P3
Ethics in Finance
The ethical issues in finance for Ben & Jerry’s are bribery, executive pay, insider trading and
lobbying.
Bribery is a form of corruption, that takes place when an individual or business receives or takes
something with the intention of influencing the recipient in some way favorable to the party
providing the bribe. This normally comes in the form of money but sometimes can be in the form
of contracts to form a deal between the two parties.
As well as this, executive pay is when employees who are high in the hierarchy of a company
receives high wages, and when they leave the company they would get a large compensation
package for their work. This does not seem unethical until you see the gap between the highest
salary of the company to the lowest salary.
Furthermore, insider trading Insider trading is the buying or selling of a security by someone
who has access to nonpublic information about the security. This is an illegal and unethical
practice of trading and can result in prosecution and public pressure.
Lastly, lobbying is the act of trying to influence businesses or government leaders to create
legislation or conduct an activity that will help a particular organisation. This can be both ethical
and unethical depending what the company wants a change in and whether it will have a
negative or positive impact on the public.
http://www.businessdictionary.com/definition/bribery.html
http://www.investopedia.com/terms/i/insidertrading.asp#ixzz4e7wYJb7W
http://www.businessdictionary.com/definition/lobbying.html
Ben & Jerry’s stance/attitude is towards these ethical issues and
how they address each of them
Ben & Jerry’s stance at Executive pay was ethical until now. Thirty five years ago the the pay
ratio between the highest salaried executive and lowest-earning-worker was no greater than 5
to 1. Sixteen years later the bar was raised to 7 to 1 to attract new talent, and ultimately to 17 to
1 over the course of a half dozen years more. The company was then bought by Unilever in
2000.
http://abcnews.go.com/Business/companies-follow-ben-jerrys-lead-wages/story?id=19920634
Ben & Jerry’s attitude towards Bribery is ethical because they are trying to stop bribery from
happening between corporations and politicians. For example, Ben & Jerry’s co-founder Ben
Ethics in Finance
The ethical issues in finance for Ben & Jerry’s are bribery, executive pay, insider trading and
lobbying.
Bribery is a form of corruption, that takes place when an individual or business receives or takes
something with the intention of influencing the recipient in some way favorable to the party
providing the bribe. This normally comes in the form of money but sometimes can be in the form
of contracts to form a deal between the two parties.
As well as this, executive pay is when employees who are high in the hierarchy of a company
receives high wages, and when they leave the company they would get a large compensation
package for their work. This does not seem unethical until you see the gap between the highest
salary of the company to the lowest salary.
Furthermore, insider trading Insider trading is the buying or selling of a security by someone
who has access to nonpublic information about the security. This is an illegal and unethical
practice of trading and can result in prosecution and public pressure.
Lastly, lobbying is the act of trying to influence businesses or government leaders to create
legislation or conduct an activity that will help a particular organisation. This can be both ethical
and unethical depending what the company wants a change in and whether it will have a
negative or positive impact on the public.
http://www.businessdictionary.com/definition/bribery.html
http://www.investopedia.com/terms/i/insidertrading.asp#ixzz4e7wYJb7W
http://www.businessdictionary.com/definition/lobbying.html
Ben & Jerry’s stance/attitude is towards these ethical issues and
how they address each of them
Ben & Jerry’s stance at Executive pay was ethical until now. Thirty five years ago the the pay
ratio between the highest salaried executive and lowest-earning-worker was no greater than 5
to 1. Sixteen years later the bar was raised to 7 to 1 to attract new talent, and ultimately to 17 to
1 over the course of a half dozen years more. The company was then bought by Unilever in
2000.
http://abcnews.go.com/Business/companies-follow-ben-jerrys-lead-wages/story?id=19920634
Ben & Jerry’s attitude towards Bribery is ethical because they are trying to stop bribery from
happening between corporations and politicians. For example, Ben & Jerry’s co-founder Ben
