Exam 2: Solving Ethical Dilemmas and Personal Introspection

Galleon Hedge Fund was involved in insider trading.

Ben Small, a sole practitioner, has just decided to form a law partnership with his lifetime friend, Harvey Steptoe.They agree to name the firm Steptoe and Small and to split all profits.Ben is also a director for a publicly-traded telecommunications firm, NewVector, Inc.Ben has just learned that Harvey is lead counsel is a lawsuit against NewVector.Ben continues to serve as a board member and participates in sensitive discussions about the lawsuit.Ben does not disclose that Steptoe is his partner.Ben's feeling is that he and Harvey are as honest as the day is long and neither would compromise their duties to NewVector and client, respectively.

Primum non nocere is associated as an ethical philosophy of:

A focus on the trappings of success causes leaders to lose their way.

In May 2010, Martha Stewart gave an interview to the New York Times magazine in which she was asked, "Do you find it odd that the SEC investigated you for insider trading, which resulted in your conviction in 2004, while letting a sociopath like Bernie Madoff run unchecked?"(Mr.Madoff ran a $50 billion Ponzi scheme).Ms.Stewart responded, "Let me just say one thing.They should have been paying closer attention to other things."She then added that she never stole anyone's money like Madoff did. Evaluate Ms.Stewart's comments in the context of ethical analysis, a credo, and her attitude about ethics in business.

Your company has several outdated computers sitting in a storage closet that no one is using.You have taken one home and set it up for personal use.This is unethical conduct.

What is Mr.Rajaratnam, the former head of Galleon Hedge fund, accused of doing?

Your company's policy on company vehicles is that no family members may use them or ride in them.It would be unethical to use a company car to drive you and your spouse to a movie.

Beth Williams is an exercise physiologist who serves as an expert consultant for Women's Walkers, Inc., a shoe company specializing in manufacturing walking shoes for women.Dr.Williams is paid an annual consulting fee along with additional fees for drafting reports and making media and public appearances for the company.Executive Woman, a national magazine, has asked Dr.Williams to serve as one of three experts on a panel that will evaluate the full market range of women's walking shoes.Dr.Williams will be paid a consulting fee by Executive Woman as well.

Violation of company rules would not be considered an ethical violation.

What was the allegation made about HGTV's "House Hunter" show?

Which of the following is not a conflict of interest?

What did the Freeh report on Penn State conclude?

Goldman's securities offerings in the 1920s were similar to its offerings in the mortgage-debt instruments sold in the 2000s.

The SEC failed to pass the shareholder say-on-pay regulation.

Fabrice Tourre was aware that the CDO market was going to crash.

Susan is interviewing for a position in purchasing with a major international retailer.Susan would like to go into consulting and sees this job, if she gets it, as experience for joining a consulting firm in 2-3 years.The interviewer asks Susan, "Where do you see yourself in five years?"Susan replies, "Working here…and I probably would have moved up to head one area of purchasing."Evaluate Susan's response, considering ethical categories and applying the readings from Unit 2.

Alice is a co-worker who is going through a divorce and has two small children.Alice's husband is not paying the child support the temporary court order requires.As a result, Alice is broke until she can get her court hearing.Alice has been able, through diverting checks returned to the company, to take about $2200 from the company to "temporarily help her cover her bills," as she has explained to you.You must report Alice's embezzlement.

What was AIG's role in the Goldman stock offerings?

Attending a class on company time would be unethical.