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Tag: Deloitte

Ethics Roundup, October Second, 2011

I have four entries in the Ethics Roundup this week. I hope you enjoy them.

James Pilant

1. The Ethics Sage has a new post out called –

Deloitte Sued for $7.6 Billion, Accused of Missing Fraud

Steven Mintz writing as the Ethics Sage is appropriately outraged. Let me quote his concluding paragraph –

Are auditors finally going to be held accountable for their role in the financial meltdown? Time will tell but there can be no doubt some must have missed the red flags and, more important, ignored the changing business model and risks inherent in dealing with financial instruments such as sub-prime mortgages and credit default swaps. Auditors are supposed to understand the environment in which their clients operate and use that knowledge and related risk assessment to determine proper audit procedures. It appears that Deloitte failed to do so and there may be other cases waiting in the wings.

2. Chris MacDonald writing in the Business Ethics Blog has a new post called –

Corporations as “People” vs. Corporations as “Persons.”

In this essay, Professor MacDonald explains corporate personhood in its two very different forms.

3. Lauren Bloom writing in her blog, deals with the downside of Henry Ford‘s creations.

Entitled – It’s amazing what can happen in 103 years.

Here’s my favorite paragraph –

Now, just a little over a century later, Americans take for granted the right to cross our country in the comfort of their automobiles, and we can make trips in hours that used to take days. That’s the good news. The not-so-good news is that our nation is crisscrossed with roads and bridges that require regular repair, millions are killed or injured annually in autmobile accidents, our cars are eating up the ozone layer with their toxic emissions, Americans drive instead of walking and, as a result, suffer from record levels of obesity and associated diseases, and traffic jams have become a daily nightmare. (Living in a city that’s earned the dubious distinction of having the worst traffic in America, I should know.)

4. Josephson on Business Ethics and Leadership has a fascinating article up on doctors’ conflicts of interest.

Dollars for Docs – How Industry Dollars Reach Your Doctors.

Best paragraph –

Even though such payments are legal, most medical policymakers agree that they are not ethical.  Special trips, meals, and “educational opportunities” are very common strategies that companies use to create stronger bonds with their clients, and to achieve the basic goal of any business — to sell more. In most industries, such gift-giving doesn’t raise any particular ethical red flags. But in medicine, the person getting the gifts isn’t the person taking the drugs. The person taking the drugs is you. And if your doctor has prescribed you that drug when a different drug – or no drug at all – might be the better choice, then it’s likely you’d want to know about it.

 

 

 

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The Biggest Offshoring Myth (via John Akerson’s Thoughts)

The Biggest Offshoring Myth (via John Akerson’s Thoughts)

I believe the key paragraph here is this one (from the article).

Vector of thumb|100px|left

Vector of thumb|100px|left (Photo credit: Wikipedia)

I think Offshoring fails because offshored processes, deliverables and costs are almost never measured objectively. I think Offshoring fails because offshoring projects define success as “the expansion of offshoring” rather than as the “delivery of improved services, products, projects, or results for the same or less cost.” I think offshoring fails because the jobs lost to offshoring result in incredible losses for our country, our future, our tax base, and for things that are much harder to quantify.

I couldn’t have said it better.                                     James Pilant

Eweek has an interesting article – “Outsourcing Myths have no Grounds, Says Deloitte CIO” Deloitte’s CIO does his best to debunk various offshoring myths.  The first myth that he debunks is that “Offshoring… has not been successful.”  his response is: “That’s absolutely not true,” Quinlan said. “We’re seeing significant upticking in global offshoring activity.” With the maturation of the offshoring market, there has been an accompanying decreas … Read More

via John Akerson’s Thoughts

From around the web.

From the web site, Inequalities.

http://inequalitiesblog.wordpress.com/2011/07/12/offshoring-middle-class-jobs-myths-realities-policies/

(A quote from an interview with Phillip Brown.)

It’s a good question!  It depends what you mean by a realistic policy agenda – if you take the current agenda then we are in serious trouble.  Surprisingly, the World Bank and ILO have an appetite at the moment for new ideas that link skills and industrial strategies.  But the current UK Government has moved away from any kind of state intervention in industrial aspects of the economy, and the US is even further away from this.  This is disastrous, as other economies like China and Singapore understand that this planning is crucial.  Therefore in both the British and American context, to say we need some industrial strategy of some kind is actually quite radical.  It sounds totally ridiculous, but that’s how it is.

In terms of their impacts, if you’re linking industrial demand to skills supply, you’re going to be better-placed than if you leave that to the market – so this would be positive.  But I doubt whether it would have a major impact, because ultimately the labour market cannot resolve the problems of social justice and a fairer society.  The job market and the economy have to be used as ways of generating wealth, which then requires us to think how we’re going to distribute that wealth.

From the web site, Economist’s View.

http://economistsview.typepad.com/economistsview/2007/05/alan_blinder_fr.html

(Quoting Alan Blinder)

For these same forces don’t look so benign from the viewpoint of an American computer programmer or accountant. They’ve done what they were told to do: They went to college and prepared for well-paid careers… But now their bosses are eyeing legions of well-qualified, English-speaking programmers and accountants in India, for example, who will happily work for a fraction of what Americans earn. Such prospective competition puts a damper on wage increases. And if the jobs do move offshore, displaced American workers may lose not only their jobs but also their pensions and health insurance. These people can be forgiven if they have doubts about the virtues of globalization.

We economists assure folks that things will be all right in the end. Both Americans and Indians will be better off. I think that’s right. The basic principles of free trade that Adam Smith and David Ricardo taught us two centuries ago remain valid today: Just like people, nations benefit by specializing in the tasks they do best and trading with other nations for the rest. There’s nothing new here theoretically.

But I would argue that there’s something new about the coming transition to service offshoring. Those two powerful forces mentioned earlier — technological advancement and the rise of China and India — suggest that this particular transition will be large, lengthy and painful.

It’s going to be lengthy because the technology for moving information across the world will continue to improve for decades… So, for those who earn their living performing tasks that are (or will become) deliverable electronically, this is no fleeting problem.

It’s also going to be large. How large? In some recent research, I estimated that 30 million to 40 million U.S. jobs are potentially offshorable. These include scientists, mathematicians and editors on the high end and telephone operators, clerks and typists on the low end. Obviously, not all of these jobs are going to India, China or elsewhere. But many will.

It’s going to be painful because our country offers such a poor social safety net to cushion the blow for displaced workers. Our unemployment insurance program is stingy by first-world standards. American workers who lose their jobs often lose their health insurance and pension rights as well. And even though many displaced workers will have to change occupations — a difficult task for anyone — only a fortunate few will be offered opportunities for retraining. All this needs to change.

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