Question

PART B: 3.4 Name and briefly describe the four (4) different types of discrimination. (8) 3.5 Define the term “insider trading” and why is it considered unethical and illegal. (6) 3.6 Give an example of insider trading. (1) 3.7 Should an employee find himself in a situation where a potential conflict of interest arise, how can he / she avoid or eliminate that conflict risk? (3)

Answer 1

Discrimination  

Every Employee or Volunteer Need To Work in an atmosphere where they valued equally and treated with respect. But in real world the situation is different can see some disriminations such as:

Gender- This type of discrimination is the primary kind of one seen in all corners even in Workplace has to do with gender. It occurs when the treatment given to an individual is inappropriately given because of his/her gender.

Race: The individual whether an employee or Job applicant is treated differentl because of Race, Race may be things such as hair texture, skin color, or facial features.

Religion- Religion can also be a factor for beining Discriminated for other due to the religion one follow is different from valuer. Religious contest means not only the Religion but also the Moral Belief of one.

Age - Age discrimination ccurs when one is considered less favour in a situation because of age group belongs to. Even there is some laws which make age discrimination illegal in employment situations.

Insider Trading

In an organisation there will be some important and confidential information that is not available to any other stakeholders and Public. And In insider trading where such a confidential information is used for making personnal gain from trading with company share in stock exchange with this internally available information.

Which is Illegal because the individual making use of internal information has a fudiciary to the organisation and which allows an insider to artificially influence the value of a company's stocks by sharing internal information.

Using Company informations for personal gain is breach of confidentiality agreement between employee and client which is unethical.

Example: A Board member who is aware of announcing megering of company will increase stock value and he purchases some lot of stock in spouse name for trading purpose.

Eliminating conflict of Interest

Conflict of interest in business environment is a conflict of professional interest with self gaining interest which as a weakness of mind or situation exist.

Eliminating This will be a critical process:

In a company there will be placed with a lot of safegaurds which mitigates self interest threat arising from employees, which include proiding training to employees on conflict of interest.

Disclosing any significant financial interests publically will help to avoid self interest threat. Consider a situation where we have a known policy which prevents one from accepting gifts,then it is less likely to be offered as a bribe.