Welcome to the Age of Irresponsibility

In Today’s Corporations the Buck Never Stops. Our largest companies have become so complex that no one’s expected to fully know what’s going on. Yet the rewards are bigger than ever – Published on The Guardian, by Ha-Joon Chang, July 9, 2013.

George Osborne confirmed on Monday that he would accept the recommendation of Britain’s parliamentary commission on banking standards and add to his banking reform bill a new offence of reckless misconduct in the management of a bank.  

That is a bit of a setback for the managerial class, but it still does not sufficiently change the overall picture that it is a great time to be a top manager in the corporate world, especially in the US and Britain.

Not only do they give you a good salary and handsome bonus, but they are really understanding when you fail to live up to expectations. If they want to show you the door in the middle of your term, they will give you millions of dollars, even tens of millions, in “termination payment”. Even if you have totally screwed up, the worst that can happen is that they take away your knighthood or make you give up, say, a third of your multimillion-pound pension pot.

Even better, the buck never stops at your desk. It usually stops at the lowest guy in the food chain – a rogue trader or some owner of a two-bit factory in Bangladesh. Occasionally you may have to blame your main supplier, but rarely your own company, and never yourself.

Welcome to the age of irresponsibility: … //

… The negative potential of outsourcing in non-financial industries may not be as great as that of financial derivatives, but the buying companies should be made far more accountable for making their subcontractors comply with rules regarding product safety, working conditions and environmental standards.

Without measures to simplify the system and recalibrate our sense of crime and punishment, the age of irresponsibility will destroy us all.

(full text with hyper links).

Links:

The Real Problem In Working From Home (It’s Not What You Think), on Forbes, by David Amerland, June 24, 2013;

WAYNE MADSEN REPORT;

Majority of Americans think Snowden did the right thing
, on RT, July 10, 2013;

Hero Fukushima ex-manager who foiled nuclear disaster dies of cancer, on RT, July 10, 2013;

Does It Pay to Volunteer? on Center for Economic and Policy Research CEPR, by Helene Jorgensen, June 2013.

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