You have to wonder about his attorney too, who, in responding to the assertion of the allegedly non-consensual encounter:

"Though Mr. Francis cannot speak to Ms. [name in original]'s discomfort during the encounter, other news stories have commented that Mr. Francis is reputedly well-endowed."

All entrepreneurs exploit something -- an unmet need, an arbitrage opportunity. Starbucks saw that people in modern life might want a place to go and have a tasty coffee in a comfy chair and chat with friends or read a newspaper. Mr. Francis saw that a large number of people like to see drunk college girls take their clothes off. If young men were surreptitiously taking videos of young women to show to their buddies, then facing civil charges, Mr. Francis could step into the void and provide the same service for $14.99. And, he knew that consent is fairly easy to obtain from drunk young women -- they don't negotiate very well. So, while this story may be an expose of Mr. Francis, Mr. Francis wouldn't be a story if there wasn't a market.

Christine, you are right, of course, but that doesn't excuse Francis. I notice that Paul Kedrosky made this comment on the story:

[I]t also raises useful questions about entrepeneurial morality. Is there such a thing? Should there? I had a related discussion with a fellow VC not long ago about how most venture guys don't fund adult entertainment or gambling, preferring to stay at least one step removed, despite those being fast-growing and wildly profitable businesses.

Don't get me wrong, Gordon -- I think he's inexcusable. I think the interesting question is whether or not entrepreneurship is value-neutral. If Mr. Francis was an upstanding person who did good works and gave to charity, but still was the driving force behind the video series and its labor practices, would we respect him more or less?

Frankly, any woman dumb enough to go into a bar, get drunk, and flash her breasts has no business suing anyone who films it. The debate about the morality of the filmer and supposed First Amendment issues is entirely beside the point.

It's simple. Act in public in an unflattering manner, and someone may record it. That was the case when quill pens were in vogue, and it remains the case today.

First, thanks for noting the article.

Second, Christine and Gordon, are you two really suggesting a moral compass comes into play in business? I think Christine is pointing to the oddity of how society may forgive (or willingly ignore) questionable acts by someone if that person also offers desired acts as an exchange. BUT that point seems different from the more general issue of morality in business. I think of case law that touches on what must drive a company and almost all the language seems to assert that profit maximization (within the law technically) is the key if not only rationale to follow. Yes this characterization is a bit broad but honestly I am wondering whether law (and business) ethics ever really look at the nature of the business.

As for the comment that VC money stays away from adult and gambling industries, I wonder whether that it is because of the unsavory nature or the unstable nature of management in those fields. Furthermore, gambling seems locked up in the U.S. unless one takes U.S. money and goes offshore. The adult industry seems to be riddled with tales of drug use and criminal investigations for a range of transgressions. In short how open are these industries to VC type of growth and return in the first place? Plus, the problem about what I think is still a key issue for VC money, management team, might be in play more when examining industires that perhaps are at the fringes of whatever business ethics may be. Consider Francis and his behaviors. Successful though he may be, if correct the article notes that when he first started he faced lawsuits for breach of contract regarding the material he used, continually exhibits rage behaviors and further lawsuits, and so on. Would VC really go into business with this person when he started (not when he had stumbled into success)?

Sorry for the long post but you all started some wheels turning.