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What is at the 'root of evil' in sports and business? According to Andy Kern, doctoral student in Finance at the University of Missouri-Columbia, it is financial incentives. In the locker room athletes take tremendous risks in pursuit of big money. Are executives taking risks with stock options for the same reason? Mr Kern seems to think there is no other reason for the Enron debacle.

The Winter 2008 Stanford Social Innovation Review is now on our Jackson display racks. Included in this latest issue is 'The Responsibility Paradox', by Gerald F. Davis, Marina vN. Whitman and Mayer N. Zald, which begins "With operations scattered around the globe, the modern corporation is a different animal from its predecessors. Yet the notion of corporate social responsibility (CSR) has not changed much over the years. As a result, just as stakeholders are holding corporations more responsible for their actions, corporations understand their responsibilities to shareholders even less. To resolve this paradox, firms must update their CSR practices." Also in the issue: 'In Microfinance, Clients Must Come First' by Srikant Datar, Marc J. Epstein and Kristi Yuthas, 'Cultivate Your Ecosystem' by Paul N. Bloom and J. Gregory Dees, 'Getting Human Rights Right', by Jenik Radon, Margo Tatgenhorst Drakos, and Tarek Farouk Maassarani, as well as an interview with Thomas Vander Ark of the X Prize Foundation, explaining how prizes can create social change. Interested? Come take a look at the issue on the racks in Jackson Library, or subscribe.

Struggling with an abusive creep in your workplace? GSB Professor Bob Sutton offers more suggestions on dealing with the perennial office brat on his blog, with his contribution Latest Tips for Surviving Workplace Assholes. Sutton, whose bestseller The No Asshole Rule recently won a Quill Award for best business book, constantly receives emails about personal experiences and case histories from his readers, and incorporates at least some of these into his blog. If you are fighting the good fight against a demeaning coworker or obnoxious supervisor, Sutton advises, "Escape, if you can!" No place to run? Read on for more tips.

Just a reminder that the Stanford Social Innovation Review Fall 2007 issue is out on the shelves. It includes a study of twelve nonprofits ('Creating High-Impact Nonprofits'), as well as articles on the power of strategic mission investing, how investors are serving lower-income communities, a profile of the VP of corporate social responsibility at Nike, "worst practices" of the social entrepreneur, a discussion of how for-profit clinics are healing the rural poor in Kenya, and much more. Read the latest on the racks at Jackson Library -- or subscribe.

The AARP is tackling the issue of a--holes. So reports GSB Professor Bob Sutton ( The No Asshole Rule ) on his blog. Journalist Adam Penenberg is writing a story for the AARP Magazine about workplace bullies -- in technical Suttonian parlance, "a--holes". If you want to tell your own story of such experiences, you can feel free to send Mr Penenberg the gruesome details. He is actually encouraging people to "name names" -- a unique opportunity to out that local office tyrant. The magazine reportedly has one of the largest circulations in the world, so this piece can pack a punch.

Apparently executives suffering a scruples deficiency have been engaged as crypto-cheerleaders for their own companies on the Web. The New York Times (July 16) cites the sad example of John Mackey, CEO of Whole Foods Market, who seems to have created a fictitious Internet account to tout his own persona, attack corporate opponents and enhance his firm's stock. This form of deception, known on the Web as 'sock-puppeting', has entangled not only Mackey but Conrad Black, the currently embroiled CEO of Hollinger International, who allegedly joined a Yahoo chat room to blame others for his company's stock performance. Makes one wistful for happier times, when a sock puppet named Lamb Chop chatted with Shari Lewis about sugar and spice and everything nice.

"We have a double standard in our society: If you are poor and you abandon your kids, you are a bad parent. But if you are rich and you abandon them to run a company, you are profiled in Fortune magazine." Thus saith Penelope Trunk ( Brazen Careerist ) on Arianna Huffington's business blog, mentioned by GSB Professor Bob Sutton on his blog. The subject? CEOs rewarded for abandoning their children,while ordinary people in similar circumstances are denounced as lousy parents. Double standard? You be the judge.

The American magazine (May/June 2007) reports that white collar criminals are not being sent up the river to comfy minimum-security facilities these days. Instead, they're entering a scenario more out of a Hollywood prison movie. Alfred A. Porro Jr -- aka Prisoner # 20532-050 -- found guilty of wire fraud and filing false taxes, gave author Luke Mullins a depressing account of his life behind bars. Expecting a cushy stay, Porro was shocked to learn that his prison camp was not just fellow 'white collar crooks', but a motley crew of drug dealers and other offenders. Not quite the horrors of maximum security prison, but enough to make mischievous executives think twice in the future. Read about tips and tricks of prison survival, government 'rats', sperm-smuggling schemes, and more in the current issue in Jackson Library.

With all the Wolfowitz news buzzing throughout the aether, you may be interested in GSB Professor Bob Sutton's take, he of The No Asshole Rule. All the evidence may not be in, but Sutton opines that Mr Wolfowitz may be a, well, you know what. He bases this on a Guardian story that ran where, apparently, Wolfowitz "sounded more like a cast member of the Sopranos than an international leader." Sutton emphasizes that all press reports must be subject to healthy scepticism -- but if the article is true, Wolfowitz is guilty of some of the classic dysfunctions of the powerful.

BusinessWeek (May 21) talks about the push by US companies to extract more profits from the economically disadvantaged. The article 'The Poverty Business' chronicles the struggle of Native American Roxanne Tsosie and others, as they attempt to make ends meet by borrowing on credit, often at exorbitant rates. The working poor are borrowing increasingly to buy cars and computers and TVs. Their lives mirror a larger problem in America, where the debt of the poor is getting progressively more expensive. FDIC chair Sheila C. Bair captures the overall picture when she says, "It's not only that the poor are paying more; the poor are paying a lot more." And Connie McBride, whose own life has been tough, sums it up for her more affluent readers: "If you have money to begin with, you don't have these issues or these kinds of bills."

Richard Stearns, President of World Vision, answers ten (or so) questions from Guy Kawasaki (Art of the Start, The Macintosh Way.) Stearns, with a bachelor's degree from Cornell and MBA from Wharton, and a former corporate president, heads this Christian relief and development organization dedicated to helping children and their communities worldwide reach their potential by tackling the causes of poverty. In today's troubled world, where the word 'religion' is all-too-easily associated with violence, learn about a faith-based initiative that may be making a profound difference.

This is my third in a series of blog entries focusing on ethical questions surrounding natural resources. Although not much is written about gold mining it too brings with it complications not unlike oil and diamonds. Up to this point ¾ of the world’s estimated gold has been mined, which means mines have had to dig up to 4 miles deep to get to the gold and strip mining has become more widespread. One way to test for gold on land is to apply cyanide, and mercury is used to dissolve gold for use in alloys. Among the world’s largest gold producers are some of the poorest countries in the world such as Ghana and the Congo. A journalist with the Observer in her article Dilemma: Should I wear newly mined gold ring? wanted to find out exactly what went into a simple gold ring. It turns out somewhere between 18-20 tons of waste and around 5 tons of water. A campaign launched two years ago by among others Oxfam and Earthworks, called No Dirty Gold has been pushing jewelers to sign an agreement to use gold from mines which use more responsible mining to extract gold.

This is my second in a series of blog entries focusing on ethical questions surrounding natural resources. Much has been written about diamonds which are mined in countries where their sale helps in the purchase of weapons to aid in civil wars. These diamonds are often called “conflict diamonds”. The recently released movie Blood Diamonds takes a good look at the role diamonds played during the civil war in Sierra Leone. An article in the Christian Science Monitor discusses the movie and the controversy surrounding it. The World Diamond Council claims they didn’t know about conflict diamonds until 1999 although it is well documented that diamonds provided financial support for wars during the 1990’s. In the book Heartless Stone Tom Zoellner gives a great overview of this history of diamonds and how the industry is growing and learning from the past.

GSB Professor Robert Sutton on his blog asks a question for all frequent flyers -- "Do you make air travel miserable for the rest of us?" His answer: the Flying ARSE (Asshole Rating Self-Exam.) Inspired by his recent bestseller The No Asshole Rule, Sutton addresses those unfortunates among us who may need a little help introspecting about how to cope with the sardine transport systems contemporary aviation has become. Be sure to check out Sutton's hilarious -- and heartening -- anecdote of the unflappable Virgin Airlines gate attendant and her irate customer, definitely overdue for an ARSE maintenance check.

As an update, over 80,000 people have taken the ARSE. Based on results, some 6,000 people are 'certifiable' you-know-whats. Thousands of others are marginal. But be of good cheer, nearly 50,000 are not. So -- here's to flying with the Fortunate 50,000 !

This week I would like to start the first in a series of blog entries I will write on the ethical questions surrounding natural resources. I’m going to begin with oil and the multinational corporations that are operating in the Niger Delta. Nigerian militants have slowly been focusing attention on themselves by blowing up oil pipelines and platforms in the Niger Delta. According to the World Bank approximately 80% of the oil wealth in Nigeria is owned by 1% of the population, this while most of the population live on less than a $1 a day.

The following three articles give various points of view of the cost in human, political, environmental and business terms.

Sebastian Junger author of The Perfect Storm has written a very detailed article entitled Blood Oil in February’s edition of Vanity Fair. He chronicles the rise of the MEND and discusses the role multinational oil corporations, and the US government are playing in the lives of Nigerians living in the delta region.

Simultaneously the February issue of National Geographic has an article entitled Curse of the Black Gold: Hope and Betrayal in the Niger Delta.

The International Herald Tribune wrote an article which discusses many of the problems facing those companies trying to extract oil from the Niger Delta: Oil companies in Niger Delta face growing list of dangers.

Has Wal-Mart been taken over by Big Brother? According to a Wall Street Journal article (4/4/07), Wal-Mart employees, as well as critics, stockholders and the consulting firm McKinsey & Co, have often been under surveillance by Wal-Mart security operations. Using the latest electronic surveillance techniques, the company allegedly monitors all email (including private accounts) and phone calls from Wal-Mart phones and computers. Stockholders, civil rights groups, unions, employees, beware -- is Big Brother watching you ?

Authors Bill George and Peter Sims will be at the GSB Thursday, April 12 to discuss their book True North and related issues, from Noon to 1 PM in Bishop Auditorium. All are invited.

GSB Professor Bob Sutton is full of praise for Bill George and his new book (co-authored with Peter Sims) True North. The book by George -- a professor at Harvard Business School -- is based on 125 interviews with leaders and executives, and argues that leaders that create humane environments that really care about people and customers can thrive financially. During Mr George's tenure as head of Medtronics market cap rose from $1 billion to $60 billion. As Sutton says, "Not bad for a guy who puts people first and believes that employees need a balance between life and work." Genuine concern for employees also translates into greater commitment and corporate loyalty. In his blog Sutton highlights from his own knowledge the toll that abusive management can exact from a company and its people. Read more in the copy at Jackson Library.

Find out what are the top companies this year ranked by corporate governance and ethics, accountability to the community and environmentally consciousness from the eighth annual ranking put out by the Corporate Responsibility Officer (formerly Business Ethics) magazine in its Jan./Feb. 2007 issue. The CRO ranking is considered the third principal ranking following the Fortune magazine lists of the "Most Admired Companies" and the "Best Companies to Work for".

The parade of misbehaving members by corporate America (ENRON, WorldCom etc.) seems to be continuing. The trial of the century concerning Board of Directors mismanagement and corruption is getting underway today in Chicago. Former newspaper mogul Conrad Black, CEO of Hollinger International and the board are accused of stealing $80 million from the company which once owned the Chicago Sun-Times and London’s Daily Telegraph. The original charges were filed by the SEC November 2004. I’m sure the media will be all over this trial, since Black like Skilling and Lay like to show the fact that he had money. Read about the first day at trial.

Update: Conrad Black jailed for six years

The Chronicle of Philanthropy reports that more than 20 Americans contributed a whopping $100 million dollars or more to charitable causes last year. Leading the honor list was Warren Buffett, who donated (or pledged) $43.5 billion dollars. Next in line were Herbert and Marion Sandler, at $1.3 billion, Bernard and Barbra Osher at $732 million, and Jim Joseph at $500 million. Other familiar names include David Rockefeller at $252 million, T. Boone Pickens at $171.5 million, GSB alumnus Philip Knight at $105 million, George Soros at $60 million, and Oprah Winfrey at $58.3 million. And this may just be the beginning. Mr Pickens, for example, has stated that he hopes to give away 80% of his fortune, estimated at $2.7 billion. Such stunning philanthropy boggles the mind. Like Frank Morgan's Wizard of Oz, for lack of a better word, we'll just call them 'good-deed doers'.

Had enough of the Oscars? Check out some prizes with a very different slant: The CRO Magazine 18th Annual Business Ethics Awards. Highlighted in the CRO Winter issue, the awards salute four companies for their heightened corporate responsibility: Starbucks, Patagonia, Hypertherm and Berrett-Koehler Publishers. Included are detailed descriptions of how these companies won. (These awards are the first since Business Ethics merged into CRO Magazine, but the criteria were the same as previous years.)

For a complete listing of award winners since 1987, including the latest, visit the CRO Website. Also at the site, see the CRO 100 Best Corporate Citizens list.

The recent blunder disclosed on Feb. 12 by Johnson & Johnson on their "improper payments in connection with the sale of medical devices" in two foreign countries draws attentions yet again to the aggressive business practices of drug companies and medical- device makers. According to a recent story from BusinessWeek, "federal and state investigators are looking into drug companies for everything from improper pricing to illegal marketing. Fines are raining down, and the crackdowns show no sign of letting up." Read more at BusinessWeek Online.

'Beyond the Green Corporation' is the title of the BusinessWeek cover story for January 29. "Imagine a world in which eco-friendly and socially responsible practices actually help a company's bottom line. It's closer than you think." The article goes on to note how corporate reponsibility and social concerns are inextricably intermixed with competitive strategy and entrepreneurship these days. Today's executives speak of ecology and global healthcare in the same breath as income statements and profit margins. Included is a global roster of firms who are 'doing well by doing good', including Toyota, Hewlett Packard, Sony, Marks & Spencer, Aeon, Roche and Ericsson. Also included is the flip-side: firms assigned low marks, such as Allegheny Energy, Wal-Mart and Bank of China. Check out this issue in Jackson Library, or read an online version.

Managers beware - don't underestimate the press. In cases of financial fraud, the press is a watchdog that bites more often than we think, says HBS professor Gregory Miller. His research shows that the press uncovers about a third of incidences of accounting malfeasance before auditors or analysts are aware of them. Bethany McLean of Fortune was one of the first to take a hard look at Enron. It turns out that the financial and trade press are out talking to suppliers, and people who work in the field and they develop such knowledge of these companies that they start to get a sense when something is not right and are willing to pursue it.

"I do hold grudges. Am I motivated by that? Absolutely." So says Terry Garnett, former Oracle exec who felt he was fired without cause by boss Larry Ellison -- and proceeded to pursue his revenge by founding a competitor firm. The BusinessWeek cover story 'Sweet Revenge' recounts the power of spite and retribution in the business world. "It's one of the great undiscussables", says Kenneth N. Siegel, psychologist and coach to senior executives. "Put simply: Revenge is biologically, scientifically sweet," according to behavioral economist Ernst Fehr. Read more about famous feuds, from Commodore Vanderbilt to Katzenberg v. Eisner.

Ethical Corporation December 2006 issue tackles corporate social responsibility mistakes in their 'A How-Not-To Guide'. The magazine lists 10 common failings in firms, such as a lack of strategic vision, unsophisticated views of corporate responsibility, the inability to hear 'outside voices', a failure to customize approaches by region, and more. Social responsibility has become a major corporate concern, and a panel of experts has come together here to point out potential flaws. To learn more, check out the issue in Jackson Library.

"From Prominence to Prison: A Personal Case-Study in White-Collar Crime"

Date: January 9th, 2007
Time: 12:00 - 1:00 p.m.
Venue: Bishop Auditorium, Stanford Graduate School of Business

Patrick Kuhse will be talking about his experience with white-collar crime and will share with the audience his path from financial planner to entrepreneur, to fugitive, to convicted felon. The event is free and open to everyone. To read more on corporate responsibility and white collar crime, check out our Additional Reading page.

This event is brought to you by the Center for Entrepreneurial Studies, the Center for Leadership Development and Research and the Center for Social Innovation of the Business School.