The Cleveland Clinic Shows Ethical Leadership

Making a change that The Barometer has asked of docs and pharmas for over a decade, the Cleveland Clinic will require its 1,800 staff doctors and scientists to disclose to patients their financial relationships with pharmas and medical device manufacturers.  With Senator Charles Grassley breathing down their necks, the medical centers, docs, and pharmas are seizing the moment and staying the inexorable march of the regulatory cycle.  They are doing what should be done with conflicts of interest:  Either don’t do it or disclose.  Whether because of the handwriting on the wall or the brazen activities of docs reported over the past few months, the folks at Cleveland have opted for disclosure and The Barometer applauds. There are still naysayers.  One doc called the scrutiny excessive and complained, “You can’t get a coffee mug from a drug company.”  Sure you can — just drink the coffee from the mug in front of your patients!

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Government Issues: Some Honor, Some Indictments

With Detroit’s mayor now sentenced and Ted Stevens not re-elected, we were breathing a sigh of relief on government officials.  However, this week saw the mayor of Birmingham, Alabama, Larry Langford, indicted for his alleged receipt of gifts and cash in exchange for the award of the city’s bond business to a particular firm.  The bonds are now rated “D,” as in default. 

Maricopa County Commissioner Don Stapley faces a 118-count indictment that includes charges related to his public disclosure forms.  The indictment alleges differences between the public disclosure lists of property ownership and the private lists of ownership Mr. Stapley supplied on loan applications for business purposes.  Mr. Stapley’s land development practices were investigated by the Arizona Department of Real Estate in 2000, but he was not charged with any violations. 

But, on the bright side, there is Shivraj Patil, the home minister in India’s cabinet (the top domestic security official).  Mr. Patil resigned following the terrorist attacks in Mumbai.  If you have made a mistake, you say so.  He cannot bring back the lost lives, but he can allow someone with new perspective to protect the people of India.  He has done the right thing.   

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The Rangel Round-Up

For those of you keeping score, Charles Rangel has become to Washington, D.C. and Harlem what Kwame Kilpatrick was to Detroit during his mayoral days there.  You just didn’t know from day to day what new charges of ethical and/or legal lapses would emerge.  So, The Barometer begins the Rangel Round-Up.  The Barometer will attempt to keep you posted on what’s happening with the representative from Harlem (D., NY).  The Barometer is considering a National Forest Service type of posting:  “Ethical Breach Danger Today:  High       Medium      Low.”  Here’s a Rangel summary:  1.  In rent-controlled NYC, Rangel managed to wrangle several apartments from his landlord at the rock-bottom prices that characterize rent-control markets.  When asked about his cornering of the Harlem real estate, Rep. Rangel responded, “What?  There’s a problem here?” 2.  Rep. Rangel, who chairs the House Ways and Means Committee, the group responsible for writing the tax code, failed to report income he earned over two decades from renting his villa in the Dominican Republic. Rangel responded in several ways, “No hablo espanol,” was one defense, followed by Continue reading

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“Capitalism without failure is like religion without sin.”

Irwin M. Stelzer, in “Our Hapless Automakers,” in The Weekly Standard.

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“This generation is leading incredibly busy lives.”

Nijmie Dzurinko, Director of the Philadelphia Student Union, in explaining why the Josephson Institute survey on character and ethics in young people shows high levels of cheating and dishonesty.  The Barometer is still looking for that Aristotle discussion of how being busy eliminates the need for honesty. 

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Josephson “Character Counts” 2008 Is Out

The fine bi-annual survey of the Josephson Institute on youth character is now available at www.josephsoninstitute.org. Conducted every other year since 1992, the survey of 30,000 high school students at 100 schools nationwide, grades 9-12, reveals that 64% have cheated on a test at least once, 82% have copied others’ homework, and 42% have lied to save money.  Good news, however, the self-esteem emphasis with these trophy kids is working: 77% of them are still satisfied with their character and ethics.  Finally, 82% reveal that they have lied to their parents at least once. This last figure is the only piece of the data that the Barometer questions.  Having raised four children, the Barometer knows the figure to be 100%.  But, the study is still not flawed because 26% of the kids disclosed that they had not answered all of the questions honestly.

That students cheat and do so at high levels is no longer news.  The Barometer worries . . . Continue reading

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“I think I’ve been a very constructive part of the Citigroup environment.”

Robert Rubin, chairman of Citigroup, former Secretary of the Treasury in the Clinton Administration.  Ah, it all depends on the meaning of the word, “constructive.” The company’s stock is down 70% since Mr. Rubin came on board.

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“They kept shopping.”

The description of shoppers at a Valley Stream, NY Wal-Mart when told they had to leave because a store employee had been trampled to death by 2000 holiday bargain-hunters who broke the store’s door frame and stampeded into the store, some tromping on 34-year-old-Wal-Mart-employee Jdimytai Damour’s body.  “I’ve been in line since yesterday morning,” offered one shopper as a justification for staying.  A life lost for a $798 deal on a Samsung 50-inch plasma HDTV or an “The Incredible Hulk” DVD for $9.  Surely we are better than this.

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90% Cheating Rate Among High School Students, But We Can Teach Them Better

Suppose that copying test answers, using crib sheets, copying someone else’s homework, plagiarism, and teaming up on work when you should be flying solo are included in the definition of cheating. In this day and age, one must define cheating because to some students copying someone else’s answers during a test would be research, not cheating.  Suppose further that you asked 25,000 high school students if they had ever engaged in “cheating.”  You would get a whopping 90% saying, “Duh, yes!”  Dr. Donald McCabe of Rutgers has been keeping score, as it were, on cheating since 1963.  The rate of overall cheating has tripled. Copying from others’ answers on tests has doubled from 26% to 52%.  Crib-sheet use on exams has climbed from 6% to 27%.  But Dr. McCabe and Dr. Jason Stephens of the University of Connecticut are not prophets of gloom.  They have fixes, and they work.  Continue reading

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“He thought he earned the functional equivalent of a bachelor’s degree. The discrepancy isn’t material.”

General counsel for Life Partners Holdings, Inc. addressing the discovery that a company director held an associate’s degree from Temple University, not a bachelor’s degree in chemical technology, as was represented in the company proxy. 

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When Bob Nardelli Is the Most Sensitive Guy in the Room

On November 17, 2008, when the CEOs of Chrysler, Ford, and GM scurried from their private jets to ask Congress for a bail-out, they were asked if they would be willing to follow the Lee Iacocca model and take $1 in salary whilst their companies struggled for air.  Bob Nardelli of Chrysler said he’d take the pledge.  Neither Alan Mulally nor Rick Wagoner would join in for the salary cut.  The Barometer reminds readers that Mr. Nardelli was the fellow hooted out of Home Depot by shareholders who lambasted him at the May 2006 annual meeting for his excessive pay. The Home Depot board didn’t even show up for the contentious annual meeting.  Mr. Nardelli took no questions that day, listened for 30 minutes, and then shut the meeting down.  He offered no explanation for the lack of correlation between Home Depot’s poor performance and his stellar pay (a skill set he obviously brought along with him to Chrysler, i.e., the old low-earnings, stock-in-the-tank, but high-pay model of management). The board, however, found its backbone following the annual meeting and sent Mr. Nardelli packing, with a $210-million-pay-package.  And to really show him, the board added in another $20 million.  Oh, what times are these when boards can lop on extra pay to punish executives who send a company’s stock diving. They fixed his wagon. Small wonder Mr. Nardelli can take a buck in pay for a year or two.  ‘Tis a sad day in Congress and in business when Mr. Nardelli proves to be the most sensitive guy in the room.    

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“It’s the right thing to do.”

Goldman Sachs Group, in announcing that its top 7 executives had asked their board to grant them no bonuses this year.  The move means the executives will earn only their base salaries,about $600,000 for the year.  Who says business can’t self-regulate? Ladies and gentlemen of our other Wall Street firms, the gauntlet is down.

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“I would say everbody out here on the PGA Tour would do the same thing. It’s not the end of the world. It will be fine. It is fine.”

Golfer J.P. Hayes on his decision to self-report his mistaken use of a non-PGA approved golf ball.

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A Golfer and a Gentleman and a Man of Integrity

J.P. Hayes was playing the Q school (for you non-golfers (and the Barometer is in that crowd), that’s pro golf’s qualifying school, a series of games in which players compete for the top 25 slots, a position that allows them to enter most PGA tournaments without qualifying).  While playing one of the Q school rounds at Houston’s Deerwood Country Club in mid-November 2008, Hayes chipped his ball onto the green and placed a marker.  After finishing the hole, he realized that he had used a different ball.  He called himself on it, and he took a two-stroke penalty.  Oh, but there’s more. Later Mr. Hayes realized that the ball he had used was not one that was PGA-approved.  He had some Titlelist prototypes in his bag that he had been testing for the company.  He had used a newfangled, unapproved ball. To call or not to call PGA officials?  Disqualification vs. six-figures in earnings several times over? Continue reading

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