How Corporate Culture Drove Decision-Making The story of Boeing is it placed profits ahead of safety and the result has been a series of crashes/mechanical problems that have led to inspections by the National Transportation Safety Board (NTSB) and litigation by the Securities and Exchange Commission (SEC). In this blog I will address the culture […]
Boeing: Putting Profits Ahead of Safety Read More »
Creating an Ethical Framework to Mitigate Risk Today’s blog is an update to one previously posted about ethical risks of AI. I’ve added to it a discussion in the Harvard Business Review (HBR). A brief summary follows. Concerns About Ethical Risks According to the HBR article, for companies that use AI, risk aversion is a top
Ethical Risks of AI in the Workplace Read More »
Is Whistleblowing a Moral Act? Whistleblowers can be seen as heroes, disloyal, or even selfish if, in the latter case, the motivation for blowing the whistle is to gain a financial award, as is available under the Commodities Future Trading Commission (CFTC), Federal False Claims Act, IRS, SEC and the Dodd-Frank Financial Reform Act. Whistleblowers
Considerations in Deciding Whether to Blow the Whistle Read More »
An Example of Hubris, Incompetence, and Greed I always tell my students that the best way to learn about ethics, or the lack thereof, is through a case study. What follows is a mini-case study of the FTX fraud. Last week Sam Bankman-Fried was found guilty of misappropriating and embezzling billions of dollars of his
The Story of FTX and Sam Bankman-Fried Read More »
Ethics in the Age of AI: Addressing Moral Challenges in the Era of Automation I have previously blogged about the problem of creating an ethical framework and processes for AI. AI can improve human decision-making, but it has its limits. The possibility exists that bias in algorithms can create an ethical risk that brings into question the
Ethics & AI: Unanswered Questions Read More »
Do Whistleblower Awards Lead to More Whistleblowing? The ethics of whistleblowing is a tricky matter. Whistle-blowing brings two moral values, fairness and loyalty, into conflict. Doing what is fair or just (e.g., promoting an employee based on talent alone) often conflicts with showing loyalty (e.g., promoting a longstanding but unskilled employee). Taken to its extreme
What Motivates Someone to Blow the Whistle? Read More »
Think Before You Act! Most educators are aware of the importance of technical skills in STEM subjects but do not necessarily recognize the importance of “soft skills” to carry out technical skills in a way that communicates personal values and logical thinking. Soft skills provide a foundation to analyze and apply decision-making effectively in many
The Importance of Critical Thinking Skills in Educating the Whole Person Read More »
Business Roundtable Issues a Public Relations Piece Have you read the “Statement on the Purpose of a Corporation” put out by the Business Roundtable on August 19? It suggests that corporations should no longer advance only the interests of shareholders. Instead, according to the group, they must also invest in their employees, protect the environment,
What is the Purpose of a Corporation? Read More »
Where are Our ‘Ethical’ Leaders? One characteristic of ethical leadership is to influence others. Management expert John Maxwell characterizes leadership this way: “A leader knows the way, goes the way, and shows the way.” The ethical leader understands that positive relationships built on respect, openness, and trust are critical to creating an ethical organizational environment.
Leadership & Ethics Go Hand in Hand Read More »
KPMG-PCAOB Scandal Raises Questions About Oversight of the Accounting Profession In an unprecedented event, on January 22, 2018, it was announced that a former Public Company Accounting Oversight Board (PCAOB) staffer, Brian Sweet, who was hired by KPMG in 2015, leaked confidential information about PCAOB’s plans to audit the company. Most of the leaked information
KPMG Compromises Integrity by “Stealing” PCAOB Inspection Information Read More »