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Post-Bac
3

Lecture 7

Ethics in International Business

Insider trading - moral issues

  • Insider trading is bad
  • Marketplace can only work when perceived honest and offers equal investment opportunity
  • Insider trading can be ok
  • It accelerates the flow of negative and positive information to other shareholders and investors
  • Ergo : this information is more quickly reflected in stock's price

Trade secrets

  • Problem : when is it a secret and when is it part of employee's own intellect and expertise ?
  • Moral problem : Firm's right to protect its secrets vs employee's right to see employment wherever he chooses

Is gift giving morally acceptable

  • 7 considerations
  • value of the gift
  • its purpose
  • the circumstances under which it is given
  • position of the person receiving the gift
  • accepted business practice
  • company policy
  • what the law says

Moral perspectives on job discrimination

  • No respectable arguments for job discrimination
  • Utilitarianism : false assumptions + harm individual members of minorities = decrease in total welfare
  • Kant : fails to respect people as ends in and of themselves. CI of universalism not met
  • Rawls : discrimination is unjust as people discriminating would choose equal treatment for themselves

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