Category Archives: Culture

Kobe (2)

“Kobe Steel Discloses More Reporting,” The Wall Street Journal, October 14, 2017 B3. Falsification of quality documents is much more prevalent than first reported at Kobe Steel.  Twice the number of customers now involved.  500.

Once you find a rotten apple, one can make certain assumptions about the rest of that barrel.  It’s a culture issue, at its core.

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Filed under Accuracy, Board, Compliance, Compliance, Compliance Verification, Controls, Corporation, Culture, Culture, Data quality, Definition, Directors, Duty, Duty of Care, Employees, Governance, Information, Internal controls, Oversight, Oversight, Policy, Protect assets, Protect information assets, Third parties

A failure of controls

What does it say about a company’s culture that allows a sexual predator to continue to run the company for years?  What other non-compliance with ethics and law will we find?  Not only there, but at every other company in the industry?  Nobody reported this?  Where were the policies and the audits?  Where were the lawyers?  Where was the press?

“Weinstein Co. Board Fires Harvey Weinstein, Citing Sexual Misconduct Allegations.”  The Wall Street Journal on-line, October 8, 2017.

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Disclosure

“A Hot Startup Misled Advertisers,” The Wall Street Journal, October 13, 2017 A1.  Outcome Health apparently misled advertisers as to how many units their ads were appearing on.  The investigation continues.

How would your employees react if ask to provide inflated numbers to potential customers?  How would your investors react after a story appears on page one, above the fold?  Probably reflects in the valuation of the company.  And what about your company’s extensive political contacts?

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Barclays culture, continued

“Compliance Officer To Leave Barclays,” The Wall Street Journal, September 16, 2017 B1. The compliance officer at Barclays responsible for the whistleblower program settled “an employment dispute” with Barclays right before a hearing in London.  The CEO had earlier tried to learn the identity of the employee who complained about his hiring of a buddy.  The UK regulatory authority is still investigating that matter.

But the CEO remains in place.  Go figure.  I guess the Board’s sense of ethics is flexible.

I wonder what the employment dispute was about?

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Caesar’s wife he’s not

“CEO Quits Embattled Firm,” The Wall Street Journal, September 16, 2017 B2.  The CEO of SoFi (an online lender) quits after allegations of improper workplace behavior.  He also steps down as chairman of the board.  His behavior towards women was an issue.

Five years earlier, there had been similar allegations.  It only took five years!

What does it say about a company where it takes five years to oust the Chairman of the Board for inappropriate behavior?  What does it say about the culture that was allowed to persist?

Who’s in charge when the Chairman is bent?  Will the ads stop now?

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Outsider, beware

“Infosys CEO Leaves In Row With Founder,” The Wall Street Journal, August 19, 2017 B3.  Gibson Dunn had been investigating some internal improprieties.  The former CEO, who was hired by Infosys from outside the company,  will stay on as executive vice chairman.  He is replaced by a long-time Infosys employee.

Seems a bit of a mixed message.  The founder of the company, who left 3 years ago, complains about operations under the new (and now former) CEO, but the former CEO sticks around on the Board.  Who’s really in charge?  Change is hard.

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Can you hear the fiddle over the shuffling?

At Wells Fargo, the beat goes on.

“Wells Fargo Shake-Up Imperils Chairman,” The Wall Street Journal, August 11, 2017 B1.  The person appointed non-executive chairman of the bank following the “retirement” of the former chairman in the wake of some of the Wells Fargo scandals is now on the verge of his own “retirement.”  The shareholders didn’t support him.

Interesting that the shareholders have a voice, while their shares burn.  Last one to leave, please turn out the lights.

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