THE INSTITUTIONALIZATION

OF BUSINESS ETHICS
ETHICAL BUSINESS CHALLENGE

Presented by Group 4

OUR

TEAM

Dinh Thi Kieu Trang

Doan Huong Giang

Dao Minh Ngoc

Ta Thi Ngoc Hanh

Le Dinh Minh

Nguyen Trung Hieu

Nguyen Thanh Minh

Tran My Linh

THE

CONTENT

CASE SUMMARY

ISSUES

ADVANTAGES
DISADVANTAGES
PRESSURE

CASE
SUMMARY

CASE

SUMMARY
Obtain prestigious brokerage jobs
in the New York area
Learn to add some expenses to their
professions such as try to look

and act successful

Also used a strategy: get information
from people with a little alcohol in

their client gain significant

profits in their portfolios
This is Albert Chen

And Mary his wife

CASE

SUMMARY
Albert had an uncle working as a janitor

He gave Albert access to many law offices

had information on a number of companies,
especially those about to file for bankruptcy
The Chens use these information to benefit their
clients portfolios

Alberts uncle

Albert was given permission to buy and sell non-risky

stocks at will from his uncles friends

CASE

SUMMARY
The Chens soon have enough money to make
their own investment, including Marys father.
Mary learned from her father that
his company is having problem
with the old management

With this information, Mary told

her clients who in turn did well
on the stock

Being a player in IPOs of Alberts companies:

He talked to his best
venture-capital friends when
he saw a very hot IPO

attract some larger

players in the market.
Barry, Chens friend, help
Albert place Chens trade
before the client order

CASE

SUMMARY
some of broker send email

Mary forwarded these

with off-color jokes

and nude photos

email without a glance

Weeks Later
That person were found and fired
Mary did forward messages that contained such material, so the head of her
division decided to fire her
Because of this mess, SEC wanted to check all her trades for the last 8 months

CASE

SUMMARY

offered a house in Taiwan

when things go bad

Alberts parents flew to US from China

This did not appeal to Mary

which really exacerbate the
situation

CASE

SUMMARY
Albert tried to make up for the loss by trading
in some high risk markets (commodities and
precious metals) But many of these investment

evaporated.
The investment of him, as well as his clients,
was a big mess
Some of his uncles friends portfolios were
losing significant value.

CASE

SUMMARY
Barry asked for inside
information

on several companies that

Albert was working with
for an IPO

This could be construed as insider information Albert said no

ask for the IPO information

as an order, not a request

Barry called for Mr. Chen again

Weeks later

CASE

SUMMARY
ask for a specific order to buy the stock as soon
as possible and sell stock when the price goes
to $112
Albert will receive a little bonus for that action.

Alberts supervisor

FIRST
GAME

FIRST

GAME

@!*

ABC

DEF

GHI

JKL

MNO

PQRS

TUV

WXYZ

INTELLIGENCE
1 CORPORATE
267767283 468355443623
SEXUAL 4272776368
HARASSMENT
2 739825

8723464
INSIDER TRADING
3 4674337
OMISSION 59464
LYING
4 66477466

63 INTEREST
46837378
CONFLICT OF
5 26635438
LAW7348528464
REGULATING26673848466
COMPETITION
6 529

7 5297
LAWS7768328464
PROTECTING266786377
CONSUMERS

0
+-

ISSUES
OF THE CASE

CASES

ISSUES
Sexual
Harassment

Corporate
Intelligence

Insider
Trading

Ethical
Issues

Omission
Lying

Conflict of
Interest

CASES

ISSUES

CORPORATE
INTELLIGENCE

involves an in-depth discovery of information from:

press releases
corporate records
any other background information
court documents
that can be found about a company
regulatory filings

Physical Hacking: Alberts uncle whose work as a janitor gave him access
to many law office that had information on a number of companies,
especially those about to file for bankruptcy.

CASES

ISSUES
Mary had already known
that the mail included
some nude photos,
anyones private images.
However, she did not
seem to care, forwarded
it without opening, which
might cause many
SEXUAL
consequences
unpredictably.
HARASSMENT

When Albert saw a

very hot IPO, he would
talk to some of his
best venture-capital
friends, who then
bought the IPOs and
INSIDER gained some very
good returns.

TRADING

CASES

ISSUES
When Albert has financial problem, he invested in some high-risk
market using his own money as well as those of his clients. He did
it purposefully without informing to his clients, especially his
uncles friends, who just agree to buy and sell non-risky stocks
at will.

When Albert chose to invest in high-risk market, he chose his own

interest over the interest of his clients.

OMISSION
LYING

CONFLICT
OF INTEREST

CASES

ISSUES
Law
regulating
competition

Laws
protecting
consumers

Legal
Issues

CASES

ISSUES

LAW REGULATING
COMPETITION

Albert had no agreement to take information from law offices, he just steal
it easily because his uncle work as a janitor there. Use that information to
made profit and to benefit their clients portfolios intruded the law regulating
competition.

Barry has demanded for inside information on several companies that

Albert was working with for an IPO.

CASES

ISSUES

LAWS PROTECTING
CONSUMERS

After Albert and Marys income was cut in half, he tried to make up for the loss by:
trading in some high risk markets
turn all his clients portfolio into the black - including his uncles friends portfolio.
Albert just had the permission to buy and sell non-risky stocks at will.
He traded in high-risk markets without informing his uncles friends.

SECOND
GAME

SECOND

GAME

Discuss about advantages and disadvantages

of Albert Chens decisions

ADVANTAGES
DISADVANTAGES

ADVANTAGES

DISADVANTAGES
ISSUE 1
Using alcohol to have
valuable information
His uncle give Albert
access to many law offices
that had information on a
number of companies

Use information to
benefit their clients
portfolio.

Advantages
Because of having known information about many
companies, Albert can decide buying and selling stock
in the right times.
Make benefit for clients portfolios.
Invest in the market and take a lot of profits for himself.

Disadvantages
His action is unethical and even illegal because Albert
had no agreement to take information from law offices
If Albert is detected, he may lose a lot of money and go
to jail

ADVANTAGES

DISADVANTAGES
ISSUE 2
Albert, who holds IPO
information, would talk to
some of his best venturecapital friends, who then
bought the IPOs and gained
some very good returns.

Advantages
Albert have sold some hot IPOs to his venture-capital friends
to get money and attract some larger players in the market
Have many valuable friends and his career can develop fast

Disadvantages
This action is considered as insider trading which is unethical
If Albert is detected, he may lose a lot of money and face
legal problems .

ADVANTAGES

DISADVANTAGES
ISSUE 3
One of Alberts friends was
Barry, who worked on the
stock floor.
As they were talking, Barry
mentioned that if Al wanted
to, he, as a favor, when
placing orders to buy shares,
would occasionally put
Alberts or Marys trade
before the client order.

Advantages
Benefit Albert

Disadvantages
Illegal and unethical
Somehow Albert will depend on Barry in the future

ADVANTAGES

DISADVANTAGES
ISSUE 4
Albert tried to make up for
the loss by trading in some
high risk markets such as
commodities and precious
metals.
many of these
investments turned sour.
He found himself buying and
selling more and more to pull
his own portfolio, as well as
those of his clients, into the
black.

Advantages
Higher risk, higher return can make a lot of money

Disadvantages
If his risky portfolio lose significant value, he can make
his loss worse
When Albert chose to invest in high-risk market, he chose
his own interest over the interest of his clients. This is considered
as a conflict interest issue, so his decision is unethical.

ADVANTAGES

DISADVANTAGES
ISSUE 5
Barry has demanded for
inside information on several
companies that Albert was
working with for an IPO.
Barry had helped him a lot in
placing his orders to buy
shares before the client order

Advantages

If Agree
- Keep in touch with
Barry. And Barry
will continue to
help him put his
trade before the
client order

- Barry wont delate

the collusion with
him in the past

If Disagree
- Keep this
information in
secret, make fair in
the market to all
others IPO investors
ethical + legal

ADVANTAGES

DISADVANTAGES
ISSUE 5
Barry has demanded for
inside information on several
companies that Albert was
working with for an IPO.
Barry had helped him a lot in
placing his orders to buy
shares before the client order

If Agree
- Get more favor
DisAdvantages from Barry who will
benefit from it.
- Commit insider
trading which is
considered as an
unethical and illegal
issue

If Disagree
-Break the
relationship with
Barry (may be some
others friends)
- Financial loss
- Barry may delate
Albert and he will get
exposed for spinning
(unethical and
illegal)

ADVANTAGES

DISADVANTAGES
ISSUE 6
Albert, are asked by his
supervisor to buy some stock
as soon as the market open
tomorrow for a few of his
friends and him. They would
pay the tax and pay Albert as
a bonus.

If Agree
Advantages - Make some money
to make up for the
his wife jobs
- Maintain a positive
relationship with his
supervisor

If Disagree
- Ethical feel
relieve + comfortable
- Legal stay away
from legal problems

ADVANTAGES

DISADVANTAGES
ISSUE 6
Albert, are asked by his
supervisor to buy some stock
as soon as the market open
tomorrow for a few of his
friends and him. They would
pay the tax and pay Albert as
a bonus.

If Agree
- Get more favor
DisAdvantages from his supervisor
after that

If Disagree
- Lose the chance to
make some money

- Damage the
- Possibility to face to relationship with his
the court because of supervisor, which
violating the law
could make his jobs
harder as he already
had plenty of
troubles

PRESSURE
OF ALBERT CHEN

ALBERT CHENS

PRESSURE
INTERNAL PRESSURE
Pressure 1

Pressure 2

ALBERT
REPUTATION AND CREDIBILITY

ALBERT INVESTMENT

Through his trading and strategies,

he has gain a lot of reputation and
credibility. He is even a player in
IPO of new companies.

Albert chose to invest in some highrisk markets and many of these

investment turned sour. Moreover,
he pulled his portfolio further into
black.

ALBERT CHENS

PRESSURE

OUTSIDER

EXTERNAL PRESSURE
Pressure 1

Pressure 2

ALBERTS CLIENTS

FRIENDS AND RELATIVES

Albert invested for clients portfolio

without permission. Moreover,
these investment turned into black
which means that a lot of pressure
is coming to him.

Many of his uncles friends

portfolios were losing significant
value.
Barry asked for some inside
information on several companies
that he was working with for an
IPO. Barry demanded it very
concrete. This is considered as
insider trading if Albert does the
favor.

Pressure 3
ALBERTS SUPERVISOR
The supervisor asked Albert to do a
specific order on a stock. This is
quite suspicious as the detail of the
order is so specific that Albert could
be the one getting the heat. There
may be a stock price manipulation.

ALBERT CHENS

PRESSURE

FAMILY

EXTERNAL PRESSURE
Pressure 4

Pressure 5

MARRY

ALBERTS PARENTS

She was fired and being under

investigation by SEC which could
turn out that she has violate
many laws. Besides the salary
was cut in half, the legal court
could cost Albert even more
money. Moreover, Marry may
never got the same job again.

Alberts parents were not happy

with his marriage to a non-Chinese
woman, Marry.
They offer a place in Taiwan, but it
is not appeal to Marry.

Thank you for Listening