Is Cheap Wine Poisoning You?

You may love the price of cheap wine but cringe at a dangerous chemical that is in it. Poison was not one of the things you read about on the label. According to a lawsuit filed against 28 California wineries they "produce and market wines that contain dangerously high levels of inorganic arsenic, in some cases up to 500 percent or more than what is considered the maximum acceptable safe daily intake limit” (1).  

The lawsuit may or may not have merit depending on how the facts play out. A little extra arsenic is common in wines but stay way below dangerous levels. According to a study out of Cornell 1,300 bottles of wine tested only 83 showed up with 5X more arsenic than what would be found in water (2). The risks are relatively low and multiple tests seem to confirm this. 

The type of wine that will be most likely to have higher levels of arsenic are cheaper white and blush wines that are from areas that need lots of irrigation. Cheaper wines are general produced in less healthy soils while quality wines are focused more on maximizing value from higher quality soil. You will pay a premium for the highest quality wines.

Wine and food can be mass produced like any other product. We see this with meat , chicken, and other mega agriculture. With a cheaper price comes the necessity to mass produce. It is that mass production that will create problems as repetitive actions are taken that raise pollution levels.  Yet without that mass production products would be extremely expensive.

Unless something significant comes out of the lawsuit there isn’t much a consumer can do unless they are an avid reader on wines and know their berry backgrounds. Moving up in price to higher quality wines is one option but that wine will cost you more money. Stay tuned and continue to read websites, lists, and blogs on the quality of your wine and where it came from.

Will China Experience a Prolonged Period of Slower Growth?

China's greatest asset to growth was its cheap manufacturing base that drew investment and interest in low cost alternatives. Globalization is stripping China of this advantage as other nations find their own competitive ground. China will need to adjust its economic strategy to help it find sustainable growth that doesn't rely heavily on foreign capital accumulation. Changing their investment policies and encouraging long-term solutions will be more helpful than short-term strategies in the next phase of China's economic life.

China has been known as a great place to produce products because of a business friendly government, lower labor costs, and less environmental restrictions. This cheaper cost alternatives encouraged foreign companies to outsource simple manufacturing of parts to Chinese companies. This create a net influx of foreign dollars that fuel growth over the past couple of decades.

The country's production capacity was based on its ability to partner with outside companies seeking to shave costs. As Chinese industries learned new skills and abilities they developed many of their own products based upon existing product models. A few industries developed advanced models of products but this is still not the mainstream much of China's manufacturing sector.

Now that countries like the U.S. have achieved cost parity due to high technology and productivity improvements the benefits of outsourcing to China have lessened. Therefore, there is downward investment pressure that limits the amount of capital available to Chinese companies. The percentage of companies that have developed independent income streams has improved.

Without the innovative process that comes from a highly skilled and educated workforce Chinese growth is likely to be muted as nations find alternative places to seek resources. This doesn't mean that there is a wholesale disinterest but that such contracts are not as lucrative as in the past and alternative opportunities such as India, U.S. and Eastern Europe are viable options for production.

Think of how the free market works on a macro scale. China went through major economic reforms in 1978 that liberalized and privatized a number of state businesses. Like a hole in the middle of the ocean the capital rushed in and sparked an era of growth capitalizing on a cheap labor supply. It was a nation hungry and ripe for investment. As that hole filled up and costs increased many of the advantages are muted.

China of tomorrow will not grow as fast as it did in the past as alternative investment locations are found and manufacturing parity occurs with other nations. Chinese labor productivity has gained but is running to its limit without mass educational investment that can improve on innovation and technological production. Poor policies that favored pro-Chinese knowledge accumulation at the expense of foreign companies have raised a skeptics eyes to alternative countries with better patent protections.

With an interest rate of around 5% they can reduce that rate to encourage internal growth and development. They may also consider additional infrastructure improvements that connect regions and lower transactional costs. Revamping education to ensure more scientific minds and skilled labor are created can further help in the long run. Changing government policy to open their economy, ensure free and fair transference of knowledge, and focus their investments in high development areas.

The Chinese Tiger has not been netted yet but will need to consider additional reforms that encourage higher levels of growth. Telecommunications, lower shipping costs, and cross-border partnerships are offering cost-quality alternatives to Chinese investment. By reaching out with partners in countries like the U.S. and finding collaborative methods of mutual development with American companies the Chinese companies can further extend their reach.  

Leadership and Moral Reasoning Set the Standards for Others

Moral reasoning is as important today as it was in the past. It could be argued that with the growth in society and the increase in the size of structures that moral reasoning is even more important today. Business and civic leaders that have obtained and support moral reasoning are at a higher level of development than others. It is these highly developed people that should be leading organizations to new levels of performance. A paper in the Journal Business Ethics: A European Review helps highlights how moral reasoning impacts intra-firm networks and the values others maintain (Kulkari & Sobodh, 2014).

Human development and moral reasoning move together hand-in-hand. People who are less developed have a harder time thinking beyond what is of benefit to themselves. The authors have used 6 stages or moral reasoning where the stages 1-4 are primarily concerned with fear, self-interest, and following the rules for personal gain. Only in stages 5 and 6 can one claim moral leadership that thinks beyond oneself and into the greater purpose of action.

Law helps us define what societal expectations are and provide guidelines for citizens to follow. Organizations are bound to follow these laws in employment practices, pollution, operations, etc.. to ensure that their practices do not damage society.  Most business leaders follow these rules based upon self-interest and the fear of punishment. This is necessary to keep everyone in good order and society moving forward.

Beyond self-interest are higher stages of development where moral-reasoning includes doing the right thing in difficult situations. Moral leaders have freed themselves from the constraints of fear to a place where they seek to exceed the standards of law. They understand a greater purpose of keeping society free from unfair actions and immoral decisions that infringe on others.

For example, at the lower levels of human development a CEO may put in place the minimum legal requirements to curb pollution while seeking to skirt as many rules as possible. In the mid levels of development the same CEO may wish to follow the rules strictly and proclaim their business is "Green" as a marketing tool. A highly developed CEO would seek to ensure their business is not damaging the environment based upon moral values while not ignoring the benefits that come from being a good corporate citizen.

Position doesn't necessarily determine morality of the person. A person could be in a position of authority and still stuck at lower levels of development. For example, a CEO may create predatory practices and justify that position as a benefit to stakeholders, a DA could raise their arrest numbers but violate more rights in an effort to "clean up" a city, or a politician could take a bribe and vote on a new project saying it is the best interest of everyone.  Authority and moral development are not tightly associated and often contradict each other.

The journal article highlights the importance of ensuring that those with solid moral reasoning rise to the top of the societal structure. Moral reasoning of the leader impacts the moral value systems of everyone else.  Their behavior and decisions prompt others to act in similar manners creating intra-firm transfers of moral expectations. Those expectations become embedded into the culture of the company (or organization) and become a method of approaching future problems.

Moral reasoning is one part of the assessment of leadership qualities. Those with higher levels of moral reasoning are also more developed as people. They create expectations on those around them who are likely to mirror their behavior and perception. Encouraging high quality people with leadership potential to make their way to the top of organizations helps to ensure that the right expectations of moral reasoning and ethical performance are standardized.

Kulkari, S. & Subodh, R. (2014). Intra-firm transfer of best practices in moral reasoning: a conceptual framework. Business Ethics: A European Review, 23 (1).

Peom: The Island of Axis Mundi

The Island of Axis Mundi

It is there just beyond the ocean waves,

An island of refuge from the sea.

An oasis of sun light stardust,

A clumping of lush green. 

Only a few sailors landed on this ocean oasis,

The Axis Mundi where no map can lead.

A place between heaven and earth,

Somewhere far in the sea but just beyond the ocean crest.

A point to see the world from new light,

 Upon the branches, trunks and roots that tie it together.

The Hawk

Tennis as the New Fitness and Social Sport

Having fun, getting in shape, and meeting interesting people makes for some of the best fitness routines that will keep you on track. Tennis is one sport that helps you stay motivated while expanding your social network.  

Doctors recommend that everyone gets a few hours of high intensity exercise in per week. That won’t be hard to obtain if you find a group that meets a couple of times a week.

Tennis is a highly cardiovascular sport that shreds pounds.  Constant running and stopping will put your heart rate into the target zone improving your blood flow and strengthening your heart.

As a social sport tennis will introduction to lots of new people quickly.  Players rotate to try out new teams and experience new challenges. It won’t take long before you gain some new friends.

There are plenty of places to find tennis activities. You can visit recreation centers and ask about tennis activities, search online for clubs,  or make a call to the city’s recreation department. Tennis groups love new players and helping them gain new skills.