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MBA527DLBS2P2017 Issues in Ethics/Social Responsibility Unit 5: Homework April 23, 2017

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Insider Trading at the Galleon Group 1. Are information gathering techniques like Rajaratnam’s common on Wall Street? If so, what could regulators, investors, and executives do to reduce the practice? In my opinion, information techniques like Rajaratnam’s are common on Wall Street. I say this because this kind of technique can yield high returns for investors, brokers and key players. Insider trading has happened and continues to happen all over the world. It is something that plagues stock markets here in the United States and around the world, with the main offenders being senior level executives. Regulators should be monitoring the stock markets for suspicious activities that many occur prior to a company making major business decisions. Investors should conduct thorough research on a company prior to investing with them. They should look at the values and norms of the company and should stay clear of companies that have suspicious activity. Executives should conduct themselves ethically. Executives should not divulge information regarding company information to outsiders who have the potential to affect decision making. 2. What are the implications of sharing confidential material information? Is it something that would affect your decision about how to trade a stock if you knew about it? There are many implications of sharing confidential information. First of all insider trading information is illegal. When this type of information is shared it gives investors an unfair advantage. I do not know much about trading stocks, however I do know that I would never participate in insider trading because it is illegal.

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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 non- public information? No I do not think that the secret investigation and conviction of Rajaratnam and other people in Galleon network will deter other fund managers and investors from sharing non public information. In my information, there will always be someone that thinks that they can outsmart the system

The Great Handbag Hoax In this video Susan is stealing time from the company by running errands in excess of her lunch allowance and shopping while she should be at work. In addition she is deceiving her boss by leaving a handbag on her desk to give the illusion that she is still at the office. Marsha knows that it is wrong. So she has an ethical obligation to report the infractions to management. Time theft can be difficult to measure but is estimated to cost companies hundreds of billions of dollars annually (Ferrell, Fraedrich & Ferrell, 2015). Whether someone is surfing the internet of napping on the job, it is still considered time theft. Case 5: New Belgium Brewing: Ethical and Environmental Responsibility 1. 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 toward sustainability? The environmental issues that the NBB work to address are cost-efficient energysaving alternatives for conducting its business and reducing its impact on the

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environment, recycling and creative reuse strategies, and green building techniques. To manage these environmental issues, NBB introduced the 3 Rs of environmental stewardships. These include Reduce, Recycle, and Reuse. According to this 3R strategy, New Belgium Brewing uses wind turbine to reduce its CO2 emissions, purchases energy efficient brew kettle, stores spent barley, hop grains and invites local farmers to pick this up and feed the pigs or other animal, converts the wastewater into a harvestable fish food, and even encourages its employees to use alternative transportation, Etc. Additionally, NBB has made significant achievements in sustainability and NBB recycles over 9 percent of its waste. Lastly, The Company recently expanded its canning capacity by six times with a new canning line that injects less carbon dioxide into each can. To encourage sustainability throughout the supply chain, NBB adopted Sustainable Purchasing Guidelines. The guidelines allow them to pinpoint eco-friendly suppliers and work with them closely to create sustainability throughout the entire value chain 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 agree that New Belgium's focus on social responsibility provides a key competitive advantage for the company. NBB is doing plenty of social responsibilities. For example, the company strives to improve communities and enhance people's lives through corporate giving, event sponsorship, and philanthropic involvement and donates 1 percent of its profits. Additionally, NBB maintains a community bulletin board in its facility, where it posts an array of community involvement activities and proposals. So, the New Belgium brand has become known for two things. its high-quality and its commitment toward sustainability. NBB's social responsibilities give the company a

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competitive advantage because consumers want to believe in and feel good about the products they purchase. NBB's s most important asset is its image which is a corporate brand that stands for quality responsibility, and concern for society. For these reasons, I believe that NBB has more competitive advantage than other companies. 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? Although New Belgium 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. For example, although all electric power comes from renewable sources, the plant is still heated in part by using natural gas. There will always be a need for more public dialogue on avoiding alcohol abuse. Like this, there are pros and cons on this issue 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. People know what NBB did, and they don't forget what they are received.

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Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2015). Business ethics: ethical decision making & cases. Australia: South-Western.