Social, political, and ethical dimensions of digital transformation

aje on February 7, 2022

Course introduction

There are widespread concerns that social and political divisions are being exacerbated by information technology, and that this is having a profound impact on the capabilities and quality of both global and local institutions. In a similar way to how the advent of the printing press prompted the rise of democracy and the nation state, perhaps digital transformation is contributing to a similar disruption in governance.

Such trends are particularly relevant in regimes where statehood was not an internal process, and was adopted either through colonial or international activity. Rising populism and authoritarianism provides the social and political backdrop to our analysis of the broad impact of technology, and we will consider whether pluralist approaches may help to combat some of the emerging threats to liberal democracy.

This course investigates how digital transformation relates to democracy and governance in an increasingly connected yet potentially polarised world.

Assessment
  • 40% Group report [download here]
  • 60% Final exam (MCQ) – this relates to all lecture content and the readings from the content section
Prerequisite

Students should have already taken my 6 hour component of the Business Frontier Technologies course. This includes some of the following content:

Mandatory pre-course readings

For a 64 point quiz to test your knowledge of the pre-readings see here.

Contents
  1. Addiction [lecture handouts]
  2. Democracy [lecture handouts]
  3. Ethics [lecture handouts]
  4. Humans [lecture handouts]
  5. Governance [lecture handouts]
Optional background preparation

To understand some of the context for my construction of this course I recommend:

  • Matthew Perry on BBC Newsnight, (yes, one can make the contrarian and pedantic point that humans exercise “choice” in every decision we make, but this interview demonstrates the importance of acknowledging the human cost of not being in full/partial/any control of things that are harmful to your well being. Particularly poignant given Perry’s death in 2023).
  • Beware the Jabberwock, This American Life, March 15th 2019 (a single episode that provides a detailed look at the origins of the Sandy Hook conspiracy theory and one parents attempt to fight misinformation. The second half of this episode is an interesting, but less relevant profile and interview with Alex Jones).
  • Four Hours at the Capitol, BBC (a documentary about the storming of the US Capitol building on January 6th 2021)
  • The Coming Storm, BBC Sounds (7 part podcast documentary on the rise of QAnon)
  • Death by Conspiracy, BBC Sounds (an 11 part podcast documentary on Gary Matthews, who died from covid in January 2021 having been drawn to social media claims that it was a hoax. I listened to this as a parallel to The Coming Storm but it strayed too far into covid, media ethics, and psychology for me to incorporate it more fully in this course, which attempts to avoid those areas. I didn’t learn much about conspiracy theories aside from episode 9 which provided a good attempt to understand why our common conception is often misplaced. Ultimately I just found this sad.)
  • Things Fell Apart, BBC Sounds (a documentary that looks at the different origins of the culture wars, which are defined as “the battle for dominance over conflicting values”, or the things we shout about on social media)
  • Command and Control, PBS (a documentary looking at how close we came to a major nuclear accident)
Recommended video

Famous documentaries about Facebook include:

Here is the Brexit movie mentioned in class:

Here are US political strategists talking about micro targeting:

Here is David Rand’s talk on misinformation:

This documentary looks at the Arab spring:

Here is an introduction to the (classic) trolley problem:

Here is Coltan Scrivner’s explaining the evolutionary purpose of paying attention to true crime:

Here is Patri Friedman arguing that we should be able to start new countries as easily as starting a new country:

Brexit
Recommended audio
Recommended movie night

This is not massively related to this course, but I really enjoyed watching Top Gun: Maverick (you may need to watch the original Top Gun first to get the full benefit). It reminded me of how Rocky IV contrasted American individualism, authenticity, and heart against superior Soviet technology. I saw Maverick as a rumination on automation, and the continued role for human emotion, and decision making that is instinctive, impulsive, and emotive, and how that gets managed. The subtext is that unmanned drones and algorithms are the future. In the film, US technology is deemed inferior but it is all about who is in the plane and not the plane itself. Traditional pilots needs to eat, sleep and piss but remain the driving force of future success, and whatever is is that ensures a future is worth achieving.

Here’s an absorbing and fascinating explanation of how the Mach 10 scene resembles a perfect pop song:

The best 3 movies related to AI and our conception of reality (in my opinion) are:

 

Recommended activities
Recommended case studies on digital transformation

Perhaps the best case study of the importance of an effective digital transformation is the UK Post Office Horizon scandal (Wikipedia). There is an excellent podcast about it produced by BBC Sounds and in January 2024 ITV aired a documentary.

For a good example of a subject matter for the group report I highly recommend reading The Story of VaccineCA. In particular, consider how the following elements coincide: the type of organisation chosen to pursue this objective (initially volunteers but then a Delaware corporation;  the institutional context (i.e. liberal market democracy where sharing such information wasn’t illegal); and the cultural attitude toward problem solving and tech optimism. For a great interview with Patrick McKenzie about his background and advice listen to his Conversation with Tyler.

Further academic reading
Student reflections

Priyanka Dalotra (LinkedIn)

On design
Resources for the public sector

If you wish to work in the public sector I recommend the following resources:

Recommended books

The MIT Press Essential Knowledge series contains a number of titles that are relevant for this course. I particularly recommend:

Topics in Economics (MIM)

aje on December 18, 2021

The course introduces students to several important and contemporary issues that relate to economics. Having already covered the key insights from Micro and Macroeconomics, we will go deeper into the frontiers of the discipline. Students will challenge their understanding of complex and controversial issues and develop their perspective on how to become managers of the future.

 Assessment
  • 40% Group report (instructions here)
  • 60% Final exam (MCQ) (a practice exam will be made available)
️ Content
Topic Before During After
1. Prosperity Activity: Global conditions quiz

Watch: The Magic Washing Machine

  • Evans, Anthony J., 2020, Economics: A Complete Guide for Business, London Publishing Partnership (Chapter 12, Section 2)*
 Lecture handouts More resources
2. Growth Watch “Growth is like an iPhone”

 Lecture handouts More resources
3. & 4. Sustainability Lecture handouts More resources
5. & 6. Inequality Activity: Thinking about wealth

Watch: “$456,000 Squid Game In Real Life!” Mr Beast

Watch the full movie Parasite (2019), Bong Joon Ho

 Lecture handouts More resources
7. Stagnation Activity: Transformative Innovations

Watch “Steve Jobs – iPhone Introduction in 2007” (the first 17 minutes is sufficient)

 Lecture handouts More resources
8. Progress Watch the full movie The Greatest Showman (2017), Michael Gracey

 Lecture handouts More resources
* These suggested readings are new and therefore will not be on the exam for 2024

I thought it went without saying that economic growth is good, that America is a phenomenally rich country, and that capitalism is the reason why. But now I’m not so sure. So in this course, I say it. 

Other lectures that could be added:

  • Macro Trends – an overview of global growth prospects and a survey of the key challenges facing policymakers
  • Macro Risk – a look at the key risk factors affecting the global economy, and a survey of which countries are best positioned to deal with macro shocks
  • Macro Models – how macroeconomic models should integrate climate concerns
  • The evolution of money: gold, fiat and crypto
  • Central banks and digital transformation
  • The Solow model, and how it relates to growth theory
  • Sustainability Insight – how we are solving our environmental problems
  • Nuclear power – we could have had it all
  • Are humans special?

Problem Solving and Decision Making

aje on October 19, 2021

How can I improve my team effectiveness when facing complex business problems?

Problem Solving and Decision Making is an intensive managerial programme that has been shown to be an enjoyable and successful way to improve team performance and productivity. The course provides practical skills and a management mindset rather than simply transfer knowledge. Participants are taken through the full problem-solving and decision-making cycle: from breaking down the issue, to prioritising and writing the action plan. They also practice communicating their proposal, an important and often overlooked aspect of the decision-making process. The course focuses mostly on experiential, proactive and practical learning: participants engage in individual and team problem-solving and decision-making, and receive constructive feedback to build on personal strengths and address limitations.

Resources:

For more on the Pyramid Principle:

For more on the 7-38-55 rule see:

For more on problem solving, see:

Background materials

For more about Toyota listen to:

For an introduction to the Tylenol murders listen to:

For my report on Croatia’s energy policy see here:

Participant testimonials

Confronting uncertainty

aje on May 13, 2021

How can I become more confident when faced with conditions of uncertainty?  How can I contribute to an organisation that utilises effective heuristics?

This 1-2 day course provides a simple framework for how people make decisions. It shows how heuristics have the potential to enable effective judgments, but that they can also lead us to mistakes. It also provides a tool kit – the scenario method – to confront complex and uncertain situations. We will also understand what makes us us, and how this relates to personal and professional activities.

Case (must be read in advance)

Pre-class reading:

And any 1 of the following articles:

Course overview:

Part 1: Introduction

Part 2: Behavioural economics + [worksheet]

Part 3: Scenario Workshop + + [worksheet]

Lecture notes

Additional readings:

The course incorporates content from the following important books. Prior knowledge of these insights are valuable but not mandatory:

  • Kay, J., & King, M., 2020, Radical Uncertainty, The Bridge Street Press (Chapter 1 serves as a useful reading on its own)
  • Hanson, R., and Simler, K., 2018, The Elephant in the Brain, Oxford University Press
  • Peters, S., 2012, The Chimp Paradox, Vermilion
  • Kahneman, D., 2011, Thinking, Fast and Slow, Penguin

Recommended audio:

Recommended movies:

Economics for Managers – MIM

aje on March 16, 2021

Course outline: Economics for Managers (MIM) 2019/20

Course textbook:

Problem set: download here.

1. Consumer behaviour and basic review

1a. Max U +
Evans, A.J., Maximilian Untergrundbahn, January 2018
Instructions: Complete the assignment questions

1b. Course Introduction & Administration

2. Cost functions and price discovery

2a. Cost curves* +
Evans, A.J., La Marmotte, January 2012
Instructions: Complete Exhibit 1 and provide suggestions for the two key decisions

2b. Comparative Statics +

3. Asymmetric information

3a. Adverse selection +
Akerlof, G.A., (1970) “The Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism”. Quarterly Journal of Economics 84(3):488–500 (£)

3b. Signalling* +
Spence, M., (1973) “Job Market Signaling“. Quarterly Journal of Economics 87(3):355–374 (£)

4. Strategic behaviour

4a. Introduction to Game Theory* +

4b. Oligopolistic competition +

5. REVIEW SESSION ON MICRO PROBLEM SET 

6. National income accounting

6a. Economic growth* +
Solow, R., (1956) “A Contribution to the Theory of Economic Growth” The Quarterly Journal of Economics, 70(1):65-94 (£)

6b. Capital Theory* +

7. Monetary policy

7. Monetary policy* +

8. Fiscal policy

8. Fiscal policy* +

9. International economics

9a. Foreign exchange +

Evans, A.J., “Josko Joras (A)”, December 2012

Instructions: Complete questions 1, 2 and 3

9b. Dynamic AD-AS recap +

10. REVIEW SESSION ON MACRO PROBLEM SET

Note:

Sessions marked with an asterix (*) have a lecture handout available in advance.

Readings marked with a (£) sign means that you may need library access.

A + sign provides a link to a page of additional resources.

Microeconomics – MBA

aje on March 16, 2021

This course provides an overview of basic microeconomic theory and applies it to business decision-making. In particular, it will present the main principles of microeconomics from the perspective of strategic behaviour. The course draws on examples from the business world to illustrate the practical relevance of the models used.

Course textbook:

1. Consumer behaviour and negotiation

1a. Value creation* (+)

1b. Understanding cost* (+)

Textbook: Chapter 1.2 and Chapter 2.1

2. Supply decisions

2a. Cost curves* (+)

Evans, A.J., “La Marmotte”, January 2012

Instructions: Complete Exhibit 1 and provide suggestions for the two key decisions

2b. Economies of scale (+)

Rivkin, J.W., “Dogfight over Europe: Ryanair (A)” Harvard Business School case no. 9-700-115, November 21st 2007 (£)

Discussion question: What are some sources of economies of scale? How do they apply to British Airways in 1986?

Textbook: Chapter 2.2, 2.3 and 2.4

3. Markets and prices

3a. Auctions (+)

Hild, M., Dwidevy, A., and Raj, A., 2004, “The Biggest Auction Ever: 3G Licensing in Western Europe”, Darden Business Publishing (£)

Discussion question: What are the alternatives to auctions?

3b. Equilibrium assignment (+)

Textbook: Chapter 3.1, 3.2, and 3.3

4. Asymmetric information and market design

4a. Adverse selection (+)

4b. Prediction markets (+)

Coles, Peter, Lakhani, Karim and McAfee, Andrew, “Prediction Markets at Google” Harvard Business School Case No. 9-607-088, August 20, 2007

Textbook: Chapter 3.4 and Chapter 4.4 and 4.5

5. Strategic microeconomics

5a. Game Theory (+)

5b. Oligopoly (+)

Textbook: Chapter 5.2

Note:

Sessions marked with an asterix (*) have a lecture handout available in advance, which can be downloaded.

Cases marked with a pound sign (£) are either available via Blackboard or through the library.

Macroeconomics – International MBA

aje on March 16, 2021

This course provides a thorough and contextual perspective on various forms of macroeconomic policymaking. In addition to looking at how monetary and fiscal policy can be used to manage the domestic economy, we will take an international approach to various forms of economic crisis. By the end of this course students will be able to critically engage with some of the key indicators that may help to predict a currency crisis, and relate this to famous historic cases. We will look at the role played by international institutions during sovereign debt crises, and gain experience at identifying, summarising, and communicating relevant data.

Course textbook:

Assessment:

  • 40% group report (see here)
  • 60% individual MCQ (practice exam here)
Pre class activities
Before the course begins you should watch this video pass this quiz.
Day 1: Macro policy decisions
1&2. Monetary policy (+)

3&4. Fiscal policy (+)

After class you should watch this video and pass this quiz.
Day 2: Countries in crisis
5. International economics (+)

6. Currency crises (+)

    • “Currency Crises” Harvard Business School case no. 9-799-088 (£)
    • Discussion question: Which countries are on the verge of a currency crisis?
    • Textbook reference: Chapter 8.3 and Chapter 10.4

7. Debt crises (+)

    • Blustein, Paul “And the Money Kept Rolling In” Public Affairs, 2005 (pp.39-60) (£)
    • Discussion question: As of July 1998 should the IMF suspend their program in Argentina, or continue their support?

8. Macro Policy Workshop (+)
Day 3: Presentations and wrap up
9. Presentations

10. Macro risk

Note:

Cases marked with a pound sign (£) are either available via Blackboard or through the library.

Analytics

aje on March 16, 2021

aje_qm2

How can I use data to understand my organisations situation and performance?

From 2006 – 2010 I taught a Quantitative Methods course at ESCP Europe. I enjoyed it immensely and got great feedback from students. Since then I’ve continued to gather material but realise that no-one gets to see it. So I’ve created an online course.

The course should be of use to anyone with an interest in an MBA level education, and I have attempted to supplement my own presentations with links to some exceptional online resources.

The rest of this page contains some further resources and links.

Pre-reading

Prerequisite

Textbook

I hope you find the online course useful, but I am also a fan of the old fashioned way. The course ties in to the following textbook:

download

It is a very good one: well written, full of examples, and plenty of opportunities to test yourself. You could do a lot worse than simply order it now and then work your way through it.

I’m also intrigued by “Calculus Made Easy“, by Silvanus Thompson. It’s antiquated in format but highly directed toward simplifying concepts and engaging with the reader. Statistics Done Wrong also looks fun.

Pop analytics

I believe that a good way to prepare for a subject is to read a book that is captivating. Something that stimulates your interest and encourages you to dig deeper. There are lots of bestsellers that have attempted to communicate mathematical ideas to the educated layperson. My favourite 6 are these:

Other online courses

The University of Bristol Medical school has a lovely Research Methods & Statistics online course. Introductory Statistics, an online course by Andy Field. It is full of some excellent tutorials that are presented with a unique style. The New York Times have made their course on data skills publicly available, there’s a link here. A thorough course designed for incoming PhD students is the Princeton Sociology Summer Methods Camp 2019. Here is the free course MITx Probability.

I also love this course: Calling Bullshit in the Age of Big Data.

There are also lots of proper online courses to choose from. The only one I have direct experience of is this:

UCLA have a list of publicly accessible courses on a range of software and concepts.

If you really need to develop your QM skills then I would recommend you follow the HBS one instead of mine. However I found it pretty dull and failed to complete it. I’m hoping that by providing a mixture of content you will find mine more enjoyable.

Other resources

Instrumental variables: this tweet and these lecture notes

False positives and coronavirus.

Examples of bitemporal charts (especially good on economic forecasts)

Video on Bayes’ theorem.

Double y axis.

Software and misc.

Daniel Kunin has a wonderful website called “Seeing Theory“, which allows users to visualise basic concepts in statistics. I’ve integrated links into the course below.

Software: http://datasplash.com/

Handouts

APPENDIX: Contoversies

I believe that the best way to internalise the key concepts in this course is to conduct a replication exercise. These have become increasingly common as ways to apply the concepts covered, and test a students knowledge retention. To be honest though I am yet to find any really good examples of statistical tests that companies have utilised, and for which the underlying data set is available.

In their textbook, “Modern Principles: Macroeconomics”, Tyler Cowen and Alex Tabarrok present a good exercise to replicate a Solow Model. My (flawed) attempt to combine two of their problem sets is here:

Whilst I continue to look for potential replications, one option is to focus on some controversial statistical debates. These are also good ways to go deeper into the theory, and fully appreciate the link between theory and practice.

After party

You should now be a savvy consumer of statistical analysis and passionate about good data management. I recommend that you treat yourself to the following tome:

download

Thank you for visiting.

Last updated: June 2019

Scenarios

aje on February 24, 2020

Course introduction

The scenario method is a useful, creative, and increasingly popular way for managers to reframe their perspective and improve their organisational resilience. The course shows how to recognise the driving forces that will affect the future business context and consider the present-day implications. By building detailed and imaginative narratives, participants will learn how to confront uncertainty and become more confident in conditions of change. The lecture content contains the cutting-edge practice of the scenario method and the blended approach permits flexibility, agility, and collaborative project work.

Pre-course activities

Here is a pre course quiz.

You probably don’t want to take movie recommendations from me, but if you wanted to watch something before the course that will help your understanding of key learning outcomes, I recommend: Children of Men (2006)

 

Course content
Public resources

  • Oxford Scenarios Programme, Webinar, September 2017 – this provides an excellent overview of two fascinating case studies: Rolls Royce and the Royal Society of Chemistry.

For my report on SMRs see here. For my analysis of the situation in Belarus see here.

Before using my flight from Lebanon as an example of the instinctive (but anxiety inducing) desire to assign probabilities to uncertain events, I used the example of Everton’s 2023 relegation battle. To learn about that, see these two articles:

Here is a recording of my webinar from December 2021 on Scenario Planning for the Energy Industry:

In 1997 Wired published an article called “The Long Boom” in which Peter Schwartz and Peter Leyden provided a “history of the future 1980-2020”. You can read it here.

Recommended further reading:

Learning Objectives: Build and use scenarios. Think creatively about alternate futures. Link scenario planning to strategic issues. 

Why is the scenario method so important? Because, as Adam Martin mentioned in his interview with Peter Boettke, in economics the emphasis on choice is because we live in a world of scarcity. The conditions of uncertainty, however, also means that we require imagination. Scarcity and uncertainty are the context. Choice and imagination are the consequence.

Business Ethics

aje on June 13, 2019

How can we identify, understand and solve the ethical dilemmas that emerge in a business situation?

This is a short course that surveys a number of frameworks and models that can be used to cope with moral and ethical dilemmas. Famous cases will be used to provide a realistic grounding to the content, and participants will be tasked to apply those concepts and discuss their insights. The course is heavily group-focused and includes case discussion and role playing activities.

Sometimes in life we may have to be expedient. But consider the following passage (from Charlotte Gray, p. 204),

The telephone was ringing in Julien’s office. I’m putting you through now,” said Pauline Bobotte,

It was a Communist from Limoges, whom Julien, against his better judgement, had approached for information. He did not want to associate with Communists, but in times of war you sometimes had to be expedient. Even as he explained this to himself he realised that this was exactly the argument employed by [Phillipe] Pétain and [Pierre] Laval.

The difference was that his position was not merely expedient, it had moral backing. Also, his judgement, unlike theirs, was sound. So he hoped.

Preliminary tasks

Before attending the module you should read about these mini cases:

and complete this form:

Handouts

Case (for 1 day version)

  • “Who’s Responsible for the Drawbridge Drama?” by Mueller, U., and Schaefer, U., European School of Management & Technology, 2010
    • Learning objective: The case introduces students to topics such as “responsible leadership” and “responsible business”. It also provides an engaging illustration of how people look at the same context or phenomenon, but reach very different interpretations and judgments.

Additional cases (for 2 day version)

  • Healy, P., and Soltes, E., “Rajat Gupta” Harvard Business School case no. 9-117-004, January 2018
  • Waytz, A., and Kilibarda, V., 2014, “Through the Eyes of a Whistle-Blower”, Kellogg School of Management

Primary readings

Secondary readings

My related research

Audio

  • Martha Stewart w. Sarah Archer, You’re Wrong About, June 20, 2022
    • One of those most famous cases of insider trading is Martha Stewart. This podcast episode doesn’t go into detail on the issue (it points that that ultimately she was jailed for obstruction of justice and not insider trading) but I found it an enlightening explanation of her life, her business model and how that relates to shifting cultural dynamics in America. Stewart was entirely self made and provided a wholesome service of showing people how to make beautiful crafts, or – more likely – give them pleasure from watching her make them instead. The claim made in the podcast is that Stewart’s wealth was a function of being personally underestimated and capitalising on how neglected the value of domestic labour and household management had become. Both of these have a clear gender angle. The podcast host is clearly sympathetic to Stewart, but laments the necessity of having to embrace capitalist institutions for her talents to be recognised and rewarded. (Personally I would use this as evidence for the triumphs of capitalism, and how it liberates women from servitude). Regardless of whether Stewart knowingly dumped shares, or whether she was scapegoated and being made an example of (by men!) to bring her down a peg, her story is a fascinating one to reflect on.
  • Why didn’t anyone go to prison for the financial crisis?, You’re Wrong About, Feb 10th 2020
    • This episode attempts to explain the low rates of prosecution and conviction for “white collar crime” in the US. It provides an interesting discussion of the discovery of lead paint in Mattel’s children toys, as a result of an outsourced supply chain with inadequate monitoring, and lack of US consumer protection checks. The data it provides on the lack of resources at the disposal of the government is incredible. One thing I believe it misses is the assumption that “corporate wrongdoing” necessarily involves individual (and criminal) wrongdoing. In many cases executives were making decisions under conditions of uncertainty with genuine conflict over the amounts of risk that people were exposed to. I believe that the systemic problems are due more to the regulatory system than any individual or particular corporation behaviour. We should also consider why limited liability exists and what would be lost if we erred on greater flexibility to use individual scapegoats. (Just because some communities lack the resources to adequately defend themselves, and just because society seems willing to make examples of certain types of criminal, does not make that a model to apply more broadly).  For further resources on the financial crisis see here.

Textbook

  • Crane, A., Matten, D., Glozer, S., and Spence, L., 2019, Business Ethics (Oxford University Press, 5th Edition)

Further courses

“it is better to be unfortunate in reasonable action than to prosper in unreason” Epicurus, ‘Letter to Menoeceus’

Further resources

An Inspector Calls is the classic literary depiction of how responsibility can be shared among many people. Although I find the social commentary to be frustratingly simplistic, there is a 2015 BBC Drama version that you may find worth watching. The 2017 Netflix Series, ‘13 Reasons Why‘ explores similar themes, but I haven’t watched it.

The 1957 movie, ‘12 Angry Men‘ is a classic. It shows how a natural drive to reach consensus can mask important insights, and that the role of Devil’s Advocate can be important in team settings.

Here is an article on why Peep Show is “the most realistic depiction of evil“.

For more on The Entertainer see here. Here is a BBC article on the Chick-fil-a controversy.

The 2022 Netflix documentary “Downfall: The Case Against Boeing” is a compelling account of how the company attempted to pass blame for the crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 on pilot error, instead or recognising the risks caused by modifications to the aircrafts autopilot (which were underplayed in order to avoid additional and expensive pilot training). The trailer is here:

For more on “Dieselgate” see this BB article and this YouTube video:

For more on Theranos see here:

I didn’t include Carlos Ghosn’s actions at Nissan as an example of corporate wrongdoing because the accusations about him imply that the company was being wronged. Such cases of fraud and embezzlement are not a key part of our course, but there is a good Netflix documentary about Carlos Ghosn here.

Here is the DuPont Conaco Double-Hulled Oil Tankers Seal Clapping Commercial (1991), here is a discussion of Cecil the lion, and here is the Wikipedia article about Harambe. This article provides a list of greenwashing. I used to accuse L’Oreal of greenwashing in the lecture because they claim to be “natural” while using carcinogen ingredients (e.g. Titanium dioxide in eye shadow; formaldehyde-releasing preservatives in kids shampoo). Technically those ingredients are “natural” in the sense that they exist in nature, and in low doses are not considered to be particularly harmful. I think the main point is that it is harder to remove trace amounts of cancer-causing chemicals from bananas than it is to just stop using them in cosmetic products. But still, much of the campaign against L’Oreal may be over the top. Judge for yourself.

Here is more on river blindness.

Eyal Press’s 2012 book ‘Beautiful Souls: Saying No, Breaking Ranks, and Heeding the Voice of Conscience in Dark Times‘ is a rich and engaging collection of stories about people refusing to adhere to authority. It shows how whistleblowers are not typically anarchists who enjoy flouting rules, but people who value those rules so highly they insist on holding their superiors to them. It includes the story of a Serbian man who, in 1991, risked his own life to protect captured Croatians from execution, as well a Swiss police official who broke the law by giving entry permits to Jewish refugees in 1938.

Regarding the importance of involving the local community in a company’s strategy, see Steve Jobs; testimonies to Cupertino city council, in 2006:

…and again in June 2011

For a contrarian view on sweatshops, see here:

My favourite documentary on Lance Armstrong is ‘The Armstrong Lie‘ (2013)

There is also a 2 part “Storyville” documentary called “Lance” available on BBC iPlayer here.

Whistleblowing

  • “Through the Eyes of a Whistle-Blower: How Sherry Hunt Spoke Up About Citibank’s Mortgage Fraud“, by Waytz, A., and Kilibarda, V., Kellogg School of Management, 2014
    • Learning objective: The case helps students to gain experience resolving ethical dilemmas in which two values may conflict, such as professional duty and personal ethics. It enables students to identify behaviors that help a whistle-blower be effective and discuss how incentive structures, management, and culture play roles in promoting or hindering ethical behavior in organizations.
    • Discussion questions

I define whistleblowing as “the unauthorised revelation of wrongdoing”. The German Spy Museum define it as “someone who reveals confidential information about the illegal or immoral practises of their employer.”

The most famous whistleblowing case of recent times is Edward Snowden. Here is a nuanced account of Snowden’s actions and motivations, and the key part is “I found it hard to determine when, in Snowden’s own mind, he graduated from being the emotionally immature and naive person he disdainfully describes himself as at the beginning of his development to being the sophisticated person who could make sound decisions about what is good for humanity he claims to be when he takes the NSA documents.” Citizenfour is a critically acclaimed documentary:

“Reality” is a slow paced but engaging drama that uses the actual FBI transcripts to reveal the case of former NSA translator Reality Winner.

“Official Secrets” is based on a true story, featuring whistleblower Katharine Gun. I found it interesting that she made no attempt to escalate issues internally before going outside the organisation. The fact that she worked for the UK security services added more weight to the magnitude of her actions, but also calls into question whether we should treat people with security clearance differently to dissent in other contexts.

 

Insider trading

  • “Rajat Gupta“, by Healy, P.M., and Soltes, E., Harvard Business School, 2019
    • Learning objective: The case explores how a prominent and successful executive can engage in misconduct. In addition, the case explores the nature of illicit insider trading.
    • Discussion questions

In 2011 Raj Rajaratnum was given an 11 year prison sentence for insider trading. According to Philip Mirowski (2013) this makes him just one of two people (the other being Bernie Madoff) to have gone to jail for their roles in the 2007-08 global financial crisis. Martin Wolf (2023) claims that the only banker to go to prison from wither the US or the UK was Kareem Serageldin (whereas in Iceland 25 bankers were convicted, 11 in Spain, and 7 in Ireland.

This Vanity Fair article provides an account of Gupta’s more recent autobiography.

Here are a couple of op-eds on the benefits of insider trading:

Here is a New York Post article explaining how Nancy Pelosi (and her husband) have benefitted from trading off the stocks of companies that she regulates, and why she is resisting efforts to stop Congressional lawmakers from being able to continue to do so. You can track her trades here. Here is a funny halloween costume.

Here is a case that links insider trading with working from home – a man bought stock in a company that BP were intending to buy and made a $1.8m profit after they did so. His wife worked in M&A at BP, and had been discussing the deal on zoom calls within the family home. For more see here.

Final quote…

“I would think that men wanting revenge would simply have killed him where they found him. The other possibility is kidnap and ransom. Kalesh [a Sudanese Prince] tells me the local kidnappers are pretty honourable – if you pay, they give back the victim unharmed. It’s a matter of business ethics”

McCarry, C., 1973 [2007] The Miernik Dossier, Overlook Duckworth, p.211

Quiz

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