Share
Explore BrainMass

Legal and Ethical Issues and Their Effects on the Performance Management System

Examine at least three (3) key legal and ethical issues that could potentially impact the performance management system. Support your response with specific examples of the identified issues' possible effects on the performance management system. Please give reference of your work

Solution Preview

The first issue is insider trading. Insider trading encompasses both legal and illegal conduct. When corporate insiders such as executives or employees buy or sell the stock in their companies, they must report their trades to the SEC. This is legal as long as the trading does not occur in breach of a fiduciary responsibility, trust or confidence while the executive or employee is in possession of non-public information about the stock. For example, insider trading can potentially impact the performance management system since executives may tolerate poor corporate performance if they believe they can profit from it.

The second ...

Solution Summary

Answered in 343 words. Three key legal and ethical issues are discussed and an example of possible effects on the performance management system are provided. Six sources are cited.

$2.19