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Winter 2016
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Summer 2023
A Letter From… Sydney
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A Letter From Europe: 4 Valleys, Switzerland
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WASHINGTON – The resignation of CIA Director David Petraeus has brought a sudden and unexpected end to the public career of a four-star general who led U.S. troops in Afghanistan and Iraq and was thought to be a potential candidate for president.
Petraeus admitted to an extramarital affair in tendering his resignation, which President Barack Obama accepted Friday.
Petraeus carried on the affair with his biographer Paula Broadwell, a reserve Army officer, according to several U.S. officials with knowledge of the situation. They spoke anonymously because they were not authorized to discuss publicly the investigation that led to the resignation.
The FBI discovered the relationship by monitoring Petraeus' emails, after being alerted Broadwell may have had access to his personal email account, two of the officials said.
Broadwell did not respond to voice mail or email messages seeking comment. Broadwell's biography, "All In: The Education of General David Petraeus," was written with Vernon Loeb, a Washington Post editor, and published in January.
Lawmakers from both parties joined Obama in praising Petraeus. Obama said in a statement that Petraeus had provided "extraordinary service to the United States for decades" and had given a lifetime of service that "made our country safer and stronger."
CIA Deputy Director Michael Morell will serve as acting director, Obama said. Morell was the key CIA aide in the White House to President George W. Bush during the Sept. 11, 2001, terror attacks.
"I am completely confident that the CIA will continue to thrive and carry out its essential mission," Obama said.
The resignation comes at a sensitive time. The administration and the CIA have struggled to defend security and intelligence lapses before the attack that killed the U.S. ambassador to Libya and three others. It was an issue during the presidential campaign that ended with Obama's re-election Tuesday.
The CIA has come under intense scrutiny for providing the White House and other administration officials with talking points that led them to say the Benghazi attack was a result of a film protest, not a militant terror attack. It has become clear that the CIA was aware the attack was distinct from the film protests roiling across other parts of the Muslim world.
Morell rather than Petraeus now is expected to testify at closed congressional briefings next week on the assault on the consulate in Benghazi, which occurred on the 11th anniversary of the 9/11 attacks.
Petraeus, who turned 60 on Wednesday, has been married for 38 years to Holly Petraeus, whom he met when he was a cadet at the U.S. Military Academy at West Point, N.Y. She was the daughter of the academy superintendent. They have two children, and their son led an infantry platoon in Afghanistan.
The retired general told his staffers in a statement that he was guilty of "extremely poor judgment" in engaging in the affair. "Such behavior is unacceptable, both as a husband and as the leader of an organization such as ours." He said he had offered his resignation to Obama on Thursday and the president accepted it Friday.
Administration officials said the White House was first notified about the Petraeus affair on Wednesday, the day after the election. Obama, who returned to the White House that evening after spending Election Day in Chicago, wasn't informed until Thursday morning.
For the director of the CIA, being engaged in an extramarital affair is considered a serious breach of security and a counterintelligence threat. If a foreign government had learned of the affair, the reasoning goes, Petraeus or Broadwell could have been blackmailed or otherwise compromised. Military justice considers conduct such as an extramarital affair to be possible grounds for court-martial.
Failure to resign also could create the perception for the rank and file that such behavior is acceptable.
At FBI headquarters, spokesman Paul Bresson declined to comment on the information that the affair had been discovered in the course of an investigation by the bureau.
Holly Petraeus is known for her work helping military families. She joined the new Consumer Financial Protection Bureau to set up an office dedicated to helping service members with financial issues.
Though Obama made no direct mention of Petraeus' reason for resigning, he offered his thoughts and prayers to the general and his wife, saying that Holly Petraeus had "done so much to help military families through her own work. I wish them the very best at this difficult time."
Petraeus, who became CIA director in September 2011, was known as a shrewd thinker and hard-charging competitor. His management style was recently lauded in a Newsweek article by Broadwell.
The article listed Petraeus' "rules for living." No. 5 was: "We all make mistakes. The key is to recognize them, to learn from them, and to take off the rear view mirrors — drive on and avoid making them again."
In the preface to her book, Broadwell said she first met Petraeus in the spring of 2006. She was a graduate student at the Kennedy School of Government at Harvard, and he was visiting the university to discuss his experiences in Iraq and a new counterinsurgency manual he was working on.
She had graduated from West Point with academic, fitness, and leadership honors, according to a biography posted on her publisher's website that lists authors available for speaking engagements.
The biography said she had "lived, worked, or traveled in more than 60 countries during more than 15 years of military service and work in geopolitical analysis and counterterrorism and counterinsurgency operations." It said she had spent time with the U.S. intelligence community, U.S. Special Operations Command and FBI Joint Terrorism Task Forces.
Harvard invited some students to meet with Petraeus, and Broadwell was among them because of her military background, which she wrote included being recalled to active duty three times to work on counterterrorism issues after the Sept. 11 attacks.
"I had since joined the Army Reserve and begun graduate studies with the intent of returning either to active duty or to the policy world," she wrote in the preface. She introduced herself and described her research interests. He gave her his card and offered to connect her with others working on the same issues.
"I later discovered that he was famous for this type of mentoring and networking, especially with aspiring soldier-scholars. He immediately responded to the email, inviting me to bounce ideas off him. I took full advantage of his open-door policy to seek insight and share perspectives," Broadwell wrote.
In 2008, she wrote, she was pursuing a Ph.D. in public policy and embarking on a case study of Petraeus' leadership. At one point, she said, he invited her for a run along the Potomac River with his team while he was in Washington.
"I'd earned varsity letters in cross-country and indoor and outdoor track and finished at the top of my class for athletics at West Point; I wanted to see if he could keep stride during an interview. Instead it became a test for me." He eventually increased the pace "until the talk turned to heavy breathing and we reached a 6-minute-per-mile pace. It was a signature Petraeus move. I think I passed the test, but I didn't bother to transcribe the interview."
After Obama put Petraeus in charge in Afghanistan in 2010, Broadwell decided to expand her research into an authorized biography.
Broadwell made many trips to Afghanistan, with unprecedented access to Petraeus, and also spent time with his commanders across the country. When Petraeus took the job at the CIA, she remained in close contact with him, sometimes invited to his office for events like his meeting with Hollywood actress Angelina Jolie.
With the book done, she told friends she had been concentrating on turning part of her research on Petraeus into a dissertation, to complete her doctorate.
Petraeus, in his email, told his CIA employees that he treasured his work with them "and I will always regret the circumstances that brought that work with you to an end."
The director of national intelligence, James Clapper, said Petraeus' departure represented "the loss of one of our nation's most respected public servants. From his long, illustrious Army career to his leadership at the helm of CIA, Dave has redefined what it means to serve and sacrifice for one's country."
Other CIA directors have resigned under unflattering circumstances. CIA Director Jim Woolsey left over the discovery of a KGB mole, and director John Deutch left after the revelation that he had kept classified information on his home computer.
Before Obama brought Petraeus to the CIA, he was credited with salvaging the U.S. war in Iraq.
"His inspirational leadership and his genius were directly responsible — after years of failure — for the success of the surge in Iraq," Sen. John McCain, R-Ariz., said Friday.
President George W. Bush sent Petraeus to Iraq in February 2007, at the peak of sectarian violence, to turn things around as head of U.S. forces. He oversaw an influx of 30,000 U.S. troops and moved troops out of big bases so they could work more closely with Iraqi forces scattered throughout Baghdad.
Petraeus' success was credited with paving the way for the eventual U.S. withdrawal.
After Iraq, Bush made Petraeus commander of U.S. Central Command, overseeing all U.S. military operations in the greater Middle East, including Afghanistan and Pakistan.
When the top U.S. commander in Afghanistan, Gen. Stanley McChrystal, was relieved of duty in June 2010 for comments in a magazine story, Obama asked Petraeus to take over in Kabul and the general quickly agreed.
In the months that followed, Petraeus helped lead the push to add more U.S. troops to that war and dramatically boost the effort to train Afghan soldiers and police.
The Senate and House intelligence committees were briefed on Petraeus' resignation only after the news was reported in the media, said a congressional staffer, speaking anonymously because the staffer was not authorized to publicly discuss the sensitive briefings.
House Homeland Security Chairman Peter King, R-N.Y., said he regretted Petraeus' resignation, calling him "one of America's most outstanding and distinguished military leaders and a true American patriot."
Senate Intelligence Committee Chairman Dianne Feinstein, D-Calif., also regretted the resignation but gave Morell high marks, too.
Morell had served as deputy director since May 2010, after holding a number of top roles, including director for the agency's analytical arm, which helps feed intelligence into the president's daily brief. He also worked as an aide to former CIA Director George Tenet.
"I wish President Obama had not accepted this resignation," Feinstein said of Petraeus, "but I understand and respect the decision."
Associated Press writers Wendy Benjaminson, Ken Thomas, Donna Cassata, Kimberly Dozier, Connie Cass, Eileen Sullivan, Pete Yost and Anne Flaherty contributed to this report.


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The Act replaced, updated and extended previous UK law against bribery and corruption. It applies across the UK and all UK businesses and overseas businesses carrying on activities in the UK are affected.
The offences established by the Act are defined very broadly and the Act has significant extraterritorial reach in that it extends to acts or omissions which occur outside of the United Kingdom. Specific details about its jurisdiction can be found in the detailed guidance referred to under 'Ministry of Justice guidance' below, as well as in the Act itself.
Bribery is a broad concept. In supplementary guidance published alongside the Act, it is very generally defined as 'giving someone a financial or other advantage to encourage that person to perform their functions or activities improperly or to reward that person for having already done so. So this could cover seeking to influence a decision-maker by giving some kind of extra benefit to that decision-maker rather than by what can legitimately be offered as part of a tender process.'
Under the Act there are two general offences:
In addition, there are two further offences that specifically address commercial bribery:
This means that a commercial organisation commits an offence if a person associated with it bribes another person for that organisation's benefit. This 'corporate' offence is the most significant and controversial change to existing law and it is primarily this offence that you must now consider and prepare your business for as necessary.
It is important to note, however, that the Act also states that there is a defence available for commercial organisations against failing to prevent bribery if they have put in place 'adequate procedures' designed to prevent persons associated with them from bribing others on their behalf. The Secretary of State is required by the Act to publish guidance about such procedures.
Senior officers of an organisation can also be held personally liable under the Act for other bribery offences committed by the organisation, i.e. the active and passive bribery offences as well as the bribery of an FPO, where the offence is proved to have been committed with their 'consent or connivance'.
'Senior officer' is widely defined in the Act to include directors, managers, company secretaries and other similar officers, as well as those purporting to act in such a capacity.
Inevitably, in order to fully understand the requirements of the Act, it is necessary to be familiar with a number of key definitions.
The corporate offence can be committed by a 'relevant commercial organisation', which broadly includes:
We will refer to those affected by this corporate offence as 'businesses'.
The corporate offence also refers to a person 'associated' with a commercial organisation. While there is not an absolute list of all who could be included, we are told that this is a person who performs services for, or on behalf of, the organisation, regardless of the capacity in which they do so.
Accordingly, this term will be construed broadly and while examples are given of an employee, agent or subsidiary, it could also cover intermediaries, joint venture partners, distributors, contractors and suppliers.
Guidance issued by the Ministry of Justice (see below) acknowledges that the scope of 'persons associated' is broad and states that this is so as to 'embrace the whole range of persons connected to an organisation who might be capable of committing bribery' on its behalf.
The passive and active bribery offences both refer to the 'improper performance' of a function or activity. 'Improper performance' covers any act or omission that breaches an expectation that a person will act in good faith, impartially, or in accordance with a position of trust. This is an objective test based on what a reasonable person in the UK would expect in relation to the performance of the relevant activity.
The Act requires the Secretary of State to publish guidance for commercial organisations about procedures that they can put in place to prevent persons associated with them from bribing. This is important guidance in respect of providing a defence against the 'corporate offence'.
The Ministry of Justice (MoJ) has issued the following formal, statutory guidance:
It has also produced non-statutory guidance for small businesses, providing a concise introduction to how they can meet the requirements of the Act:
All businesses will need to pay some attention to the new corporate offence of failing to prevent bribery. How much you will have to do will depend on the bribery risks facing your business.
If a business can show that it had 'adequate procedures' in place to prevent bribery then it will have a full defence against the corporate offence. The meaning of 'adequate procedures' is not defined in the Act and it is here that the MoJ statutory guidance should be considered.
This guidance requires procedures to be tailored to the individual circumstances of a business, based on an assessment of where the risks lie. Therefore, what counts as 'adequate' will depend on the bribery risks faced by a business and its nature, size and complexity.
The MoJ guidance does recognise that the Act is not there to impose the 'full force' of criminal law upon well run businesses for an isolated incident of bribery. It also recognises that no business is capable of preventing bribery at all times. The 'quick start' guidance for smaller businesses comments that 'a small or medium-sized business which faces minimal bribery risks will require relatively minimal procedures to mitigate those risks'.
How should you begin to determine the approach needed in your business? The MoJ guidance identifies six guiding principles for businesses wishing to prevent bribery from being committed on their behalf (see the panel below). These principles are not, however, prescriptive.
The six principles that should guide anti-bribery procedures
A potential area of concern under the Act is the provision and receipt of corporate hospitality, promotional and other such business expenditure and how this might be perceived. While this may not be a significant issue for your business, especially when you consider your own level of such expenditure, it may be an important consideration for others.
The MoJ guidance states: 'Bona fide hospitality and promotional, or other business expenditure which seeks to improve the image of a commercial organisation, better to present products and services, or establish cordial relations, is recognised as an established and important part of doing business and it is not the intention of the Act to criminalise such behaviour. The Government does not intend for the Act to prohibit reasonable and proportionate hospitality and promotional or other similar business expenditure intended for these purposes.'
The guidance goes on to say: 'It is, however, clear that hospitality and promotional or other similar business expenditure can be employed as bribes.'
Facilitation payments, which are payments to induce officials to perform routine functions they are otherwise obligated to perform, are bribes and are therefore illegal under the Act.
The penalties associated with the Act are significant. On conviction for one of the main bribery offences, an individual may face up to ten years' imprisonment and/or an unlimited fine. A business faces an unlimited fine.
The senior officers of a business could also be liable to a prison sentence if bribery was perpetrated with their 'consent or connivance'. Disqualification from acting as a director for a substantial period of time could also arise.
The steps to be taken to prevent bribery will clearly vary from business to business and not all businesses will need to put in place complex procedures to deal with the requirements of the legislation. The supporting guidance issued by the MoJ emphasises the need for a common sense approach.
A key point noted in 'quick start' guidance is that 'there is a full defence if you can show you had adequate procedures in place to prevent bribery. But you do not need to put bribery prevention procedures in place if there is no risk of bribery on your behalf.'
We believe the above summary will help you understand the implications of the Bribery Act 2010. If your business is in the Newark area and you would like to discuss the implications of the Act for you and your business in more detail please contact us at Chesapeake Associates Ltd.


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"When it comes to digital storytelling for branding, there is, a more positive attitude towards the company when the employer branding message is using digital storytelling"- Management Dynamic in the Knowledge Economy Journal
"When it comes to digital storytelling for branding, there is, a more positive attitude towards the company when the employer branding message is using digital storytelling"- Management Dynamic in the Knowledge Economy Journal
"Maximizing success through onboarding by storytelling during orientations, [helps employees understand] the company's culture and values [and] its goals and history"- Society for Human Resource Management
"The corporate world cannot ignore the demands and expectations of Millennials, who are devout in their desire to associate with companies aligned with their values"- Center for Social Impact Communication at Georgetown University
"A poor cultural fit is frequently cited as one of the main reasons [an employee] decides to leave an organization… defining the organization's culture through storytelling should start with branding of the organization and continue through the interview and onboarding process"- Physician Executive Communication Journal
"Storytelling that integrates a moral and spiritual component can transform an organizational culture so members of the organization begin to feel connected to a larger community and a higher purpose"- Journal of Business Ethics
"64% of Millennials consider a company's social commitments when taking jobs and will not work for a company if they do not have strong corporate social responsibility (CSR) values"- Cone Communications
"83% of Millennials would be more loyal to a company that allows them to contribute to social and environmental issues"- Cone Communications
"Three uses for storytelling in organizations: (1) to motivate employees, (2) for education and (3) to consolidate corporate culture"- Journal of Marketing
"Story-telling is an important element… involving the sharing of experiences and creation of mental-maps of the environment in which people are motivated to perform to their full potential"- Leadership and Organization Development Journal
"Should produce positive effects on key audiences, such as increasingly positive attitudes toward the company and eventually behavioral intentions to support this company"- Public Relations Review
"[the way employees are on-boarded] sets the tone for the culture of a place, the people, and the values of a new institution and can have a significant impact on employees' sense of belonging"- Journal of Research, Assessment, and Practice in Higher Education
"19% [of Millennials] say they have paid in the last year for a subscription service for eBooks or audiobooks such as Kindle Unlimited or Audible"- American Press Institute
"Corporate storytelling is suggested to help demonstrate the importance of the corporate brand to internal and external stakeholders… as well as help a firm to bond with its employees"- Product & Brand Management
"Stories are a device… [that] provide managers with a form of social and intersubjective interaction that reflects belief systems, role expectations, interpersonal norms and conditions for work behavior"- International Journal of Management
"There are currently about 1000% more titles published since 2011"- Audio Publishers Association
"73% of the U.S. 12+ population (an estimated 209 million people) have listened to online audio in the last month, up from 68% in 2021"- Edison Research
"Audio narrative has recently benefited from profound cultural shifts in media consumption associated with on-demand television's binge watching revolution and the advent of digital longform storytelling"- Journal of Radio & Audio Media
"116% growth in spoken word listeners 13-34 years old in the past even years, with 18% growth in the last year"- National Public Radio Organization
"Storytelling that starts with the persona allows us to tap into these deeper recesses, where the influence of attitudes and emotions is greater… loyalty and trust are found there"- Journal of Business Strategy
"The audiobook market share shifted from 42% digital copy sales in 2009 to 87% digital copy sales in 2017"- Audio Publishers Association
"Employees have a deeper affiliation with the message through organizational storytelling due to aligning stories with their own experiences and understanding"- International Journal of Business and Social Science
"Brands can bring their CSR (corporate social responsibility) efforts to life through authentic storytelling [and] Millennials want to know what companies are doing to make the world a better place"- Center for Social Impact Communication at Georgetown University
"Narrative presentation of corporate strategy, comparative advantage, is more effective at producing a consistent and confident choice of competitive advantage among an audience than a presentation of corporate strategy using a PowerPoint style, bulleted list approach"- Journal of Strategy and Management
"Employees have a deeper affiliation with the message through organizational storytelling due to aligning stories with their own experiences and understanding"- International Journal of Business and Social Science
"Researchers have shown that storytelling strengthens the connections consumers have to brands, so that to a great extent what a brand means to a consumer is based . . . on the narratives he or she has constructed that incorporate the brand."- Journal of Business Strategy
"Spoken word audio listening is up 40% in the past seven years, and up 8% year over year"- National Public Radio Organization and Edison Research
"As technology evolves, people have more options available to them, which may explain why [reports] found younger adults to be more likely to opt for audiobooks and the multi-tasking they enable"- Forbes
"Audiobook sales revenue has been on a steep rise since 2018, reaching 1.3 billion USD in 2020"- Statista
"Audio platform superiority was about the desire to use an audio platform that is perceived to be superior to other audio alternatives, including on-demand convenience (time and place) and content (vari- ety and uniqueness)"- New Media and Society Journal
"Millennials are more technologically advanced than any previous generation [and] survey data has shown a correlation between age and reading preferences [where] younger people listen to more audiobooks than older Americans"- State University of New York
"The most recent era in audio entertainment… users are asserting power over the medium to select particular content at particular times"- Mass Communication and Society Journal
"Online audio (podcasts, radio shows, music and audiobooks) has become more popular than ever before"- Publishing Research Quarterly
"[onboarding] can also aid employees in identifying values congruence which is critical to career contentment and commitment which can significantly impact retention to both the field and the institution long-term" - Journal of Research, Assessment, and Practice in Higher Education
"The majority (79%) of Millennials want to work for a company that cares about how it contributes to society and 69% would refuse to work for a company that is not socially responsible"- Journal of Education For Business
"There is value in a story that is, designed to drive the simulation and to elicit the [employee's] best performance"- Society for Human Resource Management
"Over 71 thousand audiobook titles (were) published in 2020, a 39% growth between previous years"- Statista
"A focus on social responsibility is particularly important to attract, retain, and increase the commitment and engagement of Millennial employees and talented women"- Center for Creative Leadership
"Storytelling is essential to successful branding, since your brand is the sum of all your corporate behaviors and communications that inform your customers' experiences with your product or company"- The Journal of Business Strategy
"The storytelling process yields positive impacts on internal and external stakeholder outcomes including increasing employees' thriving and meaningful work, as well as the attitudes and trust of multiple external stakeholders"- Journal of Strategic Marketing
"Audiobooks have had a big shift in popularity in 2018 where for the first time, "a full half of all Americans ages 12 and older have listened to an audiobook, up from 44% last year"- Forbes
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Business Audio Theatre September 14, 2020
San Francisco, Sep 4, 2019 (Issuewire.com) – Footnotes Press LLC, in association with Sherwood Players Productions & Ryan Foland Enterprises, have announced a new type of business audiobook where Hollywood actors convey business principles through entertaining audio skits. Michael Houlihan and Bonnie Harvey are the Managing Members of Footnotes Press LLC, the Founders […]
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