CORPORATIONS

CONTENTS:

• Integrity in Science
• International Herald Tribune
• The Corporate Library (update)

INTEGRITY IN SCIENCE

The nonprofit Center for Science in the Public Interest (CSPI) has launched a site to provide information about the links between scientists and corporations -- mostly in the fields of nutrition, toxicology, the environment and medicine. The project hopes to identify and disclose potential conflicts of interest, or "competing interests" that might affect news stories, scientific research and even government policy.

Two databases are searchable, one of scientists' ties to industry, and the other, between nonprofit organizations and industry. I'm thinking they needed more work on the site before launching. The database of scientists is sparse, leaving out many involved in sponsored projects on our own university campus. It doesn't help that a woman scientist (Wanda) is called "he," and that the name of our city is misspelled (Tuscon). Hmm.

I'm all for this kind of disclosure, so I hope the quantity and substance of the information improves.

http://www.cspinet.org/integrity

INTERNATIONAL HERALD TRIBUNE

On the topic of disclosure, here's a good article: "Transparency Comes First in Assessing Stocks" by James K. Glassman, International Herald Tribune, May 21, 2001. He quotes two new studies that show the power of candor and transparency in the corporate world and in national economies. "The idea is that opacity increases risk . . . That fact is, whatever a country's laws, honest managements shape companies."

How do you find companies with high integrity? Look for a strong board of directors. Members should come mostly from the outside, and be few in number, "Say, 10 or less," according to Warren Buffett.. Be aware, too, of management with a penchant for making earnings projections. Look for clear, frank and abundant information about operations, which can be found on EDGAR (the SEC's database) and in quarterly and annual reports to shareholders.

http://www.iht.com/articles/20462.htm

THE CORPORATE LIBRARY (update)

You don't have time to read all those good business magazines? Go to The Corporate Library and browse the articles they've selected from the best of the business journals and magazines, or subscribe (free) to their News Briefs. Just look at the titles: "Europe's Revolting Shareholders," "The Dirty Dozen: America's Worst Boards," "Why Boards Fail," "SEC Adopts Sweeping Changes to Increase Transparency" and more. Who could resist?

You'll be able to do a lot of your corporate research right from this site. In the left margin, follow the links under Investor Research, and be sure to use the Study Area, too.

http://www.thecorporatelibrary.com/

Beverly Goodwin