Premium Essay

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

Similar Documents

Free Essay

Unethical Business Research Conduct

...Unethical Business Research Conduct A lawsuit brought upon city Assessor Bill O'Brien by a tax investigation firm, Tax Data Solutions (TDS) that he used last year states that he violated his contract and the Connecticut Unfair Trade Practices Act (Smith, 2010). Between 2006 to 2009 the city of New Haven hired the company to investigate people and businesses that owe for vehicle or personal property taxes. O'Brien is accused of adding accounts to the grand list, withholding payment for accounts researched by TDS, reducing personal property assessments, and even removing accounts added by the Assessor before him (Smith, 2010). The unethical research behavior that was involved in this case was financial misconduct. By removing and adding accounts as well as misconstruing numbers in the accounts he is squandering the work done by the tax investigation firm. Misrepresentation is also involved because by distorting the numbers he is providing falsified data to the taxpayers of the city as well as the government. Not only does this hurt the tax payer, but by falsifying numbers it can make the city look more profitable than it really is. The injured parties in the lawsuit was the TDS firm because they were not paid for their work, their work was falsified and their contract was broken. Though not in the lawsuit the taxpayers of the city are also victims because they are being lied to by their Assessor. The unethical behavior has affected the business by costing them money in regards...

Words: 437 - Pages: 2

Free Essay

Unethical Business Research Paper

...Unethical Business Research Conduct There are several reasons a company can be found guilty of an unethical/illegal crime. Whether they were asking inappropriate questions; skewing research results; failing to maintain participants’ confidential information; using participant information for unintended purposes such as selling goods or services. The list could continue through a long dissertation. On Monday, July 2, 2012 an unprecedented conviction for Health Care Fraud Settlement was reached. GlaxoSmithKline LLC pleaded guilty and had to pay $3 billion dollars in criminal and civil liability suits. GlaxoSmithKline LLC was guilty of a few of these unethical and illegal practices. They not only skewed research results but they also used unethical business practices to sell their goods/prescription medications. They illegally promoted prescription drugs and failed to report certain safety data. They were found to be civically liable for false reporting practices. They also pleaded guilty to three counts of criminal information. Two counts of introducing misbranded drugs and one count of failing to report the safety data they were found civically liable for to the Food and Drug Administration. Misbranding is when the FDA approves a drug for one purpose and a manufacturer promotes it for other uses. GlaxoSmithKline LLC participated in preparing and distributing a misleading medical journal article that stated that Paxil was effective in the treatment of depression on patients...

Words: 762 - Pages: 4

Free Essay

Unethical Business Research Conduct

...Unethical Business Research Conduct The foundation of any research is trust. Professionals, organizations, and the public must be able to trust that research is being reported honestly, accurately, and free from bias. Questionable research misconduct can include poor data management, the failure to share data, questionable data selection methods, inadequate supervision of those conducting the research, and fiscal mismanagement ("Research Misconduct", 2012). Recently a large case of research fraud was brought against Dr. Kipak K. Das by the University of Connecticut. The allegations of research fraud involve 26 articles published in 11 different journals claiming the health benefits of drinking red wine. According to the article, “University Suspects Fraud by a Researcher Who Studied Red Wine”, the university received anonymous allegations in January 2009 about irregularities in Dr. Das’ research. An investigation into Das’ research articles revealed 145 instances of fabrication and falsification of data (Wade, 2012). Allegations received by the university reference lab members manipulating figures, often at the request of Dr. Das, and digitally manipulating the experiments (western-blot images) done in the studies. The fabrication and falsification of the research data will have a negative impact on Dr. Das’ reputation as a respectable doctor, could tarnish the name of the University of Connecticut, could harm those that rely upon this research data, and could also discredit...

Words: 800 - Pages: 4

Premium Essay

Unethical Conduct

...Unethical Conduct Michael Roberson RES/351 April 17, 2014 Deborah Levin Unethical Conduct The ability to report unethical conduct has flourished in the business research community. In Marketing, salespeople among groups demonstrated the lack of personal ethical judgment when unethical conduct was linked to personal, ethical perspectives. The purpose of this essay is to discuss unethical behavior as it affects a salesperson. Individuals have a different approach to marketing because of its blinding effect on the points of levels. The personal, ethical perspective of a salesperson is philosophical. In an organization, unethical behavior is a rule that is administered by the organization for the purpose of communicating marketing strategies. This rule applies under a code of ethics that involved taking surveys from the organization, the individual, and society. The survey is designed to simulate the unethical behavior situations that grow over the amount of sales a salesperson receives from merchandise discounted without management approval. The importance of the survey identifies the salesperson in the organization, but in an organization, society portrays each as a component. The salesperson encounters the decision that stems from unethical behavior. Ethical pressure is mostly the work group that becomes the next level. The unethical behavior could be avoided by not following the organization's rules (Ferrell, Johnston, & Ferrell, 2007)...

Words: 706 - Pages: 3

Premium Essay

Business Research Ethics

...Business Research Ethics The individual assignment for this week asked the students to find an article within the University Library that discusses unethical business research conduct that has resulted in individuals or firm being convicted, or at least tried. I have found and read a newspaper journal titled "Unethical workers and illegal acts," which is a study of workers, managers, and executives, where 48% of them admitted to unethical or illegal acts since year 1996. What unethical research behavior is involved? Out for the 1,324 people surveyed, 48% of them admitted to committing unethical or illegal acts from a list of 25 actions. These actions include, cheating on an expense account, paying or accepting kickbacks, discriminating against co-workers, trading sex for sales, secretly forging signatures, and looking the other way when environmental laws are being violated. From the list of 25 actions, these were shockingly the most common mentioned. Who were the parties involved? When one thinks about unethical business research or performance, his or her mind tends to automatically think that the violators are at the lower to entry level of the company's organizational hierarchy, but according to this study, I was amazed at the amount of upper management employees mentioned. From entry-level employees, to long time workers, managers, and even upper level executives, they all have admitted to unethical business research conduct. As I read along I learned that the...

Words: 893 - Pages: 4

Premium Essay

Money, Attitude, and Unethical Behavior

... Attitude, and Unethical Behavior | Business Research Methods | | | December 11, 2013 | This research paper focuses on the relationship between money, attitude, and unethical behavior. Comparing the data found in regards to gender and major according to a study by Dr. Chen and Dr. Tang. | Introduction Many believe that the success of a business is determined by they amount of money they generate on an annual basis. Because of this widespread belief, we often see a lack of morals, values, and ethics incorporated into the business. Many businesses feel as if there is no room for ethics in the business world and that the relationships built should focus solely on the generation of revenue. According to Merriam Webster dictionary, we can define ethics as, “the discipline dealing with what is good and bad and with moral duty and obligation.” Every company has a code of ethics in order to determine the company’s culture and values. It also acts a driving force behind any decisions made by top executives. In market where there are so many profit-based businesses, often times we see the many difficulties in balancing the pursuit of profits while staying true to their code of ethics. The balance of ethical practice and profit maximization causes companies to face difficult decisions and many times businesses choose profit maximization. Business-to-Business and Business-to-Consumer transactions require frequent interaction. In every type of business transaction, whether...

Words: 6528 - Pages: 27

Free Essay

Business Research Ethics

...Running head: BUSINESS RESEARCH ETHICS 1 Business Research Ethics RES 351 February 28, 2013 BUSINESS RESEARCH ETHICS 2 Business Research Ethics Before the debt crisis of 2008 exploded, one of the two American banks that backed a large portion of United States mortgages was fined in 2006 because of improper accounting practices. Ethics are a set of standards derived by individual or company ideals of what is right and wrong. Looking back, it should have been clear the poor ethics of this bank would contribute to the economic disaster that would follow. A report conducted by the Office of Federal Housing Enterprise Oversight (OFHEO) from 1998 to 2004 discovered that Fannie Mae’s senior management deliberately influenced improper accounting by swaying internal auditors resulting in undeserved large bonuses. This was accomplished without advising any stockholder or other interested parties; the rest of the world. During this time, Fannie Mae reported unfettered profit growth and reaching publicized earnings targets per share for each quarter. "The image of Fannie Mae as one of the lowest-risk and 'best in class' institutions was a façade" (Fannie mae: Unethical, 2006). During this investigation, Fannie Mae evaded the OFHEO further adding to their harsh fine levied by them and the Securities and Exchange Commission. Fannie Mae’s mismanagement, manipulation of earnings, and unhindered growth culminated in $10.6 billion in losses, “well over a billion dollars in expenses...

Words: 1200 - Pages: 5

Premium Essay

Business Research Ethics

...Business Research Ethics Adam S. Wilcox RES/351 9/24/2012 Maja Zelihic Ph.D. Business Research Ethics Ethics in business research refers to a code of conduct that is expected to be observed while conducting research. This ethical conduct applies both to the organization and the individual researchers conducting the research. The ethical behavior must be included in each step of the research process from data collection and analysis, through the reporting of the findings. If an organization or individual researcher does not abide by the code of ethics for business research he, or she may end up facing penalties from termination and fines to jail time. Unethical Research Example In November of 2007 Raj Mathur was convicted of receiving “secret commissions” and breach of trust for accepting funds from private companies seeking government grants (Shannon, 2007). Mathur was a National Research Council adviser whose duties included assisting companies applying for government grants. Mathur’s wife Priti Mathur owned a company that received over $300,000 in “consulting” fees from private companies. These unethical transactions took place between 1999 and 2003. Priti Mathur claimed that the applications for government grants were completed by herself and her son. However, she did admit to seeking advice from her husband occasionally. While Raj Mathur claimed he did not give his wife any more assistance than he would give any other...

Words: 847 - Pages: 4

Premium Essay

Business Research Ethics

...Business Research Ethics RES351 January 18, 2013 Business Research Ethics Proper business research is designed to reduce the risk of a management decision. Unfortunately, unethical business research occurs in all types of business circumstances. This type of practice increases risk for the individuals, companies, environments, and technologies involved (Cooper & Schindler, 2011). Several companies within the pharmaceutical industry have been found guilty of unethical practices. Pfizer Inc., one of the largest pharmaceutical companies in the world, allegedly conducted unethical research the led to major disabilities and loss of life for many of the children involved. The development, marketing, and sale of pharmaceutical products are part of a multi-billion dollar industry. When a pharmaceutical company conducts unethical practices, the potential dangers to living things cannot be ignored. Pfizer allegedly conducted an unethical drug study in Nigeria. During a meningitis outbreak, in 1996, Pfizer used an untested drug on 200 children while failing to receive proper consent from their patients. The unethical drug trials led to the deaths of 11 children. The trials also left other children brain damaged, blind, deaf, or paralyzed (Stephens, 2007). The families of the victims affected by the drug study filed a two billion dollar lawsuit against Pfizer. Pfizer was accused of failing to obtain proper parental consent, and using drugs during the study that were unfit for...

Words: 517 - Pages: 3

Free Essay

Unethical Behavior

...Running head: BUSINESS RESEARCH ETHICS 1 Business Research Ethics 2 The medical field is one that unethical research happens. The way it happens is when doctors or hospitals publish findings in some area but they do not research other results for the same test. In the article titled “The highly profitable but unethical business of publishing medical research”, it discusses how to make money in the medical field companies do not complete research and just publish information without the complete facts that accompany it. The reason publishing medical information without the complete research is unethical is because it can cause great damage to the consumer reading the report. It is also a problem because it means that the researchers in charge of looking up the right information are not doing their job. A better way to understand it is by know what unethical behavior is. According to smallbusiness.com, “Unethical behavior in business runs the gamut, from simple victimless crimes to huge travesties that can hurt large numbers of people. Whether it is stealing a pen, padding an expense report, lying to avoid a penalty or emitting toxic fumes into the air, unethical behavior cannot be condoned by a company. A strict ethics policy is the cornerstone for any business that wants to maintain a good reputation” (). In the article there are several issues presented. The first one is the lack of information, that is the primary...

Words: 379 - Pages: 2

Premium Essay

Unethical Business Reseach

...Introduction Unethical business research continues to be a problem facing corporate America in the 21st century. According to Cooper & Schindler, (2011, ethics are norms or standards of behavior that guide moral choices about our behavior and our relationships with others. The fundamental goal of ethics in business research is to adhere that in the end, the research outcome does not cause harm or grieve to the parties involved. Unethical business activities include but not limited to; violating non-disclosure agreement, breaking participant confidentiality agreement, using invoicing irregularities, avoiding legal liability, misrepresenting results, pervasive, and deceiving people (Cooper & Schindler, 2011). This paper talks about inside trade case study--Galleon Group’s founder Raj Rajaratman unethical business research that was discovered recently. Author of the paper focuses on; unethical research behavior involved, injured parties as a result to the research, Unethical behavior effect on the organization, the individual, and society, and Avoiding or resolving unethical behavior. Unethical research behavior Insider trading is one of the examples of unethical business research. Recently, Galleon Group--a well-respected and promising hedge fund’s founder Raj Rajaratman found himself making headlines for similar unethical researches. Along with him—his acquaintance Rajiv Goel, Intel managing Director and Rajatman’s college roommate (Wall Street Journal article (Kalita 2009))...

Words: 733 - Pages: 3

Premium Essay

Business Ethics

...Business Research Ethics When most people think of Ethics or Morals they think of rules that distinguish between right or wrong. Most people learn ethical norms at home, at school, in church, or in other social settings. Although most people acquire their sense of right and wrong during childhood, moral development occurs throughout life and human beings pass through different stages of growth as they mature. Ethical norms are so abundant that one might be tempted to regard them as simple commonsense. This report summarizes the activities of Human Rights and Ethics in the oil and gas industry. It highlights related efforts by the IPIECA (International Petroleum Industry Environmental Conservation Association) oil and gas member companies. The oil and gas industry operates in some of the most challenging places in the world and faces complex human rights related issues ethical and unethical both at home and abroad. While recognizing that individual governments bear the primary responsibility to promote respect for human rights ethically, all of society, including businesses such as oil and gas plays a role in human rights. (Human rights and Ethics in Oil and Gas industry, 2006) In this research unethical research practices that should be avoided are unethical treatment of any participants, deception and informed consent. Unethical treatment of participants would be not safeguarding the participant’s rights. When data is gathered in an experiment, interview or survey they have...

Words: 700 - Pages: 3

Free Essay

Business Research Ehtics

...Business Research Ethics Cynthia Debose RES/351 April 29, 2013 University of Phoenix Dr. Julie Bonner 2. The article chosen from the University Library to evaluate the practice of unethical business research conduct is called Flacking for Big Pharma written by Harriet A. Washington. The article delves into the activities of “Big Pharma,” or the commercial pharmaceutical industry of the United States. In this article the author highlights some market strategies used by the industry, which suggest corrupt practices. The article criticizes the actions of the pharmaceutical industry beginning in the 1980s to the present, asserting that the industry compromises the integrity of the process of medical research and that it pressures consumers and doctors to use its products and that it falsifies data regarding the capabilities and dangers of its drugs (Harriet A. Washington, American Scholar, Summer 2011, vol. 80). Drug makers do not just comprise doctors; they also undermine the top medical journals and skew the findings of medical research. Identifying unethical business research involved in this article is given. Evaluating the article will also show how unethical behavior affects the industry, injured party, and society. A proposition of how unethical behavior can be avoided is proposed. The article is based on how pharmaceutical companies use medical research in medical journals and advertising (Washington H., 2011). Medical advertising has an influence on medical...

Words: 796 - Pages: 4

Premium Essay

The King

...Business Research Project Ethical Issues Amber Valles Res/351 Business Research Project Ethical Issues Research Project Summary Ethics while carrying out a research should always be observed by the researcher and the study participants. This paper seeks to look at ethical practices that should be observed by the Williams Company as it undertake a business research on the factors that determines the customers buying behaviours of the products that it offers in various different market segments. The company is engaged in the provision of food and beverage products to its customers and it intends to introduce a new product in the market. For purposes of determining the factors that will influence the buying behaviours of the targeted customers, the company marketing departments intend to conduct a field research, where it will sample a group of 500 participants from the targeted market to fill in the study questionnaires. Therefore, while carrying out this business research project the organization marketing research team should observe a number of research ethical issues for purposes of making their project a success. Unethical Practices to be avoided in this research Project A number of unethical practices need to be avoided when undertaking the organization’s business research project. Firstly, the issue of not observing the rights of participants should be avoided by all means (Iltis, 2006). Instead the researchers should ensure that the rights of participants, such...

Words: 883 - Pages: 4

Premium Essay

Business Research Ethics

...Business Research Ethics Oretha Johnson RES/351 December 3, 2012 Ethics can go unnoticed at times, but in actuality, ethics are of supreme significance for a list of grounds within any organization. Businesses have to make sure they adhere or abide by all level of ethics in all actions of the business. Ethics are one of the main focuses when it comes to business research. In this paper, the discussion will be prepared in relation between situations in which unethical business research behaviors were carried out by the business. The intention of this paper is to discuss a set of circumstances and various key points in relation to this specific case. Presently, this specific case had some ethical issues not taken into consideration. In the terminology of unethical research behavior, this particular corporation was without a doubt caught up in immoral research behavior. The corporation that is being focused on is a pharmaceutical company that teamed up with the individual who in the past had supplied the required research associated to the medicine of influenza (Dominick & Wimmer, 2010). Throughout the course of the contract, the professor was demanded to keep the research information private and of the record and also not to disclose to anyone of his colleagues or anyone else involved. The corporation had been working on the research, which was looking to refuse to give the research work out if anyone asked. For that reason, it was thought to be unethical on the part...

Words: 837 - Pages: 4