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Homework 4 1. Are information gathering techniques like Rajaratnam common on Wall Street? If so, what could regulators, investors, and executives do to reduce the practice? Information gathering techniques like what Rajaratnam was doing is common on Wall Street. Business people at Wall Street are in business to make money. Rajaratnam did not have a sense of checks and balances. What regulators, investors, and executives can separate those jobs out to make sure there is less of these practices. Raj was president, fund manager, and the stock analyst. I think the government should set strict laws requiring firms to have robust compliance, supervisory, surveillance, and control measures in place to detect possible illegal insider trading. Overall, insider trading is illegal, but for some reason business people sometimes are so greedy they let it interfere with their work. They lose sight of what’s right and what’s wrong. Egoists believe they should make decisions that maximize their own self- interest (Ferrell, 2015). No doubt, insider trading and other white-collar crime are going to continue to happen. 2. What are the implications of sharing confidential material information? Is it something that would affect your decisions about how to trade a stake if you knew about it? If I were to be informed of insider information, I would try to take my chances in being ethical, legal, and appropriate as I should be. I would want my colleagues, employees, and investors and anyone else involved to fully understand the culture in which my business decisions are run especially ethically. It would still be difficult to not make a decision based on insider information. Overall I would hope that I am never approached with the information.(Ferrell, 2015) 3. Do you think the secret investigation and conviction of Rajaratnam and other people in the Galleon network will deter other fund managers and investors from sharing nonpublic information? No, as I said before in the first question, there has been insider trade fraud going on at a rapid rate. I think with the findings from this case, many insiders will try to filter out suspicious persons and pay closer attention to their business surroundings as well as who’s all involved in their circle of trust. (Ferrell, 2015) Ferrell, F. (2015). Business Ethics. In F. Ferrell, Business Ethics (pp.517-523). Samford: Cengage Learning. Watch the Instructional Video "The Great Handbag Hoax" found at http://danielsethics.mgt.unm.edu/videos/ethics-instructional-videos.asp (Links to an external site.) Discuss the issues posed in the video.

The Handbag Hoax is a perfect example of being unethical. The lady in the video does not have a strong Moral philosophy and is hurting the system. “Moral philosophy refers to the specific principles or values people use to decide what is right and wrong. “ (Ferrell, 2015) By lying and over using company time she is being unethical and abusing the system. Overall she has wasted company time and lied about what she is doing, this is unethical and hurts the business. Ferrell, F. (2015). Business Ethics. In F. Ferrell, Business Ethics (pp.154-155). Samford: Cengage Learning. Read "Case 5: New Belgium Brewing: Ethical and Environmental Responsibility" on pp. 434-442. Answer the questions at the end of the case. What environmental issues does the New Belgium Brewing company work to address? How has NBB taken a strategic approach to addressing these issues? Why do you think the company has taken such a strong stance towards sustainability? The biggest environmental issue that NBB has taken into was the size of the footprint that they are leaving on the environment and how much energy they are using. NBB has continued to take steps in order to reduce their needs. NBB has a smart grid which allows them to monitor energy usage and identify areas in which they can reduce or turn off the power. NBB installed a 20kW photovoltaic array which provides 3% of the company’s overall energy. There is a special brew kettle that conserves energy and is only the second of its kind in the United States. Sun tubes provide natural light and reduce the need to provide additional lighting, they have a system that captures methane and provides them with additional energy while reducing the burden on the local water treatment facility, and they also have a steam condenser which recycles water from one process to another. NBB have taken this stance because they want to be seen as environmentally friendly. Also, they want to increase their profits overall. (Ferrell, 2015) 2. Do you agree that New Belgium’s focus on social responsibility provides a key competitive advantage for the company? Why or why not? I think that it does provide them an advantage for the company because it is going to give their company a good name and ultimately save them money. Since they are so involved in socially responsible activities they are able to put their NBB name out there where it normally wouldn’t be seen. This overall provides a competitive advantage to other companies. (Ferrell, 2015)

3. Some segments of society contend that companies that sell alcoholic beverages and tobacco products cannot be socially responsible organizations because of the nature of their primary products. Do you believe New Belgium’s actions and initiatives are indicative of a socially responsible corporation? Why or why not? NBB’s actions are socially responsible even though the product they produce is not that socially respected. Although NBB has made great strides in creating a socially responsible brand image, its work is not done, New Belgium received the Environmental Protection Agency's regional Environmental Achievement Award. It was both an honor and a motivator for the company to continue its socially responsible goals. After all, there are still many ways for NBB to improve as a corporate citizen. There are always pros and cons on this issue because of the product that is being produced, but still I believe that NBB's actions and initiatives are indicative of a socially responsible corporation because the company donates to cause with a particular emphasis on water conservation, sensible transportation and bike advocacy, sustainable agriculture, and youth environmental education, among other areas. (Ferrell, 2015) Ferrell, F. (2015). Business Ethics. In F. Ferrell, Business Ethics (pp. 434-443). Samford: Cengage Learning.