MGMT 1 Lecture Notes - Lecture 5: Keeling Curve, Human Resource Management, Insider Trading
18 Apr 2016
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Document Summary
One of largest corporaions in the world and went bankrupt with a lot of debt. Former cfo serves 24 yr sentence; ceo died. Defrauded billion from investors using a ponzi scheme (pyramid scheme using people"s money to pay of others and so on - illegal) Not everything that is legal is also ethical. Plagiarism is the most common type of unethical behavior in school (teachers use turniin) Incenives must be aligned to discourage unethical behavior. Moral hazard - encouraging illegal behavior by taking all the bad consequences away. Most businesses and nonproit organizaions have writen ethics codes (2 types) o o. Compliance-based ethics codes rely on control and penalies. Integrity-based ethics codes appeal to each individual"s integrity and moral compass. Top management must uncondiionally embrace ethical standards and behavior w/trainings. Ethics oicer and protecion of whistleblowers - insiders who keeps track with ethical behavior.
