**Due to the Martin Luther King, Jr., holiday, the next Haas NewsWire will be published on Tuesday, January 21, 2003. **
Sherron Watkins, a former Enron vice president who pointed out the firm's accounting irregularities to top company officials before its collapse, will speak on business ethics on Thursday, January 30, 2003, at 5:00 p.m. at the Haas School.
Registration is not required and seating in the Arthur Andersen Auditorium will be available on a first-come, first-served basis. The event is followed by a reception in the Bank of America Forum.
Watkins, who was just named one of three "persons of the year" by Time magazine (along with whistleblowers Cynthia Cooper of Worldcom and Coleen Rowley of the FBI), will be giving the fifth annual Peterson Business Ethics Lecture sponsored by the Center for Responsible Business, formerly known as the Socially Responsible Business Leadership Initiative.
In August 2001, while she was still vice president of corporate development at Enron, Watkins wrote Ken Lay, then CEO, warning him that his company "might implode in a wave of accounting scandals." In the year since Enron filed for bankruptcy as a result of these scandals, Watkins has been widely cited in the press and has testified before congressional committees from both the House and Senate investigating Enron's demise. Watkins stayed on at Enron through much of its collapse, but she finally left the company in November of last year to work as a corporate governance consultant. She is also working on a book about Enron.
Watkins is a Certified Public Accountant. She holds a Masters in Professional Accounting as well as a B.B.A. in accounting and business honors from the University of Texas at Austin.
The lecture will take place in the Arthur Andersen Auditorium. A gift from Rudolph Peterson, BS 25, helps to fund this lecture. Please contact Denise Mooney, program coordinator of the Center for Responsible Business, at email@example.com or 510-642-5581 for more information.
William F. "Rick" Cronk, president of Dreyer's Grand Ice Cream, Inc., of Oakland, California, has been named chairman of the Haas School of Business Advisory Board according to Haas School Dean Tom Campbell.
Cronk, who received his Bachelor of Science degree in business administration from the Haas School in 1965, will succeed Roger Siboni, president and CEO of E.phipany, Inc.
"Rick Cronk is a great friend of the school who will help us channel the ideas and energy of the business community, and his own exceptional performance in that arena, into our efforts to make this superb school even better," said Campbell.
The Haas School Advisory Board is a group of distinguished business leaders who advise the dean on strategy and plans for the school. Cronk has been a member of the advisory board since 1986, and previously served as chairman in the mid-1990s. He was named Business Leader of the Year at the Haas School of Business in 1993.
In 1977, Cronk and his partner, T. Gary Rogers, purchased Dreyer's, a $6 million firm operating exclusively in the San Francisco Bay Area, and turned it into a $1.5 billion international enterprise. Marketed as Dreyer's Grand Ice Cream in the thirteen western states, Texas, and the far east and Edy's Grand Ice Cream in the rest of the country, Dreyer's/Edy's is the best selling brand of packaged premium ice cream products in the United States.
Active with many civic and business organizations, Cronk is currently National Commissioner of the Boy Scouts of America.
Campbell thanked Roger Siboni for his exceptional service as advisory board chairman. "We are tremendously grateful for Roger's powerful leadership, and we are pleased he will continue as a member of the board," he said.
The Old Blues, a network of alumni enjoying their alumni status of 50 years or more, celebrated the 25th anniversary of their annual luncheon on December 10, hosted by Dean Emeritus Earl F. "Budd" Cheit.
Old Blues was founded by the late Michael Chetkovich, BS 39, in 1978 to bring together graduates of the College of Commerce, as the business school was called from 1898 until 1942. Old Blues serves as a network to support both long-standing alumni and the school as a whole.
Old Blues stay in touch with the current events of the school by inviting present and former deans, students, and faculty to speak and join their event. They meet every December for a festive luncheon at the Haas School.
At last month's anniversary luncheon, Earl Cheit provided a brief history of the network and explained the Old Blues promise, to "wave the flag gracefully," through their financial support of the school. He was joined at the podium by Dean Tom Campbell. Among the guests were former deans Richard Holton, Raymond Miles, and William A. Hasler. Old Blues also welcomed a table of youngsters, alumni from the class of 1952, and applauded a table of alumni from the classes of 1937 to 1939.
David Robinson's New Book on Business Protocol Available Now
Marketing lecturer David Robinson's new book, Business Protocol: Contemporary American Practice, was published by Atomic Dog Publishing. Robinson designed the book "to bridge the gap between standard business writing books and etiquette books, which are too 'fluff.'"
Areas addressed in the book include:
The book is available in both print and online editions through the Atomic Dog Web site at http://www.atomicdog.com/BookDetails.asp? Session=4FF33EA5-65C0-412A-B1FF-0D5051B4BA72&BookEditionID=101. The online edition is $10.95 and the print edition (which includes access to the online version) is $18.95.
Two Pablo Spiller Articles Published in the American Journal of Political Science
Two research articles by Pablo Spiller, Joe Shoong Professor of International Business and Public Policy, were published in the American Journal of Political Science, one of the leading journals in the field, in the past year. The articles were "Professional Politicians/Amateur Legislators: The Argentine Congress in the XXth Century," with Mark Jones, Sebastian Saiegh, and Mariano Tommasi and "Judicial Decision-Making in Unstable Environments: Argentina 1938-1998," with Matias Iaryczower and Mariano Tommasi.
Alumnus Bob Lutz, BS 61, MBA 62, was featured in Newsweek on January 13 in an article titled, "The Fast and the Luxurious." The piece is about the Cadillac 16, GM's new $250,000 concept car. Read the full article at http://www.msnbc.com/news/854650.asp.
Brett Trueman, the Donald and Ruth Seiler Professor of Public Accounting, was quoted in the San Francisco Chronicle on January 8, in an article titled, "Presto! Chango! Tax Cuts!" Trueman commented that the Bush tax cuts will do little to have an effect on the economy this year. Read the full article at http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/2003/01/08/BU178230.DTL.
Ken Rosen, the California State Professor of Real Estate and Urban Economics and chairman of the Fisher Center for Real Estate and Urban Economics, was quoted in the San Francisco Chronicle on January 8 in an article titled, "Mortgage Payment Rate Looks Promising." Rosen commented that if there is a full-blown recession this year with higher interest rates, mortgage delinquencies will increase. Read the full text at http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/2003/01/08/BU188293.DTL.
David Levine, professor in the Economic Analysis and Policy Group and the Organizational Behavior and Industrial Relations Group, was quoted in the San Francisco Chronicle on January 8 in an article titled, "State Deficits Could Sink Bush's Plan." Levine commented that when the country goes into a recession, all of the states face deficits. When the states balance their budgets by cutting spending and raising taxes, it can make the recession worse. Read the full article at http://sfgate.com/cgi-bin/article.cgi? file=/c/a/2003/01/08/MN183433.DTL.
Levine was on KCBS Radio and KTVU Channel 2 News on January 8 discussing the federal and state budgets.
Kellie McElhaney, executive director of the Center for Responsible Business and John Whitehead Fellow in Corporate Social Responsibility, was interviewed on KTVU Channel 2 on January 8 about reality TV as it relates to corporate social responsibility.
Ben Hermalin, the Willis H. Booth Professor of Banking and Finance, appeared on KTVU Channel 2 News on January 7 on the 10:00 o'clock news discussing taxing dividends.
Janet Yellen, the Eugene E. and Catherine M. Trefethen Professor of Business Administration, was quoted in the Globe and Mail, a national newspaper in Canada, on January 7 in an article titled, "US Tax Cut Puts the Heat on Ottawa with Bush Set to Unveil $600-billion Plan, Squeezed Manley Faces Call to Keep Up." Yellen commented that the proposed elimination of taxes on dividends would not be an effective form of economic stimulus.
Trueman appeared on the NewsHour with Jim Lehrer on January 6 to discuss expensing stock options. Read the transcript at http://www.pbs.org/newshour/bb/business/jan-june03/stock_1-6.html.
Yellen was also quoted in the Wall Street Journal and the Wall Street Journal Europe on January 6 in an article titled, "Bush Seeks to Scrap Taxes on Dividends - Move is Part of Package of Proposals to Help Boost US Economic Growth." Yellen said that the proposed change would do little to boost consumer spending and the increasing deficit would have an adverse effect on the recovery as it gets going. This article also appeared in the Deseret News, of Salt Lake City, Utah.
Xiao-Jun Zhang, associate professor and co-chair of Haas Accounting Group, was quoted in the Contra Costa Times on January 2 in an article titled, "Stock Rebounds Historically Strong in Wake of Bear Markets." Zhang commented that due to corporate accounting scandals, managers may be more conservative in reporting corporate profits, which could be a drag on any stock market rebound.
Yellen was quoted in the San Francisco Chronicle on December 29, 2002 in an article titled, "Fed Switches Focus to Deflation." Yellen commented that the Fed needs to be aggressive in fighting possible deflation. Read the full text at http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/2002/12/29/BU243126.DTL.
McElhaney was quoted in the San Francisco Chronicle on December 27 in the "Year in Review." McElhaney commented that because the Enron collapse was the first big corporate scandal, those that followed paled in comparison.
Severin Borenstein, the E.T. Grether Professor in Public Policy and Business Administration, was quoted in the San Francisco Chronicle on December 25 in an editorial titled, "Washington Insight: Looking Forward - Energy Future." Borenstein commented on the use of real-time energy metering. Read the full article at http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/2002/12/25/ED239440.DTL.
Borenstein was quoted in the San Francisco Chronicle on December 22 in an article titled, "Federal Energy Oversight Doubted." Borenstein commented on the recently released tapes of energy company employees discussing manipulating the energy markets. Read the full article at http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/2002/12/22/BU137411.DTL.
Dean Tom Campbell was quoted in the Sunday Telegraph of London on December 22 in an article on the appointment of alumnus Arun Sarin, MBA 78, MS 78, as CEO-designate for Vodafone. The article, titled "Vodafone's Indian Networker New CEO Arun Sarin is Well Connected in the US and ." gave a brief account of Sarin's career and mentioned that he was named business leader of the year by the Haas School and that he served on the committee to select the new Haas School dean.
Ken Rosen was quoted in the San Francisco Chronicle on December 20 in an article titled, "Bay Area Home Prices Rise Again." Rosen commented that the days of rapid appreciation have ended and that there could be weakness in the housing market next year if interest rates go up or the economy gets worse. Read the full text at http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/2002/12/20/BU87392.DTL.
Ilse Evans, executive director of career services and initiatives, was quoted in the Wall Street Journal and the Wall Street Journal Europe on December 17 in an article titled, "Foreign MBAs Need Not Apply."
Ken Rosen was quoted in USA Today on December 16 in an article titled, "How Housing Bubble Grows and Bursts." Rosen explained that a sudden drop in demand is needed to make the bubble burst, not just a recession.
The Haas School was mentioned in the Financial Times on December 16 in an article titled, "Inside Track Business Education: Companies Scout for First-year Talent." The article cited the Haas School as an example of a program that had condensed its core courses to the first year to give students an advantage when interviewing for internships.
Andy Rose, the Bernard T. Rocca Jr. Professor of International Trade, was quoted in the Sacramento Bee on December 15 in an article titled, "Japan's Resistance Irks Rice Growers in Sacramento, Calif. Area." Rose commented that rich countries have strong protectionist policies in two main areas - agriculture and textiles.
Borenstein was quoted in the San Francisco Chronicle on December 14 in an article titled, "FERC to Rule if State or Energy Firms Owe Billions." Borenstein commented that the Federal Energy Regulatory Commission chairman is under a tremendous amount of political pressure. Read the full article at http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/2002/12/14/MN89148.DTL.
Florian Zettelmeyer, assistant professor in the Marketing Group, was quoted in an article by the Knight-Ridder Business News Service on December 13 titled, "Web Site, Auto -Pricing Guide Reach Out to Hispanics." Zettelmeyer commented that the Internet acts as an equalizer in car buying. This article also appeared in the Orange County Register.
Borenstein was on KCBS and KGO radio on December 12 discussing the FERC decision on electricity refunds.
Pablo Spiller, Joe Shoong Professor of International Business and Public Policy, was quoted in the San Francisco Chronicle on December 11 in an article titled, "United Airlines/Chapter 11/ Managers, Unions Discuss Concessions." Spiller commented that United might do better after restructuring by not trying to be all things to all people. Read the full text at http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/2002/12/11/BU177119.DTL.
Spiller was quoted in the Stockton Record on December 10 in an article titled, "United Airlines May Emerge from Bankruptcy Leaner, More Competitive." Spiller commented that the business strategy of the major airlines has become nonviable and major restructuring may make them much more competitive. Read the full text at http://www.recordnet.com/daily/news/articles/121002-gn-3.php.
Hermalin was a guest on KQED FM's Forum December 10, speaking about bankruptcy and United Airlines.
Trueman was on National Public Radio on December 10, talking about CMX Corp and its taxes (or lack thereof).
Hal Varian, professor in the Operations and Information Technology Management Group, wrote an article for the New York Times on December 19 titled "Online Sales Offer Fresh Look at Economy" which mentioned the work of John Morgan, associate professor in the Economic Analysis and Policy Group. Read the full text at http://www.nytimes.com/2002/12/19/business/19SCEN.html.
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