Comparative Business Ethic & Social Responsibility
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Added on 2020-03-28
Comparative Business Ethic & Social Responsibility
Added on 2020-03-28
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Comparative business ethics & social Responsibility 1Comparative business ethics & social Responsibilityby [Name]CourseProfessor’s NameInstitutionLocation of InstitutionDate
Comparative business ethics & social Responsibility 2Executive summaryOver the past years, insider trading has been a subject that has historically generated agreat deal of news across the world. The reason why insider trading has been a subject of discussion across the world is because it is illegal and unethical and its implications may havesignificant impact to not only investors but also to the country. The purpose of this paper is tolook at various strategies which executives, regulators and investors can use to prevent this kind of fraud from occurring. The paper will also look at the implications of sharing confidential information material with unintended people and how having information concerning insider trading can influence one’s decision in stock trading. Towards the end of the paper, an overview of whether the secret investigations and conviction of Rajaratnmant and his colleagues can deter other fund managers and investors from engaging in these kind of frauds. The paper will end with conclusions concerning various findings on these issues.
Comparative business ethics & social Responsibility 3ContentsIntroduction...........................................................................................................................................4Are information gathering techniques like Rajaratnam’s common on Wall Street? If so, what could regulators, investors, and executives do to reduce the practice?.........................................................4What are the implications of sharing confidential material information? Is it something that would affect your decision about how to trade a stock if you knew about it?.................................................7Do you think the secret investigation and conviction of Rajaratnam and other people in the Galleion network will deter other fund managers and investors from sharing non-public information?..........10Conclusion...........................................................................................................................................12Bibliography.........................................................................................................................................13
Comparative business ethics & social Responsibility 4IntroductionOver the past years, issues related to insider business have been witnessed in various countries. Insider is defined as the illegal practice of trading the stock exchange to one’s own benefits through accessing to confidential information [ CITATION Gei11 \l 2057 ]. One of the good examples of this type of business activity is the one discussed in the case study where Rajaratnam liaised with individuals from other companies to expose an information which theinvolved parties had not decided to reveal. Secrets in companies plays a significant role in various activities including decision making and should always remain confidential among the parties.Based on the fact that Insider trading is illegal, it has various implications to not only the company or individuals involved, but also to the country at large [ CITATION And121 \l 2057]. For this kind of business activities to come to an end, there are various individuals who should implement the required measures. Some of these people comprise of investors, executives and regulators. For these people to control these activities, they must use strategieswhich can make not only the offenders to learn a lesson, but also for those who might have plans to engage in similar frauds understand the reasons why they should only do what is ethical.Are information gathering techniques like Rajaratnam’s common on Wall Street? If so, what could regulators, investors, and executives do to reduce the practice?The information Gathering technique used in the case study are common on the wall street in the fact that people are in business to make irrespective of whether the process used is right or wrong. Although engaging in insider trading is not legal, some of the business people are so greedy and act with egoism [ CITATION Lar101 \l 2057 ]. They think about the benefits they are going to attain and lose sight of what is right or wrong. Egoist have a strong
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