Posts Tagged ‘rules’

Placement Agents Pay to Play

admin | Monday, September 21st, 2009 | No Comments »

Placement Agents Pay to Play

4 More Firms Settle in Placement Agent Pay to Play Scandal

pay to play Placement Agents Pay to Play

The use of placement agents has come under fire following a public investigation into the practice and investigations into whether a pay-to-play scheme is used in attracting capital from pension funds.  The most recent development is that New York Attorney General Anthony Cuomo’s investigation into pay-to-play arrangements between the state’s pension fund and placement agents for private equity firms has forced four more firms to settle.  Reforming the current system has been met with some resistance especially from firms who argue that outlawing the use of placement agents puts smaller and new private equity firms at a significant disadvantage in raising capital.

The four private equity firms are: Access Capital Partners, Falconhead Capital, HM Capital Partners and Levine Leichtman Capital Partners.  Each has agreed to adopt the rules proposed by Mr. Cuomo barring the use of placement agents to attract funding from pension funds.  Additionally, each firm will pay a total $4.5 million in damages.  Carlyle Group and Riverstone Holdings already settled with the Attorney General. 

“With seven firms now having signed our code of conduct, momentum is building in the industry to make our code the national standard to eliminate pay-to-play in public pension funds across the country,” Cuomo said.

Six people have been indicted so far in the scandal at the New York State Common Retirement Fund. Two have pleaded guilty for their role in the scheme which paid kickbacks to a pair of top aides to former New York Comptroller Alan Hevesi, whose office oversees the Common Retirement Fund.

HM Capital and Falconhead both employed a firm run by a key Hevesi aide indicted in the scandal, Hank Morris, while Access and Levine Leichtman unknowingly hired firms that split fees with Morris. Access had hired Barrett Wissman, who has pleaded guilty for his role in the pay-to-play scheme, who in turn allegedly paid off Morris to win the firm business.  Source

Meanwhile, the SEC’s proposed guidelines that aim to clean up the pay-to-play system may have a very damaging effect on new and smaller private equity firms.  The current system (ethical, or not) enables small and newly launched private equity firms to net capital from investors that it otherwise probably would not have access to.  The big buyout shops are able to use name recognition and a proven track record to entice investors without the need of placement agents, although some big firms use them anyway.

Without using such agents, small and new funds will have a tougher time raising money, critics say. While large, established firms are well known enough to simply contact a pension fund directly, smaller funds without a brand or history have a far tougher job getting heard.  “I think the proposal’s a bit draconian, particularly on banning placement agents,” said Steven Kaplan, a professor of finance at the University of Chicago.

Supporters of the placement agent industry — which includes brand name firms such as Credit Suisse’s (CSGN.VX) placement agent unit and Blackstone Group’s (BX.N) Park Hill Group — argue that their role has no similarity with political fixers, and they should not be tarred with the same brush.  Source

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Tags: placement agents, new york, rules, anthony cuomo, attorney general, private equity, buyouts, placement agents pension funds, new york pension probe, placement of pension funds, pay to play scandal

Leadership Ethics Training: Changes From Top Till Flow To the Bottom

admin | Sunday, August 2nd, 2009 | No Comments »
Leadership Ethics Training Changes From Top Till Flow To the Bottom Leadership Ethics Training: Changes From Top Till Flow To the BottomManagement is the process of planning, organizing, directing, coordinating and controlling. Pig management is the management which follows the same managerial process and has a comparison with lower management. It is impossible that a Pig can look at the sky. It only looks down and runs with other pigs without aiming.
A Few Indian Management (Industry or Institution) follows Pig Management. The nature of the management only gains the profit not providing quality. They have a comparison with lower industries and Institutions. They don’t like to see the sky and assent for quality management. They are happy about their profit. In case, they are not able to get Profit, they fire on their employees without searching for solution.
If they reach profit, they praise themselves.

The pig management needs the people those who are always praising the management without any reason and recognizes the person one who acts as smart without having any knowledge.

The rules which are created by Pig management are being destroyed by them and their followers. Rules are for others not for them. This is the mantra of Pig management.

Pig won’t provide any benefits to others and can find in the dirty place. Pig management won’t execute benefits but put blame on others.

Pig management gives more works to others and recognizes one who is not in the role.

How to avoid pig management:

The organization is succeeded, only if employees are encouraged to give new ideas and ask “W-H” questions. There should be informal meeting among quality circle to bring forth new concepts when they are free.

If pig is alone, it is so aggressive. Likewise, if management takes decision without allowing other pigs to enter, then they can be more aggressive.

Extolling is the dangerous poison for an organization. Encouragement, appreciation and recognition of the people pave the way to lead in a right path. Eulogizing always others or oneself affects the management. So that wisdom worker (Smart + Hard work) can not be identified.

The management should have round a clock with employees. Based on their contribution towards work, they should be recognized. The management should avoid the people who always praises and their followers.

The management should try to find out who are all cunning in nature and they should be penalized.

The management should encourage adaptive program for Women and Relationship building for all. Once in a month, they could arrange program for their family members.

Before closing my pen, Friends, Just think of yourself and identify your concern whether you follow pig management or not. If it is, it is red signal for your organization to eat poison by yourself. Open your eye and change the methodology of your concern from Pig to Ant management.

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Tags: management, work, rules, law, legal

Moral and Ethical Points In Dismissing Incompetent Employees

admin | Sunday, August 2nd, 2009 | No Comments »
Moral and Ethical Points In Dismissing Incompetent Employees Moral and Ethical Points In Dismissing Incompetent EmployeesAs Solicitors we have organised a series of employment law seminars over the past few years and the normal attendance has been around 60-70 general managers and human resource managers. However, the latest course about dismissal for poor performance attracted around 140 bookings! It seems clear from the popularity of this seminar that this issue really matters to local businesses.
The main risk involved in dismissing an incompetent employees is losing a claim for unfair dismissal and having to pay an award of compensation for loss of earnings of up to £53,500. This is generally only a risk where employees have been employed for at least 12 months.

In order to justify the dismissal of an under performing employee, the business will need to show that they honestly and reasonably believed that the employee was failing to meet established standards. It is generally accepted in employment law that businesses are entitled to introduce rigorous standards of performance provided that they are not unachievable and provided that they are consistently applied. Many businesses will adopt standards in the form of sales targets or productivity requirements.

Assuming that an employee has failed to meet established standards, the business will still be required to follow a fair procedure before dismissal. This will generally include giving a formal written warning to the employee and then a final written warning. The employee needs to be given an opportunity to improve and their performance needs to be monitored. Although there is no strict duty to help the employee, businesses should act reasonably in responding to requests for help. There is a specific duty to make reasonable adjustments if the employee concerned suffers from a disability.

Assuming that there is no improvement following a final warning, then the employer can proceed with dismissal. However, it is essential that the employer holds a formal disciplinary hearing before dismissal and gives the employee an opportunity to appeal against dismissal.

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Tags: employee, ethics, training, business, rules

Verizon – Ethics Should Play The Greatest Role In Business

admin | Sunday, August 2nd, 2009 | No Comments »
Verizon Ethics Should Play The Greatest Role In Business Verizon   Ethics Should Play The Greatest Role In BusinessWhether you want to buy a used phone as an upgrade to your existing account or simply replace a broken one, it is getting more and more difficult if you are provided service by Verizon. It seems that Verizon has taken steps that are not in the best interest of their customers, almost forcing them to buy brand new phones rather than reactivating used ones.
It is no doubt that cell phones are BIG business and it seems that Verizon might be making some attempts to make it even larger and more profitable for them. Keep in mind that when you “sign up” for service from one of the major carriers you usually sign a 2 year contract. Not too long ago it was only one year. You are also charged an early termination fee if you should happen to break that agreement. The new trend that seems to be employed, most notably by Verizon, is to retire your cell phone once your agreement is up and you choose to move on or upgrade.

So what does “retire” mean? How do you retire an old phone and why should anyone care? First of all, “retire” means disabling the ESN (electronic serial number) that identifies that phone. This means that once the phone has been disabled, it can no longer be re-activated. So again, you might ask, “What’s the big deal”? Well, the reasons are two fold.

1. First, and most importantly, that phone is your property. If you should decide to change carriers after your term is up or upgrade to a new phone, you should be able to do what you want with it. It is somewhat similar to your car. Once your payments are up, does the finance company deactivate the VIN thus rendering your automobile useless? Of course not. So how does a large carrier, like Verizon, get away with it? Technology changes so fast that the laws cannot keep up with it. Eventually, a young, new and energetic lawyer will initiate a class action lawsuit that will force the courts to examine the issue. That is similar to what is going on now regarding the early termination fees that the carriers charge for breaking contract. There is Governmental movement to ban the practice. But again, let’s not gloss over the ownership rights of the phone. You bought it, that gives you ownership. Ownership grants you the right to do what you want with the phone (within legal boundaries). To have a carrier render the ESN useless could be construed to be nothing less than stealing the phone from you. You are probably thinking, “Why would they do this? How could they benefit from this?” The answer is simple. Revenue. If you cannot reactivate a used Verizon cell phone and you have more time on your contract, then you must buy a brand new one. So the next time you drop your phone one too many times or get it wet and it doesn’t work anymore, the likelihood that you will be able to go online and buy a used Verizon cell phone will be slim to none. Get ready to shell out several hundred dollars for a “run-of-the-mill” cell phone. So now you own a useless phone which brings us to the second reason why you should care.

2. The second reason you should care centers around the environment. If you have 1 million Verizon cell phone users over the course of say five years have their cell phone ESN’s retired, then what do you think might happen to them? I would venture to say they would not end up at a recycling plant! I doubt anyone will take time out of their day and spend a fortune in gas to drive to a recycling plant to dispose of one or two phones; it just isn’t going to happen. They are more likely to find their way into your household garbage which will find its way into our landfills. The problem? Cell phones are highly toxic and enough of them could do serious and irreparable damage to the environment. It is irresponsible for a company of that magnitude to inadvertently encourage people to dump their useless cell phones into the environment, all in the name of the dollar!

That is the fundamental reason behind the creation of cell phone buyback companies, such as SellMyOldCellPhone.com, to help recycle used cell phones and keep them out of the landfills. So that when people broke their phones, they could purchase a lesser expensive alternative used cell phone. Some people simply want to upgrade, but before buying the new one, they want to try a used one first to see if they like it. When carriers render the ESN useless, they cannot do that. People are forced to buy brand new phones. Old useless cell phones end up in the garbage, polluting our environment.

What can you do about it? The best thing to do is just be aware of this. Knowledge is power and power enables people to make change.

1. First and foremost, when you call an agent on the phone or visit one at a local store, do not be surprised when the first thing they tell you is, “It can’t be activated.” Do not settle for that as an answer. Some agents simply do not know what they are doing. I have encountered that problem numerous times. Insist on another agent until you get one who can handle the problem or request to speak to a supervisor. The ones who may lack knowledge are followed by the ones who were trained to “sell, sell, sell.” You can’t make a commission if you don’t sell service, accessories, or a phone and a store cannot make money if they don’t sell service and phones.

2. Do not hesitate one minute to write a letter to the company threatening to cut off your service and go with another carrier. You might think, “Big deal, no one is going to listen to one letter,” but you would be surprised what happens when they start getting a stream of letters all threatening to cancel service. Sprint had the worst customer service record of all the carriers for several years recently and eventually culminated into a huge financial loss, thus forcing them to change their practices. They had what appeared to be the highest exit rate in their history. Also, don’t be afraid to follow through with your threat. They are a cell phone service provider, not a home or auto loan. There are no legal repercussions. Look for companies that do not engage in these practices. A lot of small, local cell phone carriers (like Pocket PC and Cricket) have these practices. They are month to month with no termination fees.

3. Finally, if you choose to sell your cell phone to a buyback company, such as SellMyOldCellPhone.com, let the carrier know that they must “release” the ESN for reactivation. All release means is that they remove your name from the phone and make it available for re-use. Do not settle for any excuses as to why that cannot be done. You are the customer and the phone is yours as long as you have met your obligations (which might be changing soon, regarding the termination fees).

We let these large companies dictate to us how the rules work, when in reality, without our money, they have no rules. We are all guilty of just accepting what we are told by these giants, but sometime we need to remind them who pays the bills!

Mr. Johnson has been the operations manager of a website for the past several years. He has noted a large increase in the number of Verizon phones that cannot be reactivated. A similar trend has been noted in the industry.

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Tags: legal, ethics, problems, rules, professional

Ethical Legal Issues-Business Legalities And The Right Side Of The Law

admin | Sunday, August 2nd, 2009 | No Comments »
 Ethical Legal Issues Business Legalities And The Right Side Of The LawStarting a small business is no child play! The rules and regulations governing enterprises might seem quite complex and more than anything…endless! While it might be a bit frustrating, it is very important to get the rules right before contemplating a new business. Starting with naming the business, right until expansion plans and beyond, the legalities must be taken care of to avoid greater trouble later.
Queries regarding the mandatory procedures and accompanying paperwork tops any amateur entrepreneur’s FAQ list. Some of the most basic requirements are as follows:

Business license: In the United States, a business license is a must in order to conduct a legal business. The regulatory authorities differ depending upon the location of the business. If you plan on operating within a city, then such a license can be applied for with the relevant authorities of that city only. Other countries will also have their own specific set of requirements.

Naming the business: So, you have a very catchy name for your business, eh? Better check if it is available, before you get sued for trademark violation.

• Register the name as a fictitious one if you plan on conducting the business in any name other than your own.
• In the U.S., sole proprietorships and partnerships will have to register their trade name with the secretary of the state.
• Likewise, corporations will have to register with the Department of Financial Institutions of that particular state.
• Register the trade name as a trademark if you intend to sell products under the same name.

Form of ownership: Business organizations could be of different types, such as sole proprietorships, partnerships, incorporated businesses, so on and so forth. Tax and liability issues are different for each and hence you may need to consult a legal expert for help. Some of the relevant documents that come into the picture are listed.

• Partnerships: Although not a compulsion, partnerships could file the articles of partnership with the state government. Buy and sell agreements between the buyers and sellers ought to be maintained for convenience.
• Limited Liability Corp. (LLC): Articles of organization, operating agreements, buy and sell agreements are some of commonly used documents.
• Corporation: A pre-incorporation agreement must be put in order. Approval for incorporation must be sought from the government after filing the articles of incorporation with them and in response, the state government will issue a Charter for Corporation, stating all the powers of and laws to be followed by a corporation. Buy-sell agreements must be taken care of as well.
• Sole proprietorship: This is among the simpler forms of business organization and involves very little paperwork.

Location: One may need to take zone permits for locating a business in a particular area, especially if it involves manufacturing or selling. The zoning department must be contacted for the same. Ensure that your business also has the relevant environmental permits, which is currently an area of great concern.

Employees: While hiring people, strictly adhere to immigration and child labor laws. The employment eligibility of new employees will have to be verified in accordance with Federal Immigration Reform and Control Act of 1986 and the relevant document is the Employment Eligibility Verification Form I-9. Compensation offered must not be in violation of minimum wage laws. The U.S. Department of Labor, Wage and Hour Division will give you all the relevant information on labor laws. An unemployment insurance tax will have to be paid to the state if you employ personnel for 5 months or more, or if you have paid out gross wages of $1,500 or more in a year’s time. The rates of taxation might vary from state to state.

Intellectual Property Rights: IPR, as it is known, should be used to protect your ideas from being misused or appropriated by others. You can either register the intellectual property as a trademark, or protect it under the Copyright and Patent Act.

Taxation: Legalities surrounding taxation must also be strictly adhered to. From the employee’s compensation, you will have to deduct taxes payable to the federal and state governments apart from the deduction for employee insurance. In addition, businesses have to pay taxes on their own income to the federal and state governments.

Health and Safety: Health and safety standards must be maintained at work in order to ensure the safety of employees. Most states have similar standards and for more information, contact the local OSHA (Occupational Safety and Health Administration) office. Every enterprise employing three or more people must provide for insurance against on-­the-­job accidents. More information can be obtained from your state government office.

Seller’s permit: A seller’s permit will be required if you plan a retail outlet.

Find all the legal forms and contracts that you may need. What is most confounding about the legalities of starting a business is perhaps the complex terminology used could help you deal with the particularly tricky stuff!

Laws exist to make processes a whole lot smoother and are essential for any well functioning society. While the legalities involved in starting a business may seem onerous, once you deal with them, consider half your troubles gone!

Hi, I’m Akhil Shahani, a serial entrepreneur who wants to help you succeed. If you like to work smart, check out here. It’s full of articles and resources to help you start and grow your business successfully. Please visit us & download our special “Freebie of The Month” here

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Tags: business, law, legal, ethics, rules

Ethics Review: Why Do Clients Distrust Contractors?

admin | Friday, July 31st, 2009 | No Comments »
Ethics Review Why Do Clients Distrust Contractors Ethics Review: Why Do Clients Distrust Contractors?If we start out with this question, what comes to mind? Where does this come from? Kind of like, which came first the chicken or the egg? I really believe that the person that holds the purse strings is one of controls the situation. So where do bad contractors fit in?
A possible scenario of events that cause a client to distrust contractors or say that contractors are no good, starts with the client wanting a job done, and through whatever means calls several contractors in order to obtain estimates for their job. The customer then asks for a price for painting their house. Let’s say there are three contractors, these three contractors individually meet the client. The client then asks each contractor as much information as they think they can get. As soon as these contractors leave the client forgets which contractor said what. The contractors then estimate the job. The client then asks the contractors to e-mail, fax, mail or drop off their pricing estimate. The client then takes the estimates and lays them out on the table. The majority of painting contractors estimates are not very detailed, so the client focuses on one thing – .Price.

Whatever little bit of benefits and features each individual contractor was able to give the client was lost in the jumble of the three measure calls. The client completely forgot, who said what. And they don’t care, because all their friends tell them they have to get the lowest bid. So they take the lowest bid. Most successful contractors know, this technique of choosing, is really not the best way to choose.

The method of choosing the lowest price does not guarantee a good job. For the most part, the low bidder will not be qualified to do the best job. There’s a good chance that the low bidder either doesn’t know how to estimate, or is so desperate for work that they will give it away. Being desperate for work, only tells me one thing, they are very new, or very bad contractors. The other two contractors may or may not have provided a good job. However this method of choice guarantees a bad job. Why? If the job was bid so low, then the contractor may find halfway through the job that if he were to finish the job, he would be working for minimum wage or less. And so he leaves the job in the middle, unfinished.

Now of course the client is in a bind, embarrassed, angry and puts the blame entirely on the contractor. Hopefully, the client doesn’t generalize. The problem is when the client talks to his or her friend; they need to justify their position in this mess. So it becomes all contractors are bad. The first mistake was blindly taking the low bidder.

Their second mistake was not admitting their role in the screw-up. I have heard this story so many times, and wondered so much about how the contractor gets a bad name. And I thought about this, and know that this is the way that it happens, a lot of the time. But what it boils down to be that the client was in complete control of the money creates their own mess. And the most stupid part of the whole thing is that nothing seems to change. Oh yes I know, some people really do know how to choose the right contractor for the job. And I do know that there really are bad contractors. I believe these bad contractors are new and inexperienced, because bad contractors do not last. But I think smart customers and bad contractors are the minority. The majority of customers, unless educated to what makes a good job will always pick the lowest price and guarantee that they will get the worst contractor.

Do you want to make more money and have the freedom to enjoy your life?
Download this: Freedom and Money Patrick Cavanaugh has been coaching painting contractors and running a successful painting business for 30 years.

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Tags: business, legal, law, rules, customer

Introduction to Ethics For Success In Business

admin | Friday, July 31st, 2009 | No Comments »
Introduction to Ethics For Success In Business Introduction to Ethics For Success In BusinessRecently I had a client ask me questions about another client. He was a bit taken back when I would not answer his questions. He asked me, “Why Not?” He was not that satisfied with my reply that it was the same reason I would not discuss him with anyone else. I then had to tell him about the Rules of Professional Conduct that I adhere to, which includes a rule on confidentiality of information. This rule states in part that a lawyer shall not reveal information relating to the representation of a client unless the client gives informed consent.
As an attorney, I am bound by confidentiality. I could lose my license to practice law by breaking this rule. In business, even though you are not bound by a set of professional rules of conduct, being discreet is also essential. Too many people overlook the importance of confidentiality in business.

You must remember, each time you disclose information about another person, regardless if in a meeting, around the water cooler, or at happy hour after work, the person you are telling the information to may enjoy hearing the scoop, but most likely on a deeper level don’t like the act of your telling them.

If I’m sitting there telling you what Joe has been doing, you can’t help but wonder what I might be telling Joe about you. When you violate confidences, it often comes back to haunt you. Unfortunately, many people learn this the hard way. This hard-won wisdom is often embarrassing and therefore the humiliating lesson sinks in. It’s unnecessary though, just remember that loose lips sink ships and curb your gossiping and be discreet.

Indiscretion and breaking confidences always leads to problems. To prevent these problems, don’t say anything, or put into writing anything, that you wouldn’t want the person you are speaking about to hear or read. Presume that everything you say will be heard by those you are talking about. Presume everything you write will be read by all parties involved with the message. You do not need to be an attorney to keep confidences. A little discretion goes a long ways to prevent problems and ensure you are someone people trust. This trust will lead to greater success. So be discreet!

Alain Burrese, J.D. is a mediator/attorney with Bennett Law Office P.C. and an author/speaker through his own company Burrese Enterprises Inc. He writes and speaks about a variety of topics focusing on the business areas of negotiation and success principles as well as self-defense and safety topics. He is the author of Hard-Won Wisdom From the School of Hard Knocks, several instructional DVDs, and numerous articles. You can find out more about Alain Burrese at his website and here

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Tags: business, ethics, rules, law, legal

Ethics Training Classes: Use Ethics In Life

admin | Friday, July 31st, 2009 | No Comments »
Ethics Training Classes Use Ethics In Life Ethics Training Classes: Use Ethics In LifeI didn’t choose entrepreneurialism. It was thrust on me by unemployment. In a way, that was a good thing.
When I lost my job, I was mad — really mad — for a good long time. It’s natural, a part of the grieving process, I guess. The source of my anger was injustice; I felt that I had been let go out of political maneuvering and not out of any valid business logic. I’m still pretty sure that was the case, but I’ve moved on. One very important lesson learned out of that experience is that it’s just awful business practice to treat people as expendable, but that’s only one tiny part of business ethics. Since going into business for myself, I have followed the Golden Rule with much success: Do unto others as you would have them do unto you.

Whether you’re dealing with a client or a vendor, this rule applies. Do right by people, and they will do right by you. Your business will grow as a result. Below are some simple practices that have put money in my pocket. They may work for you.

* Give the people what they want. It’s not about you. It’s about them. A lot of times we get wedded to our way of doing things, and we forget that our purpose in business is to provide people with what they want. You don’t need to build a better mousetrap. Just build the one they want.
* The customer is king. You may have a client who is a pain in the neck. You may be tempted to let them take their business elsewhere. I would advise strongly against this. Serve them up a smile as you accede to their unreasonable demands. You will be surprised how the most demanding people can end up being very nice if you just give them a chance. Plus, they have friends and the best advertising is word-of-mouth.
* Honesty is always the best policy. One time I got a little behind on payments to a vendor. Rather than jerk them around or dodge their calls, I simply said, “Look, my cash flow is a little tight. I can give you $x today $y next week and $z the week after that. Is that OK?” Yeah, it was OK. It works in sales, too. Divulging some of the potential pitfalls of a product or service can often lead to an up-sell, and it definitely enhances your prospect’s trust in you. You don’t have to divulge your trade secrets or anything, but deal with people on a straight-up basis.
* Don’t do anything that you wouldn’t want your grandmother to find out about. If your grandmother has passed, honor her memory and imagine her looking down on you from heaven approvingly. This is the ultimate litmus test for me when I find myself asking, “Would it be right for me to…?”

I know they teach college classes on this stuff. But the above has worked pretty well for me so far. Remember that your greatest asset is your reputation. It takes years to build a good reputation and one stupid second to ruin one. Be good, and you’ll do well in business.

Good luck!

If you’re unemployed and looking to start a business, check out one of my ventures. It’s in the resource Box. Join the site. It’s going to be a great community!

Survive Unemployment

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Chuck Linart – EzineArticles Expert Author

Tags: code, ethics, ethical, business, rules

Ethics Law for The Mortgage Business

admin | Thursday, July 30th, 2009 | No Comments »
 Ethics Law for The Mortgage BusinessDoes your State mortgage originator licensing regulations say you have a “Fiduciary Duty” to your customers? Or does it say “you must provide the consumer with a reasonable, tangible net benefit” from a loan you provide? Both of these may soon be nationally mandated requirements if Congress has anything to say about it.
The House of Representatives pulled no punches on Tuesday at its hearing on subprime and predatory mortgage lending as they took National Association of Mortgage Brokers President Harry Dinham to task on the subject of who brokers really work for, if they deny ‘fiduciary responsibility’ to their borrowers.

Although violating either of those standards may subject you to harsh discipline and potentially aggressive punishment, it is the presence of Ethics & Integrity which will carry you through a life long career in our fine industry.

I’m sure you’ve heard many times lately that it’s a short walk from unethical actions to full-blown fraud – but more importantly, are your actions ethical when it comes to serving a customer?

Here’s a couple of mental questions to ask yourself: If you have strong Ethics, do you understand it means how you behave when no one is watching? – because that’s exactly what it means! Do you RAT OUT a fellow loan provider when you see he/she isn’t acting ethically? Do you realize you ARE your brother’s keeper in this industry … what the ‘next guy’ does can make us all bleed! This last ‘cycle’ (1998 to 2007) brought us many long term problems (only now becoming apparent) – 99% of which be brought on ourselves … by going along with the crowd.

Article by Peter Samuel Cugno, Chairman & CEO of Secret! University, the educational division of Americas Money Center, Inc. with 40 years experience in the subprime industry niche. Questions or comments may be directed by online at this site

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Tags: mortgage, law, legal, regulation, rules

Ethical Work For Employees

admin | Friday, July 10th, 2009 | No Comments »
Ethical Work For Employees Ethical Work For EmployeesMany small businesses are saddled with a very familiar problem. How do you find good employees? For business this seems to be an age old question. A question that seems to have a great deal of answers but no real solutions. Hiring a good employee can be a hit or miss proposition. Hopefully though once you have gained some experience and learned from your mistakes your percentage of good hires will rise. But because good hires are so hard to find you must keep an eye out for unethical behavior from your employees.
Many small businesses though are still going to be stuck with an unfortunately large number of employees they’d rather do without. Many of these small businesses are ones that rely on manual labor to get the job done. The reason why is fairly simple. Skilled professions typically require some sort of education. Whether it’s a formal education requiring a college degree or a more hands on education such as an apprenticeship with a business.

So what exactly does this difference mean when the question of ethics comes up? Simply put getting an education in a particular field requires commitment. And people that make such commitments are more likely to value the rewards they earn. With education can come a better paying job and maybe what they consider a better life. Now apply that fact to the workplace. An employee that has made that commitment to improving their life now has something to lose. And because they value what they have earned and they do not want to risk it they are more conscious about acting ethically in their workplace. They consider the consequences of doing something stupid.

Now let’s look at the other end of the spectrum. A laborer working for a small business is not looking at having a long term career with the company. More than likely it’s just another job to them. It’s possible they have spent some time at a particular company and they know the ins and outs of it. And because they are familiar with the workings of the business they know what they can and cannot get away with. This provides temptation.

Now just because someone doesn’t have a more formal education it doesn’t mean they are bad people and are out to steal the company blind. But such a person does have less to lose and they might be more willing to give in to their temptations even though they know better. If their own moral code of right and wrong is somewhat less than solid then they may not really consider the consequences of acting inappropriately. This is where their ethics will be tested each day.

The solution for someone in this situation is simple. You need to make them feel that they are a part of the team. People want to belong to something. They need to feel that their contributions no matter what they are are valued. Once again a person needs to feel they have something to lose if they are to value they have. And you are in a position to provide that value to them. If a person has a reason to think twice before they do something they are more likely to going to act in an ethical manner.

Cash Miller is an expert in small business affairs. To receive more tips that can help your business to succeed you can sign up for his FREE Newsletter at this site. Once you’ve signed up your going to receive access to 5 FREE E-Books that can help your business prosper. And as a Bonus FREE Newsletter Members can expect to receive an additional FREE E-Book each week.

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Tags: employee, ethics, training, business, rules

New Ethics: The Role of Ethics in 21st Century Organizations

admin | Friday, July 10th, 2009 | No Comments »
New Ethics The Role of Ethics in 21st Century Organizations New Ethics: The Role of Ethics in 21st Century OrganizationsIn recent years a competitive global environment, the inability of some organizations to maintain a competitive advantage and other pressurizing factors have forced many organizations and their leaders to pursue unethical practices in a bid to remain successful. Can organizations survive within this very complex/competitive era without resorting to unethical practices, and how? This paper provides readers with an understanding of the necessity of the role of ethics in contemporary organizations. It addresses the importance of leadership in establishing and maintaining ethical principles in the organization and culminates with a set of recommendations to which leaders can ascribe in order to ensure that organizations remain ethical.

What is ethics?

Ethics is defined as the ability to distinguish between right and wrong and to act accordingly. According to Rand, a 20th century Russian/American novelist, it is a code of values which guide our choices and actions and determine the purpose and course of our lives.” It revolves around others and hence…may be understood quite easily when analyzed from the perspective of Matthew 7:12 “do to others what you would have them do to you.”

Old Problem, New People: Judas selling Jesus for 30 Pieces of Silver

In contemporary organizations we see many leaders and followers whose behaviors bear marked resemblance to that of Judas (Matthew 26, Mark 14, Luke 22, John 13, 18, Acts 1:18). There are Organizations that are deliberately violating the ethical standards that are necessary for the successful functioning of any society. Hoyk and Hersey postulates that within one year Enron, Adelphia, Tyco International, as well as the conviction of the CEO of WorldCom by federal court represents only a small segment of organizations, and people implicated in unethical practices in organizations. An examination of the recent election in Zimbabwe highlights the height of unethical practices that exist even at the helm of organizations governing a country; which has led world government according to Lauren decrying it as an outright charade… The urge to succeed at any cost, greed, and selfishness are just a few of the causes of unethical practices; these practices condemn the poor to be even more impoverished, while the rich becomes better off. It should be noted that unethical practices undermine not only the trust of the stakeholders but also the general populace and create an unhealthy organization and a society that is not subject to rules and regulations; the end result anarchy and gargantuan proportions of mistrust in society, which ultimately will shorten the organization life span.

The Call to Act: Inspire to take action

The creation of an ethical organizational culture resides with leaders and followers; leadership by nature demands that leaders be the front runners in establishing an ethical organizational culture. We recognize the mammoth task leaders face in a fast paced society with rocket-like changes even as they fight to maintain a competitive advantage. However as the demise of many organizations becomes a reality due to unethical practices, the onus resides with contemporary leaders to create and sustain ethical organizational cultures even as they compete to survive, because it is the ethical/social stance to take. The issue of ethics is a solemn issue in leadership; its nonexistence can create a vacuum in the organization, fostering a climatic condition in which any action is acceptable. It is important for leaders to create an ethical environment, in doing this; decision making will rely on ethical standards which in the end gives ethical outcome. For such an environment to be created ethics has to be the foundation of the organization’s vision, composition and mission. With such a proposition, leaders are forced to cosset themselves in a discourse of collective ethical codes. Such code enables the leaders to act with morals and to foster an organization that relish itself in the laws of right.

The role of an ethical leader is to foster an organization that enables all stakeholders to act responsibly, to be conscientious of their environment and those around them. Johnson postulates that, leaders have a duty to achieve ethical standard through the use of organizational aspirations that must be effective, efficient and excellent. Therefore, the burden is on leaders to captain the ship, take charge and be in charge. The premise is that ethical leadership and ethical principles begins at the top of the organization then spreads throughout. Leaders should not assume that employees intuitively know and will comply with ethical principles set out by the organization. It becomes the leader’s responsibility to ensure that ethical practices are modeled as well as communicated orally…training employees on ethical issues should be mandatory. Leaders can foster an ethical environment by employing what I refer to as critical factors:

Critical Factor One: Vision

A clear and concise vision that incorporates ethical principle set the foundation for all stakeholders to realize exactly what the organization stands for…

Critical Factor Two: Open Communication

A channel of communication in which leaders and followers feel at ease in discussing or examining behaviors or issues that may “in question.” This promotes trust and confidence in the organizational efforts.

Critical Factor Three: Ethical Team

Creating a team that looks out for unethical action: This team is responsible for identifying and addressing ethical problems confronting the organization. They craft an environment in which difficult ethical issues can be discussed and corrective measures put in place. This should allow stakeholders to have trust/confidence in promoting the organizational values.

Conclusion

In light of recent unearthing of unethical practices in many organizations, contemporary organizations are now faced with a serious problem. We are now faced with the challenge of how to combat the epidemic of unethical behavior in our organizations. The role of ethics in the 21st Century is integral in that, all organizations need a firm foundation to stand on, and a base that is rooted in an ethical framework, which when tested can survive. It becomes the responsibility of leadership to consider ethics as part of their organization dynamics. It is this move that will enable the organization to set itself apart from the predecessors that sunk through the times of unethical confronts. The price we pay for poor ethics has eroded the very fabric of our society as well as our organizational culture, producing mistrust and chaos. It becomes imperative that leaders promote an organizational culture that values/fosters ethics. Commitment to ethics is the definitive factor that will create a successful lasting organization.

References:

Ciulla, J. B. (2004), Ethics the Heart of Leadership 2nd Edition, Praeger Publishers. West Port, CT.

Johnson, K. W. The Role of Leadership in Organizational Integrity, and Five Modes of Ethical Leadership, Retrieved 18 July 2008, read more here

Sergeant First Class Camuy Guama Heremuru is an Active Duty Army Sergeant stationed in Providence, Rhode Island. He is currently assigned to the 1st Brigade Military Intelligence unit. He is a second year Doctoral student at Regent University; his area of specialty is Strategic Leadership.

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Tags: ethics, business, rules, role, competitive

FIN 48

admin | Monday, September 1st, 2008 | No Comments »

FIN 48

FIN 48 + Implementation & Disclosures

FIN 48A growing chorus of hedge fund and private equity groups has asked FASB for an exemption from FIN 48, a FASB interpretation of a standard on accounting for income taxes. In a letter to FASB, the Managed Funds Association said that the sophisticated investors that invest in hedge funds do not need the enhanced disclosures that FIN 48 was designed to provide. In its letter, the Private Company Financial Reporting Committee stated that private company financial statement users find the accounting matters and disclosures encompassed by FIN 48 to be largely irrelevant to their decision making. The committee’s also noted that FASB and the IASB are working on a convergence project on accounting for income taxes and that this may significantly affect FIN 48. Thus, if FASB is unwilling to grant hedge funds an exemption from FIN 48, the private fund groups ask that the Board at least postpone the effective date of FIN 48 pending completion of the convergence project.

FIN 48 was adopted to provide for increased relevance and comparability in financial reporting of income taxes and to provide enhanced disclosures of information about the uncertainty in income tax assets and liabilities. The genesis of FIN 48 is FASB Statement No. 109, which established financial accountants and reporting standards for the effects of income taxes that result from an enterprise’s activities during the current and preceding years. It requires an asset and liability approach to financial accounting and reporting for income taxes

While acknowledging the need for FIN 48-type disclosures in the case of companies offering securities to the investing public, the MFA pointed out that the institutions and individuals that invest in private investment funds do not fall within this category. Hedge fund investors typically conduct extensive due diligence assisted by their own lawyers, accountants and other advisers, noted the MFA, and they often request, and receive, additional information, including tax information, if they believe that such information is material to their investment decision.

Moreover, private investment funds with U.S. investors are treated as partnerships for Federal income tax purposes. As a result, a private investment fund is not itself a taxpayer. It files an annual information return with the IRS, said the MFA, and each investor in the fund pays tax on its pro-rata share of the income of the fund. Thus, while fund personnel have historically focused substantive attention on issues surrounding the proper allocation of taxable items in a partnership environment, explained the MFA, it has been unnecessary for them to devote substantial time to traditional FAS 109 accruals.

For this reason, private investment funds are incurring significant costs in preparing to comply with, and complying with, FIN 48. Even more, many private investment funds make investments outside the United States, said the MFA, and FIN 48 will require them to make an additional layer of judgments concerning uncertainties in the tax laws of other countries.

Finally, the MFA noted that hedge funds need to determine NAV with reasonable frequency, both to establish a price for investments and redemptions, and also for other purposes. As a result of the fiduciary nature of the NAV calculation, and economic fairness to investors that subscribe and redeem at that amount, the MFA believes there are substantial questions whether FIN 48 analyses should be reflected in the NAV of a private investment fund.

The MFA is aware that SEC has concluded that FIN 48 analyses should be reflected in NAV in order to give investors more disclosure. Significantly, however, the SEC said its guidance was limited to assessing tax positions reflected in NAV calculations subject to the Investment Company Act and should not be applied by analogy in other cases.

The MFA believes that there are differences between public and private investment companies that warrant a different conclusion with respect to private investment funds. The MFA stands ready to make a more comprehensive submission on this point if the FASB believes that it would be of assistance.

Guest post by Jim Hamilton

Free Daily Hedge Fund Newsletter

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Media Relations 2008 – Simple Rules of Media Relations

admin | Wednesday, March 19th, 2008 | No Comments »
 Media Relations 2008   Simple Rules of Media Relations In the disaster field office there are three simple yet absolute rules to managing media relations. Businesses, celebrities, and even hospitals have created for themselves foibles and catastrophes due to a basic lack in the ability to manage media relations and the press. These problems stem from the fact that most failed to understand that the press serves the same people that they serve. Whether you are a corporation, a small business, a healthcare facility, or a movie star the press speaks at one time en masse to your public. If you remember this simple fact it is then no great intellectual stretch to understand that by partnering with the press and the media you can communicate vital information to your entire market simultaneously.

Rule Number One: Don’t get in front of the camera!

This may be obvious but if it is not your job to speak to the press do not get in front of the camera. Moreover ensure that your employees and staff do not get in front of the camera unless it is their job to interface with the media. Most media mishaps occur because the press is presented with multiple
messages and good, honest reporters attempt to make some logical sense of these conflicting stories.
Unfortunately no matter how good the reporter and how well meaning your staff when conflicting stories enter the press simultaneously nothing but bad can come of it for your organization.

Rule Number Two: Do not lie!

Now this is probably good advice in life in general, but if you lie to the press they will catch you and then they will make it their mission in life to destroy your career because you have just done irreparable damage to theirs, you have damaged their credibility. The media succeeds because people trust them. If they violate that trust no matter how unintended or innocent the violation they lose the public trust. With this loss of credibility comes the loss of the ability to do their job. Therefore everything that you say must be absolutely true and absolutely consistent with what the reporter observes.

Rule Number Three: Remember how the press keeps score!

The media does not keep score the same way that you do.

* They do not count dollars.

* They do not count lives saved.

* They do not count how many movies they appear in.
The press keeps score either in terms of minutes of face time on camera or inches of newsprint. In order for the press to score they must capture 1.5 seconds of you, approximately 15 words in print, and surround it with several minutes of themselves, at least 2 inches of newsprint.

If you know what message you wish to communicate to your market, their audience, and you must:

* Condense your message into a 1.5 second sound bite (fifty words for print).

* Ensure that message is absolutely true and consistent with what the reporter sees.

* Deliver that same message regardless of the question asked.
Do these three things and you will leave the reporter with only one choice, use your message or to not
score today. Under those circumstances the media will use your message every time because they keep score based on minutes of face time or inches of newsprint and to score they must surround your
message with their voice or their prose.

Remember these lessons from the disaster field office and your next media encounter will serve to bolster your relationship with the media and your position both with the press and the community.

Dr. Maurice A. Ramirez is co-founder of Disaster Life Support of North America, Inc., a national provider of Disaster Preparation, Planning, Response and Recovery education. Through his consulting firm High Alert, LLC., he serves on expert panels for pandemic preparedness and healthcare surge planning with Congressional and Cabinet Members. Board certified in multiple medical specialties, Dr. Ramirez is Founding Chairperson of the American Board of Disaster Medicine and a Senior Physician-Federal Medical Officer for the Department of Homeland Security. Cited in 24 textbooks with numerous published articles, he is co-creator of C5RITICAL and author of Mastery Against Adversity. Dr. Ramirez invites comments at this site.

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Tags: media relations, media, rules, business, credibility

9 Rules of Media Relations Crisis Management

admin | Monday, November 19th, 2007 | No Comments »
9 Rules of Media Relations Crisis Management 9 Rules of Media Relations Crisis ManagementAs the tragedy at the Sago mine in West Virginia unfolded on our televisions and front pages in January of 2006, I’m certain we all wondered how the story could have become such a terrific example of corporate media-relations bungling.
Perhaps I was in the minority thinking the bungling was terrific, but I’m in the media relations business – this mess was going to be a terrific teaching tool.
How did such utterly wrong “facts” get released? And why did International Coal Group, the company that owns the Sago mine, let the wrong story spread for three hours before admitting to the real facts – twelve miners were dead. There was only one survivor. Not twelve, as had been joyfully reported by broadcasters and newspapers around the world.
There is one primary rule in media relations – never let the story get away from you. International Coal Group violated that rule, and wound up the poster child for corporate blundering. ICG will have “Sago mine disaster” inserted in every story about their company for years to come. The coal industry isn’t known for its safety record – now ICG has the dubious distinction of joining the “worst mining disasters” list.
Most business owners, large and small, will never face a media disaster of these epic proportions. They can, however, learn some valuable lessons by being aware of what can happen if you violate that one primary media relations rule – never let the story get away from you.
Every company should have a media plan – even if you will only end up talking to a community newspaper. Plans for any size company should follow these guidelines:
Be prepared
Tell the truth
Establish one point of contact
Tell the truth
Maintain your message – know what to say, and say only that
Tell the truth
Know what is, and isn’t, newsworthy
Tell the truth
Be aware of deadlines
One rule is so important, it’s in there four times – no matter what you have to say, if it isn’t true, you’ll be found out. It might be within three hours, like it was for ICG. It might be three weeks, three months – but you will be found out, and you’ll have an accelerating disaster on your hands. Your business may not survive.
Tell the truth.
You should have a media plan in place before you speak to a community calendar newsletter, your local paper’s business editor, a local radio or television reporter, or launch a product or service at a trade show. Having a plan in place gives you the confidence to speak your message, stay on track, and stay in control of your company’s news.
In the fast-moving, 24-hour spin cycle that is today’s news business, you don’t want to get sucked down the drain – getting caught off guard if your company suddenly becomes newsworthy. If you’re lucky enough to come up with that fresh take on the mousetrap that has the world, and the media, beating a path to your door, you don’t want to answer the door in your underwear.
By being prepared with a media plan, developed by using the guidelines I’ve given you, you’ll answer your door looking (and sounding) sharp, successful and newsworthy. And you’ll enjoy your ride on the media train, instead of finding yourself ground under its wheels!
Casey Quinlan has spent over two decades in the news business, working stories for the major networks in the US and around the world. She recently hung out her shingle as a communication consultant, helping companies build bridges over communication gaps. Visit Mighty Casey Media on the web at here.
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Tags: public relations, crisis, management, media, rules


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