Skip to main content

CORRUPTION in Business and Government

When a CEO or President is found to be corrupt, you can be assured this person is not alone. A corrupt president can scarcely work alone. Too many people are aware of his/her activities.  Count on up to the next three levels down is also mostly corrupt. Thus the vice presidents, assistant vice presidents, and many down into the manager ranks are likely corrupt.  You might say corruption grows roots.

Why?  Because the corrupt hire the corrupt. Reasons? Comfort factor, operations factor, alliance factor, and cover factor, are just four.

Why not further down? Because the corrupt need secrecy, and thus the circle of corruption must remain small, as in manageable to control leaks.

How to detect who is corrupt? Look at the group of leaders gaining a total of 90% of the bonus money. This will comprise the inner circle if corruption is present.

Examples in business. Wirecard Scandal (2020), WorldCom Scandal (2002), Volkswagen Emissions Scandal (2015), Enron Scandal (2001), The Theranos Scandal (2015-2018), The FIFA Corruption Scandal (2015), The Lehman Brothers Collapse (2008)

Examples in government. The Jack Abramoff Lobbying Scandal (2000s), The HUD Scandal (1980s), Chicago City Council Corruption (1970s-2000s), Abscam Scandal (1978-1980), Teapot Dome Scandal (1920s)

Exceptions. There we see a singleton corruption enterprise, usually a bookkeeper or the like who is clever. Often, we see cases of a mayor (or governor) awarding contracts to private vendors without bids or other considerations. Unions also fall prey to corruption, with local union officials grafting off of generous union dues.

One takeaway. If you suspect someone way above your level is corrupt and want to report it, consider your immediate boss is in on the game. 

Labels:

Comments

Post a Comment

Please Comment.

Popular posts from this blog

Behavioral Science and Problem-Solving

I.                                       I.                 Introduction.                Concerning our general behavior, it’s high about time we all had some understanding of how we operate on ourselves, and it is just as important how we are operated on by others. This is the wheelhouse of behavioral sciences. It is a vast subject. It touches our lives constantly. It’s influence is pervasive and can be so subtle we never notice it. Behavioral sciences profoundly affect our ability and success at problem-solving, from the elementary level to highly complex wicked problems. This is discussed in Section IV. We begin with the basics of behavioral sciences, Section II, and then through the lens of multiple categories and examples, Section III. II.     ...
Post a Comment
Read more

Where is AI (Artificial Intelligence) Going?

  How to view Artificial Intelligence (AI).  Imagine you go to the store to buy a TV, but all they have are 1950s models, black and white, circular screens, picture rolls, and picture imperfect, no remote. You’d say no thanks. Back in the day, they sold wildly. The TV was a must-have for everyone with $250 to spend* (about $3000 today). Compared to where AI is today, this is more or less where TVs were 70 years ago. In only a few decades AI will be advanced beyond comprehension, just like TVs today are from the 50s viewpoint. Just like we could not imagine where the video concept was going back then, we cannot really imagine where AI is going. Buckle up. But it will be spectacular.    *Back then minimum wage was $0.75/hr. Thus, a TV cost more than eight weeks' wages. ------------------------- 
Post a Comment
Read more

Fake News

If you've been following the news the last couple of days, you will note the flurry of copy devoted to fake news.  Both sides are blaming whatever has befallen them the consequence of fake news.  Let's look at this phenomenon a bit.    When I was a student years ago, a friend climbed some mountain in Peru.   A article was written in the local newspaper about the event.   In only three column inches, the newspaper made about six errors.   An easy article to write you say?   Just interview and reproduce.   Yet so many errors?   The question is this: was this fake news or bad reporting?   The idea here is that fake news comes in various flavors. Bad reporting – errors made by the author or editor Opinion presented as news     Deliberate creation of falsehoods to favor a point of view       The reporting of selected truths to favor a particular point of view Now we have the big social media ...
Post a Comment
Read more