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The Morning Risk Report: Workers' Discontent Threatens Google’s Reputation |
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Google employees in San Francisco protest against what they said is the tech company’s mishandling of sexual-misconduct allegations. PHOTO: ERIC RISBERG/ASSOCIATED PRESS
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Good day. Google has long prided itself on its unconventional culture and generous perks to convey the message that the company, from its products to its ambitions, is exceptional. And for years, employees have bought in.
On Thursday, however, workers for the Alphabet Inc. unit who took part in a walkout at the company’s offices signaled a crisis in faith—one that could cause reputational harm, affecting Google’s standing as an aspirational workplace, risk experts and analysts told Risk & Compliance Journal.
[Continued below...]
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Employee activism at Google has risen of late, and this week's protests are in response to a New York Times article last week, which detailed how the company protected three senior executives over the past decade after they were accused of sexual misconduct, including one who received a $90 million exit package in 2014. Google declined to comment on details in the Times story.
How Google responds is critical for a company “built on human capital and nothing else,” said John Wilson, Cornerstone Capital Group’s head of research and corporate governance. “If employees don’t trust the company will have their backs, it will impact Google’s ability to attract, retain and motivate employees,” he said.
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Tim Leissner, former partner for Goldman Sachs in Asia, pleaded guilty to conspiracy to launder money and violate foreign anti-bribery laws. Roger Ng, another former Goldman banker, was arrested in Malaysia. PHOTO: LUCAS JACKSON/REUTERS
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Ex-Goldman Bankers Face U.S. Charges in 1MDB Fund
Scandal |
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Two Goldman Sachs bankers allegedly paid bribes, and stole and laundered money from a Malaysian sovereign wealth fund, U.S. prosecutors said, placing the bank at the center of one of the world’s largest financial frauds, The Wall Street Journal reports.
A former head of the company’s Southeast Asia unit pleaded guilty, as did a managing director. They allegedly siphoned billions of dollars from the fund, known as 1Malaysia Development Bhd.
The case marks the first criminal charges in the U.S. stemming from the 1MDB scandal. “The firm continues to cooperate with all authorities investigating this matter,” a Goldman spokesman said.
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Europeans Eye Sanctions on Iran Over Covert Activities |
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Jolted by fresh allegations of Iranian plots on their doorsteps, European governments are discussing their first targeted sanctions against Tehran in years as they strain to uphold the 2015 Iran nuclear deal.
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U.K. Authorities Open Investigation of Pro-Brexit Campaign
Donor |
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British police have opened an investigation a key financial backer of the campaign to persuade voters to leave the European Union in 2016. The probe comes after U.K. lawmakers raised the alarm over alleged links to Russia.
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The ‘Dark Side’ of Managers With Audit Background |
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Companies that gave top managers above-average compensation and whose executives had an audit-firm background were about 30% more likely than those with lower-paid counterparts to misstate financial results, according to a study in the November issue of The Accounting Review.
The combination of audit-firm experience and excess pay brought out this “dark side” of accounting competence, said Anne Albrecht, an assistant professor of accounting at the Neeley School of Business at Texas Christian University, one of the study’s authors.
“If there’s a risk that you have very competent people who know how to game the system, you need very strong systems and controls,” said Howard Brownstein, president of the Philadelphia chapter of the National Association of Corporate Directors.
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U.S. Accuses Chinese Firms of Stealing Trade Secrets From Micron |
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U.S. authorities accused a Chinese state-owned firm, its Taiwanese partner and several individuals of stealing trade secrets from America’s largest memory-chip maker, Micron Technology Inc.
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The indictment, unsealed Thursday, is the latest in a flurry of charges targeting alleged Chinese technology theft as the Trump administration takes an aggressive stance against Beijing.
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Img caption/IMG CREDIT HERE
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Tesla Investors Call for Board Changes, More Musk
Oversight |
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Some Tesla Inc. shareholders want the company to make sweeping changes to its governance to enhance oversight of Chief Executive Elon Musk.
In a letter to three Tesla directors, the investors said Tesla’s board should create a plan to refresh its membership. They also want to separate the positions of chairman and chief executive, which Mr. Musk has long held.
The called-for actions would go beyond those required in an agreement with regulators to settle allegations that Mr. Musk misled investors with tweets claiming the company had funding in place to go private. Tesla declined to comment on Thursday’s letter.
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Caesars Entertainment CEO to Leave Next Year |
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Caesars Entertainment Corp. Chief Executive Mark Frissora will leave the company next year, the company said Thursday. Mr. Frissora, who also serves as Caesars president, will remain in the role until Feb. 8.
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Gulfport Energy CEO Steps Down |
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Gulfport Energy Corp.’s Chief Executive Michael G. Moore has stepped down following a review that found he had made personal charges to a company credit card and used Gulfport’s chartered aircraft without permission.
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Subscribe to The Morning Risk Report here.
Follow us on Twitter at @WSJRisk.
Send comments to the Risk & Compliance editor, Jack Hagel, at jack.hagel@wsj.com.
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