Unethical Business Research

In: Business and Management

Submitted By amsharp12
Words 923
Pages 4
Unethical Business Research
RES 351
May 13, 2013

Unethical Business Research Unethical business research can be described as many things. From asking inappropriate questions, to using participant information for unintended purposes such as selling goods or services, these acts have caused major scandals in the business world. Good business ethics are the foundation in which a company is built on. All businesses have a code of conduct that is set out by human resources and upper management. This code will set the behavior expectations for employees in their daily tasks and projects for the company. Alliance Capital is among one of major companies that conducted unethical research in the early 2000’s. Before their downfall they caused damage financially and personally, which had effects nationwide.
People Involved Alfred Harrison was the vice chairperson of Alliance Capital, and the manager of Florida’s pension plan account (Lawyershop.com, 2003). He used a “V-method” approach to investing, which lead Alliance to the purchase of 4.9 million shares of Enron in late 2001. Frank Savage, a director of Alliance was another key member involved in the company’s unethical acts. Frank was also a member on Enrons’ board and many suspected that he pressured Alliance to purchase the shares even though the company was on the downfall. The actions of both these individuals caused Alliance to be charged with "breach of contract, breach of covenant of good faith and fair dealing, breach of fiduciary trust, negligence, gross negligence.”
Injured Parties and Effects The purchase of shares in Enron by Alliance caused Florida State’s Pension Plan to lose over $334 million after they bought and sold Enron stocks right before Enron declares bankruptcy. The state of Florida was affected by this illegal late trading done between Alliance and Enron. This scandal caught the…...

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