2. a consideration given or
offered to an employee by
a person outside the firm
with the understanding
that, when the employee
transacts business for the
firm, the employee will
deal favorably with that
person or that’s person’s
firm.
3. occurs when an employee
demands a consideration
from persons outside the
firm as a condition for
dealing favorably with those
persons when the employee
transacts business for the
firm.
4. may or maybe unethical
if the agent does not give favored treatment to those
from whom the agent accepts gifts and is not
prejudiced against those who fail to give a gift, no
actual conflict of interest is created.
a potential conflict of interest however may exist
and the act may encourage a practice that in some
instances becomes an actual conflict of interest or
that may be subtly affecting the independence of a
person’s judgment.
5. What is the value of the gift?
◦ Is it substantial enough to influence one’s
decisions?
What is the purpose of the gift?
◦ Is it intended or accepted as a bribe?
What are the circumstances under which
the gift was given?
◦ Was it given openly?
◦ Was it given to celebrate a special event
(Christmas, a birthday, a store opening)?
Vincent Barry, Moral Issues in Business, pp. 237-238
6. What is the position of the recipient of the gift?
◦ Is the recipient in a position to influence his own
firm’s dealings with the giver of the gift?
What is the accepted business practice in the
area?
◦ Is it part of an open and well-known industry
practice?
What is the company’s policy?
◦ Does the company forbid acceptance of gifts?
What is the law?
◦ Is the gift forbidden by a law?
Vincent Barry, Moral Issues in Business, pp. 237-238
7. appropriating, taking or
using the resources or
properties of the
employer for his own use
or benefit without the
consent of the rightful
owner.
8. unauthorized
examination, use or
copying of computer
information or program.
9.
10. The right to exclusive use of the asset
The right to decide whether and how others may
use the asset
The right to sell, trade or give away the asset
The right to any income generated by the asset
The right to modify or change the asset.
To usurp any of the rights that attach to property,
including the rights pertaining to use, is a form of
property theft and is, therefore, unethical.
11. Proprietary information consist of
non- public information that:
◦ concerns a company’s own activities,
technologies, future plans, policies, or records
and that if known by competitors would
materially affect the company’s ability to
compete commercially against those
competitors;
◦ is owned by the company (although it might not
be patented or copyrighted) because it was
developed by the company for its private use
from resources it owns or was purchased for its
private use from others with its own funds; and
◦ the company indicates through explicit
directives, security measures, or a contractual
agreement with employees that is does not want
anyone outside the company to have that
information.
12. Have their employees signed contracts agreeing
not to work for competitors for 1 or 2 years after
leaving the company
Continuing remuneration or future retirement
benefits in exchange for their not revealing
proprietary information
A company’s right to keep informa
tion secret is not absolute, but must
be balanced against the legitimate
rights of others.
13. The act of buying and selling a company’s
stock on the basis of “inside” information
about the company.
Inside or insider information about a
company is proprietary information about a
company that is not available to the general
public outside the company, but whose
availability to the general public would have a
material or significant impact on the price of
the company’s stock.
14. Anyone is guilty who trades in stock knowingly
using stolen, private information that can affect
the stock’s price, that is, anyone who knowingly
buys or sells stock using information that they
know was acquired by a person who had a duty to
keep that information confidential.
15. 1.Insider trading brings the 1.The information that the
market price of the insider trader uses does not
company’s stock equivalent belong to him but to the
to the true underlying value shareholders-owners.
2.Insider trading is harmful
of the stock. to everyone in the market
2.Insider trading does not and to society in general as it
harm anyone, but benefits tends to reduce the size of
those who sell stocks to him the market and increases the
or others later. costs of buying and selling
stocks in the market.
3.Insider trader has no 3.The information advantage
unfair advantage over others of the insider is unfair or
since many of the people unjust as it comes from
who buy and sell stocks on stealing the fruits of
the stock market have more someone else’s labor or
or better information than resources (the company’s
others. owners).
16. It violates stockholder’s rights
It is based on an unjust
informational advantage
It harms society’s overall utility
In short, it violates our standards of
rights, justice, and utility.
17. Velasquez, Manuel G., Business Ethics:
Concepts and Cases, 6th edition
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Others as noted in the corresponding slides
