Comparative Business Ethic and Social Responsibility
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Added on 2020-03-23
Comparative Business Ethic and Social Responsibility
Added on 2020-03-23
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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, cases of senior executives and other individuals have been reported to have engaged in various unethical business activities to earn money. Some of these activities comprise of illegal practice of trading on the stock exchange through exposingconfidential information to gain personal advantage. A good example being the case at the Galleon group. These paper will look at the issue of insider trading at the Galleon group. The paper will explain what executives, regulators and investors can do to address the issue. It will also explain the implications of sharing confidential material information and how it can impact ones decision concerning how to trade a stock. The paper will also explain if the secret investigation and conviction of Rajaratnam and other individuals in the galleon network can discourage other fraud managers and investors from exposing confidential to thepublic. At the end of the paper, a conclusion will be made concerning the implications of insider trading, if the secrete investigation and conviction of Rajatnam and other managers can discourage other people from engaging in similar activities and why information-gathering techniques like Rajaratnm’s are common on Wall Street.
COMPARATIVE BUSINESS ETHICS & SOCIAL RESPONSIBILITY 3IntroductionThe issue of engaging in insider trading impacts not only organizations but also the economic conditions of a country [ CITATION Buz16 \l 2057 ]. In most cases and just like in the case of Galleon group, most of the people who engage in this unethical business activities do so in order to attain personal advantages. The illegal trading of stock to gain personal advantage through expose non-public information have significant impact to not only an organization but also to economic condition of a countries. This means Regulators, executives and investors should come up with strict measures to prevent such activities do nothappen.Over the past years, companies have been closing down because of being impacted byinsider trading. Those found guilty have also ended up serving jail terms and paying huge fines [ CITATION Kev12 \l 2057 ]. This means confidential information is quite vital to an organization and should always be safeguarded. In this case, regulators, investors and executive have a role to play to ensure those who try to engage in this type of activities are challenged.In most cases, the manner in which people who engage in insider trading are investigated and convicted determines the manner in which other people who engage in such activities will perceive the crime [ CITATION Jam111 \l 2057 ]. Based on the case study, there are various things which people can learn from the manner in which Rajaratnam was investigated and convicted. Although regulators and other stake holders are trying to stop insider trading, much need to be done to ensure the stock market is secure.
COMPARATIVE BUSINESS ETHICS & SOCIAL RESPONSIBILITY 4Are 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 techniques like Rajaratbam’s are common on the Wall Street in the fact that everyone wants to make money. Although insider trading is not legal, people will still undertake it because they believe money is more important than what is right or wrong [ CITATION Geo11 \l 2057 ]. The insider trading at the Galleon group case study brings up an important point that the information which analysts in regards to funds and stockis quite fundamental. This means these kind of practices are normal and even common on Wall Street. One of the major reasons why these kind of information gathering techniques arecommon on wall street is because of the several gains that agents, investors, and other playersget, by knowing the inside information, much before the public gets to know the information. To reduce the practice, regulators, executives and investors should work together[ CITATION Ami12 \l 2057 ]. Addressing the issue of inside trading is not an easy task because people always feel they can outsmart the established measures. This means those who are concerned with fighting against the issue should team up and assist each other where possible. All players should ensure those who violate the rules are punished in a manner which can make them change. If the only punished will be slaps on the wrist, other people aregoing to be more willing to take chances on engaging in insider trading and other unethical practices.Regulators should always keep a close eye on the firms making a lot of money, ensurethere are open lines of communication for whistle blowers, and heavily prosecute the offenders in a manner which can set an example to others. Keeping close eye to companies making a lot of money will assist the regulators to determine if the company makes the
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