‘Workers Sense Job Market Weakening’
Mar 17th, 2003 • Posted in: Statline
It’s often said that truth is the first casualty of war.
The second, surely, is nuance.
As momentum builds toward war in Iraq, that first casualty can be explained. But in today’s world, the understanding of truth depends on our appreciation of complexity. Without that, we fall victim to the black-and-white fundamentalisms of both the warriors and the peacemakers. Here’s why.
Of all the instruments available to the crafters of foreign policy, war is the bluntest. But even with superior numbers, weapons, and skills, it’s hard to penetrate your enemy’s defenses if you don’t know what they are — and if he knows exactly how and when you’re coming. So successful warfare also depends on intelligence gathering and the element of surprise.
If you’re a soldier or a policymaker, intelligence and surprise require a shading of your truth telling. At best, you engage in stealth, secrecy, and something less than full disclosure to get the skinny or sneak up unawares. At worst, you descend into duplicity, suppression of evidence, and outright lying. At best — as in good crime fighting, litigation, and athletic competition, which also require intelligence and surprise — you hedge the process with regulations to protect the innocent and restrain untempered zeal. At worst, you abandon all restraints, impose some kind of martial law, and literally do whatever it takes to win.
All along this best-to-worst axis, truth telling can become a victim. After all, this is an age of democracy and transparency. News is instantaneous. The public expects its views to count. Little wonder, then, that truth telling is endangered. A slip of the tongue or a tilting of the cards could divulge hugely important secrets and compromise clandestine sources. Hence the temptation to allow truth telling to slip away.
One of the most important nuances along this scale is a recognition that truth telling does not always serve the ends of capital-T Truth. In Roman Polanski’s grueling but potent film The Pianist, Polish musician Wladyslaw Szpilman would not have survived the Nazi genocide in Warsaw had he not been stealthy and secretive, hiding the full truth of his identity from those wanting to kill him. Was that unethical? Many would say otherwise. He was morally courageous to have seen the distinction between truth and truth telling, and to have preserved a higher sense of truth by refusing to bow to the deadly intentions of his oppressors.
What’s troubling these days, as in those, is not so much the casualty of truth telling as the casualty of this understanding of nuance. On the side of the Bush administration, there’s a rhetorical fundamentalism that sometimes reduces nuances to stark dichotomies: You’re either for us or against us, for instance, or Diplomacy has failed and war is the only option. It’s not much better on the peacemaking side, where a sloganeering black-and-whiteness can make it seem that defense itself is categorically wrong, or that hugely complex motives can be reduced to catch words like oil, imperialism, or vengeance.
And therein lies, precisely, the difficulty for any democracy that contemplates war. Effective policy must grapple with nuance and subtlety. But effective communications — by either the administration or the peace movement — must find sharp, tangible expressions of clear positions. War tempts us all to set aside the former for the latter, reducing the interplay of massive principles to the clichés of a bumper sticker.
In the end, whichever side we’re on, we’re left facing one of the most subtle moral questions of all. Are we willing to discover the truths underlying the central polarities of the twenty-first century — preemption versus deterrence, freedom versus security, Europe versus the United States, Muslim versus Christian, globalization versus nationalism, tradition versus innovation? Or are we settling for a battle over truth telling, fought with the petty verbal grenades of mottos, slogans, and sound bites?
Truth telling may be a sad casualty of war. We need to ensure that our respect for nuance is not.
(c)2003 Institute for Global Ethics
“Update: Now serving in all House office buildings. Freedom fries.”
– A sign in the food court of the U.S. House of Representatives’ office building, following a directive from U.S. Rep. Bob Ney (R-Ohio), chairman of the House Administration Committee, to remove the word “French” from all House menus. (“An Order of Fries, Please, but Do Hold the French,” New York Times, Mar. 11.)
PEMBROKE, Bermuda
Shareholders of Tyco International last week rejected two proposals aimed at reforming the scandal-tainted firm, voting to keep the company’s headquarters in the off-shore tax shelter of Bermuda and to retain PricewaterhouseCoopers as the firm’s auditor.
CalPERS, the largest U.S. pension fund and a major Tyco investor, led the push to repatriate Tyco’s headquarters from Bermuda, where it moved in 1997, to Delaware, where oversight would be easier, reported the Associated Press.
That proposal was rejected by about three-quarters of the firm’s shareholders at the annual meeting.
A similar number also voted to retain the services of PricewaterhouseCoopers, the U.K.-based auditing firm accused of green-lighting questionable Tyco transactions now under criminal investigation.
While both measures failed, their take of nearly one-quarter of all shareholder votes marked a strong showing, surprising most observers, according to press reports.
“What the Tyco votes show is that shareholders are paying much closer attention to issues being addressed at annual meetings,” Atlanta-based governance consultant Joe Goodwin contended to the Washington Post. “They are taking hard looks at substantive issues.”
A third reform measure to subject high-end severance packages for Tyco executives to shareholder approval won a 58 percent majority vote, but is nonbinding, reported the New York Times.
After the vote, Tyco’s top executives said the board of directors would examine closely whether to move the firm back to the States, and to subject severance packages to shareholder approval.
A report from the Reuters news agency notes that all directors who served under former chairman Dennis Kozlowski, who has been indicted for allegedly looting the firm of $600 million, have now been replaced.
WASHINGTON
The U.S. Supreme Court ruled last week that a Virginia railroad must pay nearly $6 million to former workers for their reasonable fears of possibly contracting a deadly cancer due to workplace asbestos exposure years in the past.
Last week’s ruling upholds a jury award to six former workers of Norfolk & Western Railway Co., now owned by Norfolk Southern Corp., who contracted asbestosis while working for the company.
People who contract asbestosis are statistically vulnerable to developing lung cancer, and often fall victim to mesothelioma, a painful and often deadly form of lung cancer, reported the New York Times.
Plaintiffs in the case argued that they should be compensated with “pain and suffering” damages because of their fears of contracting the fatal disease. The railway argued that only manifested diseases such as the asbestosis — not fears of diseases that may or may not develop — should be subject to compensation.
After a jury sided with plaintiffs and the West Virginia Supreme Court refused to consider the case, it moved to the nation’s highest court, which ruled 5-to-4 in favor of the plaintiffs last week.
“Heightened vulnerability to cancer, as one court observed, ‘must necessarily have a most depressing effect upon the injured person,’” Justice Ruth Bader Ginsburg wrote for the majority, quoting from an earlier decision.
As long as plaintiffs in this case can prove that their “alleged fear is genuine and serious,” the railway should be forced to pay compensation, Justice Ginsburg concluded.
The ruling was a blow to the railway and possibly many other sectors of U.S. industry, which may find themselves named in claims argued under the precedent set by this relatively narrow ruling, noted the Times.
In dissent, Justice Anthony Kennedy last week said the court’s decision could actually hurt injured workers instead of helping them. If companies are compelled to pay workers who are simply afraid of getting sick, they could be left without the funds to pay those workers who actually do get sick.
“Today’s decision is not employee-protecting,” Justice Kennedy wrote. “It is employee-threatening.”
CAPETOWN
South African asbestos miners won a landmark settlement last week after collapsed conglomerate Gencor agreed to pay more than $60 million in compensation for asbestos-related claims.
The settlement, part of South Africa’s efforts to recover from decades of asbestos mining and the physical and corporate ills that followed, marks the largest settlement in the nation’s history, reported the BBC.
Gencor, whose Gefco and Msauli units engaged in asbestos mining, agreed to pay black mineworkers $60.3 million — the first time a South African firm has agreed to pay damages for domestic asbestos work.
The company, once one of the nation’s largest conglomerates, is now in the end stages of being dismantled and liquidated. Last week’s settlement clears the way for that process to conclude.
The National Union of Mineworkers welcomed last week’s ruling, calling it “a measure of justice, albeit small,” according to the BBC.
Also last week, U.K. firm Cape PLC agreed to pay $12 million to 7,500 South African workers afflicted with asbestos-related illnesses, reported the Associated Press.
More than 200 claimants in the case against Cape have died since December 2001 alone, adding a sense of urgency to efforts to settle the lawsuits, according to Action for Southern Africa, a group filing cases on behalf of plaintiffs.
Special to Newsline from Canadian correspondent Errol P. Mendes
CALGARY
Talisman Energy Inc., one of Canada’s most controversial companies, announced that it had finalized a deal to sell its stake in a major Sudan oil production joint venture to India’s Oil and Natural Gas company for $771 million.
The firm faced many allegations by human rights and church groups of being complicit in the genocidal civil war in Sudan.
Some sector analysts have stated that the sale ended a profitable venture for the company, which had invested approximately $1 billion in the Sudanese operations since it began operations there in 1998, having extracted very large revenues from the relatively cheap oil production over four years.
But others have pointed to the toll that the operations have had on the reputation of the company, the “Sudan discount” on the stock price due to the Sudanese operations (which amounted only to 10 percent of the company’s total worldwide operations), and the burden on management to defend the company both in the court of public opinion and in the law courts.
ATLANTA
As college basketball’s regular season winds down and tournament play heats up, teams across the country have been benching players, suspending coaches, and withdrawing their teams for ethics violations.
The University of Georgia last week suspended men’s basketball head coach Jim Harrick, declared two players ineligible, and withdrew from tournaments of the Southeastern Conference and the National Collegiate Athletic Association (NCAA) while the university investigates allegations of cheating.
The university suspects Harrick’s son, assistant coach Jim Harrick, Jr., of giving “A” grades to at least three players who never showed up for his class. After a former player blew the whistle, two other players were benched and Harrick Jr. suspended without pay. Last week, the university said it would not renew his contract in June, reported the Washington Post.
Head coach Harrick was suspended with pay pending an investigation. While the university says it believes he is innocent, Harrick has been the subject of numerous allegations and investigations for ethics violations at schools where he coached before coming to Georgia.
The New York Times notes that Georgia is the third school recently to pull itself from postseason play, following scandals at Michigan and Fresno State in California.
Also last week, New York’s St. Bonaventure was benched from conference play after the NCAA discovered Bonaventure president Robert Wickenheiser had helped an ineligible player stay on the team.
Wickenheiser resigned under pressure last week after the NCAA forced the school to forfeit six of its Atlantic 10 conference victories and barred the school from postseason play.
Wickenheiser is accused of helping a junior-college student transfer into Bonaventure to play on the basketball team with a welding degree instead of the required associate’s degree, hiding his ineligibility from both the board of trustees and the NCAA.
Wickenheiser’s son, assistant coach Kort Wickenheiser, has been placed on administrative leave and is under investigation for possibly arranging a grade change to further help the ineligible player, reported the New York Times.
Pennsylvania’s Villanova University also hit the headlines last week after the school suspended 12 players on its men’s team for using a university access code to make unauthorized long-distance phone calls.
Under NCAA rules, the Villanova suspensions — ranging from three to eight games depending on the value of the calls placed by each player — will be staggered so the school can still field a full team, reported the Times.
SACRAMENTO, California
California last week became the fifth U.S. state to apologize to victims of a government campaign to sterilize people deemed unfit for reproduction, a movement that sterilized 60,000 people in 32 states before winding down after World War II.
The campaign, known as “eugenics,” sterilized alcoholics, petty criminals, the disabled, mentally ill, poor, and others, according to expert Paul Lombardo of the University of Virginia School of Medicine.
Hours after Lombardo gave a presentation on the subject to state lawmakers, Gov. Gray Davis issued an apology to victims of the state’s eugenics campaign, which began in 1909 and was responsible for roughly one-third of the eugenics-inspired sterilizations nationwide.
“To the victims and their families of this past injustice,” Davis said in a statement, “the people of California are deeply sorry for the suffering you endured over the years. Our hearts are heavy for the pain caused by eugenics.”
Four other states — North Carolina, Oregon, South Carolina, and Virginia — have issued similar apologies for engaging in eugenics, reported the Los Angeles Times.
“It was a sad and regrettable chapter … one that must never be repeated,” Davis added, stopping short of offering compensation for victims. The practice was upheld as lawful by the Supreme Court in 1927.
WASHINGTON
Under fire for allegations of alleged misconduct, the inspector general of the U.S. Department of Health and Human Services, Janet Rehnquist, last week said she would be resigning to spend more time with her family.
Rehnquist, the daughter of U.S. Supreme Court Chief Justice William Rehnquist, was appointed by President Bush in August 2001 to weed out fraud, waste, and abuse in health care and social programs administered by the federal government.
One such program, Medicaid, includes a provision requiring the federal government to help states pay for the pensions of employees administering the program.
Last week, a draft audit showed that the state of Florida had overbilled the federal government by $517 million for such pension claims, according to the Associated Press.
That audit was delayed three times at the request of Florida Governor Jeb Bush, the President’s brother, while he sought reelection, sparking questions about Rehnquist’s motives in granting the delays.
While Florida’s overcharge was likely due to strong investment revenues, not fraud, critics say Florida’s failure to efficiently monitor the funds would have been a political embarrassment for the governor during election season, reported the Washington Post.
Gov. Bush’s administration denies any political motivation to the delay requests, saying staff changes made the delays necessary and insisting that the draft audit would not have been ready by election day in any case.
Documents released to Congress last year refute that claim, indicating that the draft audit would have been completed by September 30, a month before the elections, noted the Post.
Congress’s investigating arm, the General Accounting Office, as well as a committee of fellow inspectors general are looking into Rehnquist’s decisions to delay the Florida audit. Rehnquist also is being investigated for possibly using her position to help friends and keeping an unauthorized handgun in her office.
Florida has been told to repay the $517 million or accept lower federal contributions until the difference is made up.
LONDON
In a bid to make the nation’s streets safer and more user-friendly, the U.K. government last week announced a crackdown on drug dens, public drunkenness, vandals, truants, graffiti artists, and noisy neighbors.
The move, unveiled in a white paper titled “Respect and Responsibility,” is part of a plan to reclaim streets that seem menacing or merely unpleasant — part of the government’s wider push for greater civility, reported the Guardian.
The measures, to be considered by Parliament next month, deputize private security guards, welfare officers, and others to work alongside regular law enforcement in slapping violators with on-the-spot fines.
“For too long some of our public services have shrugged their shoulders at this low-level thuggery and said it’s somebody else’s responsibility. It’s not,” Home Secretary David Blunkett said last week, announcing the planned measures. “We all need to play a part in tackling this scourge.”
Two tiers of fines — $64 for less-serious offenses, $128 for higher violations — have been set, following testing of the plan in six pilot areas, including London, over the past six months, noted the Guardian.
While the plan’s strategies for quickly shutting down drug dens and noisy parties have generally been welcomed, its provisions for tackling beggars have come under criticism from charities working with the homeless.
The new anti-begging measures would step up enforcement of existing laws by tagging beggars with criminal records each time, with three arrests warranting forced community service and drug treatment.
“Dragging [beggars] through the criminal justice system will only hold them back from reintegrating into society,” Shaks Ghosh, head of the charity Crisis, told the BBC, saying that assistance, not punishment, would be more productive.
WASHINGTON
U.S. Rep. Jim Moran last week came under fire from both sides of the congressional aisle after making remarks criticizing the Jewish community’s role in supporting President Bush’s position on attacking Iraq.
“If it were not for the strong support of the Jewish community for this war with Iraq we would not be doing this,” Moran, a Democrat from northern Virginia, said at a March 3 meeting at a local church. “The leaders of the Jewish community are influential enough that they could change the direction of where this is going and I think they should.”
After Moran’s comments hit the newsstands, lawmakers, Jewish groups, and others hit the streets with protests, many calling on Moran to resign his seat after seven terms in Congress, reported the Associated Press.
Sen. Joseph Lieberman (D-Conn.) called Moran’s comments “deeply offensive and morally wrong,” saying they are “inconsistent with the ideals of tolerance and diversity upon which our nation was founded.”
Moran apologized last week for his remarks, but insisted that they had been taken out of context and were geared to address a specific antiwar question from a Jewish woman at the church meeting.
“What I was trying to say is that if more organizations in this country, including religious groups, were more outspoken against a war, then I do not think we would be pursuing war as an option,” Moran told the New York Times.
“I was obviously deficient in not laying out the broader and more understandable context as I was making the statement,” he added to the Los Angeles Times. “I’ve got to just take my licks here. I deserve it. Even though it is not what I intended to say, it is what I did say.”
Last Friday, under pressure from House minority leader Rep. Nancy Pelosi (Calif.), Moran agreed to surrender his leadership post as regional whip, reported the AP.
NEW YORK
Auction houses Christie’s and Sotheby’s last week agreed to fund a $40 million settlement designed to end the firms’ vulnerability to suits filed by overseas customers the U.S. government says were cheated by the firms’ price-fixing collusion.
The auction houses, which control 90 percent of the world’s live auctions of art, furniture, and jewelry, were accused of conspiring to fix commission fees for sellers of fine art from 1993 to 1999.
Under threat of prosecution, the companies paid $45 million in U.S. criminal fines, $70 million in settlements to shareholders, and $20.1 million to European authorities, reported the Reuters news agency.
In 2001, the firms settled with U.S. customers for $537 million. Last week’s proposed deal would settle most of the firms’ liabilities with overseas customers in England and Canada.
The settlement, which would require each firm to ante up $20 million, must still be approved by the court.
Sotheby’s former chairman, A. Alfred Taubman, was convicted in 1991 for his role in the conspiracy to inflate commissions and deprive customers of fair market competition. Taubman was sentenced to one year in prison and a $7.5 million fine.
Taubman’s alleged co-conspirator, former Christie’s chairman Anthony Tennant, has refused to come to the United States to face charges, and cannot be extradited from England under antitrust law, reported Reuters.
From time to time, Ethics Newsline™ comes across statements on ethics by leading figures in business, government, education, the arts, or other arenas of leadership. Not surprisingly, these statements often rely on examples drawn from the speaker’s own organization.
In condensing and reprinting such statements, we seek to balance two interests: that of our readers, who need to hear the moral reasoning of some of today’s top leaders, and that of our periodical, which needs to avoid becoming a conduit for advertising a particular company or set of commercial interests.
In the following piece, we see the ethics of editing as requiring us to include only as much promotional material as is needed to substantiate the case made by the author, Calvin Darden, UPS senior vice president of U.S. operations, at a speech to the Southern Institute for Business and Professional Ethics in Atlanta, Georgia.
‘Delivering On Diversity Leadership: A Walk in the Other Guy’s Shoes’
by Calvin Darden, UPS vice president of U.S. operations
February 25, 2003
“Good morning…. You’ll find I’m an eager and open-minded student of diversity management. And a big reason is the nature of my job: I’m an operations guy who happens to oversee a national organization of 320,000 employees. They represent a wide range of ages, from college students to retirees, and they run the gamut of ethnic, educational, socioeconomic, and religious backgrounds.
“…If the truth be told, we’re not all that comfortable with the word ‘diversity.’ That’s because we’re more about identifying what people have in common than thinking of how they’re different. And we know if we find that common ground, if we treat all employees with fairness, dignity, and respect, we nurture that high level of teamwork required to meet our demanding deadline challenges.
“So diversity, for want of a better word, may not show up as a line item on our balance sheet. But we realize doing it right can add value in a big way. That’s why I believe that in well-managed, enduring organizations, diversity leadership leads to competitive market leadership.
“Within an organization, it can develop business leaders who inspire loyalty and the best efforts of their employees. And externally, diversity leadership can attract investors, as the momentum toward investing in socially responsible companies continues to build.
“These are two priorities I want to focus on today. They’re significant now. But they’re going to be even more compelling in the years ahead as we become an ever more diverse society.
“According to the U.S. Department of Labor, in two years, 27 percent of the national workforce will be members of minority groups; 48 percent women; and only 38 percent Caucasian…. Just last month, the census bureau reported that Hispanics now make up the largest minority group in America. And by the year 2010, nearly one of every six Americans between the ages of 18 and 21will be Hispanic. And by 2040, half of all Americans will be what we now call ‘minorities.’…
“What are we doing to be ready for that at UPS?
“One of the most important ways is by reaching the people in our organization who have the most influence in how employees are treated: our high-potential managers.
“In fact, we’ve been at this for 35 years through the UPS Community Internship Program (CIP), long before anyone even began using the word diversity. CIP is a sort of ‘Outward Bound’ for diversity awareness. The mind is opened through personal experiences in an environment outside what is familiar. As I said, it’s a selective program: Fifty managers of a total of 2,400 are asked to participate each year. These people are considered to be top performers in mid-level management positions with high advancement potential.
“While it’s considered a vote of confidence to be selected as a CIP intern, the road trip that follows is anything but a boondoggle. The interns leave their jobs behind for one month and travel to a distant community. Last year’s interns were assigned to one of these three locations
“They are communities afflicted with poverty, homelessness, spousal abuse, drugs, crime, and gang warfare. We chose an urban location and two rural communities, so that we can assign the managers to an unfamiliar environment….
“Once there, the interns live and eat on-site in accommodations you could only describe as Spartan, just the basics, close to the areas where they work. The interns immerse themselves in community projects — 24 by 7 — for the entire month.
“Those projects can involve tutoring pre-school Head Start children, orphans, or kids who have AIDS. They may teach résumé skills to prisoners or at-risk teens; visit nursing homes and mental health facilities; work in soup kitchens; attach an outdoor shower onto a home; or sometimes just tackle the crisis of the moment.
“As you can imagine, the interns are often initially shocked by the challenging living conditions. But after a time, many report seeing the hopefulness of people trying to cope. And the interns see how they can influence that hope….
“To our knowledge, this is a one-of-a-kind program. Of course, when UPS launched it back in l968, we weren’t anticipating the interdependent world of the twenty-first century. Yet, the company did realize that the civil rights era would usher in a new relationship between the races. And in the late ’60s, UPS leaders were predominantly white men.
“Today, more than 1,200 UPS managers, including yours truly, have been through the program at a cost of about $10,000 per intern — or some $13 million since the program began. We think that investment has yielded a substantial return and here’s why.
“The interns return to work — if not changed people — people with changed perspectives.
“When they return to work, the interns tend to look at employee matters in a less rigid way. They tend to listen with more empathy…. Listening becomes the first step to understanding and improved employee relations.
“In addition, the CIP interns often pass along their diversity lessons learned to other managers. They encourage a flexible mindset throughout supervisory levels. And CIP interns have a history of getting involved in their communities by organizing volunteer efforts within their own work groups.
“This is key since UPS is a decentralized company. We depend on our region and district leaders to be the eyes, ears, and citizen leaders in their communities. And although there’s no way to assign a business value to improved community relationships, we all know that minority buying power is growing.
“According to the University of Georgia’s Selig Center for Economic Growth, minority group buying power has doubled since l990 to nearly $1.3 trillion in disposable income. And it’s expected to reach $2 trillion by 2015….
“You know, it’s interesting that one of the things workforce researchers say is so important to achieving loyalty in today’s stressed workplace is the simple act of listening and opening the lines of communication. It’s remarkable how far an experience like CIP — one that places you in the other guy’s shoes — can help you see that your real job as a leader is helping other employees achieve and succeed….
“Diversity leadership … is an important factor in a growing trend within the investment community to support socially responsible companies. As many of you may know, publicly held companies are being asked to disclose their community and diversity initiatives to determine whether they are a socially responsible, sustainable enterprise.
“How important is that to investors? A recent Harris Interactive/Calvert Group poll shows that seven of 10 investors say they want to invest in mutual funds that select companies that are considered socially responsible….
“Yet another way to look at the linkage between workforce initiatives and shareholder value is to evaluate a company’s human capital strategy, of which diversity leadership is a key component. In that regard, the Watson Wyatt 2002 Capital Index Study determined that companies with the best human capital strategies had three times greater return to shareholders over five years than companies without such strategies. So diversity leadership is smart business on many levels.
“I’m sure some of you are still wondering if CIP could really be the breakthrough program that really helps us achieve those business objectives. We have only anecdotal evidence to measure the impact, but we believe in it. We’ve never curtailed funding for it when budgets have gotten tight. One thing is certain; this is a program that reaches beyond an information exchange and touches people on an emotional level….
“Do we all not need to get out of our comfort zones from time to time to see things from the inside looking out, to really appreciate what diversity is about? CIP differentiates by getting the student to teach him or herself through living the experience. It touches an emotional chord. It unlocks an attic in the mind of well- intentioned people that may only be accessible by taking the time to walk in someone else’s shoes. We create that time and opportunity for our people, and they take advantage of it….”
“I know war as few other men now living know it, and nothing to me is more revolting. I have long advocated its complete abolition, as its very destructiveness on both friend and foe has rendered it useless as a method of settling international disputes.”
– Gen. Douglas MacArthur (U.S. military leader, 1880-1964)