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Business Ethics and Social Responsibility | Report

   

Added on  2020-03-16

17 Pages4353 Words137 Views
Running head: BUSINESS ETHICS AND SOCIAL RESPONSIBILITYBusiness ethics and social responsibilityName of the studentName of the universityAuthor note

1BUSINESS ETHICS AND SOCIAL RESPONSIBILITYExecutive summary The aim of this report is to discuss about the influence of the case of insider trading with thegalleon group on the stock trading scenario. In addition, it is also been discussed about thereasons behind the continuation of the unethical information-techniques being used by thetrading firms even after the accusations of the galleon group. Moreover, the implications ofsharing confidential data for all the related stakeholders in the stock trading had also beendiscussed. This report concludes that, though the case of the Galleon group will have implicationon the existing business practices in the stock market trading but it will only for the short-termbasis. It is being seen that the stakeholders will have majority of the negative implicationscompared to the positive implication form initiating the insider trading.

2BUSINESS ETHICS AND SOCIAL RESPONSIBILITYTable of ContentsIntroduction......................................................................................................................................3Case history.....................................................................................................................................4Information gathering process of the trading firms.........................................................................4Steps to reduce the impact of insider trading...................................................................................5Steps to be taken by the business organizations..........................................................................5Steps to be taken by the investors................................................................................................7Steps to be taken by the regulatory authorities............................................................................8Implications of sharing confidential data........................................................................................9Implications for the investors......................................................................................................9Implications for the employees..................................................................................................10For the trading firms..................................................................................................................11Influence in the decision making process......................................................................................11Influence of the Galleon case on existing trading practices..........................................................12Conclusion.....................................................................................................................................12Reference.......................................................................................................................................14

3BUSINESS ETHICS AND SOCIAL RESPONSIBILITYIntroduction Trading in the stock market is one of the most prominent and leading source of amount ofmoney provided that the trading is being done properly. Majority of the stock trading are beingdone in the developed countries. This is due to the reason that, developed countries are havingmore effective and favorable infrastructure for the stock trading along with having more numberof industries (Chen, Choi and Hong 2013). More industries are required for the enhancement ofthe stock market due to the fact that stock trading is being done with the share of large andmedium business organizations. With the emergence of more number of business organizationsin the stock market along with increased number of traders, the competition is increasing in thissector. Various trading firms are entering in this market to help the investors in gaining moreprofit from the stock market. However, in the recent time, various cases related to fraud and money laundering arebeing emerged from the trading practices in the stock market. Various regulatory bodies such asgovernment and stock market authority are initiating various legislations and regulations to curbthese issues in the stock market. Punishments are also being stated, which will be given to theaccused in case of the proven case (Kim and Sohn 2012). One of the most prominent andinfamous case that was being emerged in the recent time in relation to the fraud in the stocktrading is the case of Rajaratnam of Galleon group. This case changed the existing scenario ofthe stock market trading in the stock market of the United States as well as the stock market ofother major nations. The case of Rajaratanam of the Galleon group will be discussed in this report along withits implications in the stock market. This report will also discuss about the implications of using

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