Resolving ethical business challenges through case analysis and APA documentation

¶ … illegal to buy and sell securities, in breach of a fiduciary duty or other relationship of trust or confidence, while in possession of material, nonpublic information about the security (Insider Trading). This includes tipping such information, securities trading by the person tipped, and securities trading by those who misappropriate such information. The ethical issue that could include legalities is some practices in assisting and serving senior investors and include: communicating effectively with senior investors and ensuring appropriateness of investments (Protecting senior Investors: Compliance, Supervisory and Other Practices Use By Financial Firms in Serving Senior Investors, 2010).

Albert using his uncle to include the uncle's friends as clients helped him build his client load and helped them build portfolios, but when things go sour and the clients start losing value, it can cause resentments, and where some of them are elderly, it could set up investigations into elderly exploitation. Taking Barry up on his offer to sell to him before orders for clients helps Albert build his own investments, but giving Barry inside information sets up legal issues for Albert and Barry. Choosing to invest in the high risk investments to make up for the losses from Mary losing her job is decreasing his and his client's values in the portfolios. This could cause client loss and his job in the end. Doing the favors for his boss may keep his boss happy, but could increase investigations and consequences for insider trading.

3. There is pressure where the uncle is concerned to help the uncle's friends because of the family ties. Pressure from his parents to do good in his job and marriage are also issues, more especially where Mary was terminated and is under investigation. There is additional pressure from Barry because Barry has done favors for him. Additional pressure comes from the boss because if he doesn't do the personal favor for his boss and friends, he could lose his job. If he loses his job, it would be increased financial pressures trying to pay for the lifestyle they got into to build their positions.

Chapter 9

1. Defining the scope of the audit process should include subject matter important to the ethics audit, including following laws, for the toxic spill, and the discrimination and sexual harassment issues. Reviewing the ethical priorities should also include these issues. Information needs to be collected and analyzed for each designated subject area on a continual basis.