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Integrity - use of values or principles to guide action in the situation at hand.

Below are links and discussion related to the values of freedom, hope, trust, privacy, responsibility, safety, and well-being, within business and government situations arising in the areas of security, privacy, technology, corporate governance, sustainability, and CSR.

"scandals show the need to reform the fund industry", 21.5.04

Investor's Business Daily

[...] 'The scandals show the need to reform the fund industry,' said Roye, head of the SEC's Division of Investment Management. The $7.6 trillion industry must refocus on establishing its integrity, he said.

Quoting the SEC's chairman William Donaldson, Roye said, 'Each fund company must examine its moral DNA.'

Fund companies must reform themselves, then reassure shareholders and restore their confidence, he added.

Roye said the SEC has begun 16 separate reforms for the fund industry since September 2003, when New York Attorney General Eliot Spitzer exposed abusive fund trading practices.

[...] The SEC proposal to require chairman of fund boards of directors to be independent is among its most controversial, Roye said.

But Roye reiterated the SEC's interest in requiring chairmen to be independent of management companies. For one thing, independent chairmen can more effectively block improper conduct by a fund manager, he said. That's because they would not share any potential conflicts of interest a manager might have in taking risks in pursuit of short-term returns.

Independent chairman also would not be caught up in such conflicts as those that can arise in fee negotiations between a fund and its management company.


[CLB: This is the standard practice of "Separation of Duties," something any decision making body ought to engage in.]


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"We shall need compromises in the days ahead, to be sure. But these will be, or should be, compromises of issues, not principles. We can compromise our political positions, but not ourselves. We can resolve the clash of interests without conceding our ideals. And even the necessity for the right kind of compromise does not eliminate the need for those idealists and reformers who keep our compromises moving ahead, who prevent all political situations from meeting the description supplied by Shaw: "smirched with compromise, rotted with opportunism, mildewed by expedience, stretched out of shape with wirepulling and putrefied with permeation.
Compromise need not mean cowardice. .."

John Fitzgerald Kennedy, "Profiles in Courage"


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