Thursday, July 12, 2012

We are getting better at


Company executives are paid to maximize profits, not to behave ethically. Evidence suggests that they behave as corruptly as they can, within whatever constraints are imposed by law and reputation… the furious rush of corporate cash into the political process — which differs from bribery in that companies pay politicians to change laws rather than bureaucrats to ignore them — is unlikely to foment ethical behavior.
In this way, money’s corruption of politics makes fraud and corruption easier and more likely for corporations. Need another example? Take the reverential treatment availed to Jamie Dimon by the Senate Banking Committee, even after his JP Morgan lost $6 billion.
No wonder Americans don’t trust banks (or politicians):