What we talk about when we talk about conflict of interest

Why is the concept of conflict of interest so hard to understand? True, like any misdemeanour that has certain penalties attached to it, there is some room for debate when assessing culpability. But the thing is, we know it when we see it. And it’s precisely because we know it when we see it that we can say when it exists.

I say “exists” because conflict of interest is not a specific action or event. It doesn’t “occur.” One doesn’t have to actually do anything at all. Conflict of interest is a state of being. You are in a position where there is a conflict of interest or you are not.

This makes all the confusion over Amanda Lang’s “potential” conflict(s) of interest very strange. In brief, Lang, who is the chief financial correspondent for CBC news, has been hauled onto the carpet for supposedly trying to kill a story critical of the Royal Bank of Canada. Lang has accepted paid speaking engagements from the Royal Bank, went on to write an op-ed piece for the Globe and Mail on the subject (taking the bank’s side), and was in a relationship with an officer of the bank at the time.

A position of conflict? Of course. Writing in Britain’s Guardian newspaper, columnist George Monbiot even expressed amazement that “she remains employed by CBC, which has so far done nothing but bluster and berate its critics.”

This is probably a reference to a note from Jennifer McGuire, CBC’s general manager, seeking to “set the record straight.” If that was McGuire’s intention then she failed entirely. As did Lang herself, who had a remarkably tone-deaf piece in yesterday’s Globe and Mail.

Lang writes that “it is painful to me that public perceptions of my integrity may have been compromised because I have been accused of acting improperly by allowing myself to be seen to have been in a conflict of interest.” This is a mind-wrenching circumlocution. Apparently her crime was not that of being in a conflict of interest. Instead, her improper action was to allow herself to be seen in such a conflict. Is Lang saying it’s only a crime if you get caught?

This may sound like nit-picking, but one suspects this is a piece that went through many, many drafts, every word of which was carefully parsed before submitting it for publication.

Nevertheless, Lang may have twisted herself into the truth, which is that in cases of conflict of interest, perception is everything. What I think confuses the matter is the use of terminology like “apparent,” “perceived,” and “potential” conflict of interest. These words shouldn’t apply. As I began by pointing out, conflict of interest isn’t an act, it’s a position one finds oneself in. And it is all a matter of perception: perceived conflict of interest (by an objective observer) is conflict of interest. When Lang responds to “exact allegations” of improper behaviour she’s changing the subject.

Lang goes on to say: “It did not occur to me that others would question my motivation. That they would raise doubts about my integrity. That they would believe my perspective on this story was affected, for example, either by a relationship or by the fact that I have spoken for pay at events organized by business groups and companies.”

So what? That Lang thought (and apparently still thinks) there was nothing wrong with what she was doing only tells us that she possesses a typically Canadian attitude about what it means to hold a position of power within any group or establishment (media, financial, or both, as the case may be): that it entitles you to do whatever you want without being questioned or criticized.

Those who say I acted improperly seem not to care that they, in effect, are alleging deeply unethical behaviour, or worse. I’m not sure how to convince people that my principles, integrity and career are fundamentally important to me, that I have no trouble understanding right from wrong and reporting honestly and independently. Unfortunately, it appears that I can assert that as long as I wish and still not overcome suspicions that originate from unshakeable and, in my view, utterly unwarranted presumptions of venal behaviour.

But the problem is not an allegation of any unethical behaviour. You certainly can question that in the present case, but it’s not necessary to do so. The problem is simply being in the position of a conflict of interest, not exercising that position in any unethical way. And the reason for having such a hard rule is simple: because in most cases proving any wrongdoing or quid pro quo is impossible. The accused can then simply respond with a blank denial and that’s the end of it.

As Monbiot registers, it’s easy to be cynical about the “impartial media” having become “mouthpieces for the elite.” And the fact that in Lang’s case this is happening with regard to public broadcasting makes it even worse. The public has, with some justification, little faith in the news media in general, but Caesar’s wife (the CBC) must be above suspicion. What makes the Lang story remarkable, at least to my eyes, is the obliviousness on the part of the CBC and Lang to there being anything wrong with what happened. As I’ve suggested, they may simply be taking for granted the culturally ingrained deference toward authority in this country: that our betters know better than we do what’s right and wrong. Or perhaps they’re taking the matter to the next level with a sort of “everybody does it because that’s the way the system operates” argument. Which may be true as well, but doesn’t help build trust.

Update, January 23 2015:

Media critic John Doyle, writing in the Globe and Mail, has this to say: “It’s always bracing when outsiders look at Canada, its cronyism and system of privilege. Monbiot is correct – it is grotesque. ”

Update, March 6 2015:

An internal review by the CBC has found that Lang’s reporting “met CBC’s journalistic standards.” The review did however find problems with the CBC’s conflict of interest policies, concluding that they were too open to interpretation. “Going forward, CBC News will ensure that all of our staff adhere to the most rigorous interpretation of this standard.” This sounds good, but I’m curious as to what this rigorous interpretation will be.

Update, August 27, 2016:

The issue reared its head again during the 2016 U.S. presidential campaign.

There will be blood

ichi2

Added my notes on Ichi the Killer (2001) over at Alex on Film. This kicks off a mini-series of commentaries I’ll be doing on Takashi Miike films. Of course the violence in Miike’s movies can be alienating, but what I really respond to is his eye and ability to work in different visual styles. It’s incredible that he’s able to turn out work of such quality at the pace he does.

Devil in the details

devil-in-the-white-cityAdded my review of Erik Larson’s The Devil in the White City (2003) over at Good Reports. In general I was unimpressed by this one, given how big a fan I am of true crime writing and how successful it was (a “major motion picture” is even reported to be in the works). Larson has been praised for his novelistic style, but I’m afraid this undercut some of my pleasure in the book. In brief, I thought he took liberties with the facts. He insists in his prefatory note that “However strange or macabre some of the following incidents may seem, this is not a work of fiction.” And at the end he mentions his agonizing over how to re-create some of serial killer H. H. Holmes’s murders when there were no witnesses to them. Buttressed by a reading of Capote’s In Cold Blood (perhaps not the ideal text in such a situation) he went on to build his murder scenes by using “threads of known detail to weave a plausible account, as would a prosecutor in his closing remarks to a jury.”

This sounds fair enough, but the fact is that Holmes had a rather bizarre and involved method of doing away with his victims and I think it would have been better if Larson had just admitted our inability to say for sure what happened. Far more troubling, however, was this account Larson gives of Holmes taking a pair of prospective victims on a tour of Chicago:

Holmes took the sisters to the Union Stock Yards, where a tour guide led them into the heart of the slaughter. The guide cautioned that they should watch their feet lest they slip in blood. They watched as hog after hog was upended and whisked screaming down the cable into the butchering chambers below, where men with blood-caked knives expertly cut their throats. The hogs, some still alive, were dipped next into a vat of boiling water, then scraped clean of bristle — the bristle saved in bins below the scraping tables. Each screaming hog then passed from station to station, where knifemen drenched in blood made the same few incisions times after time until, as the hog advanced, slabs of meat began thudding wetly onto the tables. Holmes was unmoved; Minnie and Anna were horrified but also strangely thrilled by the efficiency of the carnage. The yards embodied everything Anna had heard about Chicago and its irresistible, even savage drive toward wealth and power.

I was so struck by this passage that it was one of only two in the entire book that I made a note of. Did Chicagoans in the late nineteenth century really take young ladies out to the slaughterhouse on a date? As anyone who has been inside such a place will testify, they are truly horrifying. And yet Minnie was Holmes’s “wife” and Anna a newly-met sister-in-law.

Alas, this is what we are told in the notes by way of explanation:

Despite the stench and pools of blood, the Union Stock Yards were Chicago’s single most compelling attraction for visitors, and tour guides did indeed lead men and women into the heart of the operation. It seems likely that Holmes would have brought Minnie and Nannie there, partly because of the yards’ status,  partly because he would have derived a certain satisfaction from subjecting the women to its horrors.

“It seems likely . . .”? This will not do. Larson’s passage describing the visit is entirely made up, based on pure speculation. We don’t even know if Holmes ever visited the Union Stock Yards, much less what his reason would have been for bringing these two women on such a tour, or what their response would have been (“horrified but also strangely thrilled”?). Yes, it makes for a colorful passage with heavy thematic overtones (Holmes would run his own slaughterhouse in Chicago, where little would go to waste), but it’s a bit of writing that has no place in such a book.

Waiting for the Great Transformation

thischangeseverythingAdded my review of Naomi Klein’s This Changes Everything over at Good Reports. I believe the environment is the most pressing issue of our time, and that we are facing great challenges ahead. I don’t see how we’ll be able to hit any of the targets, no matter how modest and insufficient, that have been projected as necessary for keeping global climate change catastrophe at bay. As I say in my review of Klein’s book:

The phrase “Great Transformation” [used by environmentalists] recalls Karl Polanyi’s classic work on the birth of the market economy and the capitalist system, a development contemporary with the Industrial Revolution. That was one of the most profound shifts in all of human history, matched only by the beginnings of agriculture some 12,000 years earlier. And as Polanyi noted, the (first) Great Transformation marked a change not only in human society but in human nature.

The work of the next Great Transformation will be to effectively undo all of this, creating a new economy, or human ecology, and a new human nature, all within the next decade or so. A tall order, for which there is no historical precedent, despite Klein’s best efforts at finding one.

This is a subject I’ve returned to many, many times over the years, often repeating myself. Here, for example, is what I had to say in a review of Annie Leonard’s The Story of Stuff:

With all due respect to Annie Leonard, and I am deeply sympathetic to her concerns, her sharing, caring community in downtown Berkeley is not a viable model for a new economic order. It is an enclave, existing within and supported by industrial civilization. As Leonard correctly points out, it was the Industrial Revolution that changed the world and turned our economy into one based on mass production and mass consumption. To change things – either “back” or forward, if there is a difference – means to some extent undoing the Industrial Revolution. Unfortunately, that revolution has turned into what Ronald Wright, in A Short History of Progress, describes as a “progress trap.” There simply is no way out of it because of the sacrifice involved in tearing ourselves free.

It’s rare, and usually not a very good idea, for a reviewer to inject personal, biographical information into a review, but in this case I feel it’s warranted. I grew up, and spent a great deal of my life living on a farm. Briefly the house had no plumbing. We used an outhouse. We churned our own butter for years. We baled hay in the summer using small bales that had to be loaded and unloaded by hand. We cleaned out cattle stalls all winter – every day, seven days a week – by pitchfork. Today, I know of very few farmers – aside from the local Mennonites – who live like this. Hay is baled in massive round bales, stalls are cleaned out by automated systems or small tractors. Butter is so cheap there’s no point making your own. Or even, for that matter, growing your own vegetables (as we always did).

Most of the people I know would, I think, rather die than live the idyllic life I did growing up. And yet this is what a truly post-industrial, environmentally sustainable civilization would look like. Except it would be worse. We would not live in urban communes like Berkeley, but have to work as peasants. To pretend otherwise, to say (as many do) that we can live environmentally and still enjoy something approximating our current standard of living is the noble lie at the heart of a lot of environmental talk. Our world would be changed utterly. Even those of us lucky enough to reside in towns would find work far more labour-intensive and uncomfortable, with far less leisure time. Would we be healthier? Almost certainly. Would it be better for the planet? Absolutely. But it would not be anything like what we see described in this passage from Alan Durning that Leonard endorses:

“Accepting and living by sufficiency rather than excess offers a return to what is, culturally speaking, the human home: to the ancient order of family, community, good work, and good life; to a reverence for skill, creativity, and creation; to a daily cadence slow enough to let us watch the sunset and stroll by the water’s edge; to communities worth spending a lifetime in; and to local places pregnant with the memories of generations.”

In other words, a return to a News from Nowhere sort of medievalism. It sounds like the vision of Princess Nekayah [in Samuel Johnsons’s novel Rasselas], and is just as likely to be realized. When Pol Pot wanted to send Cambodians back to the land he had to do it at the point of a bayonet, and even so he ended up killing millions.

As I said at the end of my review of Rubin’s book [Jeff Rubin’s Why Your World Is About to Get a Whole Lot Smaller], three things will be needed to respond to the challenge of finding an environmental balance for modern civilization, each of which is a total non-starter politically: real sacrifice, meaning accepting at least some diminishment, and probably quite a lot, in our quality of life; a spirit of radical egalitarianism, meaning we all sacrifice equally; and a global consensus on action, since the problems we face have global ramifications. To say that Leonard is right in pointing out the dangers of not doing anything, of just continuing to live the way we live now, is almost beside the point. We know smoking is bad for you – a major cause of cancer and heart disease – but people still smoke. We know fast food will kill you, but that hasn’t stopped billions of people from eating it.

And these are examples where the ill effects of our behaviour are personally and (relatively speaking) immediately felt! The fact of the matter is that we are not a rational species, and we’re even worse when it comes to planning for the future.

I hate to seem this cynical, but I honestly can’t see any way out. Elizabeth Kolbert was of a similar point of view in her review of Klein in the New York Review of Books:

To draw on Klein paraphrasing Al Gore, here’s my inconvenient truth: when you tell people what it would actually take to radically reduce carbon emissions, they turn away. They don’t want to give up air travel or air conditioning or HDTV or trips to the mall or the family car or the myriad other things that go along with consuming 5,000 or 8,000 or 12,000 watts. All the major environmental groups know this, which is why they maintain, contrary to the requirements of a 2,000-watt society, that climate change can be tackled with minimal disruption to “the American way of life.” And Klein, you have to assume, knows it too. The irony of her book is that she ends up exactly where the “warmists” do, telling a fable she hopes will do some good.

In her response to Kolbert, Klein emphasized that her “book is about the huge public policy shifts needed to make . . . low-carbon choices far easier and accessible to all. It is, therefore, a book first and foremost about ideology, and the need for a dramatic move away from the dominant free-market logic that has made so many of these necessary policies seem politically impossible.”

This is fine as far as it goes, and I am in broad agreement with Klein that what is necessary is a transformation of our entire world view if we want to create a sustainable society. But Kolbert’s rejoinder is also correct:

I wrote that I found much of her book compelling, but indicated that, on several crucial issues, I found it vague. In particular, I wrote that the book glossed over the really significant—and politically unpopular—changes in American life that meaningful climate action requires.

Klein’s letter only confirms this assessment. She reiterates a claim she makes in her book that as far as cutting consumption goes, “we would need to return to a lifestyle similar to the one we had in the 1970s, before consumption levels went crazy in the 1980s.” This claim is either purely impressionistic or just plain wrong. If you look at the figures, which, once again, are readily available online, you’ll see that since the 1970s, per capita energy consumption in the US has actually declined, as have per capita emissions. How far back would we have to go to make the kind of difference that’s needed?

How far back? To a time before the first Great Transformation, before the Industrial Revolution and all it brought with it. To be fair, there are those who believe that with new technologies we can continue to maintain today’s high standards of living with a “steady state” or “zero growth” economy. In my Story of Stuff review I called this the “noble lie” of environmentalism, but it’s one that many people believe in. Marq De Villiers made the argument in Our Way Out:

De Villiers says we can still enjoy the fruits of advanced technology and live “as well as, or perhaps better than, the well-off do now” in a green society.

I find this very hard to believe.

There is another s-word that cannot be dis-attached from the idea of sustainability: sacrifice. Yes, we could all do more with less energy and shrink our carbon footprints to a fraction of their present size. The economy as currently structured is incredibly wasteful. What’s more, living locally and consuming less may very well make us healthier and happier, both as individuals and as a society.

But so what? De Villiers’s principles may be perfectly rational, but reason has nothing to do with the way we live our lives. What we want is comfort and convenience, status and respect. To take an obvious example: we know that cigarettes and fast food are expensive luxuries that are bad for us, but they are still industries worth billions of dollars. And these are products that impact our personal health directly! We haven’t been able to give up cigs and greasy burgers even to save our own lives. Our concern for the future of the planet is probably less of a priority.

It is hard to imagine our being able to enjoy lifestyles even in the relatively near future that are anything close to those in the West now. But, as George W. Bush so eloquently and correctly put it, the American way of life is non-negotiable. Some people dream of living a life off the grid, growing their own veggies, darning their own socks, using public transit, turning vacations into stay-cations, and all the rest of it. But most of us would draw a line in the sand long before giving up air conditioning, air travel, and an expensive home entertainment system.

I want to be optimistic, but as you can tell from these review excerpts, I’ve been saying the same thing for years now and haven’t read any evidence to change my mind. We may be on the cusp of a Great Transformation, but it won’t come through planning, or willingly.

Would a real liberal please stand up?

Tom Holland chose an interesting pair of contrasting epigraphs by ancient authors who were contemporaries for his book on the fall of the Roman republic, Rubicon:

“Human nature is universally imbued with a desire for liberty and a hatred for servitude.” Caesar, Gallic Wars

“Only a few prefer liberty — the majority seek nothing more than fair masters.” Sallust, Histories

The points of view contrast, but are not contradictory. It’s Sallust’s cynical reflection, however, that gets more play in a recent essay by John Gray reprinted in Harper’s (January 2015):

Most human beings, most of the time, care about other things than more than they care about being free. Many will vote readily for an illiberal government if it promises security against violence or hardship, protects a way of life to which they are attached, and denies freedom to people they hate.

Today these ideas belong in the category of forbidden thoughts. When democracy proves to be oppressive, liberals insist it is because democracy is not working properly — if there were genuine popular participation, majorities would not oppress minorities. Arguing with this view is pointless, since it rests on an article of faith: the conviction that freedom is the natural human condition, which tyranny suppresses.

Liberalism can be its own worst enemy. I don’t mean that in the ancient formula of liberty breeds license, and license chaos, then chaos begs for an end to liberty. Just as prevalent as the liberal mindset Gray critiques is the neo-liberal world view also known as market fundamentalism. Free markets lead to free people, or so we’re told. Yet this isn’t what happened when the Chicago boys put Pinochet in power in Chile. And it’s the opposite of the so-called “Beijing consensus”: the surrender of political rights for economic growth and higher standards of living. Slavery is freedom.

Gray is concerned that the triumphalist idea of freedom as destiny, that history is on the side of liberal values worldwide, makes it harder to deal with the world as it is. “Coping with that world requires realistic thinking of a kind that the liberal mind, as it exists today, is incapable of.” But you have to wonder who believes this liberal myth. George W. Bush was one of its biggest cheerleaders during his presidency, seeing the spread of freedom and democracy not only as America’s mission but as divine providence. (Example: “The momentum of freedom in our world is unmistakable – and it is not carried forward by our power alone. We can trust in that greater power Who guides the unfolding of the years. And in all that is to come, we can know that His purposes are just and true.”) But this was freedom out of the barrel of a gun, and the only form of democracy being promoted was one that gave cover to governments friendly to American interests. Or take as another example today’s digital oligarchs and the mantra “information wants to be free.” Only if it’s other people’s freedom, says the fine print. Google isn’t giving anything away.

I know it’s become a slippery word, especially in American politics, but it still makes you wonder: Just what is a real liberal anyway?

Kitten Coupland

Added my review of Douglas Coupland’s Kitten Clone over at Good Reports. I’ve been pretty harsh on Coupland over the years, so I’m happy to say that Kitten Clone, which is about the corporation Alcatel-Lucent and the digital revolution generally, is one of the best books I read in 2014. It’s a dispiriting story (the employees of Alcatel seem a rather sad and pessimistic bunch, at least to me), but Coupland’s report is lively, mature, and full of insight. I hope we’ll get more like this from him.