Gillian And Insider Trading Case Study

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Case 7: Gillian and Insider Trading

Who has moral responsibility for deciding what to do?

In this case we are introduced to Gillian Lee, the Senior Administrative Assistant to the VP of Operations at Global Potash Enterprises (GPE). Gillian is faced with the ethical dilemma of whether or not to use insider information about GPE to her advantage. Gillian had recently seen a preliminary geographical report on her boss Jerry Adams’ desk, detailing the minimal amount of minable potash in GPE’s newly purchased mineral concession. GPE’s future is riding on this new mineral concession doing well, and when Gillian saw in the report that it would not be profitable she realized the bad news would result in massive layoffs. Gillian will either have
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Gillian has the most to lose in this case. While she is confident that she will not get caught by the security regulators, she knows that they are very diligent agents who are very capable of seeing through a seemingly illusive trading plan. Her position in GPE is not of an officer, and therefore insider trading reports would not reveal her trades to the market. While she is fairly confident that she will not get caught, she would face significant legal consequences if she was …show more content…
This vice of greed is demonstrated through Gillian’s intentions of using her ill-gotten gains from her GPE options to pay for a master’s degree, which she would then use to obtain a better job in the future. Greed is defined as an intense and selfish desire for something, and when compared with the definition of ethical egoism, we can conclude that Gillian is an ethical egoist. Ethical egoism states that an agent should always maximize their own self-interests, and by illegally using sensitive information for her own gain Gillian is a perfect example of ethical egoism. While she hasn’t yet gone through with the decision, her immediate fantasy of putting her plan into motion would suggest that is focused on only her own self-interest. In her defence, GPE has already purchased the mineral concession as well as the geological report, and since the company is so reliant on the concession being successful there is really nothing that Gillian can do from keeping GPE from

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