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Jan31
Ethics Questions in Excess Iraq Profits
Unstable situations like those which exist in Iraq and Africa in wartime are rife with opportunities for bad ethics leading to excessive profits. In economics, scarcity always leads to exorbitant pricing, via the mechanism of skewed supply and demand. Companies like Halliburton, Kellog, Brown & Root, and Blackwater have proven their lack of ethics by profiting unfairly from these situations.

halliburton.jpgThe larger companies are not the only ones taking advantage of suffering. Smaller companies all over the world have profited from the plight of others over the last few years, reaping high profits via price-gouging. This is as true of local retailers, freighters, and service providers as it is of multinational profiteers like Halliburton.

The motivation in all of these cases, large and small, is simple greed. Some companies and some individuals have no scruples that would lead them to operate fairly when it is possible to operate unfairly. These people, and these companies, are the epitome of Bad Business. They should be harshly punished by whatever means are available. Too often, we react instead by avaerting our gazes from the travesties of simple justice.
Jan31
More Mortgage Fraud, This Time By Ex-cop
More and more cases of mortgage fraud are coming to light now that the mortgage and foreclosure crises has put the industry under the spotlight. This time, it is a former Florida Sherriff’s Deputy and his wife who have been... Continue Reading
Jan30
Intellectual Property Fraud Costs Skyrocket
A report released by Kroll on intellectual property fraud includes the news that this type of fraud, which includes counterfeit goods, has increased 1,000 percent in the last six years in the European Union. Those numbers may be small when... Continue Reading
FBI Investigates Mortgage Fraud
Although they won’t name the firms involved,  the FBI has begun investigations into fourteen sub-prime mortgage lenders. The number of fraud complaints fielded by the FBI have grown from 3,000 in 2003 to 48,000 on 2007. Neil Power, chief of... Continue Reading
Jan29
Should Senators See Free Movies?
I will admit that I had never heard of this practice before reading this article. The members of Congress have been getting to see previews of major films for free, ever since Jack Valenti caused a posh 70-seat theatre to... Continue Reading
Baltimore Sues Wells Fargo Over Mortgage Practices
A new type of lawsuit has emerged as the mortgage and foreclosure crisis continues to gain steam. The City of Baltimore has sued Wells Fargo, a major player in the mortgage market, alleging that the lender engaged in predatory and... Continue Reading
Jan28
Societe Generale Fraudster Hacked Bank Computers
In a follow-up to a previous column, the Societe Generale employee that made fraudulent transactions totaling at least $7 billion did so at least partially by hacking into the banks computer system. The bank says that the trader used "several... Continue Reading
Iowa AG Works to Stop Mortgage Fraud
Iowa Attorney General Tom Miller has proposed bills that he says would protect Iowa consumers from many of the problems associated with the housing, mortgage, and foreclosure crisis. Miller has called for legislation on four separate issues which he says... Continue Reading
Jan27
Auto Fraud Scheme Foiled By Sting
New York detectives in the Borough of Queens have been operating non-descript garage for about eighteen months, receiving cars which the owners thought would be dismantled for parts so that they could file claims for the vehicles as having been... Continue Reading
Jan26
Fraud Does Not Stop At The Grave
A New Jersey couple who purchased cemetery properties owned by a business in Indianapolis have been charged with fraud. Robert E. Nelms and Debora Johnson have been charged with plundering the $24 million trust fund of the purchased company. The... Continue Reading
Jan25
Waxman Cites Fraud In Veteran’s Charities
Representative Henry Waxman of California has accused a number of charities involved in raising money for veteran’s service of improper behavior verging on fraud. Waxman bases his charges on information provided by the American Institute of Philanthropy, which compiles and... Continue Reading
Fannie Mae, Freddie Mac Tighten Fraud Reporting
The Office of Federal Housing Enterprise Oversight (OFHEO) has tightened the rules which Fannie Mae and Freddie Mac must follow to report and minimize mortgage fraud. This comes at the end of a year in which the two agencies lost... Continue Reading
Jan24
Ethics Now A Part of Foreclosure Counseling
In the wake of the largest housing, mortgage, and foreclosure meltdown in history, some action is being taken to insure that Foreclosure counselors have an official set of guidelines to follow when dealing with their clients. It may be a... Continue Reading
Multi-Billion Dollar Bank Fraud In Paris
A lone futures trader who had lied to investors and dignificantly exceeded his authority has involved the French Societe General bank in a fraud exceeding $7 billion. The bank, already having financial difficulties because of the subprime mortgage crisis, has... Continue Reading
Jan23
Cultural Differences - Business Ethics in China
I came across an interesting article the other day which does an excellent job of contrasting the points of view from which business ethics are seen in the U.S. and in China. This article and its authors, Fred Burton and... Continue Reading
Another Mortgage Broker Caught in Fraud
A Minnesota mortgage broker, already in trouble for duping lenders out of over a million dollars, was charged with an additional eight counts of fraud. Charged was Donald L. Walthall of Anoka, MN. The fraud counts involve mortgage transactions for... Continue Reading
Jan22
New Book Covers Big Pharma Marketing Ethics.
Leonard J. Weber has written a book on the marketing ethics of large pharmaceutical companies. The book, published by the Indiana University Press, attempts to resolve two major issues: the place of commercial interests in the marketing of prescription drugs... Continue Reading
Customers Reward Ethical Behavior
A report issued by the Richard Ivey School of Business indicates that consumers are often willing to pay more for a product from an ethically sound company, including items such as fair-trade coffee. Oddly enough, companies which exhibit good ethics... Continue Reading
Jan21
Seattle Port Commissioner Digs Into Fraud
Seattle Port Commissioner Lloyd Hara has indicated that he fully supports the resolution to bring oversight back into the purview of the commissioners. Hara has further said that he was “very concerned” about the findings of contractor fraud uncovered by... Continue Reading
Securities Fraud Liability Stays Narrow
The U.S. Supreme court has returned a ruling, in a case known as Stoneridge Investment Partners v. Scientific Atlanta and Mororola, which means that the parties liable for corporate securities fraud are generally limited to the offending corporation itself and... Continue Reading
Jan20
Return of the Health Insurance Scams
Some “old favorite” insurance scams have returned to bedevil consumers and health insurance companies alike. These scams appear to be similar to those which bilked millions of dollars from consumers in the opening years of this century. The primary targets... Continue Reading
Jan19
Multi Dimensional Scammer
Matt Marlon is well known within the Web’s Search Engine Optimization (SEO) community. He ran an SEO firm named Traffic Power, which quickly build a reputation for using questionable “black hat” techniques to build traffic on Web sites. Some of... Continue Reading
Jan18
Hong Kong Official Indicted for Fraud
Lily Chang, the head of the Hong Kong General Chamber of Trade, has appeared in court in Hong Kong to answer charges that she was involved in a share options scam. She is facing one charge of fraud and two... Continue Reading
Aberdeen Releases Report of Online Fraud Study
According to Fox News, Aberdeen (a Harte-Hanks company) recently released a report on its study to increasing the confidence of users shopping online and cutting down on on-line fraud. The report details the strategies used by those companies that it... Continue Reading
Jan17
The Pandora’s Box of Cloning
The announcement by Stemagen that they have cloned a human embryo is one of those simple declarations that will create a whirlwind of controversy for which there are no immediate correct answers. The ethics which surround this issue are much... Continue Reading
Guilty Plea in International Fraud Case
A Columbian citizen has pled guilty in a multi-count fraud indictment involving hundreds of United States citizens, including employees of the Department of Defense. Mario Simbaqueba Bonilla, operating with a co-conspirator, used computer intrusions, aggravated identity thefts, and credit card... Continue Reading
Jan16
Is the Rip Off Report a Rip Off?
This column, under a previous author, has reported on the Rip Off Report before. Since my tenure began, I have had several comments about that Website. Today I ran across one blog entry and then another that have more than... Continue Reading
Jan15
Berkeley Premium Nutraceuticals Draws Fraud Charges
The Associates press reports that Berkeley Premium Nutraceuticals, a Cincinnati company, is being pursued by the U.S. Attorney’s office on fraud charges. These charges revolve mainly around their “sexual enhancement products.” Chief among these is Enzyte, a “male enhancement” pill.The... Continue Reading
Citigroup Takes Huge Mortgage Industry Loss
Citigroup reported today that it lost nearly $10 billion dollars in the final quarter of 2007. The vast majority of these losses came from write-downs taken due to losses on the heavy investments that it had made in the mortgage... Continue Reading
Jan14
University Hosts National Ethos Week
The university of Eastern Michigan has announced its plans to host the Second Annual Ethos Week March 10-14, 2008. Ethos week will play host to a number of business leaders and educators, each with a special view on the country’s... Continue Reading
Eleven Indicted in Spam Fraud Scheme
A total of eleven persons have been indicted by a Federal Grand Jury in Washington on fraud charges involving an international spamming operation, or illegal commercial emailing. The persons indicted are residents of the United States, Russia, Canada, and Hong... Continue Reading
Jan13
Fraud Up Trying To Get Weight Down
The Better Business Bureau reports that there has been a forty percent increase in complaints against businesses in the multi-billion-dollar weight loss industry since 2002. With more Americans trying to lose weight and more businesses attracted to the industry, this... Continue Reading
Jan12
Medicare Cracks Down On Fraud
Medicare is cracking down on companies which supply government patients with certain kinds of medical equipment, such as wheelchairs, walkers and oxygen equipment and supplies. It is estimated that fraud involving these supplies costs the government more than one billion... Continue Reading
Jan11
Port of Seattle Under Fraud Investigation
The Port of Seattle has been placed under investigation by the U.S. Justice Department. The charges include wasting public money and construction contract fraud. The State had previously been investigating the case. There is a possibility that the violations are... Continue Reading
The Problems With a $2500 Indian Car
Although not much has been heard of it yet, the introduction of a new $2,500 automobile by Indian manufacturer Tata Sons may bring very important Corporate Social Responsibility (CSR) issues along with the low price. The car does not meet... Continue Reading
Jan10
Program Stops Consumer Mortgage Fraud
First American CoreLogic operates a program named Multi-Closing Alert which is aimed at preventing certain type of mortgage fraud. The company has announced that its program prevented more than forty million dollars in mortgage-related fraud during its first year of... Continue Reading
Bank Boss Has ID Stolen
The chairman of Barclay’s Bank, Marcus Agius, was a recent victim of identity fraud. A con man talked the staff of a call center into issuing a credit card in his name, then used the card to withdraw ten thousand... Continue Reading
The Mortgage Crisis Includes Cases of Fraud
It appears that the ease of getting a mortgage in recent years has also made it easy for scam artists to defraud mortgage lenders. Prosecutors in Atlanta have uncovered a ring that defrauded Bear-Stearns out of millions of dollars. In... Continue Reading
Jan 9
Junior Achievement Poll Is Bad News For Ethics
The latest Junior Achievement / Deloitte poll finds that “Nearly 40 percent of ‘ethically prepared’ teens believe lying, cheating, or violence is necessary to succeed.” The poll asked questions of 725 teens across the country, with ages ranging from 13... Continue Reading
Jan 8
Getting Even Has Business Consequences
An Arizona company representative was tasked with writing a refund check to a woman whose complaint had been through the Better Business Bureau mill and had finally been resolved. Rather than playing it clean, the employee wrote the word “bitch”... Continue Reading
Jan 7
Expect Greenwash from Energy Companies
Global warming concerns are growing on the news that Arctic ice is no longer supposed to last until 2100, as originally predicted, or even until 2040, as was predicted more recently. The latest information indicates that the Arctic ice may... Continue Reading
Jan 5
How To Complain – Take Notes, Get Names
Learning to complain effectively is an essential tool for today’s consumer. There are very often many layer of corporate employee to get through before a complaint can be resolved. Having a record of those interim conversations is an essential part... Continue Reading
Jan 4
Probe Into New Jersey “Culture of Corruption”
The Prudential Business Ethics Center at Rutgers University has released a report titled Rutgers Ethics Initiative, looking into the causes of corruption involving business and government in New Jersey over the years. The principal investigator and author of the report... Continue Reading
Jan 3
BB&T To Fund Business Ethics Training at Greensboro College
It is pleasant to be able to occasionally report good news on the business ethics front. BB&T (Branch Banking and Trust) of Charlotte, NC has announced that it will be giving Greensboro College in Greensboro, NS $250,000 to promote undergraduate... Continue Reading
Business Ethics, Global Warming, and Academia
Academics are beginning to perceive the issue of global warming in a different way: as an interdisciplinary problem. At a number of educational institutions in the United States, academics from the fields of Environmentalism, Global Cultures, Business Ethics, and Corporate... Continue Reading
Jan 2
Are Monster Cables Worth the Money?
According to Wayde at Gizmo Republic, the expensive Monster Cables that the clerks at the electronics store try to sell you are not at all worth the money. It is his contention that the Monster HDMI cables, at least, are... Continue Reading
Corporate Social Responsibility in India
Indian corporations are becoming more and more active in the area of Corporate Social Responsibility. A recent Best Practices meeting in Chandigargh, India provided an opportunity for many corporations to discuss CSR issues with other similar companies. The meeting was... Continue Reading

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