“Nielsen Acknowledges It Misses ‘Live’ Streamers,” The Wall Street Journal December 7, 2017 B3. Networks don’t get full credit on the viewing statistics (number of viewers for a particular show) for all the live viewers. Apparently, those viewers who stream certain broadcasts aren’t fully counted.
What do you do when technology changes, and it’s harder to count what you’re used to counting? How do you price your offering? What’s your information worth?
“Nissan Report Faults Management,” The Wall Street Journal, November 18, 2017 B3. Factory workers falsified inspection data. Nissan recalls 1.2 million vehicles. Did management press too hard when setting targets?
Everyone on the manufacturing floor knew the inspections were being done by under-qualified workers, and hid it from the inspectors. Management was clueless. Practice was the norm for nearly 30 years.
Would your culture allow this to happen in your company?
Filed under Accuracy, Compliance, Compliance, Controls, Corporation, Culture, Data quality, Directors, Duty, Duty of Care, Employees, Governance, Internal controls, Management, Oversight, Policy, Protect assets, To report
“Faked Data at Issue Again in Japan,” The Wall Street Journal, November 25, 2017 B1. Mitsubishi Materials continued to ship car, plane, and power-plant parts to 200 customers (including in the US) while factory workers were fudging quality data on rubber gaskets and copper products. As is common, they sat on the news for a while.
This follows similar stories about Kobe Steel and Nissan Motors. So much for the much-vaunted quality initiatives in Japan. These types of problems “have deep roots in Japan Inc.’s governance problems,” which rely on decentralized and largely independent operations.
If there’s a problem somewhere else in your industry, you probably have it, too; you just haven’t found it yet.
Filed under Accuracy, Board, Compliance, Controls, Corporation, Culture, Data quality, Directors, Duty, Duty of Care, Employees, Governance, Internal controls, Managers, Oversight, Protect assets, Supervision, To report, Vendors
“SEC Accuses Long Island Town of Fraud,” The Wall Street Journal, November 24, 2017 B11. SEC alleges town failed to tell bondholders about special loan deals. Town feels victimized, as the town board didn’t know of the special deals.
If you have a duty to disclose certain information, and don’t disclose it, that is called either “failure to disclose” or “fraud.” Or a failure of management. There are certain things that, as a director, you are supposed to know.
Board members are fiduciaries.
Filed under Accuracy, Board, Communications, Compliance, Compliance, Corporation, Data quality, Directors, Duty, Duty of Care, Governance, Inform market, Inform shareholders, Investor relations, Oversight, Supervision, To report, Value
“Indian Lenders Mine Phone Data,” The Wall Street Journal, November 24, 2017 B10. Lenders fill gap in credit histories by checking data on phones to track Facebook connections and on-line shopping.
So, would we be more comfortable with this approach than the Equifax approach? What’s more private, your phone or your Social Security Number?
“Whistleblower Alert Scrutinized,” The Wall Street Journal, November 24, 2017 B6. A year ago, the CEO gets a letter from an employee saying the company is committing fraud by overstating some metrics. Investors are later told the allegations are without merit, and invest $500 million. Now the investors are suing. We’re told that that suit is without merit, even though it looks like some metrics were overstated.
How do you handle continuing to operate your business after a whistleblower puts you on notice of potential wrongdoing? What audiences do you need to communicate with? Shareholders, government regulators, lenders, employees, others? What can you say without stumbling over an inconvenient truth or two?
Filed under Accuracy, Board, Communications, Compliance, Compliance, Corporation, Data quality, Directors, Duty, Duty of Care, Employees, Governance, Inform market, Inform shareholders, Investor relations, Lawyers, Protect assets, To report
In the news, generally, several claims of sexual harassment, many dating from decades ago. On both sides of the political aisle, and in other industries.
What does it say that the alleged victims felt the need to keep quiet all those years? How do the alleged harassers disprove the allegations after so much time has passed? Have “standards,” such as they are, changed over the years? It would seem that the behavior complained of would have been actionable at the time, but maybe not.
I raise this not to make a political or legal point, but rather to demonstrate that the value of information changes over time, sometimes increasing in value and sometimes decreasing.