HC2121 Comparative Business Ethics and Social Responsibility

Added on - 30 Oct 2019

  • HC2121

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  • 11

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Running head: COMPARATIVE BUSINESS ETHICSComparative Business EthicsName of the StudentName of the UniversityAuthor note
1COMPARATIVE BUSINESS ETHICSExecutive summaryThe purpose of this report is to highlight a widely seen practice in the business in stockmarket. This report sheds light on various issues like gathering non-public information oforganizations and using them how some people are earning a lot of money. In this processlegal or illegal that is the main purpose of this report. The report further sheds light on thefactors like insider trading practices and finally highlights whether the punishment of someindividuals related to this sort of crimes would prevent these types of malpractices or not.
2COMPARATIVE BUSINESS ETHICSTable of ContentsIntroduction................................................................................................................................3Information gathering techniques..............................................................................................3Insider trading............................................................................................................................4Conviction of Rajaratnam deter other investors to gather non-public information...................7Conclusion:................................................................................................................................9References................................................................................................................................10
3COMPARATIVE BUSINESS ETHICSIntroductionThe purpose of this report is to shed light on the activities like inside treading andvarious types of techniques for gathering non-public information of various organizations.Using the information some officials take advantage and make huge profits by investing inthe stocks of those organizations (Nunan and Yenicioglu 2013). It is seen that someorganizations has earned up to 100,000 million dollars overnight by investing money basedon the non-public information they have gathered. These practices need to be stoppedimmediately and the governmental authority needs to amend some rules and regulations toprevent these types of activities. The report further highlights the factors like how peoplegather this non-public information, what is insider trading and whether punishment of severalindividuals would stop this type of malpractices or not.Information gathering techniquesGathering information and various techniques related to gathering information is acommon practice in Wall Street. Business personnel at Wall Street are actually in businesswith intent to make money (Allan et al. 2012). The investors can fetch non-publicinformation from the chief financial officers of various organizations and that would besomething illegal. Else, the investor can develop his own prediction by piecing together smallparts of information from the suppliers of the organization and from the former workers ofthe companies and from various other sources. It is seen that the prosecution of Rajaratnamand some others gave a pause to the hedge funds regarding their techniques to gatherinformation. It can be said that insider trading is illegal, but in some cases, businesspersonnel gets greedy and they does take steps due to their egoism (Jayaraman 2012). Insome cases, these people lose control on their thinking capability and cannot decide what isright and what is wrong. The egoists think that they should take decisions that wouldmaximize their interests and undoubtedly, the insider trading and other organized crimewould continue to grow and people would think and invent more clever paths to get awaywith those criminal acts (Allan et al. 2012). To stop and reduce this kind of practices, thegovernment needs to implement strict asking the organizations to have robust compliance,supervisory, surveillance and control measures in place to identify illegal insider trading.
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