Posts filed under “Corporate Management”
The American Red Cross has become a man-made disaster. It wasted millions of dollars in Hurricane Sandy aid through mismanagement and poor judgment. It compounded the snafu by covering up its errors, hiring lawyers to prevent the public from finding out what happened to its donations.
Earlier this year, I expressed my disappointment in the Red Cross. It had raised $312 million for storm relief, but then stonewalled on how the money was spent.
This morning, we found out why. Thanks to the dogged investigation by Justin Elliott and Jesse Eisinger of ProPublica and Laura Sullivan of NPR, we learned how poorly the Red Cross responded to the Sandy disaster. Their article “The Red Cross’ Secret Disaster” is must reading for anyone who contributes to philanthropies.
The details are shocking. The Red Cross wasted millions of donated dollars through mismanagement, bad judgment and poor priorities, including a show of the appearance of providing assistance, at the expense of delivering the aid itself.
Anyone involved in emergency assistance or other charitable work should read the report. It is a primer on what not to do when providing emergency relief after a natural disaster.
The details of how it botched the relief efforts are laid out in Red Cross documents and are simply stunning:
Bill Gross, founder of Pimco, and its chief investment officer for the past 40 or so years, resigned last week. Rumor has it that he was but two steps ahead of a mutinous gang, swords out, planning to make him walk the plank. Gross was too quick and before the mutineers could force him, he…Read More
Yesterday, we looked at why bankers weren’t busted for crimes committed during the financial crisis. Political corruption, prosecutorial malfeasance, rewritten legislation and cowardice on the part of government officials were among the many reasons. But I saved the biggest reason so many financial felons escaped justice for today: They dumped the cost of their criminal…Read More
Andrew Lapthorne, a quantitative strategist at Societe Generale SA, recently looked at the correlation between business investment and individual stock prices, in a report titled “How does too much or too little investment affect a company’s stock price?”. Some of their results were surprising: Stocks of companies that over- or underinvest get punished in…Read More
The jury is out as to how much of the Burger King-Tim Horton merger is driven by the desire for tax savings. So far, the range seems to be modestly to not very much. The Los Angeles Times noted “Burger King’s overall effective tax rate in 2013 was 27.5%, according to its annual report. Tim…Read More