Ethisphere™ Institute » Good Month/Bad Month

IBM Banned From New Government Contract Work

Ethisphere.com — Wed, 02 Apr 2008 22:59:22 +0000

Two weeks ago, in the last edition of Ethisphere Magazine we rated and ranked the ethics programs of some of the largest U.S. government contractors. IBM was on the lower end of the rankings with a score of just over 50 (below standard).

And guess what? Yesterday the company was temporarily banned from any new government contracts because of possible violations with a “bid for business with the EPA originally submitted in March 2006,” according to a report by Market Watch. Specific details as to why the company was banned from new contracts weren’t immediately available, but some are reporting that it involved bid rigging.

In addition to the temporary ban, which could last up to a year, IBM is being investigated by the U.S. Attorney’s Office for the Eastern District of Virginia, according to the article.

According to USAspending.gov, IBM acquired $1.4 billion of government contracts last year. This is compared to the company’s $98.8 billion in total revenue for 2007.

Know who wins when IBM is banned from federal contracts? The answer is: EDS. We scored EDS’s government contracting ethics program two weeks ago. Care to know their score? It was ‘Excellent’, with a score of over 90.

Good ethics = good profit. The U.S. government appears to agree with us.

“I Want to be a Whistleblower When I Grow up”

Ethisphere.com — Tue, 04 Mar 2008 17:17:56 +0000

Becoming a whistle-blower is now a financially sound career move, thanks to the UK’s Office of Fair Trade (OFT). The British watch dog announced last Friday that it will offer as much as £100,000 for information leading to the discovery and dismantling of illegal corporate cartels. The OFT will offer the rewards for an 18 month trial period. However, if the program is successful it could become permanent.

With recent publicized stories of whistle-blowers making small fortunes for calling-out cartels, and after the success of German and British authorities paying informants for the names of people evading taxes through Liechtenstein bank accounts, the hope is that this new plan will encourage more employees to speak up about their companies’ illegal habits. According to the Independent:

Simon Williams, the OFT’s senior director of cartels and criminal enforcement, said: “We believe that it is in the public interest to offer financial incentives in the hope that it will encourage more people who have good information about the existence of hard-core cartel activity to come forward.”

Obviously, the information has to be good – whistleblowers will only get paid after a successful prosecution. The OFT has established a hotline (0800 085 1664) as well as an email address (cartelshotline@oft.gsi.gov.uk) that aspiring whistle-blowers can use to report bad behavior.

It’s Been a Bad Month for: Giving Financial Advice

Ethisphere.com — Mon, 04 Sep 2006 20:29:09 +0000

Bankrupt Northwest Airlines Corp., in the process of laying off employees and cutting others’ salaries as it prepares to exit bankruptcy, published a booklet with a series of money saving tips. Included were suggestions that some employees found offensive, such as that included such suggestions as shopping in thrift stores, taking “a date for a walk along the beach or in the woods” and not being “shy about pulling something you like out of the trash.” The list 101 ways to save money was also posted for a time on its employee Web site. “We agree that some of these suggestions and tips … were a bit insensitive,” a Northwest spokesman said, and added that a revised version of the booklet was now available.

It’s Been a Good Month for: Cutting the Jail Budget to Reduce Crime…

Ethisphere.com — Mon, 04 Sep 2006 20:28:36 +0000

Detlef Federsohn of Austria missed prison so much after his release that he tried to break back in. Police spotted Federsohn on the roof of the prison he was released from trying to sneak back in to enjoy the luxuries of a caged life. Federsohn said, “Life is so much easier on the inside. They feed you, do your washing and let you watch TV, which I can tell you is a lot more than my mum does. So, I thought if I could sneak back in I would blend in with the others and the screws wouldn’t notice.” Mr. Federsohn, speaking of screws…

It’s Been a Bad Month for: AR Wildlife Looking for Safe Harbor in TN

Ethisphere.com — Mon, 04 Sep 2006 20:27:58 +0000

The Arkansas Game and Fish Commission has demoted two senior Arkansas wildlife officers for illegally hunting turkeys without a license in Tennessee. Game and Fish Director Scott Henderson said that Major Jerry D. Woodson, assistant chief of enforcement for the Arkansas Game and Fish Commission, and Wade Spence were demoted. Spence, a six-year game and fish veteran, was named Wildlife Officer of the Year in 2003 by the National Wild Turkey Federation. Henderson says the two were disciplined because the hunting violated the commission’s ethical standards

It’s Been a Bad Month for: Environmental Clean-Up Firms’ Prospects?

Ethisphere.com — Mon, 04 Sep 2006 20:26:20 +0000

Popstar Madonna and her husband Guy Ritchie have been lobbying the U.K. government and nuclear industry over a scheme to clean up radioactive waste with a supposedly magic Kabbalah fluid. The couple, both followers of the Jewish spiritual movement, approached Downing Street, Whitehall and British Nuclear Fuels (BNFL) promoting a “mystical” liquid tested in a Ukrainian lake. “It was like a crank call… the scientific mechanisms and principles were just bollocks, basically,” one official said. The Kabbalah Centre, which is based in Los Angeles but has branches worldwide, was set up by Philip Berg, a former insurance salesman. One devotee has described how Berg leads chants of “Chernobyl” and the names of other nuclear power plants. Followers believe this helps “heal the problem of nuclear waste”. Undercover reporters who attended a Kabbalah Centre dinner in London described how Madonna and Ritchie were among guests who turned east towards Chernobyl and began shouting its name.

It’s Been a Good Month for: Teenage Responsiblility

Ethisphere.com — Mon, 04 Sep 2006 20:25:39 +0000

This summer at the Ottawa marathon, Amos Tirop Matui of Kenya was the first to cross the finish line with a time of 2:10:32. However the wild cheers that greeted him soon turned to confused anger when it was discovered that he was part of a group of 14 runners who missed a turn in the twisting streets of New Edinburgh, shaving 400 meters off the course and more than a minute off their times. Apparently, the confusion occurred when a group of high school students left their post at a barricade to talk to some friends at the next corner. While the volunteers were gone, a motorist moved the barricade. The 14 runners who veered off course were not outright disqualified. An asterisk marks their times as “non-ratified results” that cannot be used for statistics. Looking to avoid confusion next year organizers plan to draw a solid blue line for runners to follow.

It’s Been a Good Month for: Substance Abuse Training for Employees

Ethisphere.com — Mon, 04 Sep 2006 20:24:50 +0000

Two Chinese officials got drunk and cut off power to a hotel after they were not invited to its opening party and forced managers to drink spirits before they would turn the electricity back on. The two officials, who were subsequently fired, said they would lessen the power outage by one hour for every bottle of “baijiu” – a strong grain-based alcohol – two female managers drank. The two officials, who worked at the power company in the central province of Hunan, were found to have “caused a depraved social disturbance” with chaos and black-outs for surrounding residents.

It’s Been a Bad Month for: Losing Your Wallet (Home)

Ethisphere.com — Mon, 04 Sep 2006 19:07:36 +0000

Identity thieves posed as home owners in order to sell the bungalow of an elderly Canadian immigrant who fled Hungary for Canada in 1957 to get away from communism. Paul Reviczky, 89, was left hundreds of thousands of dollars out of pocket when his home was sold without his knowledge by thieves who had stolen his identity and absconded with the money. He is unable to take control over his property that was sold fraudulently because local laws favor purchasers over victims of fraud. Reviczky is not even able to enter the premises of his former home.

It’s Been a Bad Month for: Subway Flirting

Ethisphere.com — Fri, 09 Jun 2006 16:38:46 +0000

The Brazilian city of Rio de Janeiro became the fourth major city worldwide (after Mexico City, Tokyo and Cairo) to mandate female-only cars during rush hour–to guard against gropers and sexual harassment. However, many consider the law a major step backward for women’s rights. A new law mandates a separate car for women during rush hour, marked on the outside by a pink-striped sticker or a sign with the symbol of a woman.

It’s Been a Bad Month for: Bad Golfers

Ethisphere.com — Fri, 09 Jun 2006 16:31:36 +0000

In a ruling celebrated by corporate travel planners globally, the Hawaii Supreme Court has ruled a golfer may not be held liable for mistakenly hitting another golfer with an errant golf ball. In a unanimous decision, the court upheld a lower court ruling to dismiss Ryan Yoneda’s lawsuit against Andrew Tom, whose wayward ball hit Yoneda in the eye at Mililani Golf Course. Chief Justice Ronald Moon wrote Yoneda assumed the risk of the injury when he played golf.

It’s Been a Bad Month for: Showing Up Early to Work

Ethisphere.com — Fri, 09 Jun 2006 16:30:22 +0000

On June 1st, two masked robbers walked into Dillons in Wichita, Kansas one morning at 6:30 am, forced their way into the cashier’s cage and demanded money. But there was a problem with their master plan, the cashier recognized one of the robbers as an employee of the grocery store. Sure enough, the dutiful employee showed up for work later that morning; driving the same vehicle. He was later arrested.

It’s Been a Bad Month for: Michelle Wie

Ethisphere.com — Fri, 09 Jun 2006 16:29:12 +0000

A caddy wins a sexual harassment suit against the former owner of a golf club who made fun of him for losing two matches to a woman. Delalio Associates was ordered Eugene Palumbo $34,000 for the 2003 and ensuing ridicule which the EEOC deemed to be sexual harassment. The manager of the club apparently posted and distributed newsletters in the Tallgrass Gold Club in Shoreham,
York that made fun of Palumbo by questioning his manhood. When Palumbo complained, he was fired. An attorney Delalio Fairway Associates, the former owners of the club, stated that the flyers were intended as a joke.

Commentary: We guess that the managers at Delalio had heard of female golfing teenage phenom Michelle Wie.

It’s Been a Good Month for: Spending Excuses to Try on Your Spouse

Ethisphere.com — Fri, 09 Jun 2006 16:25:50 +0000

Investigators in Grand Junction, CO are dealing with what may be an unusual case of check fraud. A 37-year old man reported 12 checks missing from his check book and said he was worried they might have been written without his permission. The man also told investigators he might be liable because he has multiple personality disorder and it’s possible one of his other 24 personalities might have used the checks.

It’s Been a Bad Month for: Kevin Crandall

Ethisphere.com — Fri, 09 Jun 2006 16:24:35 +0000

Kevin Crandall, a North Stonington CT man who was struck by lightning while building a stone wall and mistakenly declared dead by EMTs is suing, claiming that lack of treatment at the scene left him with brain damage. Emergency medical technicians from the Stonington Volunteer Ambulance Corps determined Crandall was dead and covered him with a blanket and did not try to resuscitate him. However, minutes later, police Sgt. Keith Beebe leaned over Crandall and noticed he was still alive. Crandall was then rushed to a nearby hospital for treatment.

It’s Been a Bad Month for: Hot Potatoes

Ethisphere.com — Fri, 09 Jun 2006 16:22:44 +0000

Workers at a British factory making French fries were evacuated for two days last week after bomb parts turned up in potatoes imported from France and Belgium, the site of battles in World War 1 and 2. Canada’s McCain Foods owned plant, the world’s largest producer of frozen fries, was emptied after a worker spotted a shell tip among the potatoes while they were being cleaned for slicing. An entire hand grenade was discovered in the potatoes the next day, evacuating the plant in northern England again. “Occasionally, during the use of imported potatoes from Belgium and France, ordnance debris from the First and Second World Wars is found,” a McCain statement said.

Commentary:While at Ethisphere we pride ourselves of having a thorough risk universe classification of hundreds of risks for our risk assessment clients upfront, we admit that exploding food inventory was one that we had not immediately thought of.

It’s Been a Good Month for: Semicolons

Ethisphere.com — Fri, 09 Jun 2006 16:18:27 +0000

The future of the state’s plan to lease the Indiana Toll Road to a private investment group hinges on grammar and punctuation. Lawyers for a group trying to block the Indiana Finance Authority from leasing the toll road and the state argued before St. Joseph Superior Court Judge Michael Scopelitis over exactly what the Legislature meant by including a semicolon in its definition of a “municipal corporation.” The question is key to deciding whether the case is a public lawsuit and whether the sale will be blocked.

It’s Been a Good Month for: A New Take-Out Concept

Ethisphere.com — Fri, 09 Jun 2006 16:16:36 +0000

A Taco Bell in Westlake, Ohio has been the target of three dine-and-dash crimes over the past few months, according to police reports. Officials say the man runs between the drive-through window and the waiting driver of a car and grabs the bag of food. The suspect is described as a tall white man, who is wearing a Cleveland Browns jersey.

Commentary: As we try and picture this horrific crime, we come up with so many important questions… such as how does a tall white man fit between the car and the drive-through window? How can the clerk fall for this ruse three times (maybe it’s not the same clerk; or maybe the clerk is in on the theft)? Did the man wear a Cleveland Browns jersey each time?

It’s Been a Bad Month for: the Emergency Broadcast System

Ethisphere.com — Fri, 09 Jun 2006 16:11:33 +0000

An emergency radio station in Washington state mistakenly warned that a massive, volcanic-caused mudflow was headed from the flanks of Mount Rainier and that listeners in the Washington State valley below should rush to higher ground. Emergency officials in communities around Mount Rainier routinely test the system that would, in the event of a real lava from the volcano, activate 24 sirens around the valley and broadcast a radio alert. But station 1580 AM picked up the test signal as real and said the lava was coming, terrifying local residents who heard it. The prerecorded radio message apparently was triggered by a software error.

It’s Been a Bad Month for: Julia Child

Ethisphere.com — Fri, 09 Jun 2006 15:50:54 +0000

A major Japanese TV network has apologized to almost 160 people who were struck with vomiting and diarrhea after following a weight-loss plan it broadcast. The Tokyo Broadcasting System’s May 6th show introduced a diet of rice mixed with white kidney beans that had been roasted for about three minutes and ground into powder. The food poisoning was caused by lectin, a protein in the beans which rendered them toxic if not sufficiently heated.

Commentary:Japan can you get an apology. In the U.S. you get a lawsuit.

It’s Been a Bad Month for: CEOs Violating Codes of Conduct

Ethisphere.com — Sat, 06 May 2006 17:11:51 +0000

For the second Ethisphere issue in a row, we have to report a large corporation’s CEO being forced out by the Board of Directors for violation of their own company’s Standards of Business Conduct. This month it was Lynn Davenport, CEO of NYSE-traded government contractor, Maximus, Inc. who engaged in an improper relationship with a female employee in violation of the Maximus Code of Conduct and thereby was terminated.

It’s Been a Bad Month for: American Innovation Leadership

Ethisphere.com — Sat, 06 May 2006 17:10:27 +0000

Anyone following the news (and our newsletter) will know about IP rights going crazy and companies becoming more aggressive in staking out areas (perhaps a proactive defense?). In this environment that is certainly defensible but it can lead to unintended consequences of humor. For example, last month Motorola even filed a patent application for a new type of vibrating phone that would use electrical pulses to stimulate the skin for “silent notification of an event and/or therapeutic treatment…because muscle stimulation is known to have therapeutic effects, the wireless device can also be used to deliver muscle stimulation at a time and manner selected by the wearer and delivered to specific areas of the body.” Click here to see that actual application at USPTO.

It’s Been a Bad Month for: Personal Accountability

Ethisphere.com — Sat, 06 May 2006 17:08:09 +0000

Doesn’t it seem like everyone and his brother sues GM? Now you can add an FBI agent, who is suing GM and the dealer that sold him his pickup truck for product liability due to smoke filling the cab when the engine was running and he had “somehow lost consciousness”. Las Vegas firefighters pulled him and his guns from a flaming truck. Perhaps the loss of consciousness had something to do with the empty 25 ounce Captain Morgan Rum bottle in the truck and his 0.306 blood alcohol content (4x time the legal limit) and the fact that the truck weaved off the road, jumped the curb and ran into a gated community. I doubt GM had run this scenario through their product testing.

It’s Been a Bad Month for: Nigerian Soccer Fans

Ethisphere.com — Sat, 06 May 2006 17:05:38 +0000

In an interesting approach to “stamping out bribery and corruption”, the Secretary-General of the Nigerian Football Association, Fanny Amun, announced last month that it would now be allowable and acceptable for referees to accept bribes from teams, as long as the bribes did not influence their decisions. According to Mr. Amun’s helpful guidance: “Referees should only pretend to fall for the bait, but make sure the result doesn’t favor those offering the bribe.”

It’s Been a Bad Month for: Pennsylvania Dentists

Ethisphere.com — Sat, 06 May 2006 17:04:17 +0000

The Pennsylvania Department of Environmental Protection has fined Pennsylvania-American Water plant $25,000 after a fluoride spill. The spill at the water treatment plant introduced highly elevated levels of fluoride into the drinking water supply. Pennsylvania Utility Commission report concluded the 600-gallon spill was caused by a plant operator rigging a pumping control.