Archive for the ‘Business’ Category

Behaviour, law and ethics: A practical view

September 3, 2010
Le Penseur, Musée Rodin, Paris

Image via Wikipedia

Whether in scientific endeavour, the business world or in politics we see daily scandals where behaviour is considered lacking in integrity or in ethics. In recent days we have had the Hausergate scandal, the Commonwealth Games corruption scandals, the money-down-the-drain in Iraq scandals and the HP procurement scandal.

For clarity in my own mind I reason as follows:

My values lead to my behaviour.

Values are comparative standards or norms and they calibrate and motivate my behaviour but in themselves they have no inherent goodness or badness. My values are my behavioural standards. They allow me to make comparisons (faster, better, pleasing, irritating, bearable, acceptable, good, just, right ….).

Behaviour may be lawful or unlawful or ethical or unethical.

Laws are what the society I operate in, or wish to operate in, uses to define what is unacceptable behaviour. But lawful behaviour does not address whether it is ethical or unethical (though that may be implied). Where law is silent, behaviour is, by default, lawful but may still be either ethical or unethical.

My ethics tell me what behaviour is correct and desirable behaviour. This may or may not be consistent with the ethics of the society surrounding me which specifies what that society considers the right and proper and desirable behaviour. Ethical values and ethical behaviour thus represents a sub-set of all the values I may have and all the consequent behaviour they might lead to. Ethical behaviour is not necessarily lawful. Unlike the limits set by law, behaviour does not become ethical by default if ethics are silent. Behaviour which is not unethical is not therefore necessarily ethical.

Ethical values and moral values are almost synonymous. The only difference I can find is that what I consider ethical codes or values rely more on logic or a rationale and less on faith. And I take faith or belief to be that which exists in the space of the “unknown unknowns” where ” I don’t know what I don’t know”. Faith or belief then allows formulating the answer (and even the question) in the absence of evidence. But both ethical codes and moral codes specify  right and proper and desirable behaviour. Behaviour that is not unethical or immoral does not by default become ethical or moral.

In practice therefore;

  1. My values lead to my behaviour,
  2. Laws tell me what I ought not to do,
  3. Ethics tell me what I ought to do.

Many corporations and organisations and enterprises take the easy way out and adopt so-called ethical codes which are merely  a set of rules (codes of law). But this is merely relying on what not to do and is an abdication of the responsibility to come to a view on what is the right and proper thing to do. The right and proper behaviour must – I think – include a conscious choice from the various options available of what can be done and cannot be merely an exclusion of unacceptable or undesirable behaviour.

A child first accepts its parents view of what is right or wrong. As it grows it brings in and integrates what others consider right or wrong. Eventually a mature thinking individual develops his own views of what is right or wrong and integrates that with the views of the surrounding society. In this sense, most corporations and other organisations are still in their infancy and are content to rely only on what law excludes as being unacceptable. This in turn leads to a minimalist ethical code where anything which is not explicitly unlawful is perfectly OK.

Hence Enron and Satyam and Siemens and British Aerospace and …………

It is the having of an ethical code that matters.

A reprieve for incandescent bulbs?

September 2, 2010

I still have hope that the Edison bulb will survive – in spite of all the do-gooders who want to be Nanny.

New research may provide the answer.

http://www.greenzer.com/blog/blog_image_store/2009/09/eu-bans-incadescent-light-bulbs.jpg

According to an article in The New York Times,

Incandescent Bulbs Return to the Cutting Edge

“Researchers across the country have been racing to breathe new life intoThomas Edison’s light bulb, a pursuit that accelerated with the new legislation. Amid that footrace, one company is already marketing limited quantities of incandescent bulbs that meet the 2012 standard, and researchers are promising a wave of innovative products in the next few years.

“There’s a massive misperception that incandescents are going away quickly,” said Chris Calwell, a researcher with Ecos Consulting who studies the bulb market. “There have been more incandescent innovations in the last three years than in the last two decades.”

For lighting researchers involved in trying to save the incandescent bulb, the goal is to come up with one that matches the energy savings of fluorescent bulbs while keeping the qualities that many consumers seem to like in incandescents, like the color of the light and the ease of using them with dimmers.

“Due to the 2007 federal energy bill that phases out inefficient incandescent light bulbs beginning in 2012, we are finally seeing a race” to develop more efficient ones, said Noah Horowitz, senior scientist with the Natural Resources Defense Council.

Some of the leading work is under way at a company called Deposition Sciences here in Santa Rosa. Its technology is a key component of the new Philips bulb line.

Normally, only a small portion of the energy used by an incandescent bulb is converted into light, while the rest is emitted as heat. Deposition Sciences applies special reflective coatings to gas-filled capsules that surround the bulb’s filament. The coatings act as a sort of heat mirror that bounces heat back to the filament, where it is transformed to light.

Despite a decade of campaigns by the government and utilities to persuade people to switch to energy-saving compact fluorescents, incandescent bulbs still occupy an estimated 90 percent of household sockets in the United States. Aside from the aesthetic and practical objections to fluorescents, old-style incandescents have the advantage of being remarkably cheap”.

There is still hope.

Low energy bulbs – something wrong here.

August 31, 2010

This is in favour of the simple, cheap, traditional incandescent light bulb.

http://i.dailymail.co.uk/i/pix/2009/01/07/article-1108775-02F409FC000005DC-572_468x313.jpg

I just do not like the new low energy bulbs — they are slow and the light they emit is cold and creepy.

Their claims of 5 or 8 or 10 year life cannot really be tested (there is no guarantee of course and if you drop one its life is over immediately). They are generally bulky and ugly.

They seem to have health risks (http://www.swissinfo.ch/eng/swiss_news/Study_warns_of_green_light_bulb_electrosmog_.html?cid=8584642)

and emit more mercury. http://www.canada.com/nationalpost/financialpost/story.html?id=aa7796aa-e4a5-4c06-be84-b62dee548fda

They are supposed to reduce man’s carbon footprint but this is a nonsense on three counts: firstly switching bulbs is almost insignificant in terms of reducing man-made carbon emissions which are in turn a very small part of total carbon emissions and  in any case the effect of CO2 on climate change is insignificant. This argument is not very convincing.

I cannot help feeling that somebody, somewhere is making a lot of money from this change of regulations and enforced switch to the new bulbs. My prime suspect is the lighting manufacturers and their bureaucratic symbiotes.


The IKEA phenomenon

August 28, 2010

We made our quarterly pilgrimage to our local IKEA store in Linköping yesterday. This past week 3.5 Million Swedish households each received their copy of the 2010/2011 IKEA catalogue – which is an annual event comparable in social significance to a national holiday though perhaps not as important as Midsommar !!

http://www.ikea.com/ms/sv_SE/img/fy11/cat011/main_cat_115x130.jpg

IKEA katalogen 2011

IKEA (Ingvar Kamprad Elmtaryd Agunnaryd) is still a privately held company. Many Swedish households have a sticker on their letterboxes saying “No advertising – thank you” but the variant which is fairly common is “No advertising -thank you but the IKEA catalogue with pleasure”

175 Million copies of the catalog in 27 languages will be distributed in 33 countries this year. Prices in the Swedish catalogue are guaranteed till 11th July next year. IKEA is iconic and ubiquitous of course but I note that my son studying in New York visits the New Jersey store (free bus from Manhattan) just to get his traditional Swedish lunches.

http://www.ikea.com/ms/sv_SE/restaurant/restaurant2.html

Köttbullar

Surprisingly it is Iceland which has the most stores per inhabitant !!

Country Debut No. Stores Population Stores per Million People
Iceland 1981 1 318 006 3,145
Sweden 1958 17 9 354 462 1,817
Cyprus 2007 1 798 045 1,253
Norway 1963 5 4 899 300 1,021
Denmark 1969 5 5 543 819 0,902
Switzerland 1973 7 7 782 900 0,899
Finland 1996 4 5 367 188 0,745
The Netherlands 1978 12 16 609 848 0,722
Austria 1977 6 8 356 707 0,718
Belgium 1984 6 10 827 519 0,554
Germany 1974 45 81 757 600 0,550
France 1981 28 65 447 374 0,428
Hong Kong 1975 3 7 055 071 0,425
Singapore 1978 2 4 987 600 0,401
Czech Republic 1991 4 10 506 813 0,381
Greece 2001 4 11 306 183 0,354
Spain 1980 15 46 030 109 0,326
Canada 1976 11 34 224 000 0,321
United Arab Emirates 1991 2 6 888 888 0,290
United Kingdom 1987 18 62 041 708 0,290
Kuwait 1984 1 3 520 000 0,284
Italy 1989 17 60 380 912 0,282
Portugal 2004 3 11 317 192 0,265
Israel 2001 2 7 602 400 0,263
New Zealand TBA 0 4 390 090 0,228
Ireland 2009 1 4 456 000 0,224
Australia 1975 5 22 439 171 0,223
Poland 1991 8 38 192 000 0,209
Hungary 1990 2 10 005 000 0,200
Slovakia 1992 1 5 379 455 0,186
Taiwan 1994 4 23 119 772 0,173
Serbia 2011 0 7 334 935 0,136
Bulgaria 2011 0 7 563 710 0,132
United States 1985 37 310 101 000 0,119
Saudi Arabia 1983 3 27 136 977 0,111
Dominican Republic 2010 1 10 090 000 0,099
Russia 2000 11 141 927 297 0,078
Turkey 2005 4 72 561 312 0,055
Romania 2007 1 22 215 421 0,045
Japan 1974 5 127 420 000 0,039
Malaysia 1996 1 28 310 000 0,035
Ukraine 2011 0 45 888 000 0,022
Thailand 2011 0 66 404 688 0,015
China 1998 6 1 338 612 968 0,004

“Thank god for BP”:Louisiana fishermen net more cash working for BP

August 24, 2010

There is always a silver lining – for some.

The FT reports:

The white shrimp season officially began this week in Louisiana, and at this time of year 46-year-old Mr Foret, a hardened Cajun shrimper from Houma in the Mississippi delta, would normally be out on the water plying the trade that has kept him and his family since he was 13. But now that he is a BP contractor through the oil company’s Vessels of Opportunity programme, designed to employ local fishermen in the oil spill clean-up operations, he earns more consistent money, and works a lot less than he used to. “BP is a very nice fella, and this is a guaranteed cheque,” he says, pointing to a huge yellow skin or “bladder” on his boat that is used to collect skimmed oil. “I’m sticking with this for as long as I can.”

Captain Michael Owen, better known as the big “O”, has been doing pretty well out of BP. For the past three months, he and his 24-foot fishing boat have been ferrying clean-up workers to parts of the Gulf affected by the oil spill. As a BP contractor, he does not have to worry about securing charter fishing contracts for small parties of tourists visiting the Mississippi delta, the business he ran until the oil spill. Nor does he have to stress over the pressure to find fish – redfish and speckled trout – for his demanding clients. “I’m super happy with BP,” he says. “And I’m not taking a cut [in pay].”

“It takes you three days to make that charter fishing,” says a charter fisherman from Port Sulphur about 30 miles up the road. “Thank god for BP.”

http://www.huffingtonpost.com/2010/08/23/former-gulf-fishermenturn_n_691451.html

Gulf Coast Fisherman

Wind Power Sector struggles

August 21, 2010

Wind Power is still a long way from being commercial and is  still critically dependent upon subsidies. Austerity packages resulting from the financial crisis have sharply reduced subsidy programs and there have been a spate of cancelled and delayed projects. There is also some disillusionment evident as wind turbines demonstrated their weaknesses during the last cold winter when many had to be shut down in Europe for fear of ice on the turbine blades. The requirement for back-up power and the instability they add to the grid has not helped either. The Spanish support for renewables has dried up as the financial crisis has hit hard.

An injection of realism and common sense to the the use of renewable energy is long overdue. Wind and Solar and tidal and geothermal energies all have their place but they will not – and cannot – provide the base load power generation that coal, nuclear and hydro power have provided.

The FT reports that shares in Vestas Wind Systems lost more than a fifth of their value on Wednesday after the world’s largest wind turbine manufacturer slumped to its second consecutive quarterly loss and cut its profit guidance for the year.

image: http://www.pcdistrict.com/modules/productcatalog/product_images/132027-Windmill-3D-Screensaver.jpg

image. http://37signals.com/svn/images/dutch_windmill.jpg

Vestas warned that some expected orders from Europe and the US had been delayed as banks take longer to approve financing and deficit-laden governments review their support for wind power. Analysts highlighted regulatory uncertainty in Spain, which recently cut subsidies for renewable energy as part of its fiscal austerity programme, and the US, where legislation to promote clean energy has stalled on Capitol Hill. Low natural gas prices, caused in part by the surge in supplies from newly exploited US shale gas reserves, was another factor deterring investment in more costly renewable energy, analysts said.

New wind power installation in the US declined by more than two-thirds in the first half and fell below new coal power capacity for the first time in five years.

IBM is second largest private employer in India

August 18, 2010

In 2006 IBM had 53,000 employees in India which grew to 73,000 employees in 2007. Since then, the company has maintained that it is a global company and geographic numbers do not have any meaning in that context. In 2010 IBM employees in India exceeded 100,000 and may be as many as 130,000.

IBM still employs the most people in the US but almost one in three of IBM’s total workforce of over 400,000 is now in India.

http://www.accessnorthga.com/img/stories/205230/ibm-india_medium.jpg

The Times of India reports that

The fact that IBM has over one lakh (100,000)  people on its rolls in this country is one of India Inc’s best-kept secrets.
Tata Consultancy Services is the largest private sector employer in the country. It had 163,700 employees as on June 30.

No one in US-headquartered IBM will admit that it employs such a large number of people in India — for fear of a backlash at home. There’s been rising anger in the US over the transfer of `American jobs’ to lower cost havens, particularly India. Faced with an economic slowdown and a politically-damaging high employement rate, Barack Obama himself has begun to sound jingoistic. He has issued barely-veiled threats against US companies that ship out work and promised candies to those who stay patriotic.Even as an IBM spokesperson declined comment when contacted, a source within the company said that in a couple of years, the India employee strength could cross that in the US, where it employs about 1,55,000 people, and where the pace of hiring is substantially slower than in India. IBM globally has a little over 4,00,000 employees. So, close to 1 in 3 of its employees is already an Indian.

Its staff strength is more than four times that of India’s biggest private sector company, Reliance Industries, which employs about 23,000 people. It is bigger than the combined employee base of the two Tata Group’s crown jewels, Tata Steel (81,000) and Tata Motors (24,000).

A cross-section of industry analysts and manpower recruitment firms TOI spoke with not only put IBM’s India workforce (including that of its wholly-owned subsidiary IBM Daksh) at over one lakh, some even went to the extent of saying it might be 1.3 lakh — well over Infosys’ 1.14 lakh as on June 30. Infosys is India’s second largest IT firm by revenue and third, it now transpires, by employees.

Since 2007, the company has stopped disclosing the geographic break-up of its employee numbers. The last time it provided figures was in 2007, when it said it had 73,000 employees in India. Since then, the company has maintained that it’s a global company and geographic numbers do not have any meaning in that context.
(more…)

Germany: Highest growth rate since Reunification

August 15, 2010

The motor of the European economy is revving up again.

Der Spiegel reports:

Graphic: German growth forecasts for 2010

Germany just posted its strongest quarter of economic growth since reunification in 1990. During the second quarter, an exports boom, increased consumption and government stimulus helped the country chalk up growth of 2.2 percent. Buoyed by a surge in exports and continuing government stimulus programs, Germany’s economy is recovering at a faster pace than most economists expected. During the second quarter, gross domestic product increased by 2.2 percent on the previous quarter, the Federal Statistical Office in Wiesbaden announced on Friday, marking the largest quarterly economic growth since the country’s reunification in 1990.

There has been some criticism of the austerity package being introduced by the German government and of the ending of the stimulus packages. But perhaps the timing is right after all. But whether German growth can prevent a doubel-dip recession in the rest of Europe remains to be seen.

The 5 million unemployed in Germany in 2005 has now reduced and could soon be  less than 3 million.

In addition to benefiting the labor market, the German economic stimulus program also boosted consumer spending. Short-time workers have more disposable income than the unemployed, and as a result, German consumers were hardly forced to cut back during the crisis.

Alarmism: Exaggerations aplenty

August 4, 2010

1. A solar storm yes, but hardly a Tsunami

The headlines were alarmist as usual: NASA scientists braced for ‘solar tsunami’ to hit earth, but reality was a little less alarming. A C3 flare caused a G2 geomagnetic storm  (G1 being the weakest and G5 the strongest) with a Kp value of 6. (Kp of 5 at G1 and 9 at G5).

image:http://solarcycle24.com/

The Northern lights could be particularly spectacular but a moderate G2 storm can be expected to have some relatively minor but significant effects:

  • Power systems: high-latitude power systems may experience voltage alarms, long-duration storms may cause transformer damage.
  • Spacecraft operations: corrective actions to orientation may be required by ground control; possible changes in drag affect orbit predictions.
  • Other systems: HF radio propagation can fade at higher latitudes, and aurora has been seen as low as New York and Idaho (typically 55° geomagnetic lat.).

From http://www.spaceweather.com/ The solar storm of August 1st sent two CMEs toward Earth. The first one arrived yesterday, August 3rd, sparking mild but beautiful Northern Lights over Europe and North America (see below). The second CME is still en route. NOAA forecasters estimate a 35% chance of major geomagnetic storms when the cloud arrives on August 4th or 5th. High-latitude sky watchers should remain alert for auroras.

In Solar Cycle 24  sunspot activity continues to undershoot Solar Cycle 5.

2.The media and the environmental community were up in arms about “the worlds worst environmental disaster” and BP has been demonised by the US press but we now learn that 75% of the oil leakage in the Gulf of Mexico has already dispersed and that the Oil From Spill Poses Little Additional Risk.

The government is expected to announce on Wednesday that three-quarters of the oil from the Deepwater Horizon leak has already evaporated, dispersed, been captured or otherwise eliminated — and that much of the rest is so diluted that it does not seem to pose much additional risk of harm.

The 35$ tablet and cloud computing

July 28, 2010

Whether or not the 35$ tablet recently unveiled in India ever becomes real is irrelevant.

Kapil Sibal

It looks like an iPad, only it’s 1/14th the cost: India has unveiled the prototype of a $35 basic touchscreen tablet aimed at students, which it hopes to bring into production by 2011.

But the 20$ pc in India – the “Shaksat” has not really happened.

But the Tata Nano – as the 2000$ car – did happen even if the cost is slightly over the magic target of one lakh rupees (100,000).

The 749 rupees ($16) water purifier is a reality and $2,000 open-heart surgery has been available for some time.

What is really important is the challenging of barriers and the attitude it represents. The future of distributed computing, perhaps through a much more extensive use of the cloud, could well depend on this challenging of attitudes. Ultimately the device used by every individual would be nothing more than  a very secure interface device:

  • secure and simple regarding the individual’s identity
  • secure regarding the connection to the cloud, and
  • secure regarding the personal or sensitive material stored in the cloud.

As Tony Bradley of PC World puts it

The $35 tablet prototype from India will run a variation of the open source Linux operating system. It has 2Gb of RAM, but no internal storage–relying on a removable memory card. The device has a USB port, and built-in Wi-Fi connectivity. Seems like reasonable enough specs–especially for $35.

On the software side, the $35 tablet has a PDF reader, multimedia player, video conferencing, Web browser, and word processor. The value of the multimedia player will be contingent on its compatibility with popular audio and video file formats. The functionality of the word processor will hinge on its ability to create, view, or edit files in Microsoft Word format.

….. Many will scoff at the idea of a $35 tablet PC. Of course, many tech geeks, pundits, and power users also scoffed at the concept of a netbook, claiming it was too weak to be of any value. A year later, netbooks were cannibalizing notebook sales as students embraced the cheaper platform, and business professionals opted for smaller, lighter mobile computers.

Ultimately, it doesn’t even really matter if the “$35 PC” ever materializes. The Indian prototype illustrates what’s possible and breaks down barriers–challenging the rest of the industry to push the envelope. A Linux-based (think Android or Chrome OS), Web-connected tablet would likely still be a tremendous success in the United States at three times that $35 target.

Of course netbooks are already losing out to ipads and small tablets.

Scoffers are already out in force but even they serve a purpose in creating the challenge necessary. It is always more satisfying to do something when there are those who scoff and say it cannot be done.