5 ms·

In my experience with senior executives at $10B+ companies making these decisions, it's not a case of knowing the difference, or not caring, it's more a case of

In my experience with senior executives at $10B+ companies making these decisions, it's not a case of knowing the difference, or not caring, it's more a case of, at that level, the concept of "Right" and "Wrong" are immature concepts that aren't relevant. Executives that have reached that level, frequently take an almost purely game-theoretic position in any decisions they make, where they do a risk-assesment, consult their attorneys, determine what their exposure is, and then simply make a decision that is going to yield the greatest NPV (Net Present Value) inclusive of those risks. The problem at Best Buy is their GC did a poor job of training the company on the importance of not leaving behind discoverable material. That's the real lesson that I'm sure Best Buy's CEO took away from this who event. Don't be too surprised if Best Buy shifts to 90 day retention on email.

rthomas6 14y ago
What experience do you have, out of curiosity? It's interesting to think that top executives consider breaking the law in their options when making decisions.
- deleted 14y ago
  [deleted]
- snowwrestler 14y ago
  Without addressing the broader question of corporate decision-making, it seems to me that Best Buy broke a contract, not the law--which is why it was civil trial, not criminal.
- ghshephard 14y ago
  The experience I had typically fell the categories of Revenue Recognition . Things like round-trip revenue exchanges with other companies, Shipping gear with the understanding that return would occur at the end of the quarter, and capitalizing OpEx. The thing was - these executives (CEOs, CFOs, and EVPs of sales) never used words like "Wrong" and "Right" - they just made sure their activity wasn't discoverable and would pass muster of the Auditors (Auditors, who, were hired by those very same executives and were also doing consulting work for the company in other lucrative deals.) Anything that they could get away with, they simply presumed to be the best course of action. And, you really buy into that mindset when you're with them - and don't really realize what you are involved with until you hear about your CFO being indicted for something she got caught doing.
  - jaytaylor 14y ago
    How would one become one of these lucrative auditors? (hypothetically speaking, of course..)
    - loganfrederick 14y ago
      Spend your career in a Big Four accounting firm mostly. Get a MAcc and CPA.
    - johnrgrace 14y ago
      Get an accounting degree, remove your soul. Work long hours doing lots of pointless stuff without killing yourself, leaving, or being told to leave and you'll likley become a partner and become fiarly wealthy. (my wife is a CPA)
- mbesto 14y ago
  The executives we are all talking about here largely aren't normally part of the decision process in such a case. In fact it's more-so their responsibility to create policies and create organizations who then enforce them. So I think the comment that these executives are actively breaking the law, is slightly myopic. Where these executives do fail is not providing a vision and culture that fosters fair play, but rather bottom line results.
freshhawk 14y ago
That's an excellent description of the state of mind I was thinking of that I ambiguously called "not caring". > at that level, the concept of "Right" and "Wrong" are immature concepts that aren't relevant I'm assuming you are explaining the thinking of these amoral opportunists here and not stating that as true.

rthomas6 14y ago

What experience do you have, out of curiosity? It's interesting to think that top executives consider breaking the law in their options when making decisions.

deleted 14y ago
[deleted]
snowwrestler 14y ago
Without addressing the broader question of corporate decision-making, it seems to me that Best Buy broke a contract, not the law--which is why it was civil trial, not criminal.
ghshephard 14y ago
The experience I had typically fell the categories of Revenue Recognition . Things like round-trip revenue exchanges with other companies, Shipping gear with the understanding that return would occur at the end of the quarter, and capitalizing OpEx. The thing was - these executives (CEOs, CFOs, and EVPs of sales) never used words like "Wrong" and "Right" - they just made sure their activity wasn't discoverable and would pass muster of the Auditors (Auditors, who, were hired by those very same executives and were also doing consulting work for the company in other lucrative deals.) Anything that they could get away with, they simply presumed to be the best course of action. And, you really buy into that mindset when you're with them - and don't really realize what you are involved with until you hear about your CFO being indicted for something she got caught doing.
- jaytaylor 14y ago
  How would one become one of these lucrative auditors? (hypothetically speaking, of course..)
  - loganfrederick 14y ago
    Spend your career in a Big Four accounting firm mostly. Get a MAcc and CPA.
  - johnrgrace 14y ago
    Get an accounting degree, remove your soul. Work long hours doing lots of pointless stuff without killing yourself, leaving, or being told to leave and you'll likley become a partner and become fiarly wealthy. (my wife is a CPA)
mbesto 14y ago
The executives we are all talking about here largely aren't normally part of the decision process in such a case. In fact it's more-so their responsibility to create policies and create organizations who then enforce them. So I think the comment that these executives are actively breaking the law, is slightly myopic. Where these executives do fail is not providing a vision and culture that fosters fair play, but rather bottom line results.

freshhawk 14y ago

That's an excellent description of the state of mind I was thinking of that I ambiguously called "not caring". > at that level, the concept of "Right" and "Wrong" are immature concepts that aren't relevant I'm assuming you are explaining the thinking of these amoral opportunists here and not stating that as true.