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Legal Pressure on Ethical Issues Assignment

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Added on  2020-04-07

Legal Pressure on Ethical Issues Assignment

   Added on 2020-04-07

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[LEGAL PRESSURE ON ETHICAL ISSUES]
Legal Pressure on Ethical Issues Assignment_1
Evaluate the implications of the legal pressure for ethical behavior in organizationsDue to the legal pressure upon the organizational framework, the organization projected it was workingwithin the ethical framework to its stakeholders, but in turn, the Galleon Group was projecting falsepictures. It was during its investors, shareholders and the various stakeholders. The company Galleongroup came into the wrong spotlight when it was doing insider trading which as per the U.S. SEC 1934act is considered as fraudulent and misconduct. The company management was involved in suchactivities. The Raj Rajaratnam who attracted various investors such as the Goldman Sach, ING etc werecheating by acting on their information. Ethics has everything to do because of management. It is adecision to be taken by the individual from their concessions [ CITATION Fer16 \l 1033 ]. The mainidea, behind implementing the ethical framework with the legal components is a pressure to bearresponsibility and accountability due to other people’s wrongdoing. For example, recently the GalleonGroup which was the largest hedge fund, was caught in the insider trading. The stakeholders and theinvestors were duped. The company was sued along with the management as it had a series of non-publicinformation which was gained by the contacts. Such piece of information was timely acted, due to whichthe company was able to thrive. He used to provide consultation based on the materialistic and nonpublicinformation received. The SEC charged 14 counts of securities fraud and taking steps in the conspiracyalong with its investors. The employees didn’t realize while conducting the fraud, that it will have aserious repercussion effects on the company, community and the various stakeholders due to which thecompany has grown. The employes and the various stakeholders had to bear the brunt of the managementunethical nature. There was a scandal due to the unethical nature of the management. The managementhas indeed compromised with their consciousness. But in conducting frauds, they didn't evaluate the legalpressure and consequences. Due to the legal framework of the constitution where the company existed, itgot shut and management was put behind the bars. They fined and given a huge penalty. All these legalactions proved detrimental for more companies to create similar fraud. Therefore, a legal pressure hasimplications on the ethical nature of the organization to exist and grow.
Legal Pressure on Ethical Issues Assignment_2

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