SMG SM 131 Lecture Notes - Lecture 11: Insider Trading, Ingroups And Outgroups, Making Money

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Rebecca Nichols

Document Summary

Movie clip - wall street: michael douglas - similar to modern day hedge fund owner; greed is goodgreed worksgreed for life, money, love, knowledge. with all the greed and insider trading, he gets arrested in the end. The problem is once someone cheats a little, it has a slippery slope effect where you do it a lot and then get into trouble. What are ethics: unwritten rules we have developed for our interactions with one another, standards of conduct generally accepted that govern society, virtues in action such as honesty, fairness, and justice. What are unethical decisions: decisions that are dishonest, unfair and unjust and costly for you and your business. Common causes of unethical behavior: bias: implicit prejudice, in-group favoritism, overclaiming credit, conflict of interest, blind spots: ill-conceived goals, motivated blindness, indirect blindness, slippery. Slope, overvaluing outcomes: by leaving bias and blind spots unchecked, we succumb to this notion of ethical fading.