HC2121 Comparative Business Ethics and Social Responsibility (doc)

Added on - 31 Oct 2019

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Comparative Business Ethics and Social Responsibility1
ContentsComparative Business Ethics and Social Responsibility...............................................................................1Introduction.................................................................................................................................................3Analysis of the unethical activities of Rajaratnam.......................................................................................4Q1................................................................................................................................................................5Q2................................................................................................................................................................7Q3................................................................................................................................................................8Conclusion...................................................................................................................................................9Bibliography...............................................................................................................................................102
IntroductionEthical issues have been the major concern of the organisations in the present time. Thebusiness organisations basically face complex situations and struggle to avoid ethical issues.The immediate need of the present situation is to maintain a strict code of conduct and avoidethical issues. The diverse culture of the business organisation and in the process of theirdecision-making, compliance & governance the ethical issues are identified.The major concern of the business organisation is to follow the strict principles and code ofconduct based on the ethics. The management of the organisation requires identifying thefacts related to the ethical dilemmas and these issues are required to be assessed in order todefine a different course of action so that the companies will not face any difficulties in theprocess of their governance[ CITATION Hes11 \l 16393 ]. The organisation will find the rootcause of the issue and will make strategies to resolve the issues.Thus it is imperative to saythat appropriate decisions based on the ethical code will help the employees and themanagement of the organisation to work in a transparent way.The ethical issues will beresolved and the culture of the company will be based on the values and beliefs that will helpall the stakeholders to gain benefits.The present report is all about the impact of unethical practices made by Rajaratnam and TheGalleon Group. The unethical practices made by Rajaratnam is related to the inside tradingthat gathered the information of the leading companies across the world.The allegation wason Rajaratnam for collecting the inside information bribing the employee of Intel Corporation.The inside trading affected some important companies like IBM, Hilton Hotel, and Google.The immoral way of gathering information caused a huge damage to the companies and onthe other hand, Rajaratnam could manage to gather $ 64 billion[ CITATION Jen13 \l 16393 ]. Thepre-planned unethical activities brought a short-term success to Rajaratnam and his company3
but in the long run, he lost his credential in the market and he was convicted of the conspiracyof collecting the inside information. He was sentenced to jail and was fined. The unlawful actof Rajaratnam forced the regulators of the law and executives and the governance to remainvigilant to all the activities in the organisations. The unlawful activities also affected on thetrust of the customers, the employees and of all the stakeholders of the company[ CITATIONMit17 \l 16393 ].The unethical behaviour of Rajaratnam was an alarm for the tradingcompanies and they remain alert in the process of their business.Analysis of the unethical activities of RajaratnamThe inside trading incident is an eye opener for all the business organisations that deal in tradingactivities. Rajaratnam and his Galleon Group is the example of unethical practices occurred inthe companies. The conspiracy of getting rich with a short period of time brought the audacity ofgreed in the minds of the group of people those who are involved in the insidetrading[ CITATION aca17 \l 16393 ]. The greed of accessing the secret information of theinvestors and selling the information for personal and financial benefits considered as the mostunethical activity conducted by Rajaratnam and his coworkers. Rajaratnam could manage to earn$64 billion for the inside trading and later he was convicted on all eleven charges. The unethicalsuccess story of Rajaratnam brought huge loss to the leading companies like Intel, IBM, andGoogle. The non-public information of the companies was made public and with the access ofthe information, the companies could make illegal practices[ CITATION che17 \l 16393 ]. Theobjectives of Rajaratnam to exploit the information of the insider before the information is madepublic in order to trade ahead of the announcements made in public on the earning, forecast,merger & spinoff. This was an illegal practice to disclose the insiders’ information for thefinancial benefits.Rajaratnam exploited the information of the customers with the help of his secret executives andthat enabled him to capture a huge network of information. He seduced the trust of the peopleand betrayed them. His business model was based on cheating.The court could find themechanism of fraud made by Rajaratnam and his team members[ CITATION com17 \l 16393 ].They swapped the secret information and recruited corporate insiders for providing them4
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