Business Ethics

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Business Ethics

There is much talk today about ethics in business - as there should be, but there should be more than talk; there should be a high moral code for all executives who are responsible to both their customers and their shareholders.

I have been the president and CEO of one publicly owned company and also was president of another that was responsible to customers who traded equities. This carries a high responsibility to all concerned. You have to be more than worried if you do something wrong because you will go to jail. You must have the desire to try to always do your best for everyone who works for you as well as all the customers or investors that deal with your company.

Ethics is supposed to be either black or white, right or wrong, but today it is many shades of grey. If any company does shady business you can be sure it starts at the top and filters down because the president is the one who sets the example for the actions of the entire company. This is as true for actions of our elected officials as it is for corporations or individuals. We have had some pretty sorry examples of that in Washington.

Each time there is a new scandal the public seems less disturbed. The recent disclosure that mutual funds have been allowing hedge funds and other large traders to take positions after the closing bell is a brutal example. Maybe investors are not aware that someone is writing checks on their account. This is stolen money that is no different than a guy with a gun holding up a 7-11 store. Yes, the one difference is that the mutual funds have allowed millions of dollars to be siphoned off from those to whom they owed a fiduciary relationship. The fund manager is a crook and deserves jail time. He just took the money with a click of the computer keyboard and that was his weapon. White collar crime deserves the same punishment as the guy with a gun.

When you give a brokerage company, a mutual fund or any financial institution your money you expect, in fact, you demand, that they treat you fairly within the rules of the industry. When you are short-changed you should not accept it.

Because of the huge amounts of money available and accessible to people in the financial industry it is easy to understand how they can be tempted into criminal actions. That is why all publicly traded companies are required to have their books audited annually. Lately we have seen that even these audits are tainted.

Investors rely upon the numbers set before them in order to make decisions about owning stock in a company. If the information is dishonest a proper decision cannot be made.

Today we are seeing another type of corporate officer being created. He is called the Governance Officer. It is his job to see that the company maintains high ethical standards. I applaud this action and hope he cannot be seduced by big bucks.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

al@mutualfundstrategy.com; 1-888-345-7870

In The News:

ProPublica
Ethics group urges investigators to probe lobbyist involved in Owens trip
WatertownDailyTimes.com
By BRIAN AMARAL A public ethics watchdog wants federal ethics investigators to probe a lobbying firm that arranged Rep. William L. Owens's trip to Taiwan. In a letter sent Wednesday to the Office of Congressional Ethics, officials from Public Citizen ...
Owens Welcomes Ethics ProbeWWNY TV 7

all 4 news articles »

USA TODAY
Justice ethics report finds misconduct by Stevens prosecutors
Anchorage Daily News
By PETE YOST AP WASHINGTON — The Justice Department's internal ethics watchdog said Thursday that two prosecutors in the bungled corruption case against then-Sen. Ted Stevens engaged in reckless professional misconduct by failing to disclose ...
Ted Stevens Case: Justice Department Says Two Prosecutors Engaged In MisconductHuffington Post
Justice Dept. probe finds misconduct by prosecutors in Stevens trialCNN International
Justice Dep't: Misconduct by 2 in Stevens caseWBRC

all 249 news articles »

McKenna faces 2 ethics complaints over county work
The Seattle Times
A lawyer and a citizen have each filed ethics complaints against Republican gubernatorial candidate Rob McKenna. The Associated Press Note to Kyle Olive and Kimberly Christensen (and the note would be the same regardless... (May 24, 2012, by Creasy ...
McKenna faces 2 ethics complaintsTheNewsTribune.com

all 22 news articles »

Man leading ethics probe of Baptist leader resigns
The Daily Advance
(AP) — The head of a group investigating the comments of Southern Baptist Convention ethics leader Richard Land has resigned. Arkansas pastor Richard Piles said he has taken over as Trustee Board chairman for the Ethics and Religious Liberty ...
Southern Baptist committee head resigns in Richard Land ethics caseThe Tennessean
Investigation re: Baptist spokesman's commentsOneNewsNow

all 67 news articles »

Board Dismisses Ethics Complaint Against Two Aldermen
Patch.com
There is no conflict of interest by members of the Common Council also serving on the Waukesha County Board of Supervisors, Ethics Board rules. By Sarah Millard Alderwoman Kathleen Cummings, sitting, listens to the Ethics Board discuss a complaint ...

and more »

NEWS.com.au
News Summary: News Corp. lobbyist testifies on UK government contacts to ...
Washington Post
ETHICS PANEL: Lobbyist Fred Michel talked Thursday to the Leveson Inquiry into media ethics that the British government created because of the hacking scandal. Copyright 2012 The Associated Press. All rights reserved. This material may not be published ...
British Inquiry Questions Murdoch LobbyistNew York Times
Adviser pulls Cameron into storm over HuntFinancial Times
British PM David Cameron appointed 'known Murdoch supporter'The Australian
Daily Beast -Huffington Post -Ventura County Star
all 1,270 news articles »

Ex-SEC Attorney Barred for 1 Year Over Stanford Ethics Lapse
BusinessWeek
Spencer Barasch, who participated in the SEC's investigation of R. Allen Stanford's $7 billion Ponzi scheme, performed private legal work for Stanford Group Co. about a year after leaving the agency even though its ethics office had told him he was ...
SEC sanctions ex-staffer who represented Stanford CoReuters
SEC Bars Former SEC Employee On Alleged Conflict Of InterestWall Street Journal

all 4 news articles »

Essex County Ethics board reprimands Keene super
Plattsburgh Press Republican
ELIZABETHTOWN — The Essex County Ethics Committee issued a decision reprimanding Keene's supervisor for using town gas. Its findings came Thursday after a six-week review, saying the committee believes Bill Ferebee's use of 14 gallons from the town ...

Ethics should guide Vanderbilt investments
The Tennessean
Thousands more participated in the movement for ethical investment by producing, showing and sharing media, and hosting dozens of teach-ins including a march on the Board of Trust in November and a teach-in with more than 50 faculty and students at the ...

and more »

Boynton expense fund is an ethics risk, county says
Sun-Sentinel
A Palm Beach County ethics officer said recently that restrictions on the reimbursement funds are ambiguous and elected officials don't have to report how they spend it. And while nothing requires them to return extra money, keeping it would be a ...

and more »

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