Popular Posts

Friday, May 15, 2020

Save Ourselves and Not the Environment: A Secondary Reflection on the COVID-19


Damianus Abun
Several times I have published my research papers in the peer-reviewed international journal related to the environment. The first paper was about the environmental attitude and environmental behavior of Catholic colleges in Region I, Philippines. This paper was published in the Texila International Journal of Academic Research, Vol. 4, issue 1, 2017. The second research paper was related to the same topic. It was about the environmental attitude and environmental behavior of Senior High School Students of Divine Word Colleges in Region I, Philippines. It was published by the EPH-International Journal of education research, Vol. 1, Issue, 2, 2017. The two studies have found that most employees and students are influenced by the anthropocentric attitude in which human beings view the environment as the instrument of human pleasure or welfare. The environment is treated as an object to be used by humans. This attitude has affected their behavior toward the environment. They do not respect the natural environment and they throw garbage everywhere. They do not save energy, etc. Such an attitude affects the natural environment. The third paper that I published was about solving environmental problems is changing cultural perception toward the environment, published in the International Journal of Current Research, Vol. 10, Issue, 8, 2018. This paper is a kind of summary of the two previous papers. The paper saw the root cause of the environmental problem in the human attitude or cultural perception toward the environment. There is a need to change our attitude and cultural perception of the environment. 

I wrote these papers and published them with the hope that I can contribute ideas on how to save the environment. I believe too that many researchers out there have conducted researches in line with the natural environmental issues because of the same concern to save the environment. Readers have sent feedbacks to me that through my research, they have opened their minds to see that solving the environmental problem is a holistic approach. The positive feedback that I got emboldens me to believe that I have contributed ideas in saving the natural environment. Governments everywhere have discussed issues on natural environmental problems and have instituted legislation to protect the environment. The latest was the Paris Climate Change Agreement to convince all countries to put in place policies to protect the environment. Individual persons, NGOs, and the government are worried about how to save the environment. The ecosystem has been damaged, the climate has changed and naturally, human life continuity is in danger. This is the main concern of why people are calling for the government to curb the use of fossil fuel and go for green energy because of its negative effect on the natural environment as a whole which affects the ecosystem. People have been calling to save the future generation. Again all these efforts to protect the natural environment are motivated by the concern of human survival. If human life is not affected, probably people will not be bothered and call for the protection of the natural environment. Again human is the center of the concern. People have not learned and have not seen themselves and the natural environment as one ecosystem that is interconnected and affected one another.  

The question is: are we saving the natural environment or are we saving ourselves? Gary Pekas (2011) in his reflection contended that we are not saving the environment because the environment will take care of itself but actually what we are doing is to save ourselves. Jeffrey Shaw (2016) also had the same kind of reflection that nature will take care of itself. Before human beings occupy the planet, nature or the natural environment has been there. Animals and human beings may disappear or maybe evolved into a different form of human beings to adapt to nature but nature will be still there. No matter what humans will do to nature, nature will heal itself (Reynolds, 2010).  Reynolds contended that the earth has been going through many cases of abuse but the earth is still here. Reynolds quoted the idea of professor Laughlin, Stanford University physicist, said, “ "The geologic record suggests that climate ought not to concern us too much when we gaze into the future," he says, "not because it's unimportant but because it's beyond our power to control." “Whatever humans throw at it, in other words, Earth will fix things in its own time and way”. Taking from the ideas of Laughlin, Reynolds advises us to remain calm because nature will take care of itself. He took an example of rain. The rain has been falling since the beginning of time and yet the amount of water in the earth’s ocean has not changed significantly. Ice melting happened 15,000 years ago but the sea level rose by one centimetre a year for 10,000 years. The earth does not care what we are doing, what the government is doing, it will take care of itself.  

Based on geologic time, we would argue that climate change is not only happening in our time, it has been happening ever since. The earth has gone through dramatic changes in its history throughout its 4.5 billion histories. It has gone through climatic changes and the history of life has been influenced by these climatic changes which may alter the course of evolution. Life is a causative effect of these changes (Encyclopaedia Britannica).

Recently there is good news that the ozone layer is healing. National Geographic (n.d) defines the ozone layer as “one layer of the stratosphere, the second layer of the Earth’s atmosphere. The stratosphere is the mass of protective gases clinging to our planet”. When the ozone layer is damaged, there is no protection over the earth and nothing can survive on the planet. According to the study posted in Science Alert (2019), the ozone layer above Antarctica has recovered much, and scientists have acknowledged that this recovery is probably caused by the Montreal Protocol (1987). According to them, this could reverse some troubling changes in air currents around the Southern Hemisphere. However, many have also doubted that the healing of the ozone layer is due to the Montreal Protocol. And so Kundhu (2020) wrote in India Today that this change has nothing to do with the lock down. Despite these denials, one cannot deny that one of the biggest contributors to the ozone layer depletion is China. Because of Covid-19 and lock down, China had stopped everything, all industries are shutting down, all cars and airplanes are not moving and flying. As a result of these changes, the air above China becomes cleaner and less polluted. The water becomes clear and animals can go back to its habitat. It is not only true in China but throughout the whole world. All kinds of industries have been shutting down. It brings great impact on the healing of the ozone layer. Can we still deny that lock down had brought healing to the ozone layer? The nature through COVID-19 has healed the ozone layer. Though human denies that nature can defend and heal itself from human encroachment but the fact is that COVID-19 has shut down all human activities and because of that the environment  is getting healthier.  

Covid-19 is a zoonotic disease and therefore it comes from nature which passes from animals to humans. It is believed to be originated in bats before passing to humans. Covid-19 could be nature’s way to defend itself from damaging. Last May 14, 2020, Paula Ramon posted an article on yahoo news about Amazon that could be the next virus hot zone. She quoted David Lapola, a Brazilian ecologist, “human encroachment on animals’ habitats- a likely main culprit in coronavirus outbreak. Amazon forest is a huge reservoir of viruses”. Human encroachment toward nature has been too much and nature could not stomach it any longer. Nature has its army in the forms of viruses to protect itself and this is also true to human life. There is a natural system in our body to protect itself from anything that threatens its existence but humans have not discovered its natural system to cure itself.  

Finally, the war is ongoing between human beings and nature through COVID-19 and the losers are definitely human beings. The streets are empty, manufacturing companies are empty and all kinds of industries  are shut down and human beings are hiding inside their home. the nature slowly is healing itself, the ozone layer is healing, the air becomes clean, and the animals come back to their habitats. Nature has won the battle. Now, how do we protect ourselves to survive? Life should change and align it with nature and nature will become our friend. COVID – 19 will change our lives and the way we live. We need to live in harmony with the environment.       

Saturday, January 11, 2020

Utility : The measure of virtue



By Ronalyn R. Tagudin

Doctor of Philosophy Major in Development Management Student


ABSTRACT
            The needs of the many outweigh the needs of the few or, the one. Act always so as to promote the greatest good for the greatest number of persons - utilitarianism.
            The moral rightness or wrongness of an action is to be judged by its results or consequences. Consequences of an act determine its value. If an act produces happiness of the people on a large scale, it is morally right; if it produces unhappiness on a large scale, it is said to be morally wrong. However, the result of an act may be actual or probable. An act may produce immediate pleasure or happiness or it may produce happiness in remote future. So the act that produces happiness in general is considered as morally right.
            If the principle of utility be a right principle to be governed by, and that in all cases, it follows from what has been just observed, that whatever principle differs from it in any case must necessarily be a wrong one. To prove any other principle, therefore, to be a wrong one, there needs no more than just to show it to be what it is, a principle of which the dictates are in some point or other different from those of the principle of utility: to state it is to confute it (Wiley, 2008).

Keywords: greatest good, utility, happiness, greatest number of persons, moral

INTRODUCTION
            According to Jeremy Bentham, utilitarianism is right if it tends to promote happiness and wrong if it tends to produce the reverse of the happiness – not just the happiness of the performer of the action but also that of everyone affected by it (Duignan, 2019).
            Utilitarianism is an effort to provide an answer to the practical question “What ought a person to do?” The answer is that a person ought to act so as to produce the best consequences possible. So, given that thought, are we obligated to act to promote overall wellbeing when that is incompatible with our own? Admitting that people do sometimes act benevolently – with the overall good of humanity in mind. The view that utility is the measure of virtue.

The Classical Approach
            If anything could be identified as the fundamental motivation behind the development of Classical Utilitarianism it would be the desire to see useless, corrupt laws and social practices changed. Accomplishing this goal required a normative ethical theory employed as a critical tool. What is the truth about what makes an action or a policy a morally good one, or morally right? But developing the theory itself was also influenced by strong views about what was wrong in their society. The conviction that, for example, some laws are bad resulted in analysis of why they were bad. And, for Jeremy Bentham, what made them bad was their lack of utility, their tendency to lead to unhappiness and misery without any compensating happiness. If a law or an action doesn’t do any good, then it is isn’t any good (Driver, 2014).
            In this view, actions are approved when they are such as to promote happiness, or pleasure, and disapproved of when they have a tendency to cause unhappiness, or pain. We should be actively trying to promote overall happiness thus, promote the overall well-being when that it is incompatible with one’s own.

The Principle of Utility
            According to Wiley (2008), there are principles of utility that should be considered as follows: (a) The principle of utility is the foundation of the present work: it will be proper therefore at the outset to give an explicit and determinate account of what is meant by it. By the principle of utility is meant that principle which approves or disapproves of every action whatsoever, according to the tendency which it appears to have to augment or diminish the happiness of the party whose interest is in question: or, what is the same thing in other words, to promote or to oppose that happiness; (b) By utility is meant that property in any object, whereby it tends to produce benefit, advantage, pleasure, good, or happiness, or to prevent the happening of mischief, pain, evil, or unhappiness to the party whose interest is considered: if that party be the community in general, then the happiness of the community: if a particular individual, then the happiness of that individual; (c) The interest of the community is one of the most general expressions that can occur; (d) It is in vain to talk of the interest of the community, without understanding what is the interest of the individual and; (e) An action then may be said to be comfortable to the principle of utility, or, for shortness sake, to utility, when the tendency it has to augment the happiness of the community is greater than any it has to diminish it.
            Further, Jeremy Bentham (1843) formulated a theory of ethics and jurisprudence which is remarkable for its clarity and consistency. He began with the psychological generalization that all actions are motivated by the desire for pleasure and the fear of pain. Hence he claimed,

“Nature has placed mankind under the governance of two sovereign masters, pain and pleasure. It is for them alone to point out what we ought to do as well as to determine what we shall do. On the one hand the standard of right and wrong, on the other hand the chain of causes and effects, are fastened to their throne. They govern us in all we do, in all we say, in all we think...”

            Therefore, by the principle of utility, Bentham maintains that the ideal method for determining whether an individual’s action or a legal act is right or wrong would be through evaluation of its total tendency to promote happiness or to promote unhappiness to the other. In such a situation if the former predominates then the action is right, if the latter then it is wrong.

            However, Rasdall (1907) said that “…again one’s own interest is taken into account in doing good to others. For it is hoped that the others also will do good to one in return. An individual lives in a society. As he is not self-sufficient, needs the assistance of others. An enlightened self-interest is manifested in the cooperative spirit among the individuals which is in order to secure their own interest.” In this regards, Bentham claimed that benevolent actions are rewarded with pleasure as:
The pleasures of benevolence are the pleasures resulting from the view of any pleasures supposed to be possessed by the beings that may be the objects of benevolence…there may also be called the pleasures of good will, the pleasures of sympathy, or the pleasures of the benevolent or social affections.

            Bentham thought that if doing well to others makes the agent happy, then there can be no real opposition between self-interest and the principle of utility; to promote the public happiness is the way to make happy oneself.

Self-Sacrifice
            Only while the world is in a very imperfect state can it happen that anyone’s best chance of serving the happiness of others is through the absolute sacrifice of his own happiness; but while the world is in that imperfect state, I fully admit that the readiness to make such a sacrifice is the highest virtue that can be found in man.
            The utilitarian morality does recognize that human beings can sacrifice their own greatest good for the good of others; it merely refuses to admit that the sacrifice is itself a good. It regards as wasted any sacrifice that doesn’t increase, or tend to increase, the sum total of happiness. The only self-renunciation that it applauds is devotion to the happiness, or to some of the means to happiness, of others. . . . (Bennett, 2017).
            Moreover, Bennett (2017) states that as the practical way to get as close as possible to this ideal, the ethics of utility would command two things. (1) First, laws and social arrangements should place the happiness (or what for practical purposes we may call the interest) of every individual as much as possible in harmony with the interest of the whole. (2) Second, education and opinion, which have such a vast power over human character, should use that power to establish in the mind of every individual an unbreakable link between his own happiness and the good of the whole; especially between his own happiness and the kinds of conduct (whether doing or allowing) that are conducive to universal happiness.
            If it is done properly, it will tend to have two results: (a) The individual won’t be able to conceive the possibility of being personally happy while acting in ways opposed to the general good and; (b) In each individual a direct impulse to promote the general good will be one of the habitual motives of action, and the feelings connected with it will fill a large and prominent place in his sentient existence. This is the true character of the utilitarian morality.

Common Criticisms of Utilitarianism
            Again, to repeat something that the opponents of utilitarianism are seldom fair enough to admit, namely that the happiness that forms the utilitarian standard of what is right in conduct is not the agent’s own happiness but that of all concerned. As between his own happiness and that of others, utilitarianism requires him to be as strictly impartial as a disinterested and benevolent spectator.
            By far and away the most common criticism of utilitarianism can be reduced simply to: "I don't like it" or "It doesn't suit my way of thinking". Producing the greatest good for the greatest number is fine as long as you are not hurting someone you really love in the process. This is the case when utilitarianism runs into problems when sentiment is involved.
            In addition, it is impossible and too difficult to apply. The happiness cannot be quantified or measured, that there is no way of calculating a trade-off between intensity and extent, or intensity and probability, or comparing happiness to suffering. We cannot calculate all the effects for all the individuals (either because of the large number of individuals involved, and/or because of the uncertainty). The principle of utility is, essentially, a description of what makes something right or wrong - so in order for it to fail, someone must give an example of something which is useful but obviously wrong. The principle does not imply that we can calculate what is right or wrong - completely accurately, in advance, or at all! It does not harm the principle of utility at all merely to comment that it is difficult for us to work out what is right - it is merely a lament against the human condition (https://www.utilitarian.org/criticisms.html).

CONCLUSION
            The doctrine that the basis of morals is utility, or the greatest happiness principle, holds that actions are right in proportion as they tend to promote happiness, wrong in proportion as they tend to produce the reverse of happiness.
            The only proof capable of being given that an object is visible is that people actually see it. The only proof that a sound is audible is that people hear it; and similarly with the other sources of our experience. If happiness, the end that the utilitarian doctrine proposes to itself, were not acknowledged in theory and in practice to be an end, nothing could ever convince any person that it was an end.
            No reason can be given why the general happiness is desirable, except the fact that each person desires his own happiness, so far as he thinks it is attainable. But this is a fact; so we have not only all the proof there could be for such a proposition, and all the proof that could possibly be demanded, that happiness is a good, that each person’s happiness is a good to that person, and therefore that general happiness is a good to the aggregate of all persons. Happiness has made good its claim to be one of the ends of conduct, and consequently one of the criteria of morality (Bennett, 2017).


REFERENCES
Bentham, J. (1843). An Introduction to the Principles of Morals and Legislation.
Bennett, J. (2017). Utilitarianism.
Driver, J. (2014). The History of Utilitarianism.
Duignan, B. & West, H. (2019). Utilitarianism Philosophy. http://www.britannica.com/topic/utilitarianism-philosophy/Historical-survey. Retrieved, January 11, 2020.

Most Common Criticisms of Utilitarianism. Retrieved, from https://www.utilitarian.org/criticisms.html January 11, 2020.

Rasdall, H. (1907). the Theory of Good and Evil, Oxford: Clarendon Press.

Wiley, J & Sons. (2008). Utilitarianism and on liberty: Including Mill’s’ Essay on Bentham and selections from the writings of Jeremy Bentham and John Austin.




cdn.viglink.com/api/vglnk.js

Saturday, October 12, 2019

Management discretion : Weighing the positive and negative ethical implications


ORLAINE APRIL T. TOLENTINO, MBA



ABSTRACT

This article aims to assess the positive and negative effects of management discretion and how it becomes an issue of morality in the organization. It identifies the moral arguments and limitations on the exercise of management discretion, how it becomes unfavorable and detrimental to an organization, and how it is perceived on a positive light which promotes common good. The author concludes that although the exercise of management discretion has been negatively perceived, there is a strong conviction that man is has an innate ability to make moral judgments.

Keywords: Management directions, ethical implications, positive use, abuse of discretion

INTRODUCTION

Discretion is plainly defined as an exercise of one’s own authority and judgment (Webster’s Third International Unabridged Dictionary). Sandilands (n.d.) provides a deeper sense to the definition and says that discretion it is “the ability to make a judgment, a choice or a responsible decision.” The etymology of the word date back to the 13th century where the word dyscrecyounne was first introduced and understood as the "ability to perceive and understand," and later on was given meaning in the mid-14th century as a "moral discernment, ability to distinguish right from wrong" (Online Etymology Dictionary, n.d.). The understanding of discretion as a moral discernment is supported and explained further through the theory that “man is a thinking being who acts with purpose and reason… and knows whether his actions are right or wrong/good or bad… and that man is a free being who acts according to his will and volitions and he has the capacity to exercise his choices and to choose and do what is good” (Abun, D. 2013). Discretion therefore, can be understood as moral judgment.

The terms Management Discretion, Management Prerogative, or Employer Discretion are commonly used interchangeably in the business world. These terms imply the right of an employer to make decisions that are deemed beneficial to the operation of the business. Discretionary powers are most often vested to high-ranking officers in a company who include department heads, managers, and directors who have a direct hand in the management of the company’s business operations. They may have the discretion on the company’s finances, discretion to hire or fire employees or discretion on the disclosure of company information.

Limitations to the exercise of discretion

The right to exercise discretion in making business decisions, however, is substantially bounded by the policies of each organization and by enacted laws. Every company has its written or unwritten rules stating the limits or each manager’s authority – often in the form of a job description or appointment letter. These limitations serve as the control measure in the exercise of discretion in decision-making. Issues related to abuse of discretion most frequently arise when managers over-step these limitations. In order to avoid this, the company’s top management must spell out clearly its rules and define the manager’s decision-making limits. In such cases that the manager makes decisions out of his capacity, top management must stand firm to impose the corresponding disciplinary measure to the erring manager.

Positive Use

Although the view on discretion varies from person to person, the exercise of discretion is pre-supposed to benefit the interest of the organization. Lord Scarman (n.d.), an English judge and barrister, who served as a Law Lord of England called discretion as “the Art of suiting action to particular circumstances.” Further, the idiom “Discretion is the better part of valor” is generally understood to mean the avoidance of problems or unnecessary risks by thinking carefully and exercising caution before taking action.

According to Espedal, B. (2013), “Managerial discretion is generally seen as a leadership capacity that affects organizations’ ability to adapt to new and changing demands and circumstances.” When exercised correctly, discretion becomes both an advantage and leverage for an organization to adapt to the consistent developments in the business world.

In addition, a study entitled “In Search of Informed Discretion: An Experimental Investigation of Fairness and Trust Reciprocity”, which was written by Victor S.Maas, Marcel van Rinsum and Kristy L.Towry and published in The Accounting Review revealed that that most managers are driven by powerful, non-selfish motives that include a strong preference for fairness. Although the use of managerial discretion is often associated with favoritism, the study revealed that managers have an inherent interest in fairness and trust reciprocity.

Above all, ethical consideration must be taken into account in order to maximize the benefit of management discretion, citing the statement of Acosta, P. (2015) to wit:
For one, as in all cases involving the use of management prerogative, it must be exercised in good faith for the advancement of the employer’s interest, not for the purpose of defeating or circumventing the rights of the employees under special laws or under valid agreements”

Abuse of Discretion

Discretion when exercised without careful consideration of facts and law constitute an abuse and raises the issue morality. One of the areas in an organization which is most concerned with regards to the use of discretion is human resources. The use of discretionary measures in the selection and appointment, performance appraisal, promotion, and employee discipline and termination, are often regarded with issues of morality.

The case of Dumisa vs The University of Durban Westville (2001, 7 BALR 753) tackles an issue on promotion where the employer decided not to promote the employee, Dumisa, citing the latter’s failure to meet the promotional policy criteria. And while there was no issue on the promotional policy criteria, it was found that the employer made a previous promise to consider the employee for promotion creating an expectation on the part of the employee. There is a question therefore as to what grounds does a manger have the discretion to decide that whether an employee is not suitable for promotion?
The “Endo” (coined term for End-of-Contract) is one of the recent issues of unfair labor practice in the Philippines, to which President Rodrigo R. Duterte has vetoed the bill that seeks to prohibit the practice of labor-only contracting method. A majority of companies in the Philippines who employ a large number of workers practice labor-only contracting, wherein the tenure of the said workers is up to six (6) months. However, to avoid a labor law granting permanent tenure on the sixth month of service of the employee, these companies hire their workers up to five (5) months only. The bill has been snubbed by many business groups and they argued that “Job contracting as an exercise of management prerogative and business judgment is anchored on two constitutional rights: right and freedom to contract and right to property.”

CONCLUSION

The question whether management discretion is beneficial or detrimental to a business is debatable.  On the point of view of the business owner, they may rightfully look at discretion more positively. After all, no business owner would execute a decision or an action that may be detrimental to his business. However, there is an underlying issue whether the person who posess such discretionary power has the adequate knowledge and experience, and the morality to make responsible and sound and responsible decisions. According to the great Greek philosopher, Socrates, knowledge of good and evil and its criteria are imbued in man and he can differentiate between the two if he desires so. Considering this innate ability to determine good and bad, and if a person possesses the qualities of a strong moral leader, he is likely to make moral judgments that is aimed towards common good.


REFERENCES

1.Sandilands, Tracey. (n.d.). What Does Discretion Mean in the Business World? Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/discretion-mean-business-world-50093.html
2.   
   Israelstam, Ivan. (2014) Management Discretion: How far does it stretch?
3. Karlsson, T. S. (2018) Searching for managerial discretion: how public managers engage managerialism as a rationalization for increased latitude of action.

4.      Acosta, P. (2015), Management prerogative must be exercised in good faith, The Manila Times.

5.      Cigaral, I. N. (2019) Why Duterte vetoed the anti-endo bill, Philstar.

6.      Cigaral, I. N. (2019) Upsetting key campaign promise, Duterte officially vetoes anti-endo bill, Philstar.

7.      Abun, D. (2013) Be A Moral Judge Of Your Action.

8.      Espedal, B. (2013) Is managerial discretion good or bad for organizational adaptiveness? Retrieved from https://journals.sagepub.com/doi/abs/10.1177/1742715013514879?journalCode=leaa#

9. Rinsum, M. v. (2013) Informed Discretion in Performance Evaluations, Rotterdam School Of Management, Erasmus University.

10.  The Labor Code of The Philippines http://www.chanrobles.com/legal4labor.htm
11.  Leslie Scarman, Baron Scarman (b.1911-d.2004) on Wikipedia https://en.wikipedia.org/wiki/Leslie_Scarman,_Baron_Scarman


13.  Online Etymology Dictionary https://www.etymonline.com/word/discretion


Friday, October 11, 2019

Analyzing the ethical arguments against insider trading


by: Daryl Fritzie Ann A. Ang, CPA

Abstract
This article identifies the real reason why insider trading is unethical and morally wrong. It examines the principal ethical arguments for treating insider trading as morally wrong: the claim that the practice is unfair, the claim that it harms ordinary investors and the society as a whole, the claim that it involves with proprietary rights or “misappropriation: of information and the claim that it is deceptive.  The author concludes that each of these arguments has some serious deficiencies; no one of them by itself provides a sufficient reason for insider trading to be unethical.  The author determined that the most persuasive moral basis for wrongness of insider trading is that it undermines the fiduciary relationships that lies at the heart of the business.
Keywords: Insider trading, insider, inside, morality, moral rights, conflict of interest
Introduction
Behind every great fortune, lies a great crime, so said the French novelist Honore de Balzac. Could this be more pronounced in stock markets around the world where the most brilliant minds perpetrate the most sophisticated financial crimes?
With the recent explosion in insider trading activity, an important set of moral issues is brought to the fore.  Are inside traders glowing examples of selfish criminals exploiting society and the economy for personal gain, with no regard for the effect on others? What are the moral implications of insider trading?
Insider trading phenomena is controversial and is bringing a lot of discussion around itself.  Some claims that it is both unethical and illegal to use information, which is not putted into public knowledge, while others argue that insider trading increases market efficiency and does not cause any harm to anybody.
So the question remains, should insider trading be legal or illegal in the stock market? If it was to be legal, is it then considered moral or immoral as a practice? This article will discuss the morality of insider trading and stating numerous principal ethical arguments against insider trading.
Insider Trading
“Insider trading” as the term is usually used, means the act of buying or selling a company’s stock on the basis of “inside” information about the company.  “Inside” or :”insider” information about a company is confidential or proprietary information about a company that is not available to the general public outside the company, but which would have a material or significant impact on the price of company’s stock (Velasquez, 1998).
Donaldson (1990) also defined insider trading as “exploiting advance knowledge of an important development to buy or sell stock before the public knows about it” – is illegal and is almost universally thought to be immoral.  However, the concept of insider trading itself, as well as the immorality of insider trading may be more difficult to explain than is generally thought.
Accordingly, insiders really do exploit their knowledge.  There are three forms of evidence supporting this phrase.  First, there have been well-publicized convictions of principals in insider trading schemes.  Second, there is considerable evidence of “leakage” of useful information to some traders before any public announcement of that information.  A third form of evidence on insider trading has to do with returns earned on trades by insiders (Bodie, Kane and Marcus, 2013).
Ethical Arguments against Insider Trading
Fairness
Probably the most common reason to thinking that insider trading is unethical is that the information advantage of the insider really is “unfair or unjust”.  According to Moore (1990), there are two versions of the fairness argument: the first argues that insider trading is unfair because two parties do not have equal information; the second argues that insider trading is unfair because the two parties do not have equal access to information.
Taking first the unequal information, it states that insider trading is unfair since the two parties to a transaction do not have equal information.  According to this view, both parties should have the same material information about the conditions that are essential for this transaction.  The second argument is that the information is not available to the shareholder to ascertain the suitability of buying and selling securities in the marketplace.  This argument is more concerned that this information should be public in the sense that hard work on the part of potential dealers in the market will be able to extract it (Teacher, Law, 2013).

In addition, the stock market depends on the assumption that all information relevant to potential investors is public.  The stock market is supposed to be a fair market, one in which everyone potentially has equal access to all information.  It is claimed that the general public’s faith in the stock market would undermined if there was a general belief among investors that the stock market is rigged, or at least the plaything of a privileged few insiders.  Such a belief can be the result of evidence of widespread insider trading, or stock manipulation (Donaldson, 1990).
According to Daniel Fischel, a teacher of corporate law at the University of Chicago, argued that the idea that the stock market should be a level playing field, with everyone having equal access to information and an equal chance to profit, is rubbish.  Obviously, a market professional who spends all his time analyzing stocks is going to have an advantage over the casual investor, and there’s nothing illegal about that.  The point in fairness argument is not whether you knew but whether you could have known.

Proprietary Rights
Some argue that inside trading involve misappropriation of information, a form of stealing.  It is frequently argues, under the rubric of a view known as the “agent-principal thesis”, that employees or outside consultants are implicitly or explicitly obligated to maintain the privacy and secrecy of information gleaned while on the job (Donaldson, 1990).
Morality demands confidentiality of records, whether or not one signs a contract not to divulge such information.  From the moral point of view, one is not free to divulge such information casually, for personal profit, for monetary gain, or even to feel important.  Therefore, an insider who takes confidential information and uses to enrich himself is in effect a thief stealing what is not his.  Like, any common thief who violates the moral rights of those from whom he steals, the insider trader is violating the moral rights of all shareholders, especially those shareholders who unwittingly sell him their stock.
Harm
The argument from harm, popular among the law and economics scholars who dominate securities scholarship in law schools, is not a deontological argument.  Instead, it maintains that insider trading is wrong because of the social harm it causes, given that we understand “causing harm” expansively, as causing a failure to attain optimal social welfare or social good (Strudler, 2009).
Velasquez (1990) mentioned that both empirical and theoretical studies have shown that insider trading has two effects on the stock market that are harmful to everyone in the market and to society in general.  First, insider trading tends to reduce the size of the market, and this harms everyone.  This means that when people suspect that insider trading is going on in the market, the more they will tend to leave the market and the smaller it will get.  The second effect is that it increases the costs of buying and selling stocks in the markets and this is also harmful.  This means that when a specialist, an intermediary who buy and sell stocks for others, senses an insiders are coming to him, he would have to increase his fee he charges for his services to cover from potential future losses for the stocks he would have to hold for others which might later turn out to be worth for less.
Hence, other things being equal, the person with the best information about what is being bought or sold stands in the best position to find bargains and get the best price. Competing against inside traders, who possess superior information, thus increases the risk that one loses.  Ordinary traders will be hesitant at the risk of trading against insiders, and insider trading, then, will undermine confidence in the stock market and deter investment, increasing the price a company must pay to raise capital and hindering both a company's development and a society's economic growth.

Fiduciary Duty
A fiduciary duty is, roughly, a duty of utmost loyalty and trustworthiness that an agent may be said to owe to his principal.  These duties are a staple of legal analysis, have rich moral content, and consistently play a role in judicial thinking about insider trading.  One of the arguments against insider trading is the jeopardizing of fiduciary relationship of an agent and its principal.
Kennon (2019) argued that to be accused of insider trading, you must usually be someone who has a fiduciary duty to another person, institution, corporation, partnership, firm, or entity.  You can get in trouble of you making an investment decision based upon information related to that fiduciary duty that is not available to everyone else.
Donaldson (1990) also added that insider trading is generally conceived of as involving stock transactions based on privileged information gained by someone with a fiduciary responsibility to the company and its stockholders.
So, when an employee of a company fills a certain position within the organization, they cannot morally do what is immoral, even if they are expected or commanded to do so as part of their job. While filling any position in a company, individuals should remain moral beings and persons.  Immanuel Kant argues, “to act in the morally right way, people must act from duty”.  Individuals who do not act out of respect for the moral law do so because they lack duty to do so or choose to act outside of duty.  When individuals choose to act outside of their fiduciary duties, there arises a conflict of interest.
Deception
Courts have always seen insider trading as a kind of fraud, namely, securities fraud.  Historically, wrongful deception forms the heart of fraud.  On the deception argument, insiders deceived shareholders by buying stock from them while concealing material, nonpublic information relevant to the valuation of the securities (Strudler, 2009).
Deception can be understood as inherently wrong, apart from any harm it causes.  Indeed, a standard philosophical analysis of the wrong in deception identifies it as a vicious kind of manipulation.  One person may wrongly deceive another when he intentionally causes that person to have a false belief in a way that compromises the autonomy of his decision making, even if doing so benefits that other person.
Hence, honesty does not always require full disclosure in a competitive business environment, even when a failure to disclose denies benefits to others.  So we are left with the question: what is the moral basis for this duty to disclose? Nothing in argument from deception begins to answer this question, however, the fiduciary duties invoked as the basis of a duty to disclose in securities transactions.

Conclusion
Inside information exists for the benefit of the company and its shareholders.  It is therefore presumptive theft for an insider to trade on this information without the agreement of its owners.  Based on the arguments raised in this paper, we can now conclude that most of the arguments explaining the reasons why it is unethical really do not stand, except the argument regarding the jeopardizing of fiduciary relationships.  This is because fiduciary relationships are critical to the way business operates.  If insider trading were to be legalized, it would place a strain on the relationship between corporate insiders and shareholders and individuals would be much less likely to trust the corporate world and less likely to buy share and invest in companies. And that wouldn’t be good for the company, shareholders or for society in general.
References
Bodie, Z., Kane, A. and Marcus, A. (2013). Essential of Investments (Ninth Edition). McGraw-Hill Companies, Inc. New York.
De George, R. (1999). Business Ethics (Fifth Edition). Prentice Hall, Inc. New Jersey.
Donaldson, T, (1990). Case Studies in Business Ethics (Second Edition). Prentice Hall, Inc. New Jersey.
Velasquez, M. (1998). Business Ethics: Concepts and Cases (Fourth Edition). Simon & Schuster Asia Pte Ltd:Singapore.
Kennon, J. (2019). What Is Insider Trading and Why Is It Illegal. https://www.thebalance.com/what-is-insider-trading-and-why-is-it-illegal-356337
Moore, J. (1990). What is Really Unethical About Insider Trading? https://page-one.springer.com/pdf/preview/10.1007/BF00382642?fbclid=IwAR3FZcPyboPXxct0mG9SHL2NoTQ5aGX0dUih7zuEUdbotM1BTPr3uySkhQI
Strudler, A. (2009). The Moral Problem In Insider Trading. https://repository.upenn.edu/cgi/viewcontent.cgi?article=1056&context=lgst_papers
Teacher, Law. (2013). Insider Trading: Legality & Morality. https://www.lawteacher.net/free-law-essays/company-law/insider-trading-legality-morality-company-law-essay.php?vref=1

Building a fair Hiring process: Overcoming political challenges

  BLESSIE JANE PAZ B. ANTONIO JANICE D. RASAY Divine Word College of Laoag, Ilocos Norte, Philippines Abstract The hiring process and pr...