Institute for Enterprise Ethics
LinkedIn YouTube Facebook The Discussion - IEE Blog
Institute for Enterprise Ethics The Discussion
Quarterly Ethics Review | FIFA, VW Emissions, Buffett

Ethically Speaking

In this edition of Ethically Speaking Bill Heck and Institute for Enterprise Ethics, Director, Dan Sweeney discuss "Board Governance for Long-Term Performance." Topics include: Activist investors, balancing short-term goals and long-term strategy, and keeping ethics in the forefront.

Click here to listen.

 

Are You in the "Clawback" Club? Maybe you should be...

Wall Street Executives | Institute for Enterprise Ethics

On April 21, 2016 Federal Regulators released long awaited new rules for how big banks and other financial institutions can compensate their executives.  The effect of these new rules are to expand the percentage of compensation and the length of time incentive packages are to be deferred and to expand the number and types of employees covered by the rules if it is found "an executive's actions hurt the institution or if a firm has to restate financial result."

The problem with these new rules is that they apply only to individual executives or traders, not to the teams and groups and departments where these decisions are most often made. The idea that such decisions are the purview of autonomous individual actors is anachronistic. If one trader in a group, by his or her independent action causes an institution to be hurt, the  entire group and their bosses should feel the clawback pain.

Not only was there likely some collusion or cultural support from the group, but also because, if the entire group is held responsible some very valuable peer pressure would discourage any individual actor to take any "rogue" actions. Regulators should recognize that business organizations are composed not only of economic actors, but are held together by very strong social networks which can exert more influence on behavior that the authority of individual people.

Could this be why the U.S. healthcare system is so expensive?

Institute for Enterprise Ethics | Medicare Fraud Case

"A network of corrupt doctors, hospitals and healthcare providers across south Florida (are charged with) improperly billing more than $1 billion to Medicare and Medicaid." This is the most recent case brought by the Justice Department's Medicare Fraud Strike Force which has charged nearly 2,900 defendants who have been accused of billing the Medicare system more than $10 billion fraudulently.

The owner of more than 30 Miami-area skilled nursing and assisted living facilities, as well as a hospital administrator and a physician's assistant were charged in an indictment with conspiracy, money laundering and health-care fraud, the U.S. Attorney's office in Miami said, as reported by CNBC.

Miami U.S. Attorney Wifredo Ferrer said, "Medicare fraud has infected every facet of our health-care system."

This is a ground breaking case in terms of its scope, value and depth, and may shed light on why the cost of health care in the United States continues to outpace the general economy.

Read the complete story on the CNBC website, click here.


 

What's New

Mr. Dimon "gets it."

Jamie Dimon: Opinion

Jamie Dimon: Why We’re Giving Our Employees a Raise

In a recent op-ed piece for the New York Times, JP Morgan Chase CEO, Jamie Dimon shared his thoughts on wage equality, opportunity and the next generation. He highlighted a JP Morgan Chance plan to raise it's minimum wage for American employees to between $12 and $16.50, over the next three years.

He went on to expound upon the company's plan to increase its investment in its employees, by investing $325 million in career-oriented education in the coming years.

Click here to read the complete op-ed peice.

Well Done Amazon!

Institute for Enterprise Ethics | Well Done Amazon
The New York Times recently reported on an action by Amazon that demonstrates how a very large and successful and growing corporation can make a significant contribution to the betterment of its community almost "serendipitously". The result is some 200 homeless families have a place to sleep. Well done, indeed!

Institutional Vs. Individual Ethics

Institutional Vs. Individual Ethics

The typical perception of power and unethical behavior is the powerful person forcing his or her wishes on the powerless minions against their will. Recent research by Professor Jessica Kennedy of Vanderbilt’s Owen Graduate school of Management and reported in Strategy+Business suggests that it may in fact be just the opposite.

Her research and the research of others have found that high ranking individuals tend to identify more strongly with the group and are therefore more likely to go along with the group’s recommendation even if that recommendation suggest actions that are unethical. It may not be “tone at the top” but “tone at the middle” that actually carries the day.

Are Corporate Boards Doing Their Job?

John Holcomb | Institute for Enterprise Ethics

Corporate boards are supposed to monitor and not manage.  That adage raises several important questions including considering the scope and seriousness of legal and ethical violations, often generating massive scandals, how well are corporate boards fulfilling their monitoring function?

Professor John Holcomb of the Daniels College of Business offers some important perspectives on this question in the soon to be published paper Corporate Governance: Ethics and Legal Compliance, Risk Management, and Political Activities. In the process, Professor Holcomb takes on a number of other current challenges for corporate boards.

 Click here to read Professor Holcomb’s paper.

What? FIFA has an Ethics Committee?

Institute for Enterprise Ethics | FIFA

Who woulda thought?  And what have they been doing for the past couple of decades? Nevertheless, the New York Times reports that this committee has been hard at work imposing new sanctions on Sepp Blatter and Michel Platini, FIFA’s President and head of soccer’s European confederation respectively. 

Strategic Partners

NetImpact's mission is tNetImpact | University of Denvero cultivate a community of Daniel's College of Business students and professionals dedicated to using business as a platform for creating positive social, environmental, and financial impact.

Strategic Partners

National Association of Corporate Directors | Colorado Chapter

The vision of the National Association of Corporate Directors is to develop the best educated directors with a focus on skills, ethics and leadership.  Their mission is to provide real learning and quality networking for directors and board engaged “C” suite officers and to be the voice for the director.

 

About the Institute

The Institute for Enterprise Ethics was established at the Daniel's College of Business as the vehicle to extend the College’s expertise and resources in business ethics to the practitioner community of executives, officers and directors of commercial and social enterprises in the region.

To learn more about the Institute, click here.

Institute Sponsors:

     



Program Sponsors:

     

Deloitte Consulting
Friends & Family Support IEE
 
© Copyright 2011 - 2016 University of Denver, Daniels College of Business. All Rights Reserved.
Rock Solid Design