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OF BUSINESS ETHICS
ETHICAL BUSINESS CHALLENGE
Presented by Group 4
OUR
TEAM
THE
CONTENT
CASE SUMMARY
ISSUES
ADVANTAGES
DISADVANTAGES
PRESSURE
CASE
SUMMARY
CASE
SUMMARY
Obtain prestigious brokerage jobs
in the New York area
Learn to add some expenses to their
professions such as try to look
CASE
SUMMARY
Albert had an uncle working as a janitor
Alberts uncle
CASE
SUMMARY
The Chens soon have enough money to make
their own investment, including Marys father.
Mary learned from her father that
his company is having problem
with the old management
CASE
SUMMARY
some of broker send email
Weeks Later
That person were found and fired
Mary did forward messages that contained such material, so the head of her
division decided to fire her
Because of this mess, SEC wanted to check all her trades for the last 8 months
CASE
SUMMARY
CASE
SUMMARY
Albert tried to make up for the loss by trading
in some high risk markets (commodities and
precious metals) But many of these investment
evaporated.
The investment of him, as well as his clients,
was a big mess
Some of his uncles friends portfolios were
losing significant value.
CASE
SUMMARY
Barry asked for inside
information
Weeks later
CASE
SUMMARY
ask for a specific order to buy the stock as soon
as possible and sell stock when the price goes
to $112
Albert will receive a little bonus for that action.
Alberts supervisor
FIRST
GAME
FIRST
GAME
@!*
ABC
DEF
GHI
JKL
MNO
PQRS
TUV
WXYZ
INTELLIGENCE
1 CORPORATE
267767283 468355443623
SEXUAL 4272776368
HARASSMENT
2 739825
8723464
INSIDER TRADING
3 4674337
OMISSION 59464
LYING
4 66477466
63 INTEREST
46837378
CONFLICT OF
5 26635438
LAW7348528464
REGULATING26673848466
COMPETITION
6 529
7 5297
LAWS7768328464
PROTECTING266786377
CONSUMERS
0
+-
ISSUES
OF THE CASE
CASES
ISSUES
Sexual
Harassment
Corporate
Intelligence
Insider
Trading
Ethical
Issues
Omission
Lying
Conflict of
Interest
CASES
ISSUES
CORPORATE
INTELLIGENCE
Physical Hacking: Alberts uncle whose work as a janitor gave him access
to many law office that had information on a number of companies,
especially those about to file for bankruptcy.
CASES
ISSUES
Mary had already known
that the mail included
some nude photos,
anyones private images.
However, she did not
seem to care, forwarded
it without opening, which
might cause many
SEXUAL
consequences
unpredictably.
HARASSMENT
TRADING
CASES
ISSUES
When Albert has financial problem, he invested in some high-risk
market using his own money as well as those of his clients. He did
it purposefully without informing to his clients, especially his
uncles friends, who just agree to buy and sell non-risky stocks
at will.
OMISSION
LYING
CONFLICT
OF INTEREST
CASES
ISSUES
Law
regulating
competition
Laws
protecting
consumers
Legal
Issues
CASES
ISSUES
LAW REGULATING
COMPETITION
Albert had no agreement to take information from law offices, he just steal
it easily because his uncle work as a janitor there. Use that information to
made profit and to benefit their clients portfolios intruded the law regulating
competition.
CASES
ISSUES
LAWS PROTECTING
CONSUMERS
After Albert and Marys income was cut in half, he tried to make up for the loss by:
trading in some high risk markets
turn all his clients portfolio into the black - including his uncles friends portfolio.
Albert just had the permission to buy and sell non-risky stocks at will.
He traded in high-risk markets without informing his uncles friends.
SECOND
GAME
SECOND
GAME
ADVANTAGES
DISADVANTAGES
ADVANTAGES
DISADVANTAGES
ISSUE 1
Using alcohol to have
valuable information
His uncle give Albert
access to many law offices
that had information on a
number of companies
Use information to
benefit their clients
portfolio.
Advantages
Because of having known information about many
companies, Albert can decide buying and selling stock
in the right times.
Make benefit for clients portfolios.
Invest in the market and take a lot of profits for himself.
Disadvantages
His action is unethical and even illegal because Albert
had no agreement to take information from law offices
If Albert is detected, he may lose a lot of money and go
to jail
ADVANTAGES
DISADVANTAGES
ISSUE 2
Albert, who holds IPO
information, would talk to
some of his best venturecapital friends, who then
bought the IPOs and gained
some very good returns.
Advantages
Albert have sold some hot IPOs to his venture-capital friends
to get money and attract some larger players in the market
Have many valuable friends and his career can develop fast
Disadvantages
This action is considered as insider trading which is unethical
If Albert is detected, he may lose a lot of money and face
legal problems .
ADVANTAGES
DISADVANTAGES
ISSUE 3
One of Alberts friends was
Barry, who worked on the
stock floor.
As they were talking, Barry
mentioned that if Al wanted
to, he, as a favor, when
placing orders to buy shares,
would occasionally put
Alberts or Marys trade
before the client order.
Advantages
Benefit Albert
Disadvantages
Illegal and unethical
Somehow Albert will depend on Barry in the future
ADVANTAGES
DISADVANTAGES
ISSUE 4
Albert tried to make up for
the loss by trading in some
high risk markets such as
commodities and precious
metals.
many of these
investments turned sour.
He found himself buying and
selling more and more to pull
his own portfolio, as well as
those of his clients, into the
black.
Advantages
Higher risk, higher return can make a lot of money
Disadvantages
If his risky portfolio lose significant value, he can make
his loss worse
When Albert chose to invest in high-risk market, he chose
his own interest over the interest of his clients. This is considered
as a conflict interest issue, so his decision is unethical.
ADVANTAGES
DISADVANTAGES
ISSUE 5
Barry has demanded for
inside information on several
companies that Albert was
working with for an IPO.
Barry had helped him a lot in
placing his orders to buy
shares before the client order
Advantages
If Agree
- Keep in touch with
Barry. And Barry
will continue to
help him put his
trade before the
client order
If Disagree
- Keep this
information in
secret, make fair in
the market to all
others IPO investors
ethical + legal
ADVANTAGES
DISADVANTAGES
ISSUE 5
Barry has demanded for
inside information on several
companies that Albert was
working with for an IPO.
Barry had helped him a lot in
placing his orders to buy
shares before the client order
If Agree
- Get more favor
DisAdvantages from Barry who will
benefit from it.
- Commit insider
trading which is
considered as an
unethical and illegal
issue
If Disagree
-Break the
relationship with
Barry (may be some
others friends)
- Financial loss
- Barry may delate
Albert and he will get
exposed for spinning
(unethical and
illegal)
ADVANTAGES
DISADVANTAGES
ISSUE 6
Albert, are asked by his
supervisor to buy some stock
as soon as the market open
tomorrow for a few of his
friends and him. They would
pay the tax and pay Albert as
a bonus.
If Agree
Advantages - Make some money
to make up for the
his wife jobs
- Maintain a positive
relationship with his
supervisor
If Disagree
- Ethical feel
relieve + comfortable
- Legal stay away
from legal problems
ADVANTAGES
DISADVANTAGES
ISSUE 6
Albert, are asked by his
supervisor to buy some stock
as soon as the market open
tomorrow for a few of his
friends and him. They would
pay the tax and pay Albert as
a bonus.
If Agree
- Get more favor
DisAdvantages from his supervisor
after that
If Disagree
- Lose the chance to
make some money
- Damage the
- Possibility to face to relationship with his
the court because of supervisor, which
violating the law
could make his jobs
harder as he already
had plenty of
troubles
PRESSURE
OF ALBERT CHEN
ALBERT CHENS
PRESSURE
INTERNAL PRESSURE
Pressure 1
Pressure 2
ALBERT
REPUTATION AND CREDIBILITY
ALBERT INVESTMENT
ALBERT CHENS
PRESSURE
OUTSIDER
EXTERNAL PRESSURE
Pressure 1
Pressure 2
ALBERTS CLIENTS
Pressure 3
ALBERTS SUPERVISOR
The supervisor asked Albert to do a
specific order on a stock. This is
quite suspicious as the detail of the
order is so specific that Albert could
be the one getting the heat. There
may be a stock price manipulation.
ALBERT CHENS
PRESSURE
FAMILY
EXTERNAL PRESSURE
Pressure 4
Pressure 5
MARRY
ALBERTS PARENTS