Ethics

"After the bubble burst, the [New York Stock Exchange] regulators decided that it was not nice for an analyst to tout a stock without mentioning that he owned the stock or that his employer was the company's investment banker. So they ruled that such conflicts had to be disclosed. Fair enough. But to whom? Many investors learn analysts' opinions not from reading brokerage reports but from news media reports. So the Big Board said that the firms had to make sure that broadcasters who quoted the analysts had to pass on the disclosure.

Alessandra Stanley writes in today's New York Times: "The revelation that Roger Ailes, the chairman of Fox News, the self-proclaimed fair and balanced news channel, secretly gave advice to the White House after the Sept. 11 attacks was less shocking than it was liberating -- a little like the moment in 1985 when an ailing Rock Hudson finally explained that he had AIDS. Ever since Mr. Ailes changed jobs from Republican strategist to news executive, he has demanded to be treated as an unbiased journalist, not a conservative spokesman.

Getting caught in a scandal isn't necessarily bad for a public official's career these days. "Many in business - as well as old Washington hands - who have had their names tarnished and reputations sullied have discovered that there is life in the private sector after public disgrace, and a potentially profitable one at that," reports Leslie Wayne. "Many corporations are willing to overlook an ethical lapse or a subpar performance and put those with Washington expertise on their boards, to use them as lobbyists or to make them partners in business deals." For example:

Guthrie/Mayes PR is helping the Archdiocese of Louisville handle its sex abuse crisis. Eight of the Archdiocese's 182 priests have been "permanently removed" from their ministries. Other clients of Guthrie/Mayes include Philip Morris, Toyota, Eli Lilly and Krispy Kreme Doughnuts.