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At the Center

Capturing the lively discussions, presentations, and other events that make up the daily activities of the Markkula Center for Applied Ethics at Santa Clara University.

The following postings have been filtered by tag business ethics. clear filter
  •  Ethics: Who You Are

    Friday, Jan. 27, 2012 10:11 AM

     

    “Ethics are a fundamental statement of who you are,” said Franklin “Pitch” Johnson, founding partner of Asset Management Company, at a talk Jan. 25, sponsored by the Ethics Center and the SCU Department of Accounting. Johnson, whose company has made over 250 venture investments during its more than 43 years of operation, spoke on “Ethics and Venture Capital: Reflections of a Silicon Valley Life.”
     
    Johnson counseled an audience of business students, faculty, and members of the community not to separate personal and business standards but to bring honesty and transparency into the workplace. He especially focused on the need for accuracy in representations about investments made by venture funds. “Many people aren’t careful enough in helping investors understand the performance track record of the funds.”
     
    He also stressed the need for honesty in presentations to funders made by start-up companies. “When we interview entrepreneurs we're looking for openness,” he said. “Many people don't want to tell you the downside, but [venture capitalists] have seen the same thing 25 times with different companies, and we may be able to help. It’s kind of a falsehood not to tell important things.”
     
    The entrepreneur’s ethics count in the venture company’s decision whether or not to become involved in a venture. “We think a lot about that,” Johnson said. “If we see things that are misleading or dishonest, it’s a turn-off. We check a person out, look into their experience and standards of behavior. The character of the person is the first thing we ask about. If it’s not there, we don’t go any further.”
     
    Johnson also described how ethics enters into his decisions about what companies to fund. He recounted an opportunity he had to invest in the Mustang Ranch, a brothel in Nevada, where prostitution is legal. “The fact that it’s legal doesn’t mean I want to invest in it,” he said.
     
    Asked if he would invest in a company because it was doing something for the common good even if it wouldn’t make as much money, Johnson indicated that he sees that kind of outlay coming from his charitable foundation rather than his venture funds.
     
    But he also expressed his interest in funding biotech companies, which can take longer to become profitable than other investments. “Everything in biotech is expensive,” he allowed, “but it’s a great feeling when you find a product that can help thousands of people. We don’t go into it for the good we do, but we’re very well aware of that potential. It’s not eleemosynary, but it’s very satisfying.”
     
    Ironically, Johnson said, the worst ethical lapses in business tend to happen when times are good. “People come in without business plans. I wouldn’t say their pitches are dishonest, but they’re not rooted in reality. In good times, people tend to be less careful because no matter what you do, you make money.” 
     
    Venture firms then face the ethical dilemma of whether to go into deals without long-term plans because people are making money on them. “Do we owe this to our shareholders?” Johnson asked.    
     
    Asset Management, he said, has taken a “more conservative view,” funding such companies as Amgen, Applied Bio Systems, Applied Micro Circuits, Conductus, Hybritech, IDEC Pharmaceuticals, Octel, Qume, Red Brick Systems, Remedy, Sierra Semiconductor, Tandem Computer, Teradyne and Verity.
     
     
     
     
     
  •  Delaware Chief Justice on Corporate Governance

    Wednesday, Jan. 25, 2012 9:42 AM

    In three video interviews with Center Executive Director Kirk O. Hanson, Myron Steele, chief justice of the Delaware Supreme Court, talks about critical issues in corporate governance, with particular emphasis on fiduciary duty.

    Steele, who spoke at a recent meeting of the Center's Business and Organizational Ethics Partnership, traced the origin of the concept of fiduciary duty to common law, stretching back to Roman times.  The Delaware court, which is a primary source of corporate law in America, recognizes three components of fiduciary duty, he said: the duty of loyalty, the duty of independence, and the duty of care.

  •  Pitch Johnson Reflects on Ethics and Venture Capital

    Tuesday, Jan. 24, 2012 10:24 AM

    Franklin "Pitch" Johnson, one of the founders of Silicon Valley and one its most highly respected venture capitalists, speaks tomorrow on ethics and venture capital, 3:30-5 p.m. in the Forbes Room, Lucas Hall on the Santa Clara University campus.

  •  Effective Boards

    Monday, Jan. 9, 2012 4:30 PM

    What are the characteristics of an effective member of a corporate board?  What should be the relationship between the board and the CEO?  How can a corporate director get sufficient information to make good decisions? 

    In this three-part video series, Bob Finocchio, head of the board of trustees at Santa Clara University, and Lon Allan, Chairman Emeritus, Silicon Valley NACDSV, discuss how the behavior of individual directors can promote effective governance. Both men serve or have served on multiple corporate boards. 

    These videos are a joint project of the Ethics Center and the National Association of Corporate Directors, Silicon Valley.

  •  Rule of Law and International Business Ethics

    Wednesday, Nov. 2, 2011 12:48 PM

    The seventh annual international business ethics conference sponsored by the Center for International Business Ethics (CIBE) in Beijing, Oct. 21-22, focused on the paramount importance of the development of a sense of law with a focus on labor law protecting the worker rights and environmental protection.  Speakers also strove to explore and critically evaluate the progress achieved in different areas of international business ethics and legal ethics especially in the Asian and Chinese context.

    Kirk O. Hanson, executive director of the Markkula Center for Applied Ethics, serves as honorary chairman of CIBE.  He delivered a keynote address:  Beyond Compliance Programs: Globalization Demands More Effective Programs to Meet Public Expectations of Business. 

  •  Running a Green Company

    Wednesday, Oct. 5, 2011 3:31 PM

    Kevin Surace, CEO of Serious Energy, will reflect on the ethics of running a green company at a talk Oct. 17, 4 p.m., at SCU.

    Surace was Inc Magazine’s Entrepreneur of the Year in 2009.

  •  Corporate Gatekeepers

    Monday, Sep. 26, 2011 1:03 PM

    "Horatio at Rome’s Bridge: The Corporate Gatekeeper in Today’s Environment – Substantial Risk for Sure, and Opportunity?" is the latest in a series of seminars co-sponsored by the Ethics Center and Morrison & Foerster.  September 27, 11:30 a.m. - 2 p.m., StoneTurn Group joins as a sponsor for the event, held at the Crowne Plaza Cabana in Palo Alto, Calif. 

    The event is free but registration is required.

  •  Bartz Firing

    Friday, Sep. 9, 2011 9:47 AM

    Since Yahoo! fired CEO Carol Bartz Tuesday, her no-expletives-deleted response has surprised many observers.  But Center Executive Director Kirk O. Hanson told the San Jose Mercury News, that her reaction was "a sign of a failed relationship that certainly precedes the last two days. The origins of this have to be months ago, but may actually have started with the hiring."

    Reporter Pete Carey writes, "CEOs typically 'resign' by saying their goals have been accomplished or it's time to 'move on.... But behind the veil is many a bitter struggle."

  •  Role of the CFO

    Thursday, Aug. 25, 2011 2:30 PM

    CFOs can be ambassadors for ethics in a corporate organization because they interface with so many different departments.  That was the message of a panel of CFOs convened by the Ethics Center at a recent meeting of the Business and Organizational Ethics Partnership.  (read summary

    Participants were:

    John Batty, formerly CFO of Affymetrix
    George de Urioste, CFO of Marvell Semiconductor
    Brad Buss, CFO of Cypress Semiconductor
    Ronald Pasek, CFO of Altera
    Jeff Kuhn, managing partner of FLG Partners, moderator
     

     

  •  Corporate Gatekeepers

    Thursday, Aug. 18, 2011 10:41 AM

    The Ethics Center partners with Morrison & Foerster and StoneTurn Group to present this seminar on the evolution in the definition and responsibilities of corporate gatekeepers, such as general counsels, members of the Audit Committee, ethics and compliance officers, etc.

    Speakers include:

    • Mark Fagel,
      Regional Director, Securities and Exchange Commission
    • Randy Fons
      Partner, Morrison & Foerster LLP; former Regional Director, Securities and Exchange Commission
    • Jonny Frank
      Partner, StoneTurn Group; retired Partner, PWC; former Assistant United States Attorney, Eastern District of New York 
    • Kirk Hanson
      Executive Director, Markkula Center for Applied Ethics