2003
was not a year of garden variety corporate wrongdoing. No, the sheer
variety, reach and intricacy of corporate schemes, scandal and crimes
was spellbinding. Not an easy year to pick the 10 worst companies, for
sure.
But
Multinational Monitor magazine cannot be deterred by such
complications. And so, here follows, in alphabetical order, our list
for Multinational Monitor of the 10 worst corporations of 2003.
Bayer:
2003 may be remembered as the year of the headache at Bayer. In May,
the company agreed to plead guilty to a criminal count and pay more
than $250 million to resolve allegations that it denied Medicaid
discounts to which it was entitled. The company was beleaguered with
litigation related to its anti-cholesterol drug Baycol. Bayer pulled
the drug - which has been linked to a sometimes fatal muscle disorder
-- from the market, but is facing thousands of suits from patients who
allege they were harmed by the drug. In June, the New York Times
reported on internal company memos which appear to show that the
company continued to promote the drug even as its own analysis had
revealed the dangers of the product. Bayer denies the allegations.
Boeing:
In one of the grandest schemes of corporate welfare in recent memory,
Boeing engineered a deal whereby the Pentagon would lease tanker
planes -- 767s that refuel fighter planes in the air -- from Boeing.
The pricetag of $27.6 billion was billions more than the cost of
simply buying the planes. The deal may unravel, though, because the
company in November fired for wrongdoing both the employee that
negotiated the contract for Boeing (the company's chief financial
officer), and the employee that negotiated the contract for the
government. How could Boeing fire a Pentagon employee? Simple. She was
no longer a Pentagon employee. Boeing had hired her shortly after the
company clinched the deal.
Brighthouse:
A new-agey advertising/consulting/ strategic advice company,
Brighthouse's claim to infamy is its Neurostrategies Institute, which
undertakes research to see how the brain responds to advertising
campaigns. In a cutting-edge effort to extend and sharpen the
commercial reach in ways never previously before possible, the
institute is using MRIs to monitor activity in people's brains
triggered by advertisements.
Clear Channel:
The radio behemoth Clear Channel specializes in consuming or squashing
locally owned radio stations, imposing a homogenized music play list
on once interesting stations, and offering cultural support for U.S.
imperial adventures. It has also compiled a record of "repeated
law-breaking," according to our colleage Jim Donahue, violating the
law -- including prohibitions on deceptive advertising and on
broadcasting conversations without obtaining permission of the second
party to the conversation -- on 36 separate occasions over the
previous three years.
Diebold:
A North Canton, Ohio-based company that is one of the largest U.S.
voting machine manufacturers, and an aggressive peddler of its
electronic voting machines, Diebold has managed to demonstrate that it
fails any reasonable test of qualifications for involvement with the
voting process. Its CEO has worked as a major fundraiser for President
George Bush. Computer experts revealed serious flaws in its voting
technology, and activists showed how careless it was with confidential
information. And it threatened lawsuits against activists who
published on the Internet documents from the company showing its
failures.
Halliburton:
Now the owner of the company which initially drafted plans for
privatization of U.S. military functions -- plans drafted during the
Bush I administration when current Vice President and former
Halliburton CEO Dick Cheney was Secretary of Defense -- Halliburton is
pulling in billions in revenues for contract work -- providing
logistical support ranging from oil to food -- in Iraq. Tens of
millions, at least, appear to be overcharges. Some analysts say the
charges for oil provision amount to "highway robbery."
HealthSouth:
Fifteen of its top executives have pled guilty in connection with a
multi-billion dollar scheme to defraud investors, the public and the
U.S. government about the company's financial condition. The founder
and CEO of the company that runs a network of outpatient surgery,
diagnostic imagery and rehabilitative healthcare centers, Richard
Scrushy, is fighting the charges. But thanks to the slick maneuvering
of attorney Bob Bennett, it appears the company itself will get off
scot free -- no indictments, no pleas, no fines, no probation.
Inamed:
The California-based company sought Food and Drug Administration
approval for silicone breast implants, even though it was not able to
present long-term safety data -- the very thing that led the FDA to
restrict sales of silicone implants a decade ago. In light of what
remains unknown and what is known about the implants' effects --
including painful breast hardening which can lead to deformity, and
very high rupture rates -- the FDA in January 2004 denied Inamed's
application for marketing approval.
Merrill Lynch:
This company keeps messing up. Fresh off of a $100 million fine levied
because analysts were recommending stocks that they trashed in private
e-mails, the company saw three former execs indicted for shady
dealings with Enron. The company itself managed to escape with
something less than a slap on the wrist -- no prosecution in exchange
for "oversight."
Safeway:
One of the largest U.S. grocery chains, Safeway is leading the charge
to demand givebacks from striking and locked out grocery workers in
Southern California. Along with Albertsons and Ralphs (Kroger's),
Safeway's Vons and Pavilion stores are asking employees to start
paying for a major chunk of their health insurance. Under the
company's proposals, workers and their families will lose $4,000 to
$6,000 a year in health insurance benefits.
Russell Mokhiber
is editor of the Washington, D.C.-based Corporate Crime Reporter,
http://www.corporatecrimereporter.com.
Robert Weissman
is editor of the Washington, D.C.-based Multinational Monitor,
http://www.multinationalmonitor.org. They are co-authors of
Corporate Predators: The Hunt for MegaProfits and the Attack on
Democracy (Monroe, Maine: Common Courage Press;
www.corporatepredators.org).
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