Importance Of Managerial Ethics

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Relevance with Managerial Ethics A company’s foundation is strengthened by the values instilled in it by the people who run the firm. Not only do these values guide businesses toward being sustainable and benefiting society, but the ethical frameworks of a business also determine and influence the company’s reputation and how it is perceived by the real world. The case of Rajat Gupta’s recent conviction of committing conspiracy and securities fraud is significant because he embodies the values and principles that many business leaders greatly admire and seek to utilize in order to strengthen their business practices. The business world was disturbed to hear of his accusation because Gupta has had a great deal of influence over business practices…show more content…
Key Circumstances of SOPE? Critical Contingencies of SOPE? Antecedent: Rajat Gupta’s hunger for success, having achieved pinnacles, seeds of the passion and drive to become big and rich in life through his personal rigours Determinants: Sociopathic narcissism- a belief that Gupta was above the law, immune to the rules governing us. Concomitants: Partners and friends all dealing in information and making windfall earnings; Not enough tight norms and checks in place Contingencies: None. This was completely wilful. However Rajat Gupta never expected this to come back and haunt…show more content…
Are there other legal, ethical and moral issues you have not identified? Legal issues: Insider trading is legal as long as available information lies within an organisation and officers, directors and employees trade in their companies’ stock. It is illegal when this information is shared with 3rd parties. Socio-cultural issues: Insider trading has been part of Wall Street for decades now. Rajat Gupta operated in an environment where earning tremendous amounts of money by dealing in information had become the norm. It was a steady process by which his mind and character might have got poisoned. Being a part of Mckinsey & Co., learning its ways and the consulting domain in general might have led him to believe to stand out you need to do something out of the box. Ethical issues: Scholars, law makers and pedagogy experts in the US have been trying in vain to make Business Ethics or more specifically Financial Ethics compulsory in all B-schools. According to them ethical standards can’t guarantee perfection or great governance. They however believe ethics exceeds the law and makes better individuals. Rajat Gupta and many others on Wall

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