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February 13, 2012
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February 3, 2012
Edmund Sanders : Israeli official says Iran is creating missile that could reach East Coast of US
Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
Brian Bennett: US officials see increasing threat of domestic attack from Iran
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January 31, 2012
January 30, 2012
Paul Richter and Ramin Mostaghim: Misreading Teheran's limits -- deadly and economically devastating as they may be -- is a risk administration, Europe seem willing to take
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Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
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Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
Ed Koch: To the New York Times, calling for the murder of Jews by those capable of having their incitement taken seriously isn't news
Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
Richard Simon: House passes two bills endorsing the use of religious symbols at military memorials
Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
Carol Clark: The price of your soul: How your brain decides whether to 'sell out'
Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
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Ali Safi: U.S. envoy gives Taliban terms for peace talks
January 19, 2012
January 18, 2012
January 17, 2012
Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
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January 13, 2012
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January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
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January 11, 2012
Shari Roan: Millions of atrial fibrillation sufferers at risk for devastating, but preventable, stroke
Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
Karen Kaplan: Study: Nicotine replacement products ineffective when used in real-life situations
January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
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Jewish World Review
Oct. 26, 2009
/ 7 Mar-Cheshvan 5770
Damaging disclosures with a twist
By
Rabbi Dr. Asher Meir
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http://www.JewishWorldReview.com |
Q. A person I know is going around borrowing money for his business. I happen to know that his business is not going so great, so there is a good chance lenders may not get their money back. I feel like I should inform them, but I'm afraid that if I tell people I will actually be precipitating a failure and do more harm than good to the lenders.
A. Your question is a twist on the usual dilemma involving damaging disclosures. Let's examine the usual situation:
The Torah commands us, "Don't go about as a talebearer among your people; don't stand idly by the blood of your neighbor" (Leviticus 19:16). The first half of the verse prohibits slander or any other kind of damaging revelation about others, but the second half tempers that prohibition: Our concern for the reputation of the wrongdoer shouldn't induce us to stand idly by when someone is liable to suffer a loss from his actions.
The classic book Chafetz Chaim by Rabbi Yisrael Meir HaCohen explains how we harmonize these competing principles. Revelation is justified when there is no other way to prevent someone from suffering a loss, and when the revelation doesn't cause undeserved harm to the subject.
.Thus, the evaluation process is simple. First, we see if the potentially damaging revelation is really likely to save someone from a loss. If it is, we see if there is any other way to prevent the loss. If there is none, we check to see if the revelation will cause disproportionate harm to the subject of the disclosure. If there isn't, then disclosure is appropriate.
In your case, there is a twist. You can't evaluate the likelihood of loss in isolation from the reporting itself. The reason is that the very fact that you report the danger may actually augment the danger.
The key question here is the extent of the danger. At one extreme, borrowing money in a doomed effort to prop up a failing business is really a variation of a pyramid scheme. You're borrowing Peter to pay Paul until the day comes that you just can't borrow enough to pay off your debts. If the underlying business isn't viable then no amount of clever financing can save it. In this case, telling people about the business's problem won't be causing the failure but only hastening it, before the amount of unpayable debt balloons.
At the other extreme, many businesses, probably most, go through liquidity crises. Good, viable businesses don't always generate enough cash to meet ongoing obligations and they need loans to get them through a temporary crunch. If this is the situation, then sowing panic among creditors would harm the company and even the creditors themselves, inducing them to be first in line to obtain partial recompense when with a little patience they could get full repayment.
In general the lenders should be evaluating these risks, not you. So your main question should be: Do I have evidence that the borrower is engaging in fraudulent or misleading practices? If the borrower is giving a false impression of his firm's prospects or of its debt picture, then you will be doing the borrowers a favor by cluing them in. This may possibly trigger a collapse, but that is a consideration each lender can weight for himself.
But if they are just overly hopeful or insufficiently diligent in evaluating the risks of a fundamentally legitimate business, I don't see any reason for you to intervene.
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JWR contributor Rabbi Dr. Asher Meir, formerly of the Council of Economic Advisers in the Reagan
administration, is Research Director of the Business Ethics Center of Jerusalem, Jerusalem College of Technology.
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© 2009, The Jewish Ethicist is produced by the JCT Center for Business Ethics
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