This discussion post is based on the newspaper article you found from learning a

Question

This discussion post is based on the newspaper article you found from learning activity 5 relating to a company or person violating business ethics or participating in illegal business practices. In your discussions be sure to summarize the key points and talk about at least one of the following: What was the source or underlying cause of the unethical behavior? What was the hoped for outcome if there was one? Was an individual or a group involved? Did the accused seem sorry for what they did or defensive? Discuss what you would do as a manager to prevent such unethical behavior in your organization. Discuss what you would do to fix this kind of problem after it occurred.

Explanation / Answer

The newspaper article  relating to a company or person violating business ethics or participating in illegal business practices is - http://www.nytimes.com/2016/06/16/business/dealbook/visium-hedge-fund-managers-charged-with-insider-trading.html?_r=0

The article talks about how a hedge fund manager participated in insider trading. The scam is related to Visium hedge fund and the fund manager is Mr. Sanjay Valvani. The hedge fund profited by using inside information on the drug approval process at the FDA (food and drug administration). The information used were highly confidential and related to pending approval of generic drug applications. This behavior is unethical as insider trading is not legal and is not allowed. Thus it is unethical as well as illegal.

The source, rather the underlying cause of the unethical behavior was greed. Visium hedge fund and the manager saw an opportunity to make easy money. They just had to use the confidential information to make trades, bagging them large profits. The outcome was $25 million in profits.

Two people were involved - Mr. Sanjay Valvani, the hedge fund manager and Mr. Gordon Johnston, a former deputy director at the US Food and Drug Administration (USFDA) dealing with generic drugs. Mr. Johnston gave Mr. Valvani confidential information about approval of generic drug applications.

Both the accused did not seem sorry for what they had done.

As a manager, i would put in place strong guidelines regarding the ethical policies and principles that has to be followed. There would be regular training of the employees to train and orient them regarding the need and importance of following ethical principles. There should be strict penalties that should be imposed on employees not following the ethical principles. As a manager i would also introduce strict internal control measures so as to ensure that there is maximum adherence to ethical principles.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.