The Code

The Book of the Week is “The Code, The Evolution of Secrecy From Mary, Queen of Scots to Quantum Cryptography” by Simon Singh, published in 1999. This book described a few different contexts in which communications needed to be deciphered or kept secret– in war, in determining whether to execute a queen, in learning about life in ancient Egypt and Greece, and in electronic exchanges to prevent theft of identity or assets, or maintain privacy.

The author related not only the details of how the WWII Allies were able to outwit the Germans by learning what they were doing, but also every last technical detail of the code-breaking, which is brain-breaking for most laypeople. But not for cryptography hobbyists.

Anyway, beginning in the early 1930’s for about eight years, a German intelligence agent sold information on his country’s secret communications operations, to a French intelligence agent. The French couldn’t have been bothered with such time-consuming, labor-intensive work that would allow them to intercept encoded military messages to and from Germans.

However, Poland was interested. The French turned it over to the Poles because the latter felt vulnerable to invasion from both sides, from the Soviets and Germans. Fortunately, Poland had a long standing-agreement with France to share such information.

Also, fortunately, the Poles’ lead cryptographer was a genius. But it took even him a year to compile a catalogue of alphabet-letter chain lengths in order to be able to decipher the Germans’ daily messages, whose code was different every day.

In 1938, the Germans added two more scramblers to their existing three, which made code-breaking by foreign intelligence agents, very nearly impossible. So in the summer of 1939, the Poles sent their deciphering equipment to Great Britain, which took over the spying operation.

In early September 1939, the Government Code and Cypher School in Britain hired its own genius, Alan Turing. He invented a setup of structures in which the completing of an electrical circuit would be indicated by a lit bulb when a code was broken. Construction of the contraptions of the top secret operation was completed by summer 1940, but the code-breaking was still agonizingly slow.

Different German contingents, such as the North Africa campaign, the army in Europe, the Luftwaffe, and the navy each had different codes. The navy’s was the hardest to break. But the work was worth doing because it significantly shortened the war by informing the British what the Germans were going to do next.

The Allies’ knowledge of German messages was especially helpful in the Battle of the Atlantic, and was instrumental in the Pacific Theater at Midway– in killing a powerful Japanese admiral in the Solomon Islands.

Eventually, 420 Native Americans of the Navajo tribe conveyed messages on behalf of, and to and from the Americans, because their language was indecipherable to the Japanese.

At this book’s writing, “Diffie, Hellman and Merkle [Americans] have become world famous cryptographers who [allegedly] invented the concept of public-key cryptography while Rivest, Shamir and Adelman [also Americans] have been credited with developing RSA [in 1977], the most beautiful implementation of public-key cryptography.”

However, three different British men conceived of the concept first– by early 1974. They were sworn to secrecy, as it was part of a classified military operation, and computing at the time wasn’t powerful enough to implement their concept. Being Americans, the aforementioned latter trio patented their method, and in 1996, sold their company for $200 million.

Interesting factoids: Cryptanalysts are in greater demand than ever before. The U.S. National Security Agency is still the world’s largest employer of mathematicians.

At this book’s writing, quantum cryptography was the wave of the future in cybersecurity, because it would be absolutely unbreakable. It would use either photon transmission or fiber-optics. The message sender and receiver could see whether there was an interloper because the messages would be altered. A card game– Hanabi– has since been invented, that uses the logic that allows communicators to decipher one another’s messages, while preventing third parties from doing so.

Read the book to learn about Philip Zimmermann (someone whom the National Security Agency viewed as a troublemaker), and the whole kit and caboodle on how codes were historically made and broken, and how messages can be kept secure. Six ways to Sunday.

On Trial

The Book of the Week is “On Trial” by Gerald Dickler, published in 1993. This book described thirteen of the most famous court cases in the history of the world. These cases show that there’s nothing new under the sun. Political and religious battles will never cease, due to human nature.

Socrates was tried in 399 B.C. in Athens, when he was seventy. A scholarly wiseass, Socrates believed that most members of Greece’s government were “…crude politicians lacking in wisdom and ill-equipped for high office … I found that the men most in repute were all but the most foolish, and that others less esteemed were really wiser and better.”

Sad to say, some of the personality traits that cause one to be perceived as a good leader and popular are also those that inevitably leads to unethical behavior: dishonesty (also known as public relations), greed (fundraising and pork-barrel-amassing abilities), power hunger (perhaps perceived as taking charge), and bullying (perceived as refusing to suffer fools gladly- or avenging others on the politician’s behalf). In government, people in possession of the above are handsomely rewarded.

Granted, most political candidates run with the best of intentions. However, when they get elected, they realize how fraught with conflicts of interest the job is and can’t help but be hypocrites if they want to get reelected. Excuse the cliche, but fools rush in where wise men fear to tread.

Andrew Johnson wasn’t careful with what he wished for. He was promoted from vice president to president after Abraham Lincoln was assassinated in 1865. He was a Democrat from the South, post-civil war, outnumbered by Republicans from the North, whose goal was to continue rubbing salt into the wounds of the South. The Republicans were mean of spirit, petty and vengeful. They tried to get an impeachment case together first against Lincoln, and then actually voted concerning  Johnson. That means that they voted to have a trial to remove the president from office.

With Johnson, the key question was, “Was the Senate sitting as a court or as a legislative body?” The trial took place in 1868.

People put on trial on political grounds also included King Charles I of England, J. Robert Oppenheimer, and the Reichstag fire perpetrator (for an alleged Communist plot).

Jesus was put on trial for blasphemy. His philosophy happened to clash with that of powerful capitalists and religious leaders in his community. The fact that Jesus proclaimed himself to be the Messiah was the charge on which he was convicted, though.

Galileo was yet another figure who was seen as a heretic, in 1633. Unfortunately, he was trying to teach science in a time of extreme religious strife. The advancement of science occurred after his death, when the religious craziness had subsided and logic and reason came into vogue. More observations led scientists to adopt the heliocentric model of the solar system– that the planets revolve around the sun; not the earth, and not around Pope Urban VIII or any other pope.

Some cases were both religious and political:  John T. Scopes, Nuremberg and Dreyfus.

Dreyfus was a French army captain perceived to be Jewish. He was accused to spying on behalf of the enemy Germany in the 1890’s. Upon his court-martial, he was imprisoned forthwith for more than a decade while a huge number of people jumped on the bandwagon of anti-Semitic hatred-spewing; random events also conspired against him. The case involved hundreds of phony anti-Dreyfus documents, a rumor mill, rioting, looting, etc., etc.

Many of the above trials can be summed up thusly: “As so often happens, the hysteria ground to a halt through its own excesses.”

Read the book to learn more about the court cases– that became very, very famous internationally– because they had far-reaching consequences in history.

The Age of Heretics

The Book of the Week is “The Age of Heretics, Heroes, Outlaws, and the Forerunners of Corporate Change” by Art Kleiner, published in 1996. This is a description of the consciousness-raising theories, thinkers, psychological researchers and organizations that spurred different ways of thinking, and futurism, in some American workplaces starting in the 1940’s.

A study of group dynamics of eleven-year old boys conducted by Kurt Lewin in the 1940’s tested three different scenarios. They examined democratic, autocratic and socialistic models of leadership. The most mature group was found in the first model. The second spawned a form of Nazism. The third model’s group members displayed resentment of lazy and non-cooperative individuals. In the 1960’s, a similar study done by Michael Maccoby among CEO’s yielded similar results.

In the mid 1940’s, management consultant Eric Trist found that people work well when their workplace culture consists of a bunch of small communities– each group sees how they fit into the system as a whole, working toward a common goal. He transferred the application of his theory to small groups of some of Procter and Gamble’s employees. They worked well together too, reaping handsome rewards for their employer and themselves. However, the author failed to mention whether they were unionized.

The program was kept top secret, lest the company’s competition copy them. In the early 1970’s, a similarly successful corporate culture was duplicated in Topeka, Kansas at a dog-food plant of General Foods. But upper management was still resistant to adoption of the democratic method of work.

In the mid-1960’s, Saul Alinsky was another heretic  (or arguably, hero or outlaw) who effected change. He pioneered shareholder activism to help underprivileged communities fight back against socially irresponsible corporations. He had local residents adversely affected (for instance, by pollution) by a major employer in a community, purchase stock of the employer in order to give those residents a voice at the company’s annual meeting.

The author wrote that the birth year of Amory Lovins, patent applicant for magnetic resonance imaging, was 1951 (which might not be accurate). Nevertheless, in the mid-1970’s, the brilliant scientist raised the alarm on environmental destruction of earth, suggesting that people harness solar energy, build wind farms, and heavily insulate their buildings. He proclaimed that nuclear power was horribly inefficient because it generated excessive heat.

It might be recalled that in the mid-1970’s, Ralph Nader confronted numerous hegemonic groups of individuals who lacked a moral compass. He “seized the day” during which the Watergate investigation revealed that “… a blustering, vicious, foulmouthed spirit lurked behind the presidential image.”

In the early 1970’s, Royal Dutch/Shell’s management structure and intellectual capacity to think ahead was anomalous compared with other major American oil companies.

Read the book to learn of how Shell formulated an accurate prediction of the oil industry a few years hence, and how it weathered the international storm (hint– the storm involved crisis-fabrication, a tool used by manipulative, power-hungry, greedy leaders everywhere); learn of the fate of a management consulting organization that spread its gospel to lots of workplaces; and much more.

The World According to Monsanto – URGENT POST

The Book of the Decade is  “The World According to Monsanto– Pollution, Corruption, and the Control of Our Food Supply” by Marie-Monique Robin, published in 2010.

The author wrote, “When one dissects Monsanto’s activity reports (contained in 10-K forms [annual reports filed with the Securities and Exchange Commission in the United States]) since 1997, one is struck by the place taken up by litigation.”

There are no companies that can fairly be compared to Monsanto in terms of payments to victims for irreparable harm, permanent injury and wrongful deaths caused by the environmental damage done by Monsanto. They couldn’t possibly compete. But the following is a summary of recent expenses of the legal bullying of, and financial punishments handed down, to Monsanto.

Monsanto’s 2017 annual report’s footnotes showed $33 million in expenses associated with “environmental and litigation matters.” The company’s 2015 Restructuring Plan included $167 million of the same kinds of aforementioned expenses and “a SEC settlement.” The cost of goods sold was $101 million. That means, its litigation expenses exceeded the costs of producing its products. Besides, annual reports don’t normally contain the exact phrase “environmental and litigation matters.”

Another item included $32 million of expenses related to “legacy environmental settlements.” Monsanto recorded the settlement of its polychlorinated biphenyls (PCBs) legal troubles for $280 million in fiscal 2016. Lastly (finally!), the “Long-Term Portion of Environmental and Litigation Liabilities” accounts for almost 1 1/2% of the company’s “Total Liabilities” for the year.

What makes Monsanto’s excessive litigation egregious is that it has so much worldwide hegemony that it wins its cases most of the time– the company itself sues everyone who gets in the way of its profit-making, and successfully defends itself against the countless plaintiffs who have legitimate causes of action against it.

Not to mention the fact that it had basically formed a public-private partnership (largely via political contributions and lobbying), with the American government as of the book’s writing. That is why whistleblowers and activists get crushed in its wake.

Sounds familiar… Unfortunately, the reason history repeats itself so often is that human nature doesn’t change. What makes Monsanto’s case so much scarier than the situations with other, similar monstrous entities is that Monsanto has the potential to permanently contaminate nearly the entire world’s food supply, and there have already been significant consequences of that nature due to its unbridled greed. Yes, it is that bad.

Founded as a chemical and plastics company in 1901 in Saint Louis, Missouri– Monsanto went public in 1929. It made DDT, dioxin, aspartame, (and inadvertently but knowingly and ruthlessly, PCBs), among other substances that have done permanent harm to a large number of people.

As of this book’s writing, Monsanto had a presence in 46 nations and owned 90% of the patents for all Genetically Modified Organisms internationally grown. It makes billions of dollars in profit annually.

The author traveled extensively to interview numerous people to gather a voluminous amount of data on Monsanto’s quest to make the maximum amount of money it possibly can, at the expense of humanity. The scientists she interviewed– including friends and foes of Monsanto– all said they wouldn’t eat the genetically modified foods borne of Monsanto products.

The author tells lots of anecdotes about people from all different geographic areas who have been adversely affected by the chemicals and genetically modified organisms sold by Monsanto, plus about several people previously affiliated with the company and U.S. government agencies, who were clearly still loyal to their former employers. One such interviewee displayed the body language of a liar: excessive blinking when answering her pressing questions. She also pored over declassified documents that indicate outrageous corporate wrongdoing.

Monsanto’s employees currently research, apply for patents to, and sell genetically modified seeds for growing soybeans, corn, cotton and rapeseed; plus a herbicide– Roundup, an insecticide– Bt toxin, and the bovine growth hormone rBST.

The author wrote that in 1983, the American federal government set aside funds called the Superfund Program to decontaminate toxic waste sites around the nation. When some of those funds were diverted to “… finance the electoral campaigns of Republican candidates, Congress discovered that documents that would compromise the companies[,] disappeared.”

As might be recalled, the Reagan administration had a reputation for being staunchly pro-business; so much so that it made EPA worker Anne Burford and her colleague Rita Lavelle the scapegoats of a scandal after pressuring them to shred documents (which would have implicated Monsanto) and commit other crimes in connection with the town of Times Beach, Missouri– a dioxin-and-PCBs-contaminated site.

That contamination resulted in the deaths of numerous animals, serious health problems for the people there, and forced permanent evacuation of the eight-hundred family resort town.

The author spoke with several whistleblowers. All were punished by their employers. One from the EPA distributed an inflammatory memo saying Monsanto published false research results on its products. Another from the FDA wrote a report on the flaws in Monsanto’s application for approval of the artificial growth hormone rBST. He was fired in 1989, sued, and years later, won a job back at the FDA, but not one for which he was suited.

Monsanto’s rBST (still currently used at some dairy farms), when injected into cows, causes them to produce more milk (translation: more money). With the hormone, other substances are also likely to get into the milk, such as pus and antibiotics. This is because the injection sites on the cows form abscesses, necessitating the administering of antibiotics to the cows. Further, with rBST, the cows develop serious health problems, like ovarian cysts, mastitis and uterine disorders. Never mind humans who drink their milk.

In an unprecedented move, the FDA changed its own rules and approved rBST in November 1993 without forcing Monsanto to reply to its concerns and recommendations.

In the late 1980’s, a genetically modified dietary supplement sold by prescription only caused serious health problems, killing at least 37 and permanently disabling 1,500. If that kind of harm was done by a regulated item meant to be eaten that was genetically modified around the same time that Monsanto was testing rBST– a part of a product that millions of people would consume, shouldn’t the FDA have been more prudent in its approval process of rBST??

Monsanto sued the dairies that said on their milk-container labels that their milk contained no rBST. The defendants were forced to change their labeling.

In the late 1990’s, there was the TV-journalist-couple who were working on a show with negative coverage on Monsanto, when their employer was taken over by Fox News. They were fired because they refused to switch from telling the truth, to lying about Monsanto.

In 2003, after the couple suffered years of emotionally and bank-account draining litigation, “The [federal] judges considered that no law prohibited a television network or a newspaper company from lying to the public. To be sure, the rules established by the FCC prohibited it, but they did not have the force of law.” No wonder journalism is dead.

Conflicts of interest abounded in the 1990’s , when supposedly scholarly journal (peer-reviewed) articles (like Science, Nature and the Journal of the American Medical Association) declared that Monsanto’s products were safe; those articles were written by people paid by Monsanto.

Reputable scientists pointed out that Monsanto’s scientific testing involved non-standard procedures, and was statistically suspect as it was of too short a duration, and had too small a sample size.

Read the book to learn about:

  • horror stories resulting from Monsanto’s underhanded tactics regarding testing and use of its products, including the herbicide Roundup;
  • its victims in Anniston, Alabama who were subjected to PCBs;
  • which of Monsanto’s products was banned in 2000 in Canada and Europe;
  • how Monsanto is active in the United Nations;
  • how deregulation perpetuates Monsanto’s worldwide hegemony;
  • which ten or so individual American government officials acted on Monsanto’s behalf, but had undisclosed conflicts of interest [there was scant room in the book to list all those who were ethically challenged Monsanto affiliates— wait, that’s redundant];
  • the percentages of all foods genetically modified in specific categories in 2005;
  • how taxpayers footed the bill for Monsanto’s aggressive use of legal and political weaponry against American soybean farmers (whom it seriously harmed by taking away their livelihoods through duress and illegally spying on them in the late 1990’s) from 1999 into 2002;
  • why Monsanto dropped its initiative to introduce a transgenic wheat, even after spending hundreds of millions of dollars in connection therewith;
  • how Mexico has been harmed by Monsanto’s transgenic corn;
  • how Argentina and Paraguay have been harmed by Monsanto’s transgenic soybeans;
  • how India has been harmed by Monsanto’s transgenic cotton;
  • how Canadian farmers have been harmed by transgenic canola;
  • what transpired when, in January 2005, the Securities and Exchange Commission launched a legal proceeding against Monsanto for corruption in Indonesia;
  • why the World Trade Organization should share some blame for allowing the worldwide spread of Monsanto’s tentacles;
  • and much more.

Endnote:  Feel free to browse other posts for additional examples of entities behaving badly under the category “Business Ethics.”

Devils on the Deep Blue Sea

The Book of the Week is “Devils on the Deep Blue Sea, The Dreams, Schemes and Showdowns that Built America’s Cruise-Ship Empires” by Kristoffer A. Garin, published in 2005.

As of the book’s writing, Carnival Corporation and Royal Caribbean were two holding companies that dominated the pleasure cruise industry. The chairman and CEO of the former controlled almost half of the passenger capacity.

The passenger capacity of one cruise ship skyrocketed from less than two hundred to seven hundred fifty in the decade after WWII. Vacation culture was changing from wintertime to year-round Caribbean jaunts. Miami, Florida was the place of embarkation.

In autumn 1965, a cruise fire caused 91 deaths, and put the industry on edge. Negligence and incompetence of the captain and crew were to blame. Nevertheless, even at that time, the travel company owner was able to weasel out of legal trouble because the ship was registered in Panama. He didn’t escape financial trouble thereafter, though.

In 1966, Miami got a new passenger terminal. The 1970’s saw the city’s docks fraught with organized crime, thanks to the port director. Starting in the late 1970’s, the TV show “Love Boat” significantly boosted the number of people of all ages who tried cruising. In 1981, the industry experienced labor trouble.

Read the book to learn how the industry evolved; how Ted Arison earned his less-than-stellar reputation; how business-savvy executives seeking to merge with or acquire distressed cruise-line assets did so through the decades, including the Princess Cruises saga; and the tax, employment and supply-chain tricks they use to maximize profits.