You're either Inside or Out
In today’s corporate world, there has been an increasing trend when it comes to insider trading. Headlines in the news often relate to this fast money making method. Enron, and the recent fall of American icon Martha Stewart, are both examples of cases directly relating to this topic. In the long run, the benefits of insider trading definitely do not outweigh the consequences.
Insider trading was not invented to purposely assist people in stealing money from others; it has simply been transformed into an illegal definition of destroying or un-leveling the playing field.
Many people question whether ethical standards and principles are being practiced and enforced in the investment area of business. Ethics industry experts are saying that “We suspect largely because the ethics industry did not aggressively push for executives and boards of directors to be active participants in ethics programs, the program look is down.” In other words, these codes could be enforced but if they are not being practiced by everyone, including top management, then they are more or less absent all together.
The bottom line in most organizations is usually what matters most. “Some argue that not only does business have a right to pursue profit, it has a responsibility to do so – it’s in the best interest of the community that it does so.” Focus on turning a profit is sometimes even blurred by unethical practices such as insider trading, altering financial statements, or cheating clients or suppliers in the process. Although the people involved usually recognize the risks along the way, somehow they push these thoughts aside and do it regardless. Past history has proved itself that not only does it cause one to be publicly embarrassed by getting caught, lowering bank accounts by forking out legal fees, wasting time in the court of law, and even in prison, it is simply not worth it. Personally, I would much rather be outside the circle of insider trading, than being caught up inside with all the negative side effects that directly accompany it.
(http://www.ethicsaledge.com)
Peg, Tittle. Ethics in the Business World. 2003. pg, 303
