creating a ‘Prezi’ evaluating two independent ethical situations.
Case 2: Inside Information (Chapter 11)
Jim Brock was an accountant with Hubbard Inc., a large corporation with stock that was publicly traded on the New York Stock Exchange. One of Jim’s duties was to manage the corporate reporting department, which was responsible for developing and issuing Hubbard’s annual report. At the end of 2017, Hubbard closed its accounting records and initial calculations indicated a very profitable year. In fact, the net income exceeded the amount that had been projected during the year by the financial analysts who followed Hubbard’s stock.
Jim was pleased with the company’s financial performance. In January 2018, he suggested that his father buy Hubbard’s stock because he was sure the stock price would increase when the company announced its 2017 results. Jim’s father followed that advice and bought a block of stock at $25 per share.
On February 15, 2018, Hubbard announced its 2017 results and issued the annual report. The company received favorable press coverage about its performance, and the stock price on the stock exchange increased to $32 per share.
Use the Ethical Decision Framework in Exhibit 1-9 to complete the following requirements:
- Recognize an ethical dilemma: What ethical dilemma(s) do you face?
- Analyze the key elements in the situation:
- Who may benefit from Jim’s action? Who may be harmed?
- How are they likely to benefit or be harmed?
- What rights or claims may be violated?
- What specific interests are in conflict?
- What are your responsibilities and obligations?