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Ethics Of Financial Scandals Essay

1033 words - 5 pages

Theory Essay 1
With scandals such as Martha Stewart with ImClone and the Galleon Corporation people’s eyes have opened to the ethical dilemmas and personal self interest that upper management faces in large public companies. This struggle is the difference between whether the public views that person is moral or not. This brings up the question: Which is better, to be a virtuous leader or act in self interest? A virtuous person is someone who either tries hard, and gives great effort or someone who you can count on to do the right thing. The Psychological egoism theory, on the other hand, says that everyone is motivated by self interest. The question is a tough one especially in when the ...view middle of the document...

This is a bias because decisions that have self interest put first can still be ethical. People see the decision with self interest put first as the easy choice to make because you need not sacrifice your own well being for the benefit or less harm to others. Generally this is true that the self interest decision is the easiest to choose.
There are many reasons to support either decision in this dilemma. If someone hears of an insider trading scandal they automatically assume that the person that was leaking the information was an unethical person. What makes him unethical is because he is breaking the law and stealing money from the market using special knowledge that gives them an unfair advantage over the other investors in the company. Many people will not follow the story further than the headline that there was a scandal. This is unfair to the person because there judgment is not based on the whole situation. It is not illegal to own stock in a company where you have knowledge or impact on what the price of stock is. It is illegal to share that information or act upon that information. The sharing of the information is normally the reason why people get in trouble. Although in the case of Martha Stewart she faced felony charges for lying to the feds, but she lied about getting inside information. The ironic thing about her case was she was caught because she sold all the shares she has at once right before a big drop. She save probably about $50,000, which to her and the money she has, is very small in comparison. The position of the person giving information could be enough to justify it to make it ethical.
One situation would be if someone they knew needed money. The thought is that the person who knows this precious information would be high enough up in the company that their salary is substantial without...

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