Showing posts with label Legal. Show all posts
Showing posts with label Legal. Show all posts

Tuesday, October 27, 2009

Israel's Business Moral Weakness: Are We Learning ?

Reading the business papers the last few months in Israel and there are disproportionate number of articles reporting immoral executive behavior. I am worried about two moral issues: greed and fraud. Greed is a new accusation in Israeli business circles. Until this generation the country's businesses had a small fraction of the money we see today. Greed without the ability to "get the money" simply does not work. Fraud is also related to the amount of money involved but goes even deeper into the psyche and moral history of Israel. Let's look at greed in this article and cover fraud later.

Israel's incredible economic growth has brought a whole new class of problems. The first noticeable trend is a concentration of the money in a small group of people. Like the proverbial south America banana republic, Israel is made up of a few individuals and families who own a majority stake in companies and Real Estate. This is the first nouveau riche group in our long history as people. This new group now wants to live like the rich in the US and Europe. With life of luxury comes desire for more. As few succeed, many want to follow them. A race for more and to beat the "guy next door" results. Greed is the driving emotion to other forms of financial corruption.

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