Gordon Nixon, chief executive officer of Royal Bank of Canada, apologises for not being more sensitive to employees, whose jobs are being outsourced, and says they will be offered comparable positions within the bank.

To repair damaged relationships with employees, these executives decided to say two of the toughest words for many bosses to utter: “I’m sorry.” Such mea culpas seem to be more common these days, partly because of the growing likelihood of a public uproar on social media when companies slip up.

Whatever the motivating factor, contrition is good for more than just the soul. Apologies can help restore a manager's credibility after a damaging error, and they also can inspire greater trust in management at a time when many workers are feeling disillusioned with employers. 

For example, about a third of UK employees characterise trust between them and senior management as weak, according to a study this year by the Chartered Institute of Personnel and Development, a human-resources organisation in London. Similarly, a global study by Forum Corp, a Boston-based consultancy, found that about one-third of workers trust business leaders less now than in the past. The managers in the survey were even more pessimistic: 43% said they believe employees trust bosses less now.

Honesty clearly is the cornerstone of trust, and that includes owning up to mistakes and apologising. Some respondents to the UK study said they would admire leaders if only they admitted their mistakes.

Beyond engendering trust, acknowledging an error and making amends can encourage greater openness throughout an organisation. “When leaders admit mistakes, its shows they’re human and vulnerable, and it makes it safe for others to talk about their mistakes, too,” said Dennis Reina, president of the Reina Trust Building Institute, a consulting firm based in Stowe, Vermont.

How common are apologies from bosses? It depends on whom you ask. Many employees believe managers don’t take responsibility for their screw-ups and don’t express regret. Only 19% of employees said their managers often or always apologise. But managers have quite different perceptions of their behaviour: 87% said they often or always say they’re sorry. But some managers said they don’t apologise because they don’t want to look weak or incompetent.

“When a leader makes a mistake like lying or taking credit for another employee’s idea and doesn’t apologise immediately, it begins to chip away at the trust the employee feels towards them,” said Andrew Graham, CEO of Forum. “This is true even if the employee observes this behaviour in his or her boss and isn’t the direct victim of the incident.”

Damaging omission

Failing to apologise can cause more damage than loss of trust. Reina recalled a client that had an employee who became extremely frustrated when his supervisor refused to apologise for “raking him over the coals in a team meeting.” In retaliation, he disclosed a customer’s proprietary information on the internet, which resulted in litigation and the loss of a $10 million contract, Reina said.

“Most times, people just say I’m out of here in such situations, but sometimes an employee is hurting so badly he wants to get even,” he said.

The refusal to ‘fess up to mistakes can poison the relationship between supervisors and their subordinates to such a degree that it may even contribute to depression. A study in Denmark found that it isn’t a burdensome workload, but rather feelings of injustice that lead to depression.

 “An important element of what we call relational justice is when supervisors treat employees with consideration and truthfulness,” said Matias Brodsgaard Grynderup, a researcher who works in the public health department at the University of Copenhagen. Consequently, he believes admitting mistakes and apologising would make the workplace seem more just.

When to hold back

Of course, business leaders shouldn’t apologise for every misstep and risk appearing ineffectual and losing respect. “Bosses should focus on apologising for mistakes in which they were genuinely in the wrong and there was some type of business consequence,” Graham said.

It’s also wise to apologise clearly and sincerely — but concisely. After taking responsibility for the mistake and pledging to do better in the future, managers should move on and avoid dwelling on the issue.

Employers also shouldn’t expect apologies to work magic in every situation. They may not be very beneficial when office relationships were already badly strained before the mistake occurred.

“If the management enjoys high levels of trust from workers, then apologising is a good idea and more likely to be believed” and lead to forgiveness, said Jin Li, an assistant professor of management and strategy at the Kellogg School of Management at Northwestern University, who has studied trust issues in the workplace.

“When the existing level of trust is low, apologising will be less effective, and its benefit is likely to be smaller than the cost of being perceived as weak and incompetent,” he said.


courtesy of bbc.com/capital
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Well, thank you very much. (Applause) Hello, everybody. What a great introduction, what a wonderful thing. What a great, great welcome I'm getting here, so thank you very much. I mean, I haven't heard applause like that since I announced that I was going to stop acting. (Applause)

But anyway, it is really terrific to see here so many graduate students and undergraduate students graduating here today. I heard that there are 4,500 graduating here today, undergraduate students, so this is fantastic. There are 2,200 men, 2,300 women and five have listed yourselves as undecided. (Applause)

So this is really a great, great bunch of people here, I love it. But seriously, President Sample, trustees, faculty, family, friends and graduates, it is a tremendous privilege to stand before you this morning. There's nothing that I enjoy more than celebrating great achievements. And I don't just mean your parents celebrating never having to pay another tuition bill, that's not what I'm talking about.

I'm talking about just celebrating the great accomplishment. So let me congratulate the Trojan class of 2009 on your graduation from one of the finest universities in the world. Let's give our graduates a tremendous round of applause. What a special day, what a great accomplishment. (Applause)

Now, this an equally special day, of course, for the parents, for the grandparents, siblings and other family members whose support made all of this today possible. And let's not forget, of course, the professors, those dedicated individuals who taught you, who came up with exciting ways to share their vast wisdom, knowledge and experience with you.

And I must also say thank you to President Sample for honoring me with this fantastic degree. Thank you very much. Wow, Arnold Schwarzenegger, Doctor of Humane Letters. I love it. (Applause) But, of course, I noticed that it wasn't a doctorate in film or in cinema or in acting. I wonder why?

But anyway, that's OK. I take whatever I can get. But maybe now since I'm the doctor, I can go back up to Sacramento and maybe now the Legislature will finally listen to me. (Applause) But anyway, I stand before you today not just as Dr. Schwarzenegger or as Governor Schwarzenegger, or as The Terminator, or as Conan the Barbarian, but also as a proud new member of this Trojan family.

Now, some of you may know that my daughter just completed her freshman year right here. One of the most exciting things for me has been to learn about the great traditions that make this university so wonderful and so special.

My daughter told me all about, for instance, the Victory Bell. She sat me down and she told me it weighs 295 pounds and how the winner of the annual football game between USC and UCLA takes this bell and gets to paint it in the school colors. And I stopped her in the middle of talking, I said, "Wait a minute, Katherine, back up a little bit. UCLA has a football team?" (Applause)

Now, of course, my daughter's journey here at USC is just beginning, and yours is ending. I know that you're a little bit stressed out right now as you start this exciting new chapter in your lives. Some people say it is scary to leave the comfort of the university and to go out into the cold, hard world.

But I have to tell you something; I think this is a bunch of nonsense because after all, this is America. This is the greatest country on earth, with the greatest opportunities. (Applause) It is one thing if you were born in Afghanistan or in Swat Valley in Pakistan where you'd be forced to join the Taliban or be killed. Now, then I would say yes, that is a little bit scary.

But this, this is going to be a piece of cake for you, trust me. You live in America and you're prepared for the future with this tremendous education you have gotten here at one of the greatest universities in the world. This is going to be exciting, it's a great adventure and this is a new phase in your life. This is going to be awesome. (Applause)

Now, of course, this journey is not going to be without any setbacks, failures or disappointments. That's just the way life is. But you're ready and you are able, and you would not be here today with your degrees and with your honors if you wouldn't be ready.

So now, of course, to help you along the way, I thought that the best Schwarzenegger gift I could give you today is to give you a few of my own personal ideas on how to be successful. And parents, I just want you to know, maybe you should close your ears, you should plug your ears, because maybe there a few things that you maybe won't like in what I have to say.

But anyway, I can explain how I became successful and who I am today by going through what I call Dr. Schwarzenegger's Six Rules of Success. (Applause)

Now, of course, people ask me all the time, they say to me, "What is the secret to success?" And I give them always the short version. I say, "Number one, come to America. Number two, work your butt off. And number three, marry a Kennedy." (Applause)

But anyway, those are the short rules. Now today, I'm going to give you the six rules of success. But before I start, I just wanted to say these are my rules. I think that they can apply to anyone, but that is for you to decide, because not everyone is the same. There are some people that just like to kick back and coast through life and others want to be very intense and want to be number one and want to be successful. And that's like me.

I always wanted to be very intense, I always wanted to be number one. I took it very seriously, my career. So this was the same when I started with bodybuilding. I didn't want to just be a bodybuilding champion, I wanted to be the best bodybuilder of all time. The same was in the movies. I didn't want to just be a movie star; I wanted to be a great movie star that is the highest paid movie star and have above-the-title billing.

And so this intensity always paid off for me, this commitment always paid off for me. So here are some of the rules.

The first rule is: Trust yourself. Arnold Schwarzenegger as Conan the BarbarianAnd what I mean by that is, so many young people are getting so much advice from their parents and from their teachers and from everyone. But what is most important is that you have to dig deep down, dig deep down and ask yourselves, who do you want to be? Not what, but who.

And I'm talking about not what your parents and teachers want you to be, but you. I’m talking about figuring out for yourselves what makes you happy, no matter how crazy it may sound to other people.

I was lucky growing up because I did not have television or didn't have telephones, I didn't have the computers and the iPods. And, of course, Twitter was then something that birds did outside the window. I didn't have all these distractions and all this.

I spent a lot of time by myself, so I could figure out and listen to what is inside my heart and inside my head.

And I recognized very quickly that inside my head and heart were a burning desire to leave my small village in Austria -- not that there was something wrong with Austria, it's a beautiful country. But I wanted to leave that little place and I wanted to be part of something big, the United States of America, a powerful nation, the place where dreams can come true.

I knew when I came over here I could realize my dreams. And I decided that the best way for me to come to America was to become a bodybuilding champion, because I knew that was ticket the instant that I saw a magazine cover of my idol, Reg Park. He was Mr. Universe, he was starring in Hercules movies, he looked strong and powerful, he was so confident.

So when I found out how he got that way I became obsessed, and I went home and I said to my family, "I want to be a bodybuilding champion."

Now, you can imagine how that went over in my home in Austria. My parents, they couldn't believe it. They would have been just happy if I would have become a police officer like my father, or married someone like Heidi, had a bunch of kids and ran around like the von Trapp family in Sound of Music.

That's what my family had in mind for me, but something else burned inside me. Something burned inside me. I wanted to be different; I was determined to be unique. I was driven to think big and to dream big. Everyone else thought that I was crazy. My friends said, "If you want to be a champion in a sport, why don't you go and become a bicycle champion or a skiing champion or a soccer champion? Those are the Austrian sports."

But I didn't care. I wanted to be a bodybuilding champion and use that to come to America, and use that to go into the movies and make millions of dollars. So, of course, for extra motivation I read books on strongmen and on bodybuilding and looked at magazines. And one of the things I did was, I decorated my bedroom wall.

Right next to my bed there was this big wall that I decorated all with pictures. I hung up pictures of strongmen and bodybuilders and wrestlers and boxers and so on. And I was so excited about this great decoration that I took my mother to the bedroom and I showed her. And she shook her head. She was absolutely in shock and tears started running down her eyes.

And she called the doctor, she called our house doctor and she brought him in and she explained to him, "There's something wrong here." She looked at the wall with the doctor and she said, "Where did I go wrong? I mean, all of Arnold's friends have pictures on the wall of girls, and Arnold has all these men.

But it's not just men, they're half naked and they're oiled up with baby oil. What is going on here? Where did I go wrong?" So you can imagine, the doctor shook his head and he said, "There's nothing wrong. At this age you have idols and you go and have those -- this is just quite normal."

So this is rule number one. I wanted to become a champion; I was on a mission. So rule number one is, of course, trust yourself, no matter how and what anyone else thinks.

Rule number two is: Break the rules. We have so many rules in life about everything. I say break the rules. Not the law, but break the rules. My wife has a t-shirt that says, "Well-behaved women rarely make history." Well, you know, I don't want to burst her bubble, but the same is true with men.

It is impossible to be a maverick or a true original if you're too well behaved and don't want to break the rules. You have to think outside the box. That's what I believe. After all, what is the point of being on this earth if all you want to do is be liked by everyone and avoid trouble?

The only way that I ever got anyplace was by breaking some of the rules. After all, I remember that after I was finished with my bodybuilding career I wanted to get into acting and I wanted to be a star in films. You can imagine what the agents said when I went to meet all those agents. Everyone had the same line, that it can't be done, the rules are different here. They said, "Look at your body. You have this huge monstrous body, overly developed. That doesn't fit into the movies. You don't understand.

This was 20 years ago, the Hercules movies. Now the little guys are in, Dustin Hoffman, Woody Allen, Jack Nicholson." Before he gained weight, of course, that is. But anyway, those are the guys that were in. And the agents also complained about my accent. They said, "No one ever became a star with an accent like that, especially not with a German accent.

And yes, I can imagine with your name, Arnold Schwartzenschnitzel, or whatever the name, is, on a billboard. Yeah, that's going to draw a lot of tickets and sell a lot of tickets. Yeah, right." So this is the kind of negative attitude they had.

But I didn't listen to those rules, even though they were very nice and they said, "Look, we can get you some bit parts. We can get you to be playing a wrestler or a bouncer. Oh, maybe with your German accent we can get you to be a Nazi officer in Hogan's Heroes or something like that."

But I didn't listen to all this. Those were their rules, not my rules. I was convinced I could do it if I worked as hard as I did in bodybuilding, five hours a day. And I started getting to work, I started taking acting classes. I took English classes, took speech classes, dialogue classes. Accent removal classes I even took.

I remember running around saying, "A fine wine grows on the vine." You see, because Germans have difficulties with the F and the W and V, so, "A fine wine grows on the vine." I know what some of you are now saying, is I hope that Arnold got his money back.

But let me tell you something, I had a good time doing those things and it really helped me. And finally I broke through. I broke through and I started getting the first parts in TV; Streets of San Francisco, Lucille Ball hired me, I made Pumping Iron, Stay Hungry. And then I got the big break in Conan the Barbarian. (Applause)

And there the director said, "If we wouldn't have Schwarzenegger, we would have to build one." Now, think about that. And then, when I did Terminator, "I'll be back," became one of the most famous lines in movie history, all because of my crazy accent.

Now, think about it. The things that the agents said would be totally a detriment and would make it impossible for me to get a job, all of a sudden became an asset for me, all of those things, my accent, my body and everything.

So it just shows to you, never listen to that you can't do something. And, "You have to work your way up, of course, run for something else first." I mean, it was the same when I ran for governor, the same lines, that you have to work your way up, it can't be done. And then, of course, I ran for governor and the rest, of course, is history.

They said you have to start with a small job as mayor and then as assemblyman and then as lieutenant governor and then as governor. And they said that's the way it works in a political career. I said, "I'm not interested in a political career. I want to be a public servant. I want to fix California's problems and bring people together and bring the parties together.

So, like I said, I decided to run, I didn't pay attention to the rules. And I made it and the rest is history. Which, of course, brings me to rule number three: Don't be afraid to fail. Anything I've ever attempted, I was always willing to fail. In the movie business, I remember, that you pick scripts. Many times you think this is a wining script, but then, of course, you find out later on, when you do the movie, that it didn't work and the movie goes in the toilet.

Now, we have seen my movies; I mean, Red Sonja, Hercules in New York, Last Action Hero. Those movies went in the toilet. But that's OK, because at the same time I made movies like Terminator and Conan and True Lies and Predator and Twins that went through the roof.

So you can't always win, but don't afraid of making decisions.

You can't be paralyzed by fear of failure or you will never push yourself. You keep pushing because you believe in yourself and in your vision and you know that it is the right thing to do, and success will come. So don't be afraid to fail.

Which brings me to rule number four, which is: Don’t listen to the naysayers. How many times have you heard that you can't do this and you can't do that and it's never been done before? Just imagine if Bill Gates had quit when people said it can't be done.

I hear this all the time. As a matter of fact, I love it when someone says that no one has ever done this before, because then when I do it that means that I'm the first one that has done it. So pay no attention to the people that say it can't be done.

I remember my mother-in-law, Eunice Kennedy Shriver, when she started Special Olympics in 1968 people said that it would not work. The experts, the doctors that specialized in mental disabilities and mental retardation said, "It can't be done. You can't bring people out of their institutions. You can't make them participate in sports, in jumping and swimming and in running. They will hurt themselves, they will hurt each other, they will drown in the pool."

Well, let me tell you something. Now, 40 years later, Special Olympics is one of the greatest organizations, in 164 countries, dedicated to people with mental disabilities and that are intellectually challenged. (Applause)

And she did not take no for an answer. And the same is when you look at Barack Obama. I mean, imagine, if he would have listened. (Applause) If he would have listened to the naysayers he would have never run for president. People said it couldn't be done, that he couldn't get elected, that he couldn’t beat Hillary Clinton, that he would never win the general election.

But he followed his own heart, he didn’t listen to the "You can't," and he changed the course of American history.

So over and over you see that. If I would have listened to the naysayers I would still be in the Austrian Alps yodeling. (Laughter) I would never have come to America. I would have never met my wonderful wife Maria Shriver, I would have never had the wonderful four kids, I would have never done Terminator, and I wouldn't be standing here in front of you today as governor of the greatest state of the greatest country in the world.

So I never listen that, "You can't." (Applause) I always listen to myself and say, "Yes, you can."

And that brings me to rule number five, which is the most important rule of all: Work your butt off. You never want to fail because you didn't work hard enough. I never wanted to lose a competition or lose an election because I didn't work hard enough. I always believed leaving no stone unturned.

Mohammed Ali, one of my great heroes, had a great line in the '70s when he was asked, "How many sit-ups do you do?" He said, "I don't count my sit-ups. I only start counting when it starts hurting. When I feel pain, that's when I start counting, because that's when it really counts."

That's what makes you a champion. Arnold Scvhwarzenegger in Kindergarten CopAnd that's the way it is with everything. No pain, no gain. So many of those lessons that I apply in life I have learned from sports, let me tell you, and especially that one. And let me tell you, it is important to have fun in life, of course.

But when you're out there partying, horsing around, someone out there at the same time is working hard.

Someone is getting smarter and someone is winning. Just remember that. Now, if you want to coast through life, don't pay attention to any of those rules.

But if you want to win, there is absolutely no way around hard, hard work.

None of my rules, by the way, of success, will work unless you do. I've always figured out that there 24 hours a day. You sleep six hours and have 18 hours left. Now, I know there are some of you out there that say well, wait a minute, I sleep eight hours or nine hours. Well, then, just sleep faster, I would recommend. (Laughter)

Because you only need to sleep six hours and then you have 18 hours left, and there are a lot of things you can accomplish. As a matter of fact, Ed Turner used to say always, "Early to bed, early to rise, work like hell and advertise."

And, of course, all of you know already those things, because otherwise you wouldn't be sitting here today. Just remember, you can't climb the ladder of success with your hands in your pockets.

And that takes me to rule number six, which is a very important rule: it's about giving back. Whatever path that you take in your lives, you must always find time to give something back, something back to your community, give something back to your state or to your country.

My father-in-law, Sargent Shriver -- who is a great American, a truly great American who started the Peace Corps, the Job Corps, Legal Aid to the Poor -- he said at Yale University to the students at a commencement speech, "Tear down that mirror. Tear down that mirror that makes you always look at yourself, and you will be able to look beyond that mirror and you will see the millions of people that need your help."

And let me tell you something, reaching out and helping people will bring you more satisfaction than anything else you have ever done. As a matter of fact today, after having worked for Special Olympics and having started After School Programs, I've promoted fitness, and now with my job as governor, I can tell you, playing a game of chess with an eight-year-old kid in an inner city school is far more exciting for me than walking down another red carpet or a movie premiere.

So let me tell you, as you prepare to go off into the world, remember those six rules:

Trust yourself, Break some rules, Don't be afraid to fail, Ignore the naysayers, Work like hell, and Give something back.

And now let me leave you with one final thought, and I will be brief, I promise. This university was conceived in 1880, back when Los Angeles was just a small frontier town. One hundred and twenty-five classes of Trojans have gone before you. They have sat there, exactly where you sit today, in good times and in bad, in times of war and in times of peace, in times of great promise and in times of great uncertainty.

Through it all, this great country, this great state, this great university, have stood tall and persevered. We are in tough times now and there's a lot of uncertainty in the world. But there is one thing certain; we'll be back. (Applause)

And we will back stronger and more prosperous than ever before, because that is what California and America have always done. The ancient Trojans were known for their fighting spirit, their refusal to give up, their ability to overcome great odds.

So as you graduate today, never lose that optimism and that fighting spirit. Never lose the spirit of Troy. Because remember, this is America and you are USC Trojans, proud, strong and ready to soar. Congratulations and God bless all of you. Thank you very much. Thank you. (Applause)

The NSA whistleblower who revealed the PRISM program has publically revealed himself to be Edward Snowdern, a former private contactor for the NSA. He gave an interview with journalist Glenn Greenwald about his thoughts on his reasons behind whistleblowing and what what his experience in the NSA was like. The following is a transcript of the entire video interview.
Edward Snowden: "My name is Ed Snowden, I'm 29 years old. I worked for Booz Allen Hamilton as an infrastructure analyst for NSA in Hawaii.
Glenn Greenwald: "What are some of the positions that you held previously within the intelligence community?"
Snowden: "I've been a systems engineer, systems administrator, senior adviser for the Central Intelligence Agency, solutions consultant, and a telecommunications informations system officer."
Greenwald: "One of the things people are going to be most interested in, in trying to understand what, who you are and what you are thinking is there came some point in time when you crossed this line of thinking about being a whistleblower to making the choice to actually become a whistleblower. Walk people through that decision making process."
Snowden: "When you're in positions of privileged access like a systems administrator for the sort of intelligence community agencies, you're exposed to a lot more information on a broader scale then the average employee and because of that you see things that may be disturbing but over the course of a normal person's career you'd only see one or two of these instances. When you see everything you see them on a more frequent basis and you recognize that some of these things are actually abuses. And when you talk to people about them in a place like this where this is the normal state of business people tend not to take them very seriously and move on from them."
"But over time that awareness of wrongdoing sort of builds up and you feel compelled to talk about. And the more you talk about the more you're ignored. The more you're told its not a problem until eventually you realize that these things need to be determined by the public and not by somebody who was simply hired by the government."
Greenwald: "Talk a little bit about how the American surveillance state actually functions. Does it target the actions of Americans?"
Snowden: "NSA and intelligence community in general is focused on getting intelligence wherever it can by any means possible. It believes, on the grounds of sort of a self-certification, that they serve the national interest. Originally we saw that focus very narrowly tailored as foreign intelligence gathered overseas."
"Now increasingly we see that it's happening domestically and to do that they, the NSA specifically, targets the communications of everyone. It ingests them by default. It collects them in its system and it filters them and it analyses them and it measures them and it stores them for periods of time simply because that's the easiest, most efficient, and most valuable way to achieve these ends. So while they may be intending to target someone associated with a foreign government or someone they suspect of terrorism, they're collecting you're communications to do so."
"Any analyst at any time can target anyone, any selector, anywhere. Where those communications will be picked up depends on the range of the sensor networks and the authorities that analyst is empowered with. Not all analysts have the ability to target everything. But I sitting at my desk certainly had the authorities to wiretap anyone from you or your accountant to a Federal judge to even the President if I had a personal e-mail."
Greenwald: "One of the extraordinary parts about this episode is usually whistleblowers do what they do anonymously and take steps to remain anonymous for as long as they can, which they hope often is forever. You on the other hand have decided to do the opposite, which is to declare yourself openly as the person behind these disclosures. Why did you choose to do that?"
Snowden: "I think that the public is owed an explanation of the motivations behind the people who make these disclosures that are outside of the democratic model. When you are subverting the power of government that's a fundamentally dangerous thing to democracy and if you do that in secret consistently as the government does when it wants to benefit from a secret action that it took. It'll kind of give its officials a mandate to go, 'Hey tell the press about this thing and that thing so the public is on our side.' But they rarely, if ever, do that when an abuse occurs. That falls to individual citizens but they're typically maligned. It becomes a thing of 'These people are against the country. They're against the government' but I'm not."
"I'm no different from anybody else. I don't have special skills. I'm just another guy who sits there day to day in the office, watches what's happening and goes, 'This is something that's not our place to decide, the public needs to decide whether these programs and policies are right or wrong.' And I'm willing to go on the record to defend the authenticity of them and say, 'I didn't change these, I didn't modify the story. This is the truth; this is what's happening. You should decide whether we need to be doing this.'"
Greenwald: "Have you given thought to what it is that the US government's response to your conduct is in terms of what they might say about you, how they might try to depict you, what they might try to do to you?"
Snowden: "Yeah, I could be rendered by the CIA. I could have people come after me. Or any of the third-party partners. They work closely with a number of other nations. Or they could pay off the Traids. Any of their agents or assets. We've got a CIA station just up the road and the consulate here in Hong Kong and I'm sure they're going to be very busy for the next week. And that's a fear I'll live under for the rest of my life, however long that happens to be."
"You can't come forward against the world's most powerful intelligence agencies and be completely free from risk because they're such powerful adversaries. No one can meaningfully oppose them. If they want to get you, they'll get you in time. But at the same time you have to make a determination about what it is that's important to you. And if living unfreely but comfortably is something you're willing to accept, and I think it many of us are it's the human nature; you can get up everyday, go to work, you can collect your large paycheck for relatively little work against the public interest, and go to sleep at night after watching your shows."
"But if you realize that that's the world you helped create and it's gonna get worse with the next generation and the next generation who extend the capabilities of this sort of architecture of oppression, you realize that you might be willing to accept any risk and it doesn't matter what the outcome is so long as the public gets to make their own decisions about how that's applied."
Greenwald: "Why should people care about surveillance?"
Snowden: "Because even if you're not doing anything wrong you're being watched and recorded. And the storage capability of these systems increases every year consistently by orders of magnitude to where it's getting to the point where you don't have to have done anything wrong. You simply have to eventually fall under suspicion from somebody even by a wrong call. And then they can use this system to go back in time and scrutinize every decision you've ever made, every friend you've ever discussed something with. And attack you on that basis to sort to derive suspicion from an innocent life and paint anyone in the context of a wrongdoer."
Greenwald: "We are currently sitting in a room in Hong Kong, which is where we are because you travelled here. Talk a little bit about why it is that you came here and specifically there are going to be people…people speculate that what you really intend to do is to defect to the country that many see as the number one rival of the Untied States, which is China. And that what you are really doing is essentially seeking to aid an enemy of the United States with which you intend to seek asylum. Can you talk a little about that?"
Snowden: "Sure. So there's a couple assertions in those arguments that are sort of embedded in the questioning of the choice of Hong Kong. The first is that China is an enemy of the United States. It's not. I mean there are conflicts between the United States government and the Chinese PRC government but the peoples inherently we don't care. We trade with each other freely, we're not at war, we're not in armed conflict, and we're not trying to be. We're the largest trading partners out there for each other."
"Additionally, Hong Kong has a strong tradition of free speech. People think 'Oh China, Great Firewall.' Mainland China does have significant restrictions on free speech but the people of Hong Kong have a long tradition of protesting in the streets, of making there views known. The internet is not filtered here more so then any other western government and I believe that the Hong Kong government is actually independent in relation to a lot of other leading western governments."
Greenwald: "If your motive had been to harm the United States and help its enemies or if your motive had been personal material gain were there things you could have done with these documents to advance those goals that you didn't end up doing?"
Snowden: "Oh absolutely. Anyone in the positions of access with the technical capabilities that I had could suck out secrets, pass them on the open market to Russia; they always have an open door as we do. I had access to the full rosters of everyone working at the NSA, the entire intelligence community, and undercover assets all over the world. The locations of every station, we have what their missions are and so forth."
"If I had just wanted to harm the US? You could shut down the surveillance system in an afternoon. But that's not my intention. I think for anyone making that argument they need to think, if they were in my position and you live a privileged life, you're living in Hawaii, in paradise, and making a ton of money, 'What would it take you to leave everything behind?'"
"The greatest fear that I have regarding the outcome for America of these disclosures is that nothing will change. People will see in the media all of these disclosures. They'll know the lengths that the government is going to grant themselves powers unilaterally to create greater control over American society and global society. But they won't be willing to take the risks necessary to stand up and fight to change things to force their representatives to actually take a stand in their interests."
"And the months ahead, the years ahead it's only going to get worse until eventually there will be a time where policies will change because the only thing that restricts the activities of the surveillance state are policy. Even our agreements with other sovereign governments, we consider that to be a stipulation of policy rather then a stipulation of law. And because of that a new leader will be elected, they'll find the switch, say that 'Because of the crisis, because of the dangers we face in the world, some new and unpredicted threat, we need more authority, we need more power.' And there will be nothing the people can do at that point to oppose it. And it will be turnkey tyranny."

"If one advances confidently in the direction of one's dreams, and endeavors to live the life which one has imagined, one will meet with a success unexpected in common hours." ~ Henry David Thoreau

Are your digging for gold or are you selling shovels?  Which is best for your career, for your business, for you?  Is it possible that neither career or business strategy is best for you?  Let's begin with a bit of a history lesson for background:

The California Gold Rush began in 1848, when gold was discovered in Coloma, California.  By the beginning of 1849, word of the Gold Rush had spread around the world, and 300,000 gold-seekers and merchants rushed to California from virtually every continent.  By 1850, most of the easily accessible gold had been collected and only a small percentage of people actually struck it rich with the precious metal; however, the impact of the immense population increase built a new, vibrant and diverse economy.

Today, many marketing strategies are built around the competing ideas of digging for gold and selling shovels, inspired by the California Gold Rush: 

A prime example for the competing ideas of digging for gold and selling shovels can be illustrated in the ultimate serviced-based engine -- the Internet -- and the explosion of blogs and other search engine-friendly marketing tools.

With well over 100 million blogs on the Internet today, the statistical likelihood of earning big money writing in a blog is not much better than playing the lottery. There are, however, millions of people who enjoy creating blogs and are quite confident (or delusional, depending upon the particular case) that their writing and marketing skills, combined with incredible luck and timing will enable them to strike it rich. These are the gold diggers.

But are we now in an 1850-like environment, where the easily accessible gold has already been collected?  Many of the most successful bloggers are now selling shovels; they are selling products and services to other bloggers, such as this eBook on (you guessed it) how to sell your own eBook.

"One's own self is well hidden from one's own self; of all mines of treasure, one's own is the last to be dug up." ~ Friedrich Nietzsche

But is there really anything wrong with digging for gold? What makes the shovel sellers smarter?  Aren't they really trying to "strike it rich" also? 

Neither pursuit is inherently wrong (or right).  The only foolish pursuit is the one that is blindly chosen -- the one that is chosen for reasons, such as money, other than self-actualization.

I believe the true key to success at anything you do is rooted in self-knowledge, which largely consists of defining terms for yourself. Perhaps "digging for gold" is not even a pursuit of monetary and material wealth at all. To know the Self is to be rich. Digging for gold is a passionate pursuit. Selling shovels can also be a passionate pursuit. The gold digger and shovel seller may view their own particular career as prudent and the other as foolish.  One would not be happy being (or would exist without) the other; but this is precisely the point!  

You may never find gold, in terms of monetary wealth; you may never own a successful business; you may never make six figures as a blogger; but if you discover your Self, you have found gold, in the form of meaning, purpose and self-actualization, regardless of the monetary or material result...

Do not endeavor to dig for gold or sell shovels; be yourself.  Just consider the example and words of someone who happened to write a little book called Walden during the prime years of the Gold Rush:

"A grain of gold will gild a great surface, but not so much as a grain of wisdom." ~ Henry David Thoreau

courtesy: financial philosopy

"When the crisis came, the serious limitations of existing economic and financial models immediately became apparent." "There is also a strong belief, which I share, that bad or oversimplistic and overconfident economics helped create the crisis." Now, you've probably all heard of similar criticism coming from people who are skeptical of capitalism. But this is different. This is coming from the heart of finance. The first quote is from Jean-Claude Trichet when he was governor of the European Central Bank. The second quote is from the head of the U.K. Financial Services Authority. Are these people implying that we don't understand the economic systems that drive our modern societies? It gets worse. "We spend billions of dollars trying to understand the origins of the universe while we still don't understand the conditions for a stable society, a functioning economy, or peace." What's happening here? How can this be possible? Do we really understand more about the fabric of reality than we do about the fabric which emerges from our human interactions? Unfortunately, the answer is yes. But there's an intriguing solution which is coming from what is known as the science of complexity. To explain what this means and what this thing is, please let me quickly take a couple of steps back. I ended up in physics by accident. It was a random encounter when I was young, and since then, I've often wondered about the amazing success of physics in describing the reality we wake up in every day. In a nutshell, you can think of physics as follows. So you take a chunk of reality you want to understand and you translate it into mathematics. You encode it into equations. Then predictions can be made and tested. We're actually really lucky that this works, because no one really knows why the thoughts in our heads should actually relate to the fundamental workings of the universe. Despite the success, physics has its limits. As Dirk Helbing pointed out in the last quote, we don't really understand the complexity that relates to us, that surrounds us. This paradox is what got me interested in complex systems. So these are systems which are made up of many interconnected or interacting parts: swarms of birds or fish, ant colonies, ecosystems, brains, financial markets. These are just a few examples. Interestingly, complex systems are very hard to map into mathematical equations, so the usual physics approach doesn't really work here. So what do we know about complex systems? Well, it turns out that what looks like complex behavior from the outside is actually the result of a few simple rules of interaction. This means you can forget about the equations and just start to understand the system by looking at the interactions, so you can actually forget about the equations and you just start to look at the interactions. And it gets even better, because most complex systems have this amazing property called emergence. So this means that the system as a whole suddenly starts to show a behavior which cannot be understood or predicted by looking at the components of the system. So the whole is literally more than the sum of its parts. And all of this also means that you can forget about the individual parts of the system, how complex they are. So if it's a cell or a termite or a bird, you just focus on the rules of interaction. As a result, networks are ideal representations of complex systems. The nodes in the network are the system's components and the links are given by the interactions. So what equations are for physics, complex networks are for the study of complex systems. This approach has been very successfully applied to many complex systems in physics, biology, computer science, the social sciences, but what about economics? Where are economic networks? This is a surprising and prominent gap in the literature. The study we published last year called "The Network of Global Corporate Control" was the first extensive analysis of economic networks. The study went viral on the Internet and it attracted a lot of attention from the international media. This is quite remarkable, because, again, why did no one look at this before? Similar data has been around for quite some time. What we looked at in detail was ownership networks. So here the nodes are companies, people, governments, foundations, etc. And the links represent the shareholding relations, so Shareholder A has x percent of the shares in Company B. And we also assign a value to the company given by the operating revenue. So ownership networks reveal the patterns of shareholding relations. In this little example, you can see a few financial institutions with some of the many links highlighted. Now you may think that no one's looked at this before because ownership networks are really, really boring to study. Well, as ownership is related to control, as I shall explain later, looking at ownership networks actually can give you answers to questions like, who are the key players? How are they organized? Are they isolated? Are they interconnected? And what is the overall distribution of control? In other words, who controls the world? I think this is an interesting question. And it has implications for systemic risk. This is a measure of how vulnerable a system is overall. A high degree of interconnectivity can be bad for stability, because then the stress can spread through the system like an epidemic. Scientists have sometimes criticized economists who believe ideas and concepts are more important than empirical data, because a foundational guideline in science is: Let the data speak. Okay. Let's do that. So we started with a database containing 13 million ownership relations from 2007. This is a lot of data, and because we wanted to find out who rules the world, we decided to focus on transnational corporations, or TNCs for short. These are companies that operate in more than one country, and we found 43,000. In the next step, we built the network around these companies, so we took all the TNCs' shareholders, and the shareholders' shareholders, etc., all the way upstream, and we did the same downstream, and ended up with a network containing 600,000 nodes and one million links. This is the TNC network which we analyzed. And it turns out to be structured as follows. So you have a periphery and a center which contains about 75 percent of all the players, and in the center there's this tiny but dominant core which is made up of highly interconnected companies. To give you a better picture, think about a metropolitan area. So you have the suburbs and the periphery, you have a center like a financial district, then the core will be something like the tallest high rise building in the center. And we already see signs of organization going on here. Thirty-six percent of the TNCs are in the core only, but they make up 95 percent of the total operating revenue of all TNCs. Okay, so now we analyzed the structure, so how does this relate to the control? Well, ownership gives voting rights to shareholders. This is the normal notion of control. And there are different models which allow you to compute the control you get from ownership. If you have more than 50 percent of the shares in a company, you get control, but usually it depends on the relative distribution of shares. And the network really matters. About 10 years ago, Mr. Tronchetti Provera had ownership and control in a small company, which had ownership and control in a bigger company. You get the idea. This ended up giving him control in Telecom Italia with a leverage of 26. So this means that, with each euro he invested, he was able to move 26 euros of market value through the chain of ownership relations. Now what we actually computed in our study was the control over the TNCs' value. This allowed us to assign a degree of influence to each shareholder. This is very much in the sense of Max Weber's idea of potential power, which is the probability of imposing one's own will despite the opposition of others. If you want to compute the flow in an ownership network, this is what you have to do. It's actually not that hard to understand. Let me explain by giving you this analogy. So think about water flowing in pipes where the pipes have different thickness. So similarly, the control is flowing in the ownership networks and is accumulating at the nodes. So what did we find after computing all this network control? Well, it turns out that the 737 top shareholders have the potential to collectively control 80 percent of the TNCs' value. Now remember, we started out with 600,000 nodes, so these 737 top players make up a bit more than 0.1 percent. They're mostly financial institutions in the U.S. and the U.K. And it gets even more extreme. There are 146 top players in the core, and they together have the potential to collectively control 40 percent of the TNCs' value. What should you take home from all of this? Well, the high degree of control you saw is very extreme by any standard. The high degree of interconnectivity of the top players in the core could pose a significant systemic risk to the global economy and we could easily reproduce the TNC network with a few simple rules. This means that its structure is probably the result of self-organization. It's an emergent property which depends on the rules of interaction in the system, so it's probably not the result of a top-down approach like a global conspiracy. Our study "is an impression of the moon's surface. It's not a street map." So you should take the exact numbers in our study with a grain of salt, yet it "gave us a tantalizing glimpse of a brave new world of finance." We hope to have opened the door for more such research in this direction, so the remaining unknown terrain will be charted in the future. And this is slowly starting. We're seeing the emergence of long-term and highly-funded programs which aim at understanding our networked world from a complexity point of view. But this journey has only just begun, so we will have to wait before we see the first results. Now there is still a big problem, in my opinion. Ideas relating to finance, economics, politics, society, are very often tainted by people's personal ideologies. I really hope that this complexity perspective allows for some common ground to be found. It would be really great if it has the power to help end the gridlock created by conflicting ideas, which appears to be paralyzing our globalized world. Reality is so complex, we need to move away from dogma. But this is just my own personal ideology. Thank you. (Applause)