This can hurt the returns of the portfolio over the long-term.
Although legally not all information must be disclosed, should companies be obligated to disclose the true nature of investor risk? Or are investors responsible for determining such risk?
Yes, under the Securities and Exchange Act of 1934 all firms must provide material changes in their financial condition to regulators. However, investors also need to understand that investing in common stocks entails more risks in comparison with CDs or U.S. Treasuries.
Did Enron's overstating of profits amount to a manipulation of investors? Was the manipulation intentional? Should investors assume a high level of risk unless told otherwise?
Yes, the reason why is because the stock was valued for much more than it was really worth. This harmed investors who believed what management was telling them the about future profit margins. The fraud was intentional. This is because executives knowingly lied to everyone about the financial state of the company. Yes, investors should assume a high degree of risk. The...
Business Ethics Case Study -- Harassment on the Job Applicable Ethical Systems The principal ethical system at issue in this case is the concept of equal rights and opportunities and, even more fundamentally, the obligation of employers to protect all rights of their employees from malicious conduct and abuse from coworkers (Halbert & Ingulli, 2008). Employment law expressly prohibits harassment at work in connection with gender and also absolutely requires management to
Alford reports that "for some, the earth moves when they discover that people in authority routinely lie and that those who work for them routinely cover up. Once one knows this, or rather once one feels this knowledge in one's bones, one lives in a new world. Some people remain aliens in the new world forever. Maybe they like it that way. Maybe they don't have a choice." (Alford,
Michael has no moral "right" to undermine their loan evaluation process even if he genuinely believes that the lender will not be harmed by the deception. After all, beliefs are always subjective and people in Michael's position can be very sure about what they genuinely believe but still be wrong. One need look no further than the U.S. housing market in 2007 to see what can happen when peoples' beliefs
Defamation Business Ethics Case 3.5: Defamation and Change of Venue The National Enquirer is a tabloid newspaper and as such, makes its revenue primarily from printing stories regarding public figures that are not inherently supported by meaningful investigative journalism, professional ethics, protection of privacy or adherence to responsible fact-finding. This is demonstrated in the defamation and invasion-of-privacy case delineated here, where Shirley Jones has pressed charges against the widely popular publication for
According to many sources and the allegations in the class action lawsuit decided in its favor in 2001, Wal-Mart systematically discriminates against women in its management training and promotional practices; it has illegally refused to hire disabled job applicants; it pressures employees not to unionize; and it has knowingly hired illegal aliens by the hundreds (Cram, 2005; Pea, 2011). That class action suit was decided in Wal-Mart's favor strictly on
Business ethics has become a serious subject of discussion the world over because of the rather intricate complexities attached to it. There are so many different facets to business related ethical problems that everyday something new emerges that needs to be tackled in the light of current legal structure or philosophical framework. The case of Patricia Dunn from HP might also sound like one of those complicated cases of ethics
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