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April 21, 2003
Economist David Kaun discusses corporate ethics
April 23
By Jennifer McNulty
Economist David Kaun will join Congressman Sam Farr for a town hall
meeting about corporate fraud, reform, and accountability at 7 p.m.
on Wednesday, April 23, in the Veteran’s Hall at 846 Front Street
in Santa Cruz. The event is free and open to the public.
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"If you define fraud in a reasonable way, the salaries
of corporate executives are fraudulent."
--David Kaun
professor of economics
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Corporate fraud must be considered within the context of enormous
wealth, said Kaun, a UCSC professor of economics whose recent research
concerns the distorted influence of conservative think tanks on the
public dialogue and the impact of income and wealth inequality on public
attitudes.
"If you define fraud in a reasonable way, the salaries of corporate
executives are fraudulent," said Kaun. "There are a lot of
corporate executives who are fundamentally thieves because their salaries
over the past two decades have soared into the millions of dollars a
year with little relationship to performance. Theft is taking something
you don’t deserve, and as such there’s a large number of people
out there who are guilty of thievery."
At the same time, the degree of inequality between executives and workers
has increased enormously, and such gaps foster envy and jealousy, added
Kaun.
"Economist Adam Smith wrote years ago about what happens when
individuals accumulate great wealth and the consequent need for civil
protection," said Kaun. "One of the things the government
has to dedicate considerable resources to is internal security. Look
at the growth of gated communities. It’s all about protecting wealth."
On the other hand, Kaun applauded the philanthropic efforts of individuals
such as Bill Gates and George Soros, who have shared their wealth worldwide.
"But they seem to be the exceptions," he noted.
Joining Kaun and Farr will be Gloria Purdy, a high-tech financial executive.
The event is cosponsored by People Against Corporate Thievery (PACT),
UCSC’s Center for Justice, Tolerance, and Community, the UCSC Economics
Department, and the Santa Cruz chapter of the Women’s International
League for Peace and Freedom (WILPF). A question-and-answer session
will follow prepared remarks by the speakers.
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