October 31st, 2007
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The world has woken up to ethical issues in corporate governance & accounting practices. Corporate heads that were not guillotined were forced hang their heads in retrospective shame. The heads that fell were the victimizers, and the axe that fell, fell too late, and the punishment received, was way too little compared to the suffering, pain and financial losses that the organizations stakeholders suffered. Trust of millions of investors was lost overnight.
Ethics in governance is one part of the story, the other link in this dubious chain of deceit is usually the professional services like auditing, legal and public relations which work closely with the organization. Such large scale deceit becomes possible only with the active collaboration of these so-called professional services. Hardly professional, really!
The Indian investor has been victim to a lot of companies attempting to make a quick buck in the markets. While caveat emptor let the buyer beware, is the legal term that organizations to get out of such wrangles, it is necessary to look into how these various scams are done, and to recognize the role of the professional services, especially public relations in creating and sustaining the scams.
Circa 1994. Every Indian remembers the bloody battlefield of the stock markets. While the aftereffects are well embedded in everyones memory, few remember how it all began. Upbeat stock stories in the newspapers, stories of millions being made overnight, the oldest stock exchange of the country celebrating the index at an unprecedented high. Stock market pages kept the upward arrow next to almost every stock price quoted indicating the trends. Investors scrambled, dinner conversation revolved around the stock prices, 21 year olds were sitting in front of red-blue flashing computer screens, buying and selling tens of thousands of shares in seconds.
While some companies were actually performing well, many slipped through the back-door and slipped up their shares to unwary investors. Why is the investor so gullible? And is the investor really so gullible?
The method that was used to market the fly-by-night companies to the investors combined the well-used public relations concepts of fear, uncertainty and doubt (FUD). Successful FUD pushes to show how you would be the only person who would be left in the race if you did not buy-in into the campaigners concept, creates uncertainty about your own analysis & gut-feel and generates doubt about the products or services currently under use. This especially works wonders in a greed-struck stock market, where more often than not, mob-psychology rather than knowledge is the deciding factor.
Usually such scams are orchestrated in connivance with some unscrupulous public relations companies. At other times, the PR companies usually have enough pointers to the possibility of such a scam about to take place. Press conferences are called, headlines blare out the superlative performances of the organization, there is talk of new acquisitions, investor meets happen and stock analysts are shown the factory, the plush office to generate confidence in the investor. The PR agency is rewarded for its great efforts by way of a few millions and the investors collective gets duped for a few billions. Case studies of this century in such dubious PR in India would include the CRB scam, MS Shoes, Harshad Mehta & Home Trade fiasco. While these are the few stories which come to light, there are many scams which get away without even getting noticed.
What is the responsibility of the public relations company in such circumstances? The agency must evaluate the client and understand program and take a view that is beyond just the fees that it will generate and take a responsible decision. The PR agency can & must become the watch-dog for the companies, advising them, guiding them and if nothing prevails, then going to the extent of resigning the account for of a larger good. This kind of discussion, though popular conversation in PR cocktail circuits, is still eschewed by the PR intellectuals in more serious forums!
Unless we work as a committed community on the principles that should guide the PR business; and take stringent action against those who use these tools-of-influence to feed their greed, the respectable business of PR will go to the depths of unrecoverable ignominy very soon.
The author is the CEO of Blue Lotus Communications, one of the fastest growing PR agencies in India (www.bluelotuspr.com). He is also an active blogger and has his own blog called http://PublicRelationsIndia.blogspot.com
Chandramouli is the CEO of Blue Lotus Communications Consultancy, a leading knowledge based public relations agency located in Mumbai,India. He is an Engineer-MBA with over 16 years of multi-functional experience and has guided Blue Lotus to a core focus in the booming sectors of Healthcare, Finance, Education and Technology.
To Blame or Not To BlameA man can fall many times, but he isnt a failure until he begins to blame somebody else. (John Burroughs)Fire her, she set me up! John yelled quite loudly. He was incredibly angry and for good reason. However, he was really angry at the wrong person. What he was really saying was […]
Written by info on October 31st, 2007 with comments disabled.
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They say no good deed goes unpunished and sadly that is the truth in the world of the whistleblower. The theory on whistle blowing is that the individual is helping the community, and following their ethics, by reporting the offending person or company. The risk of recrimination is very high and usually results in a long and difficult fight for the whistleblower. This battle will likely including legal threats and character assassination.
So what can you do to protect yourself when you do blow the whistle? Having been through this process I have gain some insight on how best to handle the situation.
1. Documentation: Once you suspect that something is wrong you should begin documenting. Start by taking notes in a log book or note pad. This information will be helpful when you need to tell your story and will provide the detail needed to track down further evidence of wrong doing. Next, start collecting pertinent documents. The best way is to copy documents (photocopy, computers docs, etc.). When you think you have enough, double it. Pictures, phone recordings, documents, conversations, e-mails are all important and should be noted when possible. There can never be enough documentation. Once the authorities begin investigation documents had a tendency to disappear.
Many people who dont know the laws will try to tell you that these methods are illegal. The fact is they are not. In Canada it is legal to record a conversation or phone call as long as one of the parties is participating in the conversation. The removal of documents from the workplace is a gray area. Under normal circumstances removing company information is illegal, however when it is evidence it can be collected. In a Canadian court all evidence will be considered. Check with your governments laws or speak with a lawyer before taking any risks.
2. Minimize Your Exposure: When you draw up the courage, and support, to finally report the issues there are a few things you need to do. First, it is best if you stay at your job while you report the issues. Sometimes the authorities will ask you questions, that will help them with their investigation, and being at the location is beneficial. Ask to be kept anonymous, if possible, but sometimes this cant be done. Next, get your resume polished up and start sending it out. Then prepare financially by locating your employment insurance office. Tell them that you are blowing the whistle on your employer and you may be fired for it. Provide the person with the contact names of whichever authority you contacted. The idea is to build a repour, so if bad things happen, people will know the facts. Dont loose that all important safety net.
3. Go with your Instincts: Most people will tell you not to blow the whistle because there are no winners. They are partially right, but without your courage people will get hurt, the rich will get richer and abuse their powers. You can change that by doing what you feel it right. We often cloud our thinking with other peoples perceptions, but only you can determine what to do. Most of the time your instinct are right and you should trust them. If you listen to others and they convince not to go with your instincts, and then something bad happens, you have to live with the consequences, not them.
4. Be Patient: Nothing happens quickly no matter how fast you want to be done with it. The reality is that things will go much slower than you ever expected them too. The best way to make sure things are moving is to do some research. For example, if you file a complaint against a medical professional, the regulatory College that receives the complaint will have a complaints process. However, this is usually regulated by a government agency that has legislation regarding complaints. In Ontario all complaints must be handled in 120 days. If not, you can contact the Health Professions Appeal & Review Board and they will contact the College and accelerate the process.
Some other tips to accelerate the process include contacting your local politician, begin a letter writing campaign to media outlets and compiling your story onto an internet site. Be persistent when dealing with each agency, dont accept their statements at face value and always follow up.
5. The Media is Not a Solution: They can help but you have to convince them to write the story. Many times it may take months for them to move. Remember they dont want any liability, they are a profit motivated company and will only publish storys that make them a dollar. If your former employer is litigious, they will probably be too scared to publish. The media has no problem reporting history, so once a final verdict is reached, by the authorities, they will write a story. Unfortunately it will be to late to help you.
Some of the smaller media outlets may be more willing to help you. Take a look at freelance writers, who may spend more time working on your story and getting the facts. They also have the contacts you need to get it published.
6. Prepare for an Attack on your Character and Legal Threats :: The person or company you are dealing with will not let things go easily. The first response will be to discredit you. If you look like an disgruntled employee or someone with a vendetta then your story will be less believable. Its easy for the person or company to do this. If they were unethical to start with, its not a huge leap for them start lying about you after you report them. There isnt much you can do except try to disprove theyre statements. Use the document you gathered to clearly show that they are the guilty party and you were just being ethical. In the end your efforts will be recognized. You will probably receive a cease and desist letter, dont be overly concerned as this is most likely posturing. If you are worried, speak with a lawyer.
7. Use Lawyers Sparingly: Nobody can fight with the passion you have and no lawyer will ever put the amount of effort you already have into your fight. Replying to a cease and desist letter is easy, just stick with the facts, provide the evidence and take the high road. Most lawyers will act like an 600 lb gorilla, your job is to be bigger. In all likelihood they wont want to take this issue to a public forum, like a court room, especially if you have documented the case very well. That would give you a perfect opportunity to invite the media and lay your case out. Examples of cease and desist responses can be found at http://www.snakeoil.ca.
If you need legal advice, get it, but dont let the lawyer bleed you dry. Have your questions prepared on paper and sit down with the lawyer and discuss the issue. If they charge a minimum of one hour time, use it all. One good thing to do is prepare a short summary of the facts in your case, and fax it in to the law office. Dont ask question in the letter. Blowing the whistle is stressful enough without having thousands of dollars in legal fees.
Some people will tell you not to let the event consume you. If it does consume you, it will affect other parts of your life. But sometimes focussing your energy can be better if it will resolve the issue quicker. Its better to throw your whole heart into the matter, rather than fight with yourself. It is difficult to not be consumed. My advice is to simply go with it. The harder you work the quicker the issue will be resolved and the sooner you can get on with your life.
The is no reward for doing a good deed, thats only in movies. In the end however you should have the satisfaction that you made your community or country a better place. People will respect you for your efforts and hopefully inspire then to do something good and that is a reward in itself.
Darcy O’Neil is a chemical technologist who became a pharmaceutical whistleblower. His experiences, including the evidence, legal threats and decisions can be found at http://www.snakeoil.ca. Darcy is currently working as a bartender and a freelance writer.
To Blame or Not To BlameA man can fall many times, but he isnt a failure until he begins to blame somebody else. (John Burroughs)Fire her, she set me up! John yelled quite loudly. He was incredibly angry and for good reason. However, he was really angry at the wrong person. What he was really saying was […]
Written by info on October 31st, 2007 with comments disabled.
Read more articles on ethics.
Globalization and technology developed at a rattling rate make our lives more comfortable but we are stranded in a tighter area in our daily lives, on the contrary. Future might be ahead that is worse than Georger Orwells Big Brother. This time private companies trace us more than the government does, ranging from GSM operators to web search engines, credit card data and survey forms.
In the era of marketing, advertising and consumpiton, it does not matter so much to get data collected about us. The heart of the mattter for the companies is what they could do with those data, how they could increase their sales and forecast future.
Data mining is a method became very popular in 1990s, which aims to reach optimum efficiency in planning and organization thru collecting data from gigantic databases and determining specific trends, allowing to forecast future. Having used artificial intelligence, this method is based on analysing significant data and trends by computers, which takes many years for an ordinary man to collect those data. In the beginning such significant data seem irrelevant, but following computer analysis, it could appear as relevant by comparing two parameters. For example, according a survey run in a supermarket chain, families buying nappies tend to buy beer as well. So, a promotion campaign is held with the concept of Party Time for the Families with Kids.
Why is it so important to connect medicine and insurance, public and private sector, automobile demand graphics with avocado and banana curves? Before answering this question, it would be better to check how such a thing could be possible.
The key concept of data mining is to purge specific data series by sorting and comparing among gigantic databases. Despite Merge and Purge and Database Enrichment methods remained out of fashion as compared to data mining, data could be really transformed into valuable information and automized easily.
It is not easy to set up such huge databases. Many legal and illegal companies and people appeared to collect databases, especially e-mails currently. Metromail is one of the largest companies collecting mail addresses, currently collecting and selling e-mails, established in 1948, hiring 3000 people with a sales turnover of over USD 281 million. It hunts data researching from different resources ranging from state records to surveys, which also include income, householding, marital status, age groups and even the team supported. So Metromail is the no 1 company as required specific name-address info. On the other hand, it has a gigantic database continously developing with data about almost every house in the USA . In addition to such legal companies, there are also pirate ones producing data for pirate CDs.
Cookies innocently embedded in our computers, security cameras tracing us on the streets, retina scanners at airports, mobile phone call centers recording what we said for us, machines recording what we wrote and tools registering our actionsIt is a world that do not care about us, but our data.
There is a new possible future ahead in case there is not a social consciousness formed to pass the overseas laws protecting invidual privacy. That future is profitable for companies, secure for states but nightmarish for us, ordinary people.
Emre Kizilkaya is a journalist. He writes articles for a communication technologies magazine, Tele.com.tr.
To Blame or Not To BlameA man can fall many times, but he isnt a failure until he begins to blame somebody else. (John Burroughs)Fire her, she set me up! John yelled quite loudly. He was incredibly angry and for good reason. However, he was really angry at the wrong person. What he was really saying was […]
Written by info on October 31st, 2007 with comments disabled.
Read more articles on ethics.
We - modern America that is - have become so damn impolite. We dont give people the simple courtesy of a reply when contacted by email or phone. The idea of acknowledging someone with a smile while passing on the street is at best an anachronism; at times its even considered an affront. And being greeted when entering a store is less commonplace all the time. What are we becoming (or have already become)? Furthermore, these simple common courtesies are disappearing from the very vocabulary and experiences of the young adult and teenage populations among us. (In fact, only be an older person could write this piece from direct experience.)
What does any of this have to do with hats or e-commerce, you may ask. Stores are guilty - big time - of contributing to this decline. Businesses/employers run the daily social show in America; they are obliged to set an example and lead with integrity. This is a separate issue from Enron/WorldCom law-breaking type activity (although greed is not unrelated to this deterioration). Being polite and courteous are actions that people should adopt because its right to do so. That, in and of itself, is the reason to act as a decent human being. It is parenthetical that it is also good business to behave as such. This is not a confusing distinction, but likely has been confused, to the detriment of polite behavior, by business consultants focused on ends and outcomes rather than means and process. We all live together on the same planet for crying out loud. That is all the motivation we need.
How it got this bad is a topic for another essay. I suspect that the artificial and slippery notion that I often hear people espouse, Its just business, thus implying a different behavior in life than in business is part of the explanation. In any case, businesses need to take responsibility. Many people arent given the courtesy of an answer after applying for, or even interviewing for, a job. We say hello or goodbye to colleagues and customers in the workplace less so all the time. It is not the fault of the younger generation that these basic human social values are being lost. My son, now twenty, has interviewed for numerous jobs in his young life. It is now significantly more likely that he will not be contacted after dropping off or emailing a resume - or even interviewing for a job - than he will be. It pains me to have to explain to him how rude that is. Worse, he is now used to it; doesnt even get disturbed by it any longer. It is irrelevant that he has proven to be a very good employee, because a prospective employer owes anyone a response after he or she enters into their process for a job.
Those of us business people or otherwise - who are dismayed by this decline cannot throw the towel in. We must not yield to this rude and impersonal cynicism that is spreading like a cancer on our social landscape. Our actions must be the antidote.
The Village Hat Shop will reply to your emails and greet you when you come into our stores. We will respond if you apply or interview for a job in our organization. Yes, it is good business for us to do these things, but that is not why we will do them. We will do them because we must.
Fred Belinsky is the founder and president of The Village Hat Shop. The 4-store California chain is 27 years old. http://www.VillageHatShop.com, launched in early 1997, was the first online hat seller. Belinsky also runs http://www.Berets.com Private label brands include Jaxon Hats for men’s hats, http://www.JaxonHats.com, and sur la tete for women hats. More of Belinsky’s articles can be seen at his HAT BLOG: Everything Hats. VillageHatShop.com also publishes THE COWBOY HAT, an ezine featuring short fiction, essays, and poetry about the American West and the Mexican-American Border.
To Blame or Not To BlameA man can fall many times, but he isnt a failure until he begins to blame somebody else. (John Burroughs)Fire her, she set me up! John yelled quite loudly. He was incredibly angry and for good reason. However, he was really angry at the wrong person. What he was really saying was […]
Written by info on October 31st, 2007 with comments disabled.
Read more articles on ethics.