Search Results for “bias”

Synergy – or conflict of interest?

“What used to be a conflict is now a synergy,” said then telecom securities analyst Jack Grubman in an economically frothier time. Conflict of interest aficionados will remember that that story didn’t end well – and not just for Grubman, but the larger industry of which he was a part. […]

Why avoiding conflicts of interest matters in the investment business

By Knut A. Rostad* Introduction. This commentary would never be written in most professional settings today. The reason: avoiding conflicts obviously matters. It’s self-evident. Yet, in many quarters in brokerage and investment advice, it’s not self-evident at all. Instead, in these quarters conflicts are deemed quite acceptable or even beneficial. […]

Join the Citizens’ Climate Lobby

An Op-Ed piece in the NY Times last month  began: One day, ideally in the not-too-distant future, when Congress finally passes major legislation to curb carbon emissions — to reduce the environmental and economic harm caused by climate change — Americans will owe a big thank you to the perseverance […]

Behavioral Ethics and Compliance Index – 2017 Edition

It is that time of year – time to update the Behavioral Ethics and Compliance Index.  As with past editions, I have linked each  post to only one index topic, but most of them are relevant to several topics. Also, in the coming month, Ethical Systems will be publishing an […]

A core value for our behavioral age

Groucho Marx famously said: “Those are my principles, and if you don’t like them… well, I have others.” When it comes to companies committing to follow key principles to guide their behavior – what are often called “core values” – there is clearly no shortage of options. Indeed, this posting on […]

Moral hazard: the final compliance frontier?

Moral hazard exists when there is a gap between the interests of those who can create risks and those who bear the consequences of risk taking. Moral hazard is not the same as conflict of interest, but is conflict like. As described in various prior posts,  C&E programs need to […]

Welcome to Conflict of Interest World!

How can conflicts of interest harm individuals, organizations and society? My latest column in Compliance & Ethics Professional (page 2 of attached PDF) counts the ways. I hope you find it interesting.

Other people’s risks

As described in a recent issue of The Economist:  “Moral hazard is a problem that crops up often in economics. People behave differently if they do not face the full costs or risks of their actions: deposit insurance makes customers less careful about picking their bank, for example. Moral hazard […]

Ethics advance…or decoy?

While COI aficionados (not to mention concerned citizens) await the President Elect’s plan to mitigate his conflicts of interest, there is interesting ethics  news regarding his nominee for Secretary of State, Rex Tillerson, CEO of ExxonMobil.  As described in today’s NY Times, in addition to selling ExxonMobil stock he owns outright […]

Reverse behavioral ethics

I am a member of LinkedIn and for the past few months have periodically received a message saying: “2 people in your network are using LinkedIn Sales Navigator to be more effective.” Given that I have – as I assume is the case with many members – more than 500 […]