Ethical Dilemmas – Coursework Example
Ethical Dilemmas Insider Trading The purchase of shares of stock would be illegal if an internal employee engages in the acquisition. This is because it is unfair to other financiers who cannot access direct information from the management. It emerges that internal investors receive first hand information concerning investment prospects and can maximum earnings at the expense of others. Laws are applied on an equitable basis in which all parties should benefit from similar opportunities (Engelen, 2012). As a result, an insider trading gives an internal investor more chances of raising capital since they access information before other potential external investors can grasp the news. Insider trading can also influence the issuance of shares to favor the internal employees, which is a fraudulent action (Engelen, 2012).
Whistle blowing is a common occurrence in numerous organizations. Quitting a firm because it produces sub-standard goods is not illegal or immoral. This is because of personal and public interest matters that motivate people to quit their jobs. However, personal moral concerns should not encourage one to quit his or her job before informing the management about the problems within the organization (Dryburgh, 2009). This is because the decision might not help in addressing the situation if the management does not receive suggestions from workers. A person may quit because he or she thinks the management failed to control the production of harmful products. This does not make the action illegal, especially if it assists in correcting the mistakes in the organization (Dryburgh, 2009). The law protects whistle blowers who act to avoid causing harm to the public.
Dryburgh, M. M. (2009). “Personal and Policy Implications of Whistle-Blowing.” Public
Integrity, 11(2), 155-170.
Engelen, P. (2012). “What Is the Reputational Cost of a Dishonest CEO? Evidence from US
Illegal Insider Trading.” Cesifo Economic Studies, 58(1), 140-163.