Comparative Business Ethics and Social Responsibility
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Added on 2020-03-16
Comparative Business Ethics and Social Responsibility
Added on 2020-03-16
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COMPARATIVE BUSINESS ETHICS AND SOCIAL RESPONSIBILITY1Comparative business ethics and Social ResponsibilityInsert NameProfessor’s NameCourse TitleInstitution affiliationDate
COMPARATIVE BUSINESS ETHICS AND SOCIAL RESPONSIBILITY2Information gathering techniques resembling those of Rajaratnam are still practiced on Wall Street. Any business goal or intention is to make money. As much as insider trading is unlawful, people tend to forget that and solely focus on its advantage when it comes to generating quick money (Akwera, 2010, p. 178-179). However, no one wants to be prosecuted for insider trading, so people have become more careful and look for ways to disguise it so as to avoid the penalties associated with the act. News about charges against Rajaratnam of Galleon Group concerning insider trading generated jokes on Wall Street. The vulnerable finance professionals are electricians; due to theircommon task of finding out if phones or landlines are being tracked by the FBI. Brooklyn Bridgearea was where traditional insider trading used to take place. Ivan Boesky, a financial executive, was convicted in the 1980s for exchanging information that was not available to the public in person.As the saying goes, there is some truth that lurks in rumors or jokes. A lot of rumors havebeen doing rounds about how people benefit from Wall Street through insider trading evident in their massive accumulation of wealth (Granhag, Vrij & Meissner, 2014, p. 815-816). Barton Biggs, a strategist veteran investment, narrates the operations undertaken by a hedge fund in his Hedge Hogging that was published in 2006. In a particular chapter known as “Divine Intervention or Inside Information?” he narrates a certain stockbroker’s story, Judson Thomas, on how he has the insight of knowing tomorrow’s market trends today hence becoming a celebrity.Some media articles argued that prosecutors will have it hard proving Rajaratnam and theothers with similar charges guilty. They argue that it is hard to differentiate between information
COMPARATIVE BUSINESS ETHICS AND SOCIAL RESPONSIBILITY3gathering that is legal and illegal data sourcing that is not to be disclosed. However, ethics was breached since Rajaratnam used information that was not available to the public in prospective earnings.Majority of MBA programs insist that students take an ethics course, where cases of illegal insider trading are taught in detail. Likewise, all Chartered Financial Analysts, including numerous who are working for Wall Street, are expected to pass an exam on ethics (Fuld, 1995, p.10). It is expected that majority of the students did not take their ethics course with the seriousness required. However, the tutors played their role of informing them of the dos and don’ts of inside information and the expected consequences in case one breached the law. Moreover, Rajaratnam’s funds that are registered with the Securities and Exchange Commission (SEO) are expected to possess codes of conduct where employees swear to avoid trading on inside information.Success and characterIt is hard to fathom why talented and smart people who can easily acquire wealth throughethical means, engage in unlawful acts like illegal insider trading at times for relatively small gains. It could be greed for money or the fact that they assume that they are too smart to be caught (Bull by the horn, 2013, p. 50). The fact that they are able to hire renowned lawyers and regulators makes those involved in trading information illegally believe that they can avoid legal scrutiny.Managers also assume that even if their companies attract investigations from the FBI and SEC, an individual analyst would be found to have acted on their own accord without
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