2- Prostitution is an act of violence against women which is intrinsically traumatizing. In a study of 475 people in prostitution (including women, men, and the transgendered) from five countries (South Africa, Thailand, Turkey, USA, and Zambia):
62% reported having been raped in prostitution.
73% reported having experienced physical assault in prostitution.
72% were currently or formerly homeless.
92% stated that they wanted to escape prostitution immediately.
(Melissa Farley, Isin Baral, Merab Kiremire, Ufuk Sezgin, "Prostitution in Five Countries: Violence and Post-traumatic Stress Disorder" (1998) Feminism & Psychology 8 (4): 405-426.
3- Many of the health problems of women in prostitution are a direct result of violence. For example, several women had their ribs broken by the police in Istanbul, a woman in San Francisco broke her hips jumping out of a car when a john was attempting to kidnap her. Many women had their teeth knocked out by pimps and johns. (Melissa Farley, unpublished manuscript, 2000). One woman (in another study) said about her health: "I’ve had three broken arms, nose broken twice, [and] I’m partially deaf in one ear….I have a small
fragment of a bone floating in my head that gives me migraines. I’ve had a fractured skull. My legs ain’t worth shit no more; my toes have been broken. My feet, bottom of my feet, have been burned; they've been whopped with a hot iron and clothes hanger… the hair on my pussy had been burned off at one time…I have scars. I’ve been cut with a knife, beat with guns, two by fours. There hasn’t been a place on my body that hasn’t been bruised somehow, some way, some big, some small." (Giobbe, E. (1992) Juvenile Prostitution: Profile of Recruitment in Ann W. Burgess (ed.) Child Trauma: Issues & Research.Garland Publishing Inc, New York, page 126).
4- The commercial sex industry includes street prostitution, massage brothels, escort services, out-call services, strip clubs, lap-dancing, phone sex, adult and child pornography, video and internet pornography, and prostitution tourism. Most women who are in prostitution for longer than a few months drift among these various permutations of the commercial sex industry. All prostitution causes harm to women. Whether it is being sold by one’s family to a brothel, or whether it is being sexually abused in one’s family, running away from home, and then being pimped by one’s boyfriend, or whether one is in college and needs to pay for next semester’s tuition and one works at a strip club behind glass where men never actually touch you – all these forms of prostitution hurt the women in it. (Melissa Farley, paper presented at the 11th International Congress on Women’s Health Issues, University of California College of Nursing, San Francisco. 1-28-2000)
If you have any questions, post them here.
Saturday, November 21, 2009
PHI 2604 Chapter 6 (Chapter 10 of 10th edition): Homework
1- What is the meaning of “due care” and how does it relate to the MacPherson vs. Buick Motor Car case?
2- Define “caveat emptor.”
3- Define “legal paternalism.”
4- Go over the 6 steps regarding business responsibilities.
5- Define the following: a) Express warranty, b) implied warranty, c) merchantability.
8- Describe: a) “price fixing,” b) “price gouging.”
9- Regarding deceptive techniques used in advertising, define the following: a) ambiguity, b) concealed facts, d) exaggeration, e) psychological appeals.
2- Define “caveat emptor.”
3- Define “legal paternalism.”
4- Go over the 6 steps regarding business responsibilities.
5- Define the following: a) Express warranty, b) implied warranty, c) merchantability.
8- Describe: a) “price fixing,” b) “price gouging.”
9- Regarding deceptive techniques used in advertising, define the following: a) ambiguity, b) concealed facts, d) exaggeration, e) psychological appeals.
_____
Let's do case 6.1 (p. 327) "Breasts implants". All discussions questions (breast implant problems). Also, we'll analyse Reading 6.1 "The Ethics of Sale" (p.337)Monday, November 16, 2009
Corruption and foreign interests
The long arm of repression and foreign interest covering corruption:
“Of course it’s because of oil,” said John Bennett, the United States ambassador to Equatorial Guinea from 1991 to 1994, adding that Washington has turned a blind eye to the Obiangs’ corruption and repression because of its dependence on the country for natural resources. He noted that officials of Zimbabwe are barred from the United States.
“Both countries are severely repressive,” said Mr. Bennett, who is now a senior foreign affairs officer for the State Department in Baghdad. “But if Zimbabwe had Equatorial Guinea’s oil, Zimbabwean officials wouldn’t still be blocked from the U.S.”
“Of course it’s because of oil,” said John Bennett, the United States ambassador to Equatorial Guinea from 1991 to 1994, adding that Washington has turned a blind eye to the Obiangs’ corruption and repression because of its dependence on the country for natural resources. He noted that officials of Zimbabwe are barred from the United States.
“Both countries are severely repressive,” said Mr. Bennett, who is now a senior foreign affairs officer for the State Department in Baghdad. “But if Zimbabwe had Equatorial Guinea’s oil, Zimbabwean officials wouldn’t still be blocked from the U.S.”
Thursday, November 12, 2009
Topics for Quiz #2
Chapter 9
Legitimate and illegitimate influence (p. 477)
Informed Consent, (p. 479)
Polygraph Tests: Purpose of PT (p. 480)
Major assumptions: Personality tests, what are they good for?
Drug Testing; 4 remarks (p. 484)
Chapter 10
Conflict of Interest: (p. 539)
Insider Trading (p. 542)
Trade secret (p. 545) There are 3 arguments for protecting trade secrets (1- trade secrets are intellectual property, 2- it's unfair competition, 3- employees who disclose t.s. violate confidentiality owed to their employers).
Bribes. Kickbacks (p. 547)
Gifts: Seven rules (p. 550)
Obligations to third parties.
Whistle blowing (p. 554) Five guidelines.
Chapter 11
Job discrimination (p. 609)
Affirmative action (p 615-619)
Argumments for and against affirmative action (p. 620,621)
Comparable worth (arguments) (p. 623)
Sexual Harrassment (p. 626). Two types of harrassment. Four things to do when one encounters sexual harassment.
Legitimate and illegitimate influence (p. 477)
Informed Consent, (p. 479)
Polygraph Tests: Purpose of PT (p. 480)
Major assumptions: Personality tests, what are they good for?
Drug Testing; 4 remarks (p. 484)
Chapter 10
Conflict of Interest: (p. 539)
Insider Trading (p. 542)
Trade secret (p. 545) There are 3 arguments for protecting trade secrets (1- trade secrets are intellectual property, 2- it's unfair competition, 3- employees who disclose t.s. violate confidentiality owed to their employers).
Bribes. Kickbacks (p. 547)
Gifts: Seven rules (p. 550)
Obligations to third parties.
Whistle blowing (p. 554) Five guidelines.
Chapter 11
Job discrimination (p. 609)
Affirmative action (p 615-619)
Argumments for and against affirmative action (p. 620,621)
Comparable worth (arguments) (p. 623)
Sexual Harrassment (p. 626). Two types of harrassment. Four things to do when one encounters sexual harassment.
Monday, November 9, 2009
Saturday, November 7, 2009
Friday, November 6, 2009
New anti-gay laws in Uganda
Being homosexual in Uganda is illegal, but the parlament is ready to pass new tougher anti-gay law (further proof that morality and laws are different things).
Wednesday, November 4, 2009
How stupid can they be
The cost of stupid corporate decisions: In its complaint, the S.E.C. accused JPMorgan Securities and two former managing directors, Charles LeCroy and Douglas MacFaddin, of making more than $8 million in undisclosed payments to close friends of certain Jefferson County commissioners. Then the county commissioners voted to select JPMorgan Securities as managing underwriter* of the bond offerings** and its affiliated bank as swap provider (keep in mind that swaps can be used to hedge certain risks) for the transactions.
See the poor decision: you advance $8 million to possibly own a contract and earn hundreds of millions... but since it's not a legal investment because the contract is awarded fraudulently JPMorgan ends up paying $75 million in penalties and $647 million in termination fees to settle civil charges. Did the big shots at the Corporation know about this?
_________
*The underwriter, typically an investment bank, acts as the structurer and arranger of the Bond. Who is one of the defendants? Larry Langford, found guilty of taking about $236,000 in cash and gifts from Montgomery investment banker Bill Blount and lobbyist Al LaPierre. **Basically a government bond is a loan: the issuer in this case is Jefferson County (the borrower and debtor), and the holder or lender (creditor) is whoever buys the bonds, while the coupon is the interest. Bonds provide the city with external funds to finance long-term investments, or to finance current expenditure.
See the poor decision: you advance $8 million to possibly own a contract and earn hundreds of millions... but since it's not a legal investment because the contract is awarded fraudulently JPMorgan ends up paying $75 million in penalties and $647 million in termination fees to settle civil charges. Did the big shots at the Corporation know about this?
_________
*The underwriter, typically an investment bank, acts as the structurer and arranger of the Bond. Who is one of the defendants? Larry Langford, found guilty of taking about $236,000 in cash and gifts from Montgomery investment banker Bill Blount and lobbyist Al LaPierre. **Basically a government bond is a loan: the issuer in this case is Jefferson County (the borrower and debtor), and the holder or lender (creditor) is whoever buys the bonds, while the coupon is the interest. Bonds provide the city with external funds to finance long-term investments, or to finance current expenditure.
Competition law and antitrust
From NYTimes: Following the lead of foreign regulators, New York’s attorney general, Andrew M. Cuomo, filed a federal antitrust lawsuit Wednesday against Intel, the world’s largest chip maker.
These cases have largely revolved around deals Intel had struck with computer makers and retailers that, regulators said, pressured them into picking the company’s microprocessors — which serve as the central chip inside personal computers and servers — instead of competing products from A.M.D. “Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market,” Mr. Cuomo said in a statement. “Intel’s actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices.”
What is competition law? This is an important paragraph in the Wikipedia article: When firms hold large market shares, consumers risk paying higher prices and getting lower quality products than compared to competitive markets. However, the existence of a very high market share does not always mean consumers are paying excessive prices since the threat of new entrants to the market can restrain a high-market-share firm's price increases. Competition law does not make merely having a monopoly illegal, but rather abusing the power that a monopoly may confer, for instance through exclusionary practices.
These cases have largely revolved around deals Intel had struck with computer makers and retailers that, regulators said, pressured them into picking the company’s microprocessors — which serve as the central chip inside personal computers and servers — instead of competing products from A.M.D. “Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market,” Mr. Cuomo said in a statement. “Intel’s actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices.”
What is competition law? This is an important paragraph in the Wikipedia article: When firms hold large market shares, consumers risk paying higher prices and getting lower quality products than compared to competitive markets. However, the existence of a very high market share does not always mean consumers are paying excessive prices since the threat of new entrants to the market can restrain a high-market-share firm's price increases. Competition law does not make merely having a monopoly illegal, but rather abusing the power that a monopoly may confer, for instance through exclusionary practices.
Tuesday, November 3, 2009
Huge corruption in China
From the NYTimes, Huge corruption in China:
Mr. Wen’s lavish tastes were nothing compared with the carnal appetites of his sister-in-law, Xie Caiping, known as “the godmother of the Chongqing underworld.” Prosecutors say she ran 30 illegal casinos, including one across the street from the courthouse. She also employed 16 young men who, according to the state-run press, were exceedingly handsome and obliging. In recent weeks, Ms. Xie, Mr. Wen and a cavalcade of ranking officials and lowbrow thugs have been players in a mass public trial that has exposed the unseemly relationships among gangsters, police officers and the sticky-fingered bureaucrats.
The spectacle involves more than 9,000 suspects, 50 public officials, a petulant billionaire and criminal organizations that dabbled in drug trafficking, illegal mining, and random acts of savagery, most notably the killing of a man for his unbearably loud karaoke voice.
Mr. Wen’s lavish tastes were nothing compared with the carnal appetites of his sister-in-law, Xie Caiping, known as “the godmother of the Chongqing underworld.” Prosecutors say she ran 30 illegal casinos, including one across the street from the courthouse. She also employed 16 young men who, according to the state-run press, were exceedingly handsome and obliging. In recent weeks, Ms. Xie, Mr. Wen and a cavalcade of ranking officials and lowbrow thugs have been players in a mass public trial that has exposed the unseemly relationships among gangsters, police officers and the sticky-fingered bureaucrats.
The spectacle involves more than 9,000 suspects, 50 public officials, a petulant billionaire and criminal organizations that dabbled in drug trafficking, illegal mining, and random acts of savagery, most notably the killing of a man for his unbearably loud karaoke voice.
Monday, October 26, 2009
Assignment #2
Find guidlines for assignment #2 below. I've picked the subject of "animal rights" for several reasons. It's a cutting edge moral topic and it reflects upon one of our most important industries in America. Read the Wikipedia article for the different arguments, Utilitarian, Rights and Abolitionist, to get an idea of the field you're talking about. In the Wikipedia, there are some arguments against animal rights. I've posted some suggestions as to how to construct your comment. If you have any questions regarding the assignment, you can post them here. HOMEWORK FOR CHAPTER 9 IS BELOW. I'll close this post, Tuesday November 3, at 8pm.
Arguments in favor of animal rights
Peter Singer defends animal rights from their ability feel pain. Since animals have no language, leading scientists argue that it is impossible to know when an animal is suffering. This situation may change as increasing numbers of chimps are taught sign language, although skeptics question whether their use of it portrays real understanding. Singer writes that, following the argument that language is needed to communicate pain, it would often be impossible to know when humans are in pain. All we can do is observe pain behavior, he writes, and make a calculated guess based on it. As Ludwig Wittgenstein argued, if someone is screaming, clutching a part of their body, moaning quietly, or apparently unable to function, especially when followed by an event that we believe would cause pain in ourselves, that is in large measure what it means to be in pain. Singer argues that there is no reason to suppose animal pain behavior would have a different meaning.
Tom Regan argues that animals are what he calls "subjects-of-a-life," and as such are bearers of rights. He argues that, because the moral rights of humans are based on their possession of certain cognitive abilities, and because these abilities are also possessed by at least some non-human animals, such animals must have the same moral rights as humans. Although only humans act as moral agents, both marginal-case humans, such as infants, and at least some non-humans must have the status of "moral patients." Moral patients are unable to formulate moral principles, and as such are unable to do right or wrong, even though what they do may be beneficial or harmful. Only moral agents are able to engage in moral action. Animals for Regan have "inherent value" as subjects-of-a-life, and cannot be regarded as a means to an end.
Some critics of Regan, like Roger Scruton, argue that rights also imply obligations, which animals cannot be forced to have (although Scruton disagrees with Regan over the issue of rights, he opposes factory farming.
Abolitionism: It falls within the framework of the rights-based approach, though it regards only one right as necessary: the right not to be owned. Abolitionists argue that the key to reducing animal suffering is to recognize that legal ownership of sentient beings is unjust and must be abolished. The most prominent of the abolitionists is Gary Francione, professor of law and philosophy at Rutgers School of Law-Newark. He argues that focusing on animal welfare may actually worsen the position of animals, because it entrenches the view of them as property, and makes the public more comfortable about using them.
Tom Regan argues that animals are what he calls "subjects-of-a-life," and as such are bearers of rights. He argues that, because the moral rights of humans are based on their possession of certain cognitive abilities, and because these abilities are also possessed by at least some non-human animals, such animals must have the same moral rights as humans. Although only humans act as moral agents, both marginal-case humans, such as infants, and at least some non-humans must have the status of "moral patients." Moral patients are unable to formulate moral principles, and as such are unable to do right or wrong, even though what they do may be beneficial or harmful. Only moral agents are able to engage in moral action. Animals for Regan have "inherent value" as subjects-of-a-life, and cannot be regarded as a means to an end.
Some critics of Regan, like Roger Scruton, argue that rights also imply obligations, which animals cannot be forced to have (although Scruton disagrees with Regan over the issue of rights, he opposes factory farming.
Abolitionism: It falls within the framework of the rights-based approach, though it regards only one right as necessary: the right not to be owned. Abolitionists argue that the key to reducing animal suffering is to recognize that legal ownership of sentient beings is unjust and must be abolished. The most prominent of the abolitionists is Gary Francione, professor of law and philosophy at Rutgers School of Law-Newark. He argues that focusing on animal welfare may actually worsen the position of animals, because it entrenches the view of them as property, and makes the public more comfortable about using them.
How to best construct a 150-word comment
1. Offer a reasoned argument correctly. Actually if you state the reason for your arguments correctly there is no wrong answer.
2. Keep it simple. Less is more.
3. If you can, incorporate some independent thoughts into your answer.
4. Discuss your answer to yourself.
5. Don’t write compulsively.
6. Write a draft on WP and correct misspellings and any errors in logic. Write clearly, in proper English. Avoid slang and broken phrases.
Here is an example of a short paper. And here is another. Obviously, you are not writing a paper, but a 150-word comment can be considered a sort of mini-paper. Here are some pointers regarding phrases:
You can state a position by defining it. For example: “Libertarians believe that…” of if talking about a person: “Animal right advocates suggests that...”
If you want to suggest a hypothetical situation of your own, go like this: “Suppose that,” or “Imagine so-and-so,” or “Just for the sake of argument…”
Phrase your views properly: “I believe that” or “I suppose,” or any other similar form.
Whenever you compare, you can use, “on the other hand, Locke holds that memories are…”
For conclusion, use: “Therefore”, “As a result,” “Thus,” “In conclusion,” etc.
2. Keep it simple. Less is more.
3. If you can, incorporate some independent thoughts into your answer.
4. Discuss your answer to yourself.
5. Don’t write compulsively.
6. Write a draft on WP and correct misspellings and any errors in logic. Write clearly, in proper English. Avoid slang and broken phrases.
Here is an example of a short paper. And here is another. Obviously, you are not writing a paper, but a 150-word comment can be considered a sort of mini-paper. Here are some pointers regarding phrases:
You can state a position by defining it. For example: “Libertarians believe that…” of if talking about a person: “Animal right advocates suggests that...”
If you want to suggest a hypothetical situation of your own, go like this: “Suppose that,” or “Imagine so-and-so,” or “Just for the sake of argument…”
Phrase your views properly: “I believe that” or “I suppose,” or any other similar form.
Whenever you compare, you can use, “on the other hand, Locke holds that memories are…”
For conclusion, use: “Therefore”, “As a result,” “Thus,” “In conclusion,” etc.
PHI 2604 Chapter 9 Homework (#7 of old edition)
PHI 2604 Homework, Chapter 9
1. Explain the idea of legitimate and illegitimate influence.
2. What’s “informed consent”?
3. Go over the reasons why business use polygraph tests.
4. There are generally three assumptions people have about polygraph tests. Which are they?
5. Why do companies use “personality tests”?
6. Go over four remarks in the text concerning drug testing
7. What are the moral issues surrounding day care and maternity leave?
1. Explain the idea of legitimate and illegitimate influence.
2. What’s “informed consent”?
3. Go over the reasons why business use polygraph tests.
4. There are generally three assumptions people have about polygraph tests. Which are they?
5. Why do companies use “personality tests”?
6. Go over four remarks in the text concerning drug testing
7. What are the moral issues surrounding day care and maternity leave?
Monday, October 19, 2009
Insider trading
From the NYTimes:
The defendants operated in a cozy world of ‘you scratch my back, I’ll scratch your back,’ Preet Bharara, the United States attorney for the Southern District of New York, said on Friday. He added that the case should be a “wake-up call” for hedge fund managers who even think about insider trading. Hedge funds often use lobbyists, investigators and other connected people to dig for information about a company or industry. Most of the information is obtained legally. But the government’s use of wiretapping and confidential witnesses in the Galleon case raises questions about when investors can act on nonpublic information. The pending crackdown, based on at least two years of investigation, targets securities professionals including hedge- fund managers, lawyers and other Wall Street players, the people said, declining to be identified because the cases aren’t public. Some probes, like the one that focused on Rajaratnam, rely on wiretaps. Others stem from a secret Securities and Exchange Commission data-mining project set up to pinpoint clusters of people who make similar well-timed stock investments.
The defendants operated in a cozy world of ‘you scratch my back, I’ll scratch your back,’ Preet Bharara, the United States attorney for the Southern District of New York, said on Friday. He added that the case should be a “wake-up call” for hedge fund managers who even think about insider trading. Hedge funds often use lobbyists, investigators and other connected people to dig for information about a company or industry. Most of the information is obtained legally. But the government’s use of wiretapping and confidential witnesses in the Galleon case raises questions about when investors can act on nonpublic information. The pending crackdown, based on at least two years of investigation, targets securities professionals including hedge- fund managers, lawyers and other Wall Street players, the people said, declining to be identified because the cases aren’t public. Some probes, like the one that focused on Rajaratnam, rely on wiretaps. Others stem from a secret Securities and Exchange Commission data-mining project set up to pinpoint clusters of people who make similar well-timed stock investments.
Thursday, October 15, 2009
Sunday, October 11, 2009
PHI 2604 Chapter 8: Homework
1. Why do companies screen applicants? What's “job description” and “job specification”?
2. What’s the purpose of “tests” when applying for a job at a company?
3. Define: “Aptitude test,” “personality test,” “skill test.”
4. In measuring a test make a distinction between “validity” and “reliability.”
5. How should an interviewer conduct an interview?
6. In promotions one has to make a judgment between qualifications and seniority. What’s the best way to proceed?
7. Define “inbreeding” and “nepotism.”
8. Define “due process” and “just cause” within the context of discipline and discharge.
9. Distinguish between the following terms: Firing, termination, layoff and position elimination.
10. Go over the seven guidelines on wages established on pp. 289, 290.
11. Briefly summarize the history of the Union Movement.
12. What’s a “direct strike”? Go over Gonsalves’ 3-point criteria.
13. Analyze the difference between sympathetic strikes, boycotts and corporate campaigns.
2. What’s the purpose of “tests” when applying for a job at a company?
3. Define: “Aptitude test,” “personality test,” “skill test.”
4. In measuring a test make a distinction between “validity” and “reliability.”
5. How should an interviewer conduct an interview?
6. In promotions one has to make a judgment between qualifications and seniority. What’s the best way to proceed?
7. Define “inbreeding” and “nepotism.”
8. Define “due process” and “just cause” within the context of discipline and discharge.
9. Distinguish between the following terms: Firing, termination, layoff and position elimination.
10. Go over the seven guidelines on wages established on pp. 289, 290.
11. Briefly summarize the history of the Union Movement.
12. What’s a “direct strike”? Go over Gonsalves’ 3-point criteria.
13. Analyze the difference between sympathetic strikes, boycotts and corporate campaigns.
Monday, October 5, 2009
Sunday, October 4, 2009
Crime and (the implacable) law of statistics
Most crimes in the United States are committed by long-term repeat offenders, a majority of whom are eventually caught. One of every 100 adults in the United States is now behind bars; many are serving lengthy sentences. The crimes they committed clearly did not “pay” in any objective sense of the term. Why, then, did they commit them? The short answer is that most criminals are not the dispassionate rational actors who populate standard economic models. They are more like impulsive children, blinded by the temptation of immediate reward and largely untroubled by the possibility of delayed or uncertain punishment.
The burger that shattered her life
From the NYTimes (this one concerns ethical issues the food industry):
Then her diarrhea turned bloody. Her kidneys shut down. Seizures knocked her unconscious. The convulsions grew so relentless that doctors had to put her in a coma for nine weeks. When she emerged, she could no longer walk. The affliction had ravaged her nervous system and left her paralyzed. Ms. Smith, 22, was found to have a severe form of food-borne illness caused by E. coli, which Minnesota officials traced to the hamburger that her mother had grilled for their Sunday dinner in early fall 2007.
Then her diarrhea turned bloody. Her kidneys shut down. Seizures knocked her unconscious. The convulsions grew so relentless that doctors had to put her in a coma for nine weeks. When she emerged, she could no longer walk. The affliction had ravaged her nervous system and left her paralyzed. Ms. Smith, 22, was found to have a severe form of food-borne illness caused by E. coli, which Minnesota officials traced to the hamburger that her mother had grilled for their Sunday dinner in early fall 2007.
Meat companies and grocers have been barred from selling ground beef tainted by the virulent strain of E. coli known as O157:H7 since 1994, after an outbreak at Jack in the Box restaurants left four children dead.
Friday, October 2, 2009
What's extortion?
Extortion in the NYTimes:
This piece uses the term "grand larceny"... (more than $250 can be considered grand larceny). A form of theft, whether information or ideas (a patent, classified information, trade secret, etc), intellectual property (i.e., a song, an unpublished book, etc) , services, labor, etc.
... Mr. Letterman said that three weeks ago, he received a package from a person who claimed to have information about the relationships. Mr. Letterman said he reached out to the Manhattan district attorney’s office. In the course of the investigation, Mr. Letterman was asked to write what he called a fake check for $2 million. The suspect in the case was arrested Thursday.
Nataly Holder, writing for the Huffington Post:
Apparently, Letterman chose to come clean about the affairs with multiple staffers because a producer from another CBS television show, 48 Hours, threatened to publicize his exploits if he was not paid $2 million. Somehow, this producer--who works on a show that covers stories with legal angles--didn't realize that his sleazy attempt to extort money from Letterman went way beyond employee misconduct but would be frowned upon as illegal by the Manhattan District Attorney's office.
By the way: The producer charged (Robert Joe Halderman, who took a phony $2 million check) pleaded not guilty.
This piece uses the term "grand larceny"... (more than $250 can be considered grand larceny). A form of theft, whether information or ideas (a patent, classified information, trade secret, etc), intellectual property (i.e., a song, an unpublished book, etc) , services, labor, etc.
... Mr. Letterman said that three weeks ago, he received a package from a person who claimed to have information about the relationships. Mr. Letterman said he reached out to the Manhattan district attorney’s office. In the course of the investigation, Mr. Letterman was asked to write what he called a fake check for $2 million. The suspect in the case was arrested Thursday.
Nataly Holder, writing for the Huffington Post:
Apparently, Letterman chose to come clean about the affairs with multiple staffers because a producer from another CBS television show, 48 Hours, threatened to publicize his exploits if he was not paid $2 million. Somehow, this producer--who works on a show that covers stories with legal angles--didn't realize that his sleazy attempt to extort money from Letterman went way beyond employee misconduct but would be frowned upon as illegal by the Manhattan District Attorney's office.
By the way: The producer charged (Robert Joe Halderman, who took a phony $2 million check) pleaded not guilty.
Thursday, October 1, 2009
PHI 2604 Chapter 5: HOMEWORK
Chapter 5
1- What is a limited liability company?
2- Provide an account on the evolution of corporations?
3- Define the three senses of “responsibility” as defined on p. 208.
4- Can corporations make moral decisions? Explain.
5- Is the vanishing sense of individual responsibility inside corporations enough to absolve or excuse unethical corporate decisions? Why not?
6- Define the narrow view of profit maximization
7- Define the broader view of corporate social responsibility.
8- Explain the following arguments:
a) Invisible Hand Argument
b) Materialization-of-Society Argument
c) Inept Custodian Argument
9- Can corporate ethical policies be institutionalized? How?
10- In which way corporate culture plays a part in achieving a more ethical corporate environment?
11- Remember to bring a bit of BAD NEWS of some kind concerning the workplace in corporate America or the world: newspaper, internet, even a personal story (if something personal, try to sketch a brief paragraph, so you don't have to improvise it in class).
1- What is a limited liability company?
2- Provide an account on the evolution of corporations?
3- Define the three senses of “responsibility” as defined on p. 208.
4- Can corporations make moral decisions? Explain.
5- Is the vanishing sense of individual responsibility inside corporations enough to absolve or excuse unethical corporate decisions? Why not?
6- Define the narrow view of profit maximization
7- Define the broader view of corporate social responsibility.
8- Explain the following arguments:
a) Invisible Hand Argument
b) Materialization-of-Society Argument
c) Inept Custodian Argument
9- Can corporate ethical policies be institutionalized? How?
10- In which way corporate culture plays a part in achieving a more ethical corporate environment?
11- Remember to bring a bit of BAD NEWS of some kind concerning the workplace in corporate America or the world: newspaper, internet, even a personal story (if something personal, try to sketch a brief paragraph, so you don't have to improvise it in class).
Monday, September 28, 2009
Wednesday, September 23, 2009
Fraud
Fraud: In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and is also a civil law violation.
Different kinds of fraudulent activities:
Bait and switch: is a form of fraud in which the party putting forth the fraud lures in customers by advertising a product or service at an unprofitably low price, then reveals to potential customers that the advertised good is not available but that a substitute is.
Embezzlement: is the act of dishonestly appropriating or secreting assets, usually financial in nature, by one or more individuals to whom such assets have been entrusted.[1] It is a kind of financial fraud. For instance, a clerk or cashier handling large sums of money can embezzle cash from his or her employer, a lawyer can embezzle funds from clients' trust accounts, a financial advisor can embezzle funds from investors, or a spouse can embezzle funds from his or her partner.
Tax avoidance: is the legal utilization of the tax regime to one's own advantage, to reduce the amount of tax that is payable by means that are within the law. By contrast tax evasion is the general term for efforts to not pay taxes by illegal means.
Identity theft: is a term used to refer to fraud that involves someone pretending to be someone else in order to steal money or get other benefits. The term is relatively new and is actually a misnomer, since it is not inherently possible to steal an identity, only to use it.
Sham marriage: is a union (marriage) motivated not so much by love but instead by a desire for political advantage or personal convenience.
Different kinds of fraudulent activities:
Bait and switch: is a form of fraud in which the party putting forth the fraud lures in customers by advertising a product or service at an unprofitably low price, then reveals to potential customers that the advertised good is not available but that a substitute is.
Embezzlement: is the act of dishonestly appropriating or secreting assets, usually financial in nature, by one or more individuals to whom such assets have been entrusted.[1] It is a kind of financial fraud. For instance, a clerk or cashier handling large sums of money can embezzle cash from his or her employer, a lawyer can embezzle funds from clients' trust accounts, a financial advisor can embezzle funds from investors, or a spouse can embezzle funds from his or her partner.
Tax avoidance: is the legal utilization of the tax regime to one's own advantage, to reduce the amount of tax that is payable by means that are within the law. By contrast tax evasion is the general term for efforts to not pay taxes by illegal means.
Identity theft: is a term used to refer to fraud that involves someone pretending to be someone else in order to steal money or get other benefits. The term is relatively new and is actually a misnomer, since it is not inherently possible to steal an identity, only to use it.
Sham marriage: is a union (marriage) motivated not so much by love but instead by a desire for political advantage or personal convenience.
Corruption in the local government
From The Miami Herald: Broward County Commissioner Josephus Eggelletion Jr., School Board member Beverly Gallagher and former Miramar Commissioner Fitzroy Salesman were arrested Wednesday on a variety of charges including bribery, fraud and money laundering.
(Read more)
(Read more)
Monday, September 21, 2009
Domestic violence in Afghanistan (the place doesn't matter)
What's important is how do we fight it? A fist step is to elaborate a justification against it and a proper social treatment.
Sunday, September 20, 2009
Don't lie
From Time Magazine:
Bank of America CEO Kenneth Lewis may be in for much more than a trip to the woodshed. Ever since Bank of America completed its deal to buy Merrill Lynch, questions have lingered about whether the chief executive was completely honest with shareholders about the state of Merrill — specifically about the year-end bonuses paid out to Merrill employees despite the investment bank's huge 2008 losses. Bank of America shareholders have already voted to remove Lewis from the post of chairman in part because losses at Merrill turned out to be worse than Lewis let on. But that has failed to put the issue to rest. Now, it looks likely that probes into statements about the Merrill deal made by Bank of America officials could lead to charges against Lewis.
Bank of America CEO Kenneth Lewis may be in for much more than a trip to the woodshed. Ever since Bank of America completed its deal to buy Merrill Lynch, questions have lingered about whether the chief executive was completely honest with shareholders about the state of Merrill — specifically about the year-end bonuses paid out to Merrill employees despite the investment bank's huge 2008 losses. Bank of America shareholders have already voted to remove Lewis from the post of chairman in part because losses at Merrill turned out to be worse than Lewis let on. But that has failed to put the issue to rest. Now, it looks likely that probes into statements about the Merrill deal made by Bank of America officials could lead to charges against Lewis.
Thursday, September 17, 2009
Link to your Moral Issues in Business textbook
This is going to help: Moral Issues in Business Link. To the left hand side of the webpage, you have the chapters (1 & 2) then, check each of the tutorial exams, quizzes, etc. Play with it and have fun. I may use some of these questions for the quiz. Don't forget to bring your scantron sheets: 48TMS!
I'm leaving the post open in case you have questions.
I'm leaving the post open in case you have questions.
Wednesday, September 16, 2009
More from Wall Street
Read this interesting article in the NYTimes. Rarely we find a person that takes a stand against the system:
Judge Rakoff refused to approve a $33 million deal that would have settled a lawsuit filed by the Securities and Exchange Commission against the Bank of America. The lawsuit alleged that the bank failed to adequately disclose the bonuses that were paid by Merrill before the merger, which was completed in January at regulators’ behest as Merrill foundered.
This is the retort from an executive by the name of Richard X Bove (where does this guy live?):
I’m having a difficult time understanding who was harmed here ... why is this company being put into court over a series of events that benefited the nation*, its economy, its financial system, the shareholders of Bank of America and the bank itself.
__________
*Deceiving the public benefits the nation?
Judge Rakoff refused to approve a $33 million deal that would have settled a lawsuit filed by the Securities and Exchange Commission against the Bank of America. The lawsuit alleged that the bank failed to adequately disclose the bonuses that were paid by Merrill before the merger, which was completed in January at regulators’ behest as Merrill foundered.
This is the retort from an executive by the name of Richard X Bove (where does this guy live?):
I’m having a difficult time understanding who was harmed here ... why is this company being put into court over a series of events that benefited the nation*, its economy, its financial system, the shareholders of Bank of America and the bank itself.
__________
*Deceiving the public benefits the nation?
Saturday, September 12, 2009
Your 100-word comment assignment, HERE
Your 100-word comment should be thoughtful. Don't just post a comment of what you think without pondering a little bit what you want to say, even if you have to write down a little paragraph on a piece of paper first. Also, do not bring your religious beliefs to this early assignment. We'll address religious faith later in the course. Remember to sign your posts with your name as it appears in my list.
Thursday, September 10, 2009
Link to your textbook "Moral Issues in Business"
Click on the link above, go to the Textbook Webpage, see that on the left hand side you can scroll down the list of chapters. It would be a good idea if you did the essays questions and the quiz for Chapter 1 and 2.
Tuesday, September 8, 2009
Thursday, September 3, 2009
Patriarchy and the abuse of women
The above documentary is produced by Clitoraid a non-profit organization. The message is pretty much on target: The tradition of Patriarchy.
Infibulation in Africa
Again, the discussion about whether the practice is wrong needs to address the facts to the matter, which I think in this case are more than obvious. Pretty sad and dramatic.
Sex slavery today
Following our discussion about the exploitation of women world-wide, this is another documentary about sex slavery, or forced prostitution.
Cheap food? High price
When the pig is slaughtered, at about 5 months of age, he'll become sausage or bacon that will sell cheap, feeding an American addiction to meat that has contributed to an obesity epidemic currently afflicting more than two-thirds of the population. And when the rains come, the excess fertilizer that coaxed so much corn from the ground will be washed into the Mississippi River and down into the Gulf of Mexico, where it will help kill fish for miles and miles around. That's the state of your bacon — circa 2009.
Wednesday, September 2, 2009
Friday, August 28, 2009
This is now our PHI 2604 Website
Kids: I successfully imported the old website into this one. From now on, disregard the other website. I'll post all our posts here.
Tuesday, August 25, 2009
Phi 2604 Chapter 1: Homework
1. Define “Ethics”
2. What is the difference between moral and non-moral standards
3. Establish the distinction between morality and etiquette
4. Establish the distinction between morality and law
5. Where do moral standards come from?
6. What is the difference between religion and morality?
7. Discuss the idea of ethical relativism (We haven't discussed this one yet in class)
8. Is it always good to follow your conscience when it comes to moral issues?
9. What’s the danger of conformity and groupthink?
10. What’s a defensible moral judgment?
a) Establish when a judgment is “logical”
b) When is a moral judgment based on a fact?
11. Define the requirements of a moral judgment
Tuesday, April 28, 2009
Conflict of interest
In the NYTimes: In a scolding report, the nation’s most influential medical advisory group said that doctors should stop taking much of the money, gifts and free drug samples that they routinely accept from drug and device companies.
Thursday, April 23, 2009
PHI 2604 Book link
Moral Issues in Business Link. To the left of the page, you have the chapters, then, check each of the tutorial exams. Play with it and have fun. I may use some of these questions for the midterm. (Don't forget to bring your scantron sheets to the exam).
Wednesday, April 22, 2009
Matrix for Topics PHI 2604 Final Exam (9-11)
Chapter 9
Meaning of job discrimination (p. 456)
Affirmative action (historic background 461-462)
Supreme Court’s Position (case by case)
Arguments in favor and against affirmative action (p. 466-67)
Sexual Harassment (p. 469)
Explain the two different kinds of harassment discussed in the text: quid pro quo and hostile environment.
Chapter 10
Product safety
"Due care" (p. 508)
Caveat Emptor, (let the buyer beware.
Strict Product Liability (p. 509)
Legal Paternalism (p. 511) Ex: Car's seat belts.
There is a 3-point analysis on page 511.
Responsibilities of Business when it comes to product safety: (6 points p. 513-515)
Warranty: Obligations to purchasers that sellers assume. Expressed warranties and merchantability.
Price fixing (p. 519)
Price gouging (p. 520)
Labeling and packaging (p. 521)
Deceptive techniques: (a) Ambiguity (b) Concealed facts (c) Exaggeration (d) Psychological Appeals
Chapter 11
1- (a) Ecology, (b) ecosystem (p. 575)
2- Environment as "instrument," traditional view of business. (p. 577)
3- Externality or "spillover"
4- Cost-benefit analysis (p. 579)
5- Pollution prevention: Pros and cons of regulations, (p. 582-583); incentives (p. 585) and price mechanisms (p. 585)
6- Obligations to future generations (p. 587)
7- Environment as "intrinsic" (p. 588)
Meaning of job discrimination (p. 456)
Affirmative action (historic background 461-462)
Supreme Court’s Position (case by case)
Arguments in favor and against affirmative action (p. 466-67)
Sexual Harassment (p. 469)
Explain the two different kinds of harassment discussed in the text: quid pro quo and hostile environment.
Chapter 10
Product safety
"Due care" (p. 508)
Caveat Emptor, (let the buyer beware.
Strict Product Liability (p. 509)
Legal Paternalism (p. 511) Ex: Car's seat belts.
There is a 3-point analysis on page 511.
Responsibilities of Business when it comes to product safety: (6 points p. 513-515)
Warranty: Obligations to purchasers that sellers assume. Expressed warranties and merchantability.
Price fixing (p. 519)
Price gouging (p. 520)
Labeling and packaging (p. 521)
Deceptive techniques: (a) Ambiguity (b) Concealed facts (c) Exaggeration (d) Psychological Appeals
Chapter 11
1- (a) Ecology, (b) ecosystem (p. 575)
2- Environment as "instrument," traditional view of business. (p. 577)
3- Externality or "spillover"
4- Cost-benefit analysis (p. 579)
5- Pollution prevention: Pros and cons of regulations, (p. 582-583); incentives (p. 585) and price mechanisms (p. 585)
6- Obligations to future generations (p. 587)
7- Environment as "intrinsic" (p. 588)
Wednesday, April 15, 2009
PHI 2604 Chapter 11: Homework
1- Comment the "old view" of the business industry regarding the environment?
2- Define "spillover."
3- Define "cost-benefit analysis."
4- Why is sometimes difficult to establish who's responsible for environmental degradation? (Hint: Americans produce 60% more garbage (1,600 pounds per person per year) than we did 30 years ago).
5- Regarding cost allocation, briefly explain the benefits or setbacks of the following:
a) Regulation
b) Incentives
c) Pricing Mechanisms
d) Pollution permits
6- Do we really have an obligation with future generations?
7- Is nature intrinsically valuable?
8- Is the welfare of animals ethical?
2- Define "spillover."
3- Define "cost-benefit analysis."
4- Why is sometimes difficult to establish who's responsible for environmental degradation? (Hint: Americans produce 60% more garbage (1,600 pounds per person per year) than we did 30 years ago).
5- Regarding cost allocation, briefly explain the benefits or setbacks of the following:
a) Regulation
b) Incentives
c) Pricing Mechanisms
d) Pollution permits
6- Do we really have an obligation with future generations?
7- Is nature intrinsically valuable?
8- Is the welfare of animals ethical?
Sunday, April 5, 2009
Insider trading
In the NYTimes: Oracle's chief in agreement over settlement of insider trading's lawsuit.
The lawsuit charged that Mr. Ellison, known for his brash and combative pronouncements, sold almost $900 million of shares ahead of news that Oracle would not meet its expected earnings target. The same amount of stock, after the announcement, was worth slightly more than half as much.
Ellison appears -as well- as one of the best compensated executives in America.
The lawsuit charged that Mr. Ellison, known for his brash and combative pronouncements, sold almost $900 million of shares ahead of news that Oracle would not meet its expected earnings target. The same amount of stock, after the announcement, was worth slightly more than half as much.
Ellison appears -as well- as one of the best compensated executives in America.
Thursday, March 26, 2009
PHI 2070 coming soon to a classroom near you
Should “ahimsa” rule the world? Can “nothingness” exist? Is evil good? Is God “in the excrement”? Why “miracle” is just a metaphor for the containment of power. Does “reincarnation” mean to change one’s personality? Did the Chinese invent pragmatism? How “koan” can change your life (and your idea of poetry). What’s Bodhidharma’s mindless mind? Why losing is not always losing and winning not always winning. Can “bravery” consist in dying? Why to destroy is to transform (careful! only for gods!).
__________
For this Summer A session, I'm teaching PHI 2070 (Eastern Philosophy). In case you're interested.
Help-Wanted for Fraud Investigations
In the NYTimes: Recently, the FBI announced that the number of open mortgage-fraud investigations was more than 1,600 at the end of fiscal 2008, which ended Sept. 30, compared with 881 two years earlier. In addition, 530 corporate-fraud investigations were open, it said.
A hero of the breed recently emerged in the form of Harry Markopolos, who repeatedly warned the Securities and Exchange Commission that Bernard L. Madoff was running a giant Ponzi scheme at the expense of investors. Mr. Markopolos, who was working for an investment company when he started looking into Mr. Madoff’s activities, left in 2004 to start his own investigation firm. Although the S.E.C. did not act on Mr. Markopolos’s warnings, he has helped ease the way for investigators in his wake who may suspect various “mini-Madoff” scandals and other types of fraud.
A hero of the breed recently emerged in the form of Harry Markopolos, who repeatedly warned the Securities and Exchange Commission that Bernard L. Madoff was running a giant Ponzi scheme at the expense of investors. Mr. Markopolos, who was working for an investment company when he started looking into Mr. Madoff’s activities, left in 2004 to start his own investigation firm. Although the S.E.C. did not act on Mr. Markopolos’s warnings, he has helped ease the way for investigators in his wake who may suspect various “mini-Madoff” scandals and other types of fraud.
Wednesday, March 25, 2009
Wiki/Topics Chapters 6-8
Informed consent
Polygraph test: Despite claims of 90% - 95% reliability, critics charge that rather than a "test", the method amounts to an inherently unstandardizable interrogation technique whose accuracy cannot be established. A 1997 survey of 421 psychologists estimated the test's average accuracy at about 61%, a little better than chance.[18] Critics also argue that even given high estimates of the polygraph's accuracy a significant number of subjects (e.g. 10% given a 90% accuracy) will appear to be lying, and would unfairly suffer the consequences of "failing" the polygraph. In the 1998 Supreme Court case, United States v. Scheffer, the majority stated that "There is simply no consensus that polygraph evidence is reliable" and "Unlike other expert witnesses who testify about factual matters outside the jurors' knowledge, such as the analysis of fingerprints, ballistics, or DNA found at a crime scene, a polygraph expert can supply the jury only with another opinion...
Personality test
________
Conflict of interest
Insider trading: For example, illegal insider trading would occur if the chief executive officer of Company A learned (prior to a public announcement) that Company A will be taken over, and bought shares in Company A knowing that the share price would likely rise.
Trade secret: a trade secret is information that: 1- is not generally known to the public; 2- confers some sort of economic benefit on its holder (where this benefit must derive specifically from its not being generally known, not just from the value of the information itself); 3- is the subject of reasonable efforts to maintain its secrecy.
Bribe: a form of pecuniary corruption, is an act implying money or gift given that alters the behaviour of the recipient. Bribery constitutes a crime and is defined as the offering, giving, receiving or soliciting of any item of value to influence the actions of an official or other person in discharge of a public or legal duty. The bribe is the gift bestowed to influence the recipient's conduct.
Whistleblowing
Polygraph test: Despite claims of 90% - 95% reliability, critics charge that rather than a "test", the method amounts to an inherently unstandardizable interrogation technique whose accuracy cannot be established. A 1997 survey of 421 psychologists estimated the test's average accuracy at about 61%, a little better than chance.[18] Critics also argue that even given high estimates of the polygraph's accuracy a significant number of subjects (e.g. 10% given a 90% accuracy) will appear to be lying, and would unfairly suffer the consequences of "failing" the polygraph. In the 1998 Supreme Court case, United States v. Scheffer, the majority stated that "There is simply no consensus that polygraph evidence is reliable" and "Unlike other expert witnesses who testify about factual matters outside the jurors' knowledge, such as the analysis of fingerprints, ballistics, or DNA found at a crime scene, a polygraph expert can supply the jury only with another opinion...
Personality test
________
Conflict of interest
Insider trading: For example, illegal insider trading would occur if the chief executive officer of Company A learned (prior to a public announcement) that Company A will be taken over, and bought shares in Company A knowing that the share price would likely rise.
Trade secret: a trade secret is information that: 1- is not generally known to the public; 2- confers some sort of economic benefit on its holder (where this benefit must derive specifically from its not being generally known, not just from the value of the information itself); 3- is the subject of reasonable efforts to maintain its secrecy.
Bribe: a form of pecuniary corruption, is an act implying money or gift given that alters the behaviour of the recipient. Bribery constitutes a crime and is defined as the offering, giving, receiving or soliciting of any item of value to influence the actions of an official or other person in discharge of a public or legal duty. The bribe is the gift bestowed to influence the recipient's conduct.
Whistleblowing
Tuesday, March 24, 2009
Political pressure
In the NYTimes:
The judge ruled that the agency had improperly bowed to political pressure from the Bush administration in 2006 when it set 18 as the age limit.
A case of political pressure? Indeed.
The judge ruled that the agency had improperly bowed to political pressure from the Bush administration in 2006 when it set 18 as the age limit.
A case of political pressure? Indeed.
Sunday, March 22, 2009
Wednesday night class (midterm extension)
For all of you who have not done the midterm.
I suggest to meet in my office this Wednesday at 6pm. This time I'll make sure the door is not locked. Call my extension (305)237-7554. We used to have a secretary until 6:30pm. Due to the money shortage, she leaves now at 6pm (something I wasn't aware of). If you have any questions, please, leave a note on this post.
I suggest to meet in my office this Wednesday at 6pm. This time I'll make sure the door is not locked. Call my extension (305)237-7554. We used to have a secretary until 6:30pm. Due to the money shortage, she leaves now at 6pm (something I wasn't aware of). If you have any questions, please, leave a note on this post.
Wednesday, March 18, 2009
Sorry about tonight (Wednesday class)
Kids: I won't be able to teach the class tonight. It seems I have a case of food poisoning. The homework is to go over chapter 8. Next week, we'll review for quiz #2, on chapters 6-8, due on april 1.
For the following week, I'll post the homework for chapter 9. I'll leave the post open for comments or questions.
For the following week, I'll post the homework for chapter 9. I'll leave the post open for comments or questions.
More Madoff!
His accountant is charged with securities fraud. In the meantime, more on the A.I.G. saga.
Wednesday, March 11, 2009
From the NYTimes: Across the country, attorneys general have already begun indicting dozens of loan processors, mortgage brokers and bank officers. Last week alone, there were guilty pleas in Minnesota, Delaware, North Carolina and Connecticut and sentences in Florida and Vermont — all stemming from home loan scams.
Monday, March 9, 2009
Matter of fact vs. opinion
Journalism should be ethical. Generally, reporting the news and commenting the news are different endeavors. The former is objective and factual, the latter, subjective and emotional. Professional journalism makes a distinction between news and opinion (which may lack evidence). The result is referred to as newsworthiness. Thus, this piece in the NYTimes.
Tuesday, March 3, 2009
Ethical quandary (even in Harvard)
In the NYTimes: In a first-year pharmacology class at Harvard Medical School, Matt Zerden grew wary as the professor promoted the benefits of cholesterol drugs and seemed to belittle a student who asked about side effects. Mr. Zerden later discovered something by searching online that he began sharing with his classmates. The professor was not only a full-time member of the Harvard Medical faculty, but a paid consultant to 10 drug companies, including five makers of cholesterol treatments.
Thursday, February 12, 2009
Bailout money and public deficit
First, the piece of news we talked about in class. The breakdown of the bailout here.
On a related topic: what's our public deficit? A rough estimate: For each one of us = $37,703.
On a related topic: what's our public deficit? A rough estimate: For each one of us = $37,703.
Wednesday, February 4, 2009
More news about Bernard "the magician" Madoff
Fresh from the NYTimes: The witness, whistleblower Harry Markopolos, will testify that Mr. Madoff “was one of the most powerful men on Wall Street and in a position to easily end our careers or worse,” and that his fund “posed great danger” to those who investigated it, based on a version of his remarks that emerged Tuesday evening. (...) He (Markopolos) and his colleagues avoided taking their allegations to the industry self-regulatory agency, now called Finra, he said in the statement, because he believed Mr. Madoff and his brother, Peter B. Madoff, wielded too much power with that organization. Peter Madoff worked in his brother’s firm but has not been implicated in the apparent fraud. “We were concerned that we would have tipped off the target too directly and exposed ourselves to great harm,” he wrote. They did not turn to the F.B.I., he said, “because we believed the F.B.I. would have rejected us” without the endorsement of the S.E.C. staff. He did not address why he did not approach members of Congress, attorneys general in New York or Boston, or state or federal prosecutors
Friday, January 30, 2009
Wednesday, January 28, 2009
This is the link to our textbook. You see the chapter box on the top left handside. Look for chapter and you get essay questions, tutorial quiz, etc.
Watch out for mini-Madoffs!
From the NYTimes: On Monday, at a suburban New York train station, Nicholas Cosmo surrendered to federal authorities in connection with a suspected $380 million Ponzi scheme, in which investors paid a minimum of $20,000 for high-yield “private bridge” loans that he had arranged. Mr. Cosmo promised returns of 48 percent to 80 percent a year, and none of his investors apparently minded — or knew — that Mr. Cosmo had already been imprisoned for securities fraud. In the end, 1,500 people gave him their money, often through brokers who worked on his behalf.
______
In Florida, not far from the Palm Beach clubs where Mr. Madoff wooed some of his investors, George L. Theodule, a Haitian immigrant and professed “man of God,” promised churchgoers in a Haitian-American community that he could double their money within 90 days. He accepted only cash, and despite the too-good-to-be-true sales pitch, he found plenty of investors willing to turn over tens of thousands of dollars. “The offices were beautiful, and I was told it was a limited liability corporation,” said Reggie Roseme, a deliveryman in Wellington, Fla., who lost his entire savings of $35,000 and now faces foreclosure on his home.
______
In Florida, not far from the Palm Beach clubs where Mr. Madoff wooed some of his investors, George L. Theodule, a Haitian immigrant and professed “man of God,” promised churchgoers in a Haitian-American community that he could double their money within 90 days. He accepted only cash, and despite the too-good-to-be-true sales pitch, he found plenty of investors willing to turn over tens of thousands of dollars. “The offices were beautiful, and I was told it was a limited liability corporation,” said Reggie Roseme, a deliveryman in Wellington, Fla., who lost his entire savings of $35,000 and now faces foreclosure on his home.
Tuesday, January 27, 2009
Friday, January 23, 2009
PHI 2604 Chapter 3: Homework
1. “Justice” is usually defined as fairness. Is there a more detailed explanation based on today’s affairs?
2. What is the best way to cut the fiscal pie? Explain.
3. How would utilitarians do it? Cite Mill’s example of “talented workers.”
4. What would “worker participation” and “greater equality of income” mean for Mill?
5. What is the libertarian approach to justice? Define Nozick’s “entitlement theory.”
6. Explain Nozick’s other two principles.
7. Clarify Rawls’ idea of justice. Cite his two main principles.
8. Within Rawl’s theory, define:
a) Nature of choice
b) Veil of Ignorance
c) Choosing principles
2. What is the best way to cut the fiscal pie? Explain.
3. How would utilitarians do it? Cite Mill’s example of “talented workers.”
4. What would “worker participation” and “greater equality of income” mean for Mill?
5. What is the libertarian approach to justice? Define Nozick’s “entitlement theory.”
6. Explain Nozick’s other two principles.
7. Clarify Rawls’ idea of justice. Cite his two main principles.
8. Within Rawl’s theory, define:
a) Nature of choice
b) Veil of Ignorance
c) Choosing principles
More fraud1... (watch out)
Also from NYTimes: The head of Satyam Computer Services confessed to making up more than 10,000 employees to siphon money from the software company and to using his elderly mother’s name to buy land with the cash, a prosecutor said in a court appearance Thursday.
___________
1The offense of deliberately deceiving another in order to damage them – usually, to obtain property or services unjustly. Fraud occurs when: 1- Income is overstated, assets are overstated, collateral is overstated, the length of employment is overstated or fictitious employment is reported, and employment is backstopped by conspirators. 2- The borrower's debts are not fully disclosed, nor is the borrower's credit history, which is often altered. Often, the borrower assumes the identity of another person (straw buyer). 3- The borrower states he intends to use the property for occupancy when he/she intends to use the property for rental income, or is purchasing the property for another party (nominee). 4- Appraisals almost always list the property as owner-occupied. Down payments do not exist or are borrowed and disguised with a fraudulent gift letter. The property value is inflated (faulty appraisal) to increase the sales value to make up for no down payment and to generate cash proceeds in fraud for profit.
Politics and crime
In the NYTimes, former senate majority leader Joseph L.Bruno was indicted on Friday on charges that he reaped millions of dollars from companies seeking business from the state or from labor unions, capping a long-running investigation into one of New York’s most powerful political figures. Mr. Bruno is accused of collecting more than $3 million over a 13-year period, beginning in 1993, from a handful of businessmen seeking state contracts and grants, as well as contracts to manage pension fund investments for at least 16 labor unions.
Thursday, January 22, 2009
Is torture Ok?
An important element in the discussion we had last night (with the Wednesday night class) about torture here.
______
Wikipedia has a good entry on torture.
_____
The Wall Street Journal calls it the "Jack Bauer Exception." To wit, effective immediately, the interrogation of anyone "in the custody or under the effective control of an officer, employee, or other agent of the United States Government" will be conducted within the limits of the Army Field Manual. That includes special-ops and the Central Intelligence Agency, which will now be required to give prisoners gentler treatment than common criminals. The Field Manual's confines don't even allow the average good cop/bad cop routines common in most police precincts.
Wednesday, January 14, 2009
Bad News
We'll start the class with HW and brief discussion of some "bad news," generally involving ethical violations and crimes in the workplace, such as drug use in the workplace, deception, job discrimination, whistle blowing, sexual harassment, fraud, bribes, conflict of interest, etc.
Saturday, January 10, 2009
Dick Fuld Exposed
On September 15, Lehman Brothers Holdings filed in New York for chapter 11 bankruptcy protection. An institution with total assets of $639 billion – more than the gross domestic product of Argentina and roughly 10 times the size of Enron when it filed for bankruptcy protection in December 2001 – had gone up in smoke.The man in charge: Dick Fuld.
More Ponzi!
The US Securities and Exchange Commission (SEC) charged a fund manager based in the Philadelphia area with operating a $50 million Ponzi scheme, in which he paid off early investors with money from later investors.
In a joint filing, the SEC and the Commodity Futures Trading Commission allege that Joseph Forte, 53, reported consistently strong results to as many as 80 investors even though he routinely lost money, withdrew millions of dollars in personal fees and used recent investors’ contributions to repay earlier backers.
More Madoff
More revelations about Bernard Madoff's scam in the NYTimes. Did Madoff's brother Peter had an obligation to disclose Bernard's confession to him (the evening before he confessed to his sons)?
Friday, January 9, 2009
Another one of Madoff's victims
On CNN about another one of Madoff's victims: She used to lunch at the exclusive Four Seasons. Now the best-selling author jokes that she's inviting friends to Taco Bell. Call it gallows humor, but Alexandra Penney has just lost her life's savings. She invested every penny with accused Ponzi-schemer, Bernard Madoff. Penney thought she had weathered the bear market just fine, since Madoff put her money in super-safe Treasuries. Then on December 11, she received a call from her best friend.
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