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Tuesday, January 31, 2017

The Boy Scouts and Avoiding Lawsuit Risk

The Boy Scouts of America recently announced it will allow transgender children (i.e., biological girls) into the Cub Scouts and Boy Scouts.

The policy change comes days after reports that a New Jersey mother of an eight year old girl, identifying as male and recently kicked out of a Cub Scout pack, planned a civil rights complaint with New Jersey authorities. Not even a civil lawsuit, although there's no telling what has happened away from the glare of media cameras.

I counsel clients on avoiding risk and weighing risk in various situations. Part of that process involves asking questions, like: "How do you act, to minimize the risk of a false accusation?"

You cannot control the conduct or intent of others, but you can control your own conduct, your intent, and the situations you put yourself in. I believe that, and it's unfortunate in this world, but innocence is not enough.

With that in mind, here is how I see the Boy Scouts' situation.

When a girl joins and participates with the Boy Scout pack, the boys, the scoutmasters (often parents of the boys in the pack) and the organization are all at risk of a false accusation -- from a female.

In the current politically charged climate, for practical purposes, female accusations are accorded greater weight, at least in the court of public affairs. Allegations may not hold water and false accusers may even be prosecuted, but targets of accusations don't have a ready remedy to restore their reputations. (Note the qualifications and phrases set off by commas, before you misinterpret my writing.)

The Boy Scouts' new policy -- call it appeasement, call it compromise -- may endanger all of its participants in a misguided strategy prioritizing the seeking of the approval of opponents, over duties to its members. The effect is to give no resistance to outside challenges which represent a crude, if not depraved, indifference to the risk assumed to any Scout participant, a risk assumed by the mere act of being involved with the Scouts. Sadly, making participation in the Scouts a risky proposition, one in which participants (even, and especially, chidren) risk legal and reputational consequences, might be the unstated but intended consequence.

The organization could have elected to show a spine, to prepare for and engage in litigation. Now, by trying to avoid confrontation, it may well weaken its standing and support among its members. That in turn will almost assuredly weaken its ability to withstand the next legal threat, which its appeasement today will only invite.

After all, weakness is provocative.

Monday, January 30, 2017

Starbucks Risks Lawsuits With Refugee Hiring Push

The chief executive officer of Starbucks said Monday morning he will have his coffee chain hire 10,000 "refugees" in response to the Trump Administration executive order on certain majority-Moslem-nation refugees and visa holders.

I guess Americans will be wondering just where those unfilled jobs were all these years.

These are borderline discriminatory policies. The motives are clear. These companies either want to avoid the backlash from a Leftist-Marxist pro-open borders crowd, or they are catering to this growing and substantial segment of the consumer market. Thus, "virtue signaling" to this portion of consumers is seen as the way to grow -- more likely, to retain -- consumer sales.

Yet such blatant preferences -- for which the flip side is equally blatant discrimination -- violate a host of federal and state civil rights laws.

If one baker can be sued by a state attorney general for refusing to bake wedding cakes for a gay couple, surely Starbucks would be a clear target of an ideologically blind Department of Justice, Civil Rights Division, or state attorney general, would it not?

I would think Starbucks and companies following its lead would become prime targets for shareholder lawsuits as well. That's because essentially declaring war on much of the rest of your native "American" consumer population is eventually going to harm the bottom line. Implicitly criticizing a segment of the consumer base puts other revenue at risk. These political decisions are not guaranteed to be revenue net-neutral and may well become net negative. The risks are substantial enough to throw doubt on whether any cognizable "business judgment" argument can or will be made to justify such strategies.

Wednesday, January 25, 2017

The Hidden Target of Election Fraud

The current controversy over alleged voter fraud misses the point on the numerous opportunities for actual mischief and distortions in the political process.

As this longer analysis of mine points out, the arena of opportunity is in the dark recesses of the election machinery. 

Everyone is watching a presidential election. 

It's where no one is looking -- and frankly, no one cares -- where the real problem lies. I explain how that then leads to metastasizing problems which undermine the integrity of the election process. 


Wednesday, January 4, 2017

Bullish on Blockchain, Or Full of Bull? How You Can Avoid The Frauds

As of this writing, most digital currencies of consequence are soaring with double digit percentage gains over the past week if not the past day!

Renewed interest in all things "blockchain" has followed. That interest is flowing towards the omnipresent commentary about how "The Blockchain" will solve all manner of human problems large and small.

Want to have immediate transaction clearing? The blockchain will handle that. Sure. Someday. Just trust us.

Want to end world wars and terrorism? The blockchain will have an app for that!

Want to stop food from spoiling? Yeah, the blockchain can do that too.

These are the fantasies of the utopians, the tech lovers and science fiction geeks whose faith in human intelligence to ultimately provide these solutions is both unbounded by and, too often, ungrounded in reality.

Blockchain technology can be a platform for great innovations, advancements and improvements in commerce, science, education and recordkeeping. It can be a main pillar of the next wave of human civilization in which the information economy is not merely a feature but rather a core element.

Yet the dreamers are too often followed by the schemers. The people saying that blockchain technology will solve your problems -- and get you rich quick in the process -- are confident only that it will solve THEIR financial problem, and your capital is the solution.

Any real solution starts with an understanding of the gravity of the problem.

We are rapidly moving into a post-fact era where impulsivity replaces intelligence and bravado replaces mature judgment. In this new world, we need a renewed appreciation for and value of the sanctity of information.

There's something else here as well. The value of information is only as good as the information itself. Throw bad content into the blockchain and, absent a strong external
Quality Control mechanism which may contradict the very nature of blockchain, the content remains. Because it is valid -- even though in its valid state it may have impure data.

The blockchain can be a great preservative. But it cannot guarantee a great crop yield and it cannot guarantee the food will get from field to table in one piece or in edible condition. As with perishable food, no amount of refrigeration will restore food which has already gone bad before it gets to the blockchain.

A mature view of this technology will accept its current limitations and identify the real present day problems that can be solved today. Focusing on stuff that sounds like it came out of a "Star Trek" movie is great for showing off. For the rest of us, we need to solve real world, real life problems and we need all the focus we can summon to accomplish what's real.




Without that appreciation, the blockchain is worthless.