Amidst the financial meltdown over the last few years, there has been  a seeming breakdown of the ethics of corporate executives. Some observers believed that the regulatory changes under Sarbanes-Oxley legislation passed in 2002 would eliminate illegal and unethical behavior, but is that the case?

Joining Dennis McCuistion to discuss this and other issues surrounding this question are:

• Sharon Allen: Chairman of Deloitte LLP
• Todd M. Bluedorn: CEO of Lennox International,Inc
• Jared Richardson: Sr. Counsel of Energy Future Holdings

Todd Bluedorn tells us that essentially corporate ethics are about basic compliance, “you don’t lie, cheat or steal.” He believes that there is  more to this though, “It’s about selfless leadership…  and a balance, not just being selfish. It’s also courage and an internal and moral ability and willingness to speak to  truth.”

Sharon Allen tells us that the overall outlook for corporate America is good, it’s encouraging. Companies are focused on being good, ethical citizens, extending that to their employees and the individual stakeholders they serve. “It’s important to instill that… It’s too easy to say, ‘that’s business and that’s personal.’ No, ethics are ethics.”

Jared Richardson tells us that in any industry there is a code of ethics.  A company is its “Ethos – which develops from the people that make up the organization.”

Dennis mentions Enron, one of the biggest debacles and corporate bankruptcies in history and asks about Enron’s corporate ethics. He mentions that Jeff Skilling had been interviewed by us in 2001 and made  a point of referencing the companies 64 page ethics manual. Skilling also spoke to a group at Southern Methodist University that day- and  he shows a short clip of that presentation, asking “was a lack of ethics involved in the downturn of Enron?”  Todd’s comment:  “Skilling would have failed the selfless test!’

The guests agree it’s important to differentiate what has happened in the last 18 months from “just” ethical causes. The meltdown was as a result of much more-  structural issues and other fundamantal causes.

As Sharon reminds us regarding Sarbanes-Oxley,

“No oversight will ever solve internal  problems… It still comes down to  how an organization presents and governs.” Sharon cites a Deloitte study, that employees first look at ”their  manager and then their direct supervisor for their moral compass,” before other factors such as positive reinforcement, compensation and their peers.

Todd reminds us that,”It’s important to have structure and compliance and to force people to face commitments. It’s not only relying on good people and leadership.”

Jared agrees, that yes, it’s about the tone at the top and the direction from senior leadership and establishing a culture of ethical compliance.  But, he says,

“It goes beyond that, beyond the legal limits, if you will. It’s more than just the folks at the top, it’s at every level. The person you hire today at a starting  analyst position may be a senior manager tomorrow.”

In response Dennis introduces a Pinkerton study that says 30% of the population  not only will steal if the opportunity arises, they will create an opportunity to do so. Forty percent will steal if there is little danger of getting caught, and 30% won’t steal at all.

The guests discuss the pressure that organizations are under to produce, most especially in business downturns. They touch on the global economy and how there may be “unique practices acceptable elsewhere but not here.” Yes, global organizations are coalescing around acceptable standards.

Statistics on why people make unethical decisions in the workplace are discussed:

• 80% Lack of personal  integrity
• 60% Job dissatisfaction
• 44% Financial rewards
• 41% Pressure to meet goals
• 39% Ignorance of code of conduct

They concur that at the end of the day- its still about personal integrity.

Todd Bluedorn leaves us with a thought that summarizes the theme behind this program, “If you live for today, you’re going to lose tomorrow.”

And a special thank you to the Institute for Excellence in Corporate Governance,University of Texas at Dallas, School of Management, (http://som.utdallas.edu/iecg/) for providing the guests for this 4 part series on Corporate Governance.

As always, thank you for joining us to talk about things that matter with people who care,

Niki Nicastro McCuistion
Executive Producer/Producer

***

1808 – 11.15.09

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Join us this Sunday, November 15th at 12 noon on KERA, Channel 13 for McCuistion TV’s episode: Is Corporate Ethics an Oxymoron?

Amidst the financial meltdown over the last few years, there has been  a seeming breakdown of the ethics of corporate executives. Some observers believed that the regulatory changes under Sarbanes-Oxley legislation passed in 2002 would eliminate illegal and unethical behavior, but is that the case?

Joining Dennis McCuistion to discuss this and other issues surrounding this question are:

• Sharon Allen: Chairman of Deloitte LLP
• Todd M. Bluedorn: CEO of Lennox International,Inc
• Jared Richardson: Sr. Counsel of Energy Future Holdings

The federal government took many quick actions in the wake of the credit crisis in order to stop the damage. Now it wants to implement new regulations to prevent future problems.  In this episode of McCuistion TV, we examine changes in corporate governance.

Joining Dennis McCuistion, for a lively discussion on this issue are guest experts:

Edward J. Durkin - Director of the Corporate Affairs Department of the United Brotherhood of Carpenters and Joiners of America

Francis H. Byrd – Managing Director and Co-Leader for the Corporate Governance Advisory Practice at The Altman Group

Robert Royer – Partner in The McPherson Group and former Legal and Legislative Counsel to the Securities Industry Association and former General Counsel to the Joint Committee on the Library of Congress and Counsel to the House Administration Committee of the United States Congress

Would you have believed me if  I had told you in 2007 that these things would happen…

• Bear Sterns and Lehman Brothers disappeared
• Fannie Mae, Freddie Mac and AIG have been nationalized
• Washington Mutual became the largest bank failure in history
• The $300 billion auction rate securities market disappeared
• Merrill Lynch was bought by Bank of America
• Morgan Stanley and Goldman Sachs are now bank-holding companies
• Congress approved a $168 billion economic stimulus package in February 2008, a $300 billion homeowner relief bill, and a $700 billion bailout of the financial system
• The Treasury has guaranteed $1.3 trillion in money market funds
• FDIC has increased deposit insurance to $250,000
• The Federal Reserve has injected over $1 trillion of liquidity into the banking system

…and if you were in DC at the time, what would your response have been?

The discussion on corporate governance focuses on what Government has done thus far and what it is likely to do.

Robert Royer tells us of the mood in Congress and that it (Congress)  “is  fashioning a  broad yet specific approach to the problems of meltdown.”  He informs us that there has been some legislation produced by the Administration and the House Banking Committee while while the Senate Banking Committee has been fairly quiet throughout the process.  The two banking committees, House Financial Services and the Senate, are “the two principle engines of any change that might take place in this area.”

Ed Durkin tells us about unions, their funds, and how they impact our economy, while Dennis reminds us  that union pension funds are huge, saying that “People think of unions, from a ‘40-’50’s perspective.” Durkin addresses this issue by discussing that Unions were the first to put in place employment pension funds.

According to Durkin, “unions are in a unique position to blend the interests of their members as workers as well as the interests of their members as owners.”

He believes we need to come up with a long term approach of value enhancement, reminding us that “the idea of workers owning America is one that people don’t understand.” Presently, there are over 100 pension funds in the country. He says, “we invest in the market.”

Francis Byrd tells us that board governance has now changed dramatically. “Share holders are far more interested in oversight of management and risk, strategic planning. They are on top of management, a huge dramatic change.”

Securities Exchange Commission (SEC)

The Securities Exchange Commission is a government agency.  Their role is to protect investors, not just institutions but individuals.

Has the SEC fulfilled its responsibility to its investors?

Royer says, there was a  lack of oversight and responsibility under Secretary Christopher Cox citing the SEC’s handling of Madoff.  They believe the SEC should have been tougher as the SEC did not have the most capable people with the best knowledge of exotic financial products.

With Chairman Shapiro there should be improved disclosure on companies and they concur that he is the right person for a very big task. They believe that Cox did  few good things, such as modernizing disclosure, but the new group will be more aggressive.

Federal Reserve and the Treasury

The panelists talk about the Federal Reserve and the Treasury and the power plays between them, over who is going to be that “over-arching regulator.”  The prediction:  The Fed will probably continue being in charge as the systemic regulator, despite  past missteps.

From the move to control executive compensation to amending proxie votes so brokers can not use shareholder’s votes to elect corporate directors, to proposed new regulations and the political environment – The Government’s Response to the Crisis in Corporate Governance gives us a well rounded education on what we must do to reduce future risk and negligence in corporations today.

Overall the crisis and meltdown may have caused much needed scrutiny. Thus, we are looking at longer term value creation for the good of all concerned.

And a special thank you to the Institute for Excellence in Corporate Governance,University of Texas at Dallas, School of Management, (http://som.utdallas.edu/iecg/) for providing the guests for this 4 part series on Corporate Governance.

Niki Nicastro McCuistion
Executive Producer/Producer

***

1807 – 11.08.09

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In Part One of this program the guests discussed the costs and causes of addiction. One point stood out: that addiction is a chronic brain disease.  As such, one time treatment is not going to stop addiction.  Dr. Kevin Gilliland makes a key statement, that 80% of those who leave treatment relapse in 2-3 months. Initial treatment is only the start – then it gets tough.

Panelists include:

• Christopher Kennedy Lawford – Actor, Author and  Public Advocacy Consultant for Caron Treatment Centers; New York Times bestselling author of Symptoms of Withdrawal: A Memoir of Snapshots and Redemption and Moments of Clarity: Voices from the Front Lines of Addiction and Recovery
• Kevin Gilliland, Psy.D- Clinical Psychologist and CEO of Innovation 360
• Bill Teuteburg – Interventionist associated with The Caron Foundation and a long term residential program known as Renaissance.

Christopher Kennedy Lawford talks about his history: family issues, the brutal assassinations of his famous uncles, John F. Kennedy (JFK) and Robert Kennedy, his parent’s divorce, and how as a 13 year old kid he looked for a way out. He was angry, he was terrified and drugs and alcohol were a way out. He mentions, “drugs allow us to deal with the world, then it takes you down this horrible path.” Chris, successfully in recovery, believes we have a responsibility to look at the disease and treat it. He claims it is often misunderstood and in fact still a stigma we don’t want to deal with. He predicts that someday people will routinely say, “I’m a drug addict or I’m an alcoholic.”

Bill Teuteberg talks about intervention and its many forms. He tells us that intervention used to have a negative connotation and is now developing a positive one.  “When you love someone, (intervention) is stepping up to the plate and telling someone, we’re afraid of losing you.” Intervention is many things and more than just about the person needing treatment. It’s also about what to do when there’s nothing left to do, when the pain for everyone is overwhelming, when so many things have been tried and do not work…

Dr. Kevin Gilliland counsels that treatment includes Alcoholics Anonymous (AA), support groups, therapists and physicians. It is not just being sober in between relapses. He believes the way we think concerning addiction is a challenge.  Often times people will assume that you can simply stop addiction by making one decision. However, it’s not simply an “episode” that once someone receives treatment, it’s over. In truth, once one gets treatment the chapter is just beginning.

Christopher Lawford Kennedy says, “until they diagnose themselves (an addict), is not going to get sober.” It’s about the addict saying, “I’m an addict. I’m an alcoholic.”

Bill tells us that no one ever does anything about addiction until there is a challenge, a consequence, “there has to be some kind of crisis.”

Chris says, “It’s like an elevator going down. I hit bottom for 9 years before I got sober.”

The guests talk about the psychic change that must occur before one can get sober, that there is a spiritual solution to the disease as well and anything else will fail, without this component.  We learn that the family of the addict is sometimes just as sick, if not sicker.

Bill tells us, “I refuse to do an intervention until someone in the family agrees to get treatment.” In fact, he tells us some families enter treatment in the same way the addict does.

Chris emphasizes that, “AA is the biggest social invention since Christ. It has helped more people than any other program combined.”

Bill says,

“It’s the hardest disease to raise money for. No one wants to be the poster child for alcoholism. We learn that 2.2 million people a year seek treatment for their disease- a small fraction of those afflicted. And while there are over 13,000 specialty clinics in the US, 54% have no physician on staff.

Yet, Dr. Gilliland raises some hope,

“In the past 15 years 3 medications for treatment have been approved by the FDA… more than in the last 50 years.” He says that pills are not going to solve everything, “but they help address the symptoms. It adds up to more sober and clean days and the more sober and clean days, the better the prognosis.”

Christopher Lawford counsels that society needs to have compassion. And the panelists tell us that until one is ready to stop addiction, to make a change, and accept responsibility to make that change… nothing will happen.

Bill asserts, “I was in 4 treatment centers in my life. The rooms of AA are where I got sober. You can’t do it alone.”

Tune in for some sound information on what to do about addiction and how to look for help as panelists discuss how to stop addiction and offer hope.

Niki Nicastro McCuistion
Executive Producer/Producer

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Addiction is the country’s #1 health problem. It affects business and disrupts personal lives. It costs businesses and individuals.  Joining Dennis McCuistion in this two part series are professionals  who proactively work to educate the public on addiction causes, the costs and the solutions to addiction.

• Christopher Kennedy Lawford – Actor, Author and  Public Advocacy Consultant for Caron Treatment Centers; New York Times bestselling author of Symptoms of Withdrawal: A Memoir of Snapshots and Redemption and Moments of Clarity: Voices from the Front Lines of Addiction and Recovery
• Kevin Gilliland, Psy.D- Clinical Psychologist and CEO of Innovation 360
• Bill Teuteburg – Interventionist associated with The Caron Foundation and a longer term residential program known as Renaissance.

Christopher Lawford Kennedy begins the discussion on addiction causes by touching on his own experience with addiction, mentioning that he was a highly functional addict and how that played out in his life. He touches on how addiction is psychological, sociological and environmental. He likens his experience to the result of a “perfect storm” of events. He touches on his traumatic childhood, from the divorce of his parents to the brutal assassination of two of his uncles. He mentions that at the beginning his addiction saved his life, “they (drugs) stopped working,” he says, “but they saved my life in the beginning.” Eventually, he says,  the addiction takes over and you’re dancing with an 800 pound gorilla.

Bill Teuteburg discusses the disease and how it  is even more  lethal than many  realize. “It’s not very often that you see alcoholism on a death certificate.  But you will see heart attack, falling off a ladder…” and the actual cause is an addiction.  Bill, now  an activist,  discusses  his personal experience. He has been in recovery from a heroin addiction for 24 years.

Kevin Gilliland touches on addiction as a  a chronic brain disease  and not solely  a moral  or responsibility issue. He discusses the  mixture of genes and environment and that individuals may have different reactions to drugs or alcohol, even in the same family.  “You just don’t know if you are the one that will have one sip and then your brain will be hijacked.” Like Christopher, he emphasizes that addictions may seem to “work”   but then they become a runaway freight train.

The panelists discuss our drinking age,  and if it should be lowered or not. This episode on addiction causes is truly an eye-opening episode that will leave you waiting for Part Two, where each of the panelists discuss what to do about addiction, how to get treatment  and the hope for resolving the problem.

***

1805 – 10.25.09

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In McCuistion TV’s discussion on Limited Government, the panelists focus their discussion on the credit crisis, free markets and limited government.

Joining Host Dennis McCuistion are:

• Thomas E. Woods JR., PhD, Senior Fellow of Ludwig von Mises Institute and author of Meltdown
• Doug Casey, Investor in The Casey Report

Doug Casey is not a fan of government as it is as he believes it coerces opinions. He feels entrepreneurs would be the better solution to many issues.

Dennis asks: Isn’t this anarchy?

In response, we find that Doug Casey believes that government’s role in a civil society is to protect us from force, inside and outside the bailiwick… and to adjudicate in a fair court system. He asserts that Government is a busy body and power monger and it does not serve a useful purpose

Thomas Woods believes that we need to return to the foundation of the US Constitution and 10th amendment. He believes that too many Think Tanks are chasing a unicorn with their asking for funding to curb spending, etc. and nothing happens. He says of Government that it has a monopoly to tax and that moral principles are abandoned when it comes to government. Government fails on absolute standards of society.

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1804 – 10.18.09

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In a conversation about the politics of freedom David Boaz and Dennis McCuistion answer the question: “What is a libertarian?” as well as discussing the societal fight over power and freedom since time immemorial.

Joining Dennis McCuistion is David Boaz. David Boaz is the Executive Vice President of the Cato Institute and author of Libertarianism: A Primer.

Dennis and David talk about the principles of libertarianism that are in the Declaration of Independence and the Constitution. They discuss absolute free trade and the conflict between big government, the Federal Reserve and free markets.

As they continue to discuss all that surrounds the question, “What is a libertarian,” they address the query of individuals having the right and responsibility to make decisions over their own lives, yet today government makes many of these decisions. The classical liberal position of the 18th century is discussed and how parties function today.

They continue to discuss libertarianism by discussing Think Tanks and the differences between them.  The Cato Institute, for instance, is fiscally conservative but socially liberal. David Boaz addresses the ‘polling’ Cato has done regarding how people view politics and parties. He states that many poll libertarian on the fiscally conservative, socially liberal side, with less government interference.

As a Think Tank, Cato is skeptical of government interference in your personal life, from what Americans read to whom Americans marry.  They believe that the government has no right to dictate values. Cato is different from the Heritage Think Tank, which is more conservative. Brookings, for instance, is more sympathetic to government and is further to the left on economic policies.

Dennis and David both agree that ideas are important and many voters don’t seem to care and certainly government does not. Policies are made by special interest groups promoting their own agendas. Yet independence is bred into the bones of the United States. It is what makes us a great country and freer than others. We have free enterprise, private property, religious freedom, and separation of Church and State.

Join us as we answer the question, “What is a libertarian?” and discuss issues surrounding libertarianism and the politics of freedom.

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1803 – 10.11.09

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During this episode on government spending, touching on budget deficits, the United States debt and taxes, Dennis McCuistion is joined by:

• Daniel Mitchell, PhD, Senior Fellow of the Cato Institute and former Senior Fellow for the Heritage Foundation
• Stephen Moore, member of the Editorial Board for the Wall Street Journal and senior economics writer
• Richard Rahn, PhD, Senior Fellow of the Cato Institute, Chairman of the Institute for Global Economic Growth. He is also a weekly economic columnist for The Washington Times.

During this engaging, high energy discussion on the role that government has played in the financial crisis of today, we are enlightened by the experts in causes, solutions, and cautions regarding budget deficits, United States debt and taxes.

Richard Rahn addresses supply side economics. Supply side economics is:

“a school of macroeconomic thought that argues that economic growth can be most effectively created using incentives for people to produce (supply) goods and services, such as adjusting income tax and capital gains tax rates, and by allowing greater flexibility by reducing regulation.”

Taxes

Addressing the flat tax, Richard Rahn says that it is presently used in 26-28 countries. However, Iceland is getting rid of their flat tax, which was too high at 37%. Flat tax is supposed to be a low rate system as it is in Central and Eastern Europe. He says flat tax is not a silver bullet. More growth and more entrepreneurship is still needed.

Stephen Moore and Daniel Mitchell also address the tax situation and address the fair tax. The fair tax is a national consumption tax that is essentially a sales tax. This would eliminate the need for corporate and personal income tax. They assert that this would be a dream come true and of great benefit, saying that the world is passing us by.  They warn, the United States may have to raise taxes to pay for the new health care system.

Spending some time to discuss big government and 2010, they touch on tax cuts, government spending and predict that the death tax, capital gains and personal taxes will go up in 2010.  The offer warnings on the vat tax as well.

Wrapping up the conversation, they discuss the Laffer Curve, tax rates, taxable income and tax revenue and how tax is collected. Citing  history, they discuss the President Regan Administration and the current concern about a massive tax increase on the middle class.

This episode offers compelling inside into today’s economic times. We welcome your comments on the episode below.

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1802 – 10.04.09

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Joining us for a new season of McCuistion TV, host Dennis McCuistion is joined by:

• Steve Forbes – President and CEO of Forbes Magazine and author of Power, Ambition, Glory: The Stunning Parallels between Great Leaders of the Ancient World and Today . . . and the Lessons You Can Learn
• Thomas E. Woods, JR., PhD – Senior Fellow at Ludwig von Mises Institute and author of Meltdown

During this conversation centering around the financial crisis, Thomas Woods asserts that people are tired of conventional wisdom.  Guest, Steve Forbes believes most of the present problem in the breakdown of the free market economic system was caused by huge government errors. Forbes contends that the Federal Reserve printed too much money and made it artificially cheap. In addition lenders such as Fannie Mae and Freddie Mac underwrote too many junk mortgages.

“If private business makes a mistake they pay for it, if government does, we all do. Wall Street underwrote and securitized, but government distorts the free market.”

Thomas Woods touches on his new book, Meltdown,  and the reason he pushed hard to have the book released early. He believes having a free market perspective on the credit crunch is essential for people to understand what has truly happened. He says, “the government and the Federal Reserve’s fingerprints are all over this situation.”

Dennis addresses the Fred Foldvary prediction of a real estate depression in 2008.

They conclude with comments on the speculation in real estate, the magnificent money creation machine government made and how this was an artificial stimulus to speculation.

—
1801 – 09.27.09

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Dennis McCuistion is joined once again by Fawaz Gerges, Ph.D. to talk about the situation in the Middle East and the past and future of Jihadists. Fawaz Gerges is the author of Journey of the Jihadist: Inside Muslim Militancy and the Christian A. Johnson Chairholder in International Affairs and Middle East Studies at Sarah Lawrence College.

Dr. Gerges joins us once again to discuss the impact of Jihadists. He states, “A Jihadist is an Islamic activist who wants to replace the secular state with Islamic Sharia Law with all means at their disposal including violence and terrorism to bring about their Utopia.”  But he says, “we’re talking about a tiny group, thousands, not millions.”

[flashvideo file=wp-content/uploads/1600/1603_jihadists-Jihadists-1603.flv /]

Dr. Gerges  goes on to talk about the limited group of extremists such as Al Qaeda,“who manipulate and distort Islam in order to garner political support at home.” He acquaints viewers further with why he conducted his studies, spending over 16 months in the Middle East region, interviewing Jihadists as well as mainstream Muslims. Dr. Gerges helps us to better understand what caused this problem.

Join us to get a clearer perspective on how the Jihadist movement has changed since its inception in the 1970’s beginning in Egyptian Universities as a socialist movement.  Through this episode you’ll also gain a more thorough understanding of how we got to 9/11 and where the dangers still remain.

Niki Nicastro McCuistion
Executive Producer/Producer

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1603

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