Unit 5 1

MBA527DLBS2P2017 Issues in Ethics/Social Responsibility

Unit 5: Homework

April 23, 2017

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Unit 5 Homework

Insider Trading at the Galleon Group

1. Are information gathering techniques like Rajaratnams common on Wall Street?

If so, what could regulators, investors, and executives do to reduce the practice?

In my opinion, information techniques like Rajaratnams are common on Wall

Street. I say this because this kind of technique can yield high returns for investors,

brokers and key players. Insider trading has happened and continues to happen all over

the world. It is something that plagues stock markets here in the United States and around

the world, with the main offenders being senior level executives. Regulators should be

monitoring the stock markets for suspicious activities that many occur prior to a company

making major business decisions. Investors should conduct thorough research on a

company prior to investing with them. They should look at the values and norms of the

company and should stay clear of companies that have suspicious activity. Executives

should conduct themselves ethically. Executives should not divulge information

regarding company information to outsiders who have the potential to affect decision

making.

2. What are the implications of sharing confidential material information? Is it

something that would affect your decision about how to trade a stock if you knew

about it?

There are many implications of sharing confidential information. First of all

insider trading information is illegal. When this type of information is shared it gives

investors an unfair advantage. I do not know much about trading stocks, however I do

know that I would never participate in insider trading because it is illegal.

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3. Do you think the secret investigation and conviction of Rajaratnam and other

people in the Galleon network will deter other fund managers and investors from

sharing non- public information?

No I do not think that the secret investigation and conviction of Rajaratnam and

other people in Galleon network will deter other fund managers and investors from

sharing non public information. In my information, there will always be someone that

thinks that they can outsmart the system

The Great Handbag Hoax

In this video Susan is stealing time from the company by running errands in

excess of her lunch allowance and shopping while she should be at work. In addition she

is deceiving her boss by leaving a handbag on her desk to give the illusion that she is still

at the office. Marsha knows that it is wrong. So she has an ethical obligation to report the

infractions to management. Time theft can be difficult to measure but is estimated to cost

companies hundreds of billions of dollars annually (Ferrell, Fraedrich & Ferrell, 2015).

Whether someone is surfing the internet of napping on the job, it is still considered time

theft.

Case 5: New Belgium Brewing: Ethical and Environmental Responsibility

1. What environmental issues does the New Belgium Brewing Company work to

address? How has NBB taken a strategic approach to addressing these issues? Why

do you think the company has taken such a strong stance toward sustainability?

The environmental issues that the NBB work to address are cost-efficient energy-

saving alternatives for conducting its business and reducing its impact on the
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environment, recycling and creative reuse strategies, and green building techniques. To

manage these environmental issues, NBB introduced the 3 Rs of environmental

stewardships. These include Reduce, Recycle, and Reuse. According to this 3R strategy,

New Belgium Brewing uses wind turbine to reduce its CO2 emissions, purchases energy

efficient brew kettle, stores spent barley, hop grains and invites local farmers to pick this

up and feed the pigs or other animal, converts the wastewater into a harvestable fish food,

and even encourages its employees to use alternative transportation, Etc. Additionally,

NBB has made significant achievements in sustainability and NBB recycles over 9

percent of its waste. Lastly, The Company recently expanded its canning capacity by six

times with a new canning line that injects less carbon dioxide into each can. To

encourage sustainability throughout the supply chain, NBB adopted Sustainable

Purchasing Guidelines. The guidelines allow them to pinpoint eco-friendly suppliers and

work with them closely to create sustainability throughout the entire value chain

2. Do you agree that New Belgiums focus on social responsibility provides a key

competitive advantage for the company? Why or why not?

I agree that New Belgium's focus on social responsibility provides a key

competitive advantage for the company. NBB is doing plenty of social responsibilities.

For example, the company strives to improve communities and enhance people's lives

through corporate giving, event sponsorship, and philanthropic involvement and donates

1 percent of its profits. Additionally, NBB maintains a community bulletin board in its

facility, where it posts an array of community involvement activities and proposals. So,

the New Belgium brand has become known for two things. its high-quality and its

commitment toward sustainability. NBB's social responsibilities give the company a

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competitive advantage because consumers want to believe in and feel good about the

products they purchase. NBB's s most important asset is its image which is a corporate

brand that stands for quality responsibility, and concern for society. For these reasons, I

believe that NBB has more competitive advantage than other companies.

3. Some segments of society contend that companies that sell alcoholic beverages

and tobacco products cannot be socially responsible organizations because of the

nature of their primary products. Do you believe New Belgiums actions and

initiatives are indicative of a socially responsible corporation? Why or why not?

Although New Belgium has made great strides in creating a socially responsible

brand image, its work is not done. New Belgium received the Environmental Protection

Agency's regional Environmental Achievement Award. It was both an honor and a

motivator for the company to continue its socially responsible goals. After all, there are

still many ways for NBB to improve as a corporate citizen. For example, although all

electric power comes from renewable sources, the plant is still heated in part by using

natural gas. There will always be a need for more public dialogue on avoiding alcohol

abuse. Like this, there are pros and cons on this issue but still I believe that NBB's actions

and initiatives are indicative of a socially responsible corporation because the company

donates to cause with a particular emphasis on water conservation, sensible transportation

and bike advocacy, sustainable agriculture, and youth environmental education, among

other areas. People know what NBB did, and they don't forget what they are received.
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Reference

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2015). Business ethics: ethical decision making
& cases. Australia: South-Western.