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Ethical Training: Ethical Means More Money

admin — Mon, 03 Aug 2009 06:27:00 +0000

“Most people and most businesses are devoted to doing the right thing. They are trying to deal with their customers, their vendors, their community, the environment, their investors and lenders all in a fair and ethical manner. If that’s true how come all we ever hear about are the Enrons and Adelphias? And how come TV shows, movies and literature always depict business as a dog-eat-dog world?

With many years as a journalist and marketing communications practitioner behind me, I see a simple answer to this paradox. Good news is not news. Drama about good guys is not as interesting as the scoundrels. Occasionally there’s someone like George Bailey in It’s a Wonderful Life who comes out on top. But even that took divine intervention.

The truth is most folks are out there doing what they can to do the right thing even though they are not at all sure they are in the majority. Make no mistake; there are those who cut corners everywhere. And we have all been tempted to cover up our mistakes for one reason or another. But the vast majority are trying to take the high road.

Take heart. There is a new movement afoot to spread the news that following the highest ethical standards is the best route to higher profits. The evidence is mounting that those companies that follow an Ethical Business Model make more money that those that choose less savory alternatives.

Think about it, it makes sense. As my daddy used to say, “Wouldn’t you rather do business with an honest business?” Wouldn’t you rather do business where the employees look forward to coming to work every day? Wouldn’t you rather do business with a company that helps out in the local community? That treats the environment like a fine watch. Of course you would. Sure you have to make money, but that comes naturally when you do the right thing.

It can pay off big time. The companies that follow this path stand to make many times the profits enjoyed by those who don’t. Does doing the right thing insure success? Of course not. You still have to work hard, and you have to be lucky. But all things being equal on those counts, you will make a lot more money by doing the right thing.

In my new book, Play Nice, Make Money, I trace the history of companies built on this principle from the 1700s right up to this year. I use history and current case studies on both good guys and bad guys. And I show solid research to back up my position.

Join the revolution, recognize that we are a majority. Stand up for what you know to be right and what you believe in. Living the ethical life is a lot more fun and everyone needs to understand that, especially young people entering the business world. The rewards are many, and one of them may be financial.

Bill McKibben is the author of Play Nice, Make Money Check it out here. He is the Senior Partner, Ethics Practice, of the Great Lakes Group.

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Tags: business, money, ethical, ethics, making

Healthcare Ethics, Don’t Lower The Standards For Profits

admin — Thu, 30 Jul 2009 02:25:00 +0000

Henry Ford mentions two types of people who are out to destroy business, in his book “Today and Tomorrow.” Professional Financier (Capitalist, in a bad way); one who is out seeking profit and only profit. Professional Reformer (Reform, in a bad way); one who is out to seek higher wages with fewer hours for the labor of the world. In Ford’s mind these two people have directly or indirectly caused a great deal of the business problems our world.

An old time example, is with “The Jungle” by Upton Sinclair. In which Upton writes about a profit driven company willing to sacrifice working conditions and at times human lives to produce meat for profit. Another older example includes the Homestead Strike of 1892, where the Financier demands returns while the Reformer demands wages. Eventual the tension broke and lead to the death of strikers and the Pinkerton Agents hired to protect strike breakers (Scabs). Ford isn’t with out common sense. In fact he has an entire chapter of his book dedicated to the profit and the ethics related. Profit isn’t bad, but it isn’t the only goal of a company.

A company exists to produce goods and services. While it’s being distracted by paying Financiers or caving in to Reformers, the business will loose sight of it’s goals and perhaps dissolve. Here Ford sums up what happens to a company that looses sight.

“Then, the development [of a company] having reached a certain stage, it is capitalized [and goes public]. Men of money see the opportunity to make more money. They set up plants, install machinery, and go to work. But the real product they aim to make is dividends, not commodities. Commodities are thought of only as a means to the dividends. If, in a pinch, anything must suffer, it will be the commodity, not the dividends. Every exertion will be made – wage reductions, quality reduction, quantity reduction, price increases – anything to save dividends.” – Henry Ford
This is an example of where dividends became the goal of the company. If you’ve been paying attention to business trends. You might be familiar with the short-sighted profit driven phenomenon.

Here are some examples:

China’s Baby Formula: the quality of the product was reduced for profit, resulting in many infant deaths.

US companies layoff (wage/time cuts) of 2008-2009; anytime in the US the possibility of layoffs is real, but here we’ve seen a huge turn for layoffs. This is nearly the same problem as a bank rush. Maybe instead of a bank holiday there should be a layoff holiday.

Price increase of energy in Texas with the advent of deregulation. Price doesn’t need to increase if the companies could find a more efficient way to produce energy.

If it looks like a duck walks like a duck and talks like a duck… Do you think theses companies may be suffering from quality issues? Let me say it again, a company exists to produce quality goods and services. We are currently in an ‘economic downturn.’ Now is the best time to separate yourself from the competition by seeking improved goods and services.

By Sean M. Dozier

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Tags: person, ethics, work, money, corporate

Money Lender In Social Ethics View

admin — Sat, 11 Jul 2009 04:45:00 +0000

My first job after finishing college was working at a small bank interviewing applicants for mortgage loans. My clients were referred to me by large banks that found their credit rating unacceptable. The job was easy and as long as the applicant had some means of making the payments they were accepted. All of my customers were trying to better themselves by having the financial security of becoming a homeowner. Many times I overlooked obvious false statements on the application in order to approve the loan. It made me happy to give somebody the opportunity to own a home. The high rate of interest I charged along with the small down payment was a smart business deal for my boss and was helping him get rich. My pay was good enough to buy a new Caddy Seville and the best of everything.. But After seeing so many of my clients having their homes foreclosed I began to feel guilty and could not sleep at night. I handed in my resignation and told my boss the reason why I was leaving. He said that I was wrong to feel guilty and explained to me why my job was ethical. I will repeat what he said:

“There must be lenders available that make loans to high-risk borrowers and therefore have to have high rates and fees. A mortgage seeker who is turned away from a bank because of poor credit history has to be given a chance to become a homeowner. There is nothing wrong with the lender that gives a borrower that opportunity by offering a higher interest rate. The transaction is of a voluntary nature and. the borrowers make the choice. If one has a poor credit history, then the choices are limited and there is no place to get a loan except with a high interest lender. Is that the fault of the lender? Did someone drag or drug the borrower and force them to accept the loan?”.

I did not agree with my boss and quit, soon I was hired at a national bank as a loan officer. But my guilt followed me to the new job because many of the applicants for a mortgage were low income people with a bad credit history, and were not acceptable for a loan. I felt bad when the manager turned them down. Some said the bank was guilty of redlining or racial discrimination, but the bank refused to change its policy. It was then time to look for new work because I decided that the job as a loan officer was not for me. The next job I took was as an accountant in the garment centre, five years later I applied for a low interest mortgage loan and became a homeowner. But I will always remember those that were not as fortunate.

melpol

Retired and single recluse

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Melvin Polatnick – EzineArticles Expert Author

Tags: money, business, legal, law, ethics

Investment Marketing

admin — Sat, 27 Sep 2008 16:03:00 +0000

Investment Marketing

Investment Marketing Hurdles for Hedge Funds

I just read an interesting article on AllAboutAlpha discussing the challenges today in marketing hedge funds to new potential investors. Within the piece AAA discusses how the US has one of the most restrictive regulatory regimes in the world when it comes to the hedge fund industry. The countries of Australia, Canada, Japan and China are all less restrictive.

Here’s a short excerpt from the article:

An article in this month’s Journal of Financial Transformation illustrates why this is. The piece, titled “Hedge fund marketing in an era of regulatory uncertainty” covers many of the issues faced by those trying to raise money in the US. It’s a great update on the ebb and flow of SEC edicts over the past year and was co-authored by hedge fund personality James Hedges. Here’s some of what Hedges suggests:

Avoid speaking to the media about your funds – even if you’re not actively selling, but just “conditioning the market”.
Avoid “print, radio and television advertisements or solicitations regarding funding or investment matters”.
When giving presentations, “address the risks associated with hedge funds in general as well as the specific risks associated with the hedge fund being offered.”
When your fund has a great year, make sure you “disclose the reasons for extraordinary performance…”
No “mass mailings” except to “individual investors, or a discrete group of accredited investors”.

Click here to read the full article.

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Tags: Marketing for Investments, Investment Marketing, Hedge Fund Marketing tips, Investment Marketing tips, Investment Marketing Regulations, Investment Marketing Group

Media Relations – Using Press Releases To Make Money Online

admin — Mon, 22 Sep 2008 02:46:00 +0000

If you know how to use press releases to make money online, you are likely to have the jump on your competitors when it comes to launching a product or starting a new business. Launching a new product can be tough because there are so many factors to consider, and it is even more challenging to make a new business known to your target consumers. There are many ways to reach out to your potential customers, but one of the best ways is to promote your business is through the use of a press release.

A press release is a means of communicating with the media and the public to inform them about the products and services that you are offering. Since the advancement of information technology has made worldwide communication more efficient nowadays, there are many ways available in which you can distribute your product information to your target audience. Sending out a press release is one of the best ways to inform the masses about your products, provided that it is well-written and the launch timed right, and so help you to make money online.

A press release is more subtle than ad advertisement, and it relies more on factual information than on marketing language to stir interest among consumers. You can focus on the features and benefits of your product without making an outright sales pitch. The release should be based on the credibility of your product rather than advertising hype that do not convince consumers of its quality. Having a credible press release enhances and expands your customer base, which will ultimately lead to better sales.

It has been proven time and again that a press release is one of the most effective ways to inform and educate people about products and services, and that its content is regarded as more believable that a direct advertisement. To make money online using press releases you have to ensure that they are well written and aimed directly at the reader. The reader should believe that it is written just for them. They are not adverts as such.

The most effective press releases are those that are succinct, data-focused and straight-to-the-point. Your press release should contain the kind of information that will convince your potential customers that you are selling quality products that are useful to them. It must contain all the aspects of good news feeds like who, what, when, why, and how.

The headline must be catchy so that it can attract the interest of the readers and make them want to find out what you have to say. The content of the press release must be truthful and detailed, and it should be engaging from the beginning to the end. Making money online is about persuasion, and your press release will likely be the first exposure that your potential customers have to your product. It must make them want to find out more about this great new product, or new business that has just been launched.

The main components of a good press release include the headline, which should catch the attention with a good benefit, just as any sales headline should, without being too sensational and offering impossible things. Thus, your new ebook on how to make money online could be launched with the headline “New Product Shows Internet Beginners how to Achieve Financial Independence”, and not “Make $10,000 in your First Week”.

The second headline is not believable. The first will not blow people away, but it will catch the interest of your intended audience. If you are targeting the more experienced then rephrase the headline to “New Product Takes Internet Marketers to Another Level”. A bit of thought could come up with something better, but you get the idea? You are not selling with a press release, just grabbing the readers attention. You could be more directly sales oriented with “Increase Sales by 30% Using New Tool”, as long as the benefit is feasible and believable.

Then comes the body of the article, where you describe the product in factual terms and focusing on what it can do for the purchaser. Finally end up with a short summary of the benefits and a URL or email address. You have to give the reader something to click on while their interest is still hot.

Double space it and make it no more than 1 – 2 pages long. To make it look more professional finish with three hash signs (#) centered under the last line. That is standard for a press release.

Sending out a press release is a cheaper way to gain publicity compared to the other means of advertising that are commonly used these days. If it is launched in the right place, it will be spotted by some reviewers, columnists, reporters or broadcasters, who will in turn get more people to read it. Having an effective press release also gives you the assurance that you have the backing of media groups, and this will help maintain visibility for your products.

Many companies have benefited from knowing how to use press releases as a marketing tool to help them make money online, and it is certainly not as risky as some of the other marketing strategies that are being used in the business world today. The success of your release depends on how well it is written, its timeliness, and the right medium to publish it.

Carol Oon is the “nice” mentor who writes articles on Home Business and Affiliate Marketing strategies. To get a free 7-day e-course on how she earns a living online, visit this site For more tips, you can also visit her blog Please feel free to distribute this article in any form as long as you include this resource box.

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Tags: press release, online, money, communication, advertisement

Media Relations – Using Press Releases To Make Money Online

admin — Mon, 22 Sep 2008 02:40:00 +0000

Double space it and make it no more than 1 – 2 pages long. To make it look more professional finish with three hash signs (#) centered under the last line. That is standard for a press release.

Carol Oon is the “nice” mentor who writes articles on Home Business and Affiliate Marketing strategies. To get a free 7-day e-course on how she earns a living online, visit this site For more tips, you can also visit her blog. Please feel free to distribute this article in any form as long as you include this resource box.

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Tags: press release, online, money, communication, advertisement

Hedge Fund Loans to Private Corporations

admin — Thu, 18 Sep 2008 01:05:00 +0000

Hedge Fund Loans

Corporations Seeking Capital From Hedge Funds

I’ve noticed a marked increase in the number of news stories, email inquiries and conversations over the past 4 months regarding private firms including corporations, patent portfolio companies and real estate groups seeking capital from hedge funds. This is for obvious reasons but is interesting none the less as many hedge funds may continue to pursue this “bank-like” strategy long after the dust settles. Small companies are always hungry for capital and many will agree to very aggressive terms in order to get to the next level. Here’s a short piece on this trend:

Smaller companies on the junior Alternative Investment Market (AIM) are being forced to borrow cash from hedge funds at “usury rates” in order to survive, Square Mile insiders have warned.

Some cash-rich fund managers are avoiding volatile equity and bond markets and instead lending to AIM firms, lured in by the prospect of earning giant fees.

“The kinds of costs involved in borrowing from some of these guys are huge,” said one city chief executive. “But they have no alternative in many cases because traditional bank lending has dried up. It’s like you or me being desperate enough to go and borrow from the local thug with a baseball bat.” The practice is thought to have crept in over the past few months as companies have suffered at the hands of the credit crunch during the summer. Read more…

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Tags: Hedge Fund Loans, Hedge Fund Capital Lending, Capital from Hedge Funds, Hedge Funds Funding Private Corporations, Hedge Fund Loan Programs, Hedge Fund Loan Applications

Prime Brokerage Boston – Meeting Notes

admin — Wed, 17 Sep 2008 17:11:00 +0000

Prime Brokerage Boston

Prime Brokerage Boston – Meeting Notes

Yesterday I had a lunch meeting with two prime brokerage professionals in downtown Boston and the conversation quickly turned to the high demand for cap intro services for hedge funds.

The main problem with capital introductions being made by prime brokerage firms is that many hedge funds are not competitive enough to market. Many managers with negative or sub-par performance would still like to grow their business but the fact is most investors won’t consider hedge fund managers who are both relatively small and have mediocre or poor performance, there is nothing engaging enough that will convince investors to look past those two facts, they hear hundreds of stories and see as many teams pitching their outlook on the markets each year.

This leaves prime brokerage firms with two choices – offer capital introduction services knowing that there is almost no chance of raising assets or tell the hedge fund manager that they will not be able to market their strategy. The best prime brokers will often help with pre-marketing activities such as operational and risk assessments, marketing material scrubbing, newsletter development, etc.

This may seem straightforward but it is often an unsaid thorn in the side of prime brokerage firms offering capital introductions for hedge fund managers. They want to provide this service to everyone possible but by nature only 10-25% of all clients really qualify for the service.

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Pequot Capital Management Hedge Fund

admin — Tue, 16 Sep 2008 19:33:00 +0000

Pequot Capital

Pequot Capital Management

The following piece on Pequot Capital Management is being published as part of our daily effort to track hedge fund events and managers in the industry. To review other hedge fund related announcements and manager notes please see our Hedge Fund Tracker Tool.
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Resource #1 (5.26.09) Arthur Samberg, among the best-known hedge-fund managers, is closing down his firm amid an ongoing investigation into possible insider trading.

“Public disclosures about the continuing investigation have cast a cloud over the firm and have become a source of personal distraction,” Mr. Samberg wrote in a letter that was sent to investors of his Pequot Capital Management Inc source

Resource #2: (12.9.08) Documents filed in a Connecticut divorce case disclose that Pequot Capital Management C.E.O. Arthur J. Samberg or his hedge fund is making so-far-unexplained payments of $2.1 million to a former Microsoft employee who figured in a now-closed insider-trading investigation of Samberg.

The Securities and Exchange Commission closed its investigation of Samberg in 2006 without filing any charges, although the Senate Judiciary Committee a year later faulted the S.E.C. for the way it conducted the investigation and allegations that a related case had been influenced by politics.

Records obtained from Connecticut Superior Court in Stamford show that Samberg or his firm has paid the former employee, David Zilkha, $1.4 million in two equal installments since April 30, 2007, and has promised an additional $700,000 in April 2009. source

More Resources

In 2004, Pequot expanded its upper management team. “Employee-owned, Pequot Capital offers funds that focus on technology, health care services, and small-cap firms to institutional investors and wealthy individuals.”
Pequot Management’s venture capital arm, “Pequot Ventures” split from the company and formed “FirstMark Capital”. The move was described as “the next logical step” for both Pequot Capital and Pequot Ventures. The move does not appear to effect Pequot Capital’s Hedge Funds since Pequot Ventures was run separately from the rest of the firm.
Pequot Capital Management’s Chief Investment Strategist shares his ideas during a Financial Round Table Discussion in January 2008. He believes the current market condition and credit crisis are more serious than most people believe. He also thinks that many investors under estimate the seriousness of the energy situation as well.
A Congressional report came out that the SEC made a mistake in its dealings with Pequot Capital Management. Pequot was suspected of insider trading. The report says the SEC mishandled the case by making a series of mistakes to compromise the investigation. The SEC closed its investigation of Pequot without taking any action against the firm.
Pequot Capital is the majority shareholder of Midwest Air Group Inc. (8.8%) Midwest Air considered pursuing a “$16 per share all-cash proposal from a private equity firm and its consortium.” Pequot Capital Management wrote a letter to the company claiming that this proposal is not in the best interest of the shareholders and that a cash and stock deal would be better. The article contains a copy of the letter sent to Midwest Air.
Pequot Capital Management’s chief investment strategist Byron Wien’s August 2008 market commentary focuses on South America. He specifically mentions how Brazil has become a hot bed for growth and the country has seen a huge inflow from US investors. He also discusses why Argentina, Brazil’s neighbor, has remained relatively stagnant.
New development at Pequot Capital Management called the “Emerging Manager Program” The idea is a pool of capital run by 13 managers using 12 different strategies. The article talks extensively about the firm and its global strategies and risk management.
Byron Wien’s top 10 surprises of 2007. He predicts oil and gold prices will rise despite a world wide economic slowdown. He thinks Asian emerging markets will peak, and focus will shift to Latin America.
Byron Wein’s predictions for the top surprises of 2008. He predicted a US recession, a surge in commodity prices, and rising inflation. He also thinks Obama will be elected president in the upcoming election.
Pequot Capital recently launched a global long/short fund in April 2008, its second new Hedge Fund of the year. The “Pequot New Vision Fund” contains $18.1 million is assets. The Fund will attempt to earn “attractive returns with consistent alpha by identifying global emerging growth opportunities that are fundamentally mispriced by the market”
Provides a brief snapshot of Pequot Capital Management. Contains descriptions of the firm’s overall strategies and tendencies. Also mentions the company directors and where the offices are located.
From Dec 2007, the article talks about the firm’s Short Credit Fund up 18% YTD. The fund placed bets on rising mortgage defaults that paid off big with the current credit and sub prime mortgage crises.
Dated Nov. 2007. Talks about the Global Core Fund, the “flagship fund” with $2.6 billion in assets has gained 37% YTD under the management of founder Art Samberg and Mike Corasaniti. The firm also decided to close 3 poor performing funds and move the money into other core funds.
Talks about the plan for Pequot Ventures to break away from the firm and become an independent private equity firm known as FirstMark Capital. Pequot will still be affiliated with the newly independent firm. . One of the major reasons for this potential split is that the Hedge Fund has decreased its interest in the technology sector, while the VC branch still focuses primarily on tech.
Pequot teams with Pangaea Capital in Singapore. The firm’s focus in Asia has become “distressed assets” instead of “publicly traded stocks” Pequot has made a strong push into Asia, as the firm traditionally invested in US equities. Pequot’s was seeking $300 million for its Pequot/Pangaea Asia Opportunities Fund.
This pdf file is an interview with an employee at Pequot Ventures, the VC arm of Pequot Capital Management. He talks about what the firm looks for in their employees. He also discusses the investing strategy of the firm.

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System Absolute Return SAR

admin — Mon, 15 Sep 2008 08:46:00 +0000

System Absolute Return

SAR Launches Volatility FoFs

The following piece on System Absolute Return is being published as part of our daily effort to track hedge fund events in the industry. To review other hedge fund related announcements please see our Hedge Fund Tracker Tool.
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Zurich, Switzerland-based System Absolute Return has launched a segregated portfolio with exposure to two volatility arbitrage strategies. The SAR Four Seasons SP will invest in two hedge funds: One manager has applied a split/strike conversion strategy and the other has applied a short strangle strategy , protected via a long position in the volatility index, according to the firm. The two strategies are managed separately by a U.S.-registered investment advisor and by a broker/dealer, respectively.

“With one underlying fund closed to new investments and the other quickly approaching that point, SAR’s feeder not only provides access, but also 1:1 leverage on these investments,” said the firm. “The underlying hedge fund managers are truly legends in their fields and this SP provides a unique opportunity to gain exposure to their strategies.” Read more…

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