Price Fixing

An act was passed, which forbade (prevented) companies from jointly setting prices in ways that restrain free competition and trade. Unfortunately, many senior people, well respected and positioned were of the opinion that ‘price fixing’ was good for their organizations and the public.

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Types of Crime

Domestic crime Non-accidental crime committed by members Of the family Professional Crime When crime is pursued as a profession or day to day occupation Blue collar crime (or) Street crime Crime against person, property (theft, assault on a person, rape) Victimless crime Person who commits the crime is the victim of the crime.  E.g. Drug…

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Conflicts of Interest created by Insider information

–      Using inside information to set-up a business opportunity for oneself or family or friends. –      Buying stock in the company for which one works is not objectionable but it should be based on the same information available to the public. –     The  use  of  any  company  secrets  by  employee  to  secure  a  personal  gain              Threatens the interest of the company.

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Conflict of Interest created by Interest in other companies

When  one  works  actually  for  the  competitor  or  subcontractor  as  an employee or consultant. Having partial ownership or substantial stock holdings in the competitor’s business. It may not arise by merely having a spouse working for sub-contractor to one’s company, but it will arise if one’s job also includes granting contracts to that subcontractor. Tempting…

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An act of gift’ and ‘an act of bribe

‘A gift is a bribe if you can’t eat, drink or smoke it in a day’. ‘If you think that your offer of acceptance of a particular gift would have grave or merely embarrassing  consequences  for  your  company  if  made  public,  then  the  gift  should  be considered a bribe’. ‘Bribe can be said to be a substantial amount of money or goods offered beyond a stated business contract with the aim of winning an advantage in gaining or keeping the contract ’. Here ‘substantial’ means that which is sufficient to distort the judgment of a typical person.

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Conflict of Interest

Conflict of Interest arises when two conditions are met: 1. The  professional  is  in  a  relationship  or  a  role  that  requires  exercising  good judgment on behalf of the interests of an employer or client and 2.  The professional  has some  additional  or side interest  that could  threaten  good judgment in serving the interests of the employee or client. E.g. When an engineer is paid based on a percentage of the cost of the design and there is no incentive for him to cut costs-   The distrust caused by this situation compromises the engineers’ ability to cut costs and calls into question his   judgement.

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Effect of Change of Job on Confidentiality

–     Employees   are   obliged   to   protect   confidential   information   regarding   former employment, after a change of job. –     The confidentiality trust between employer and employee continues beyond the period of employment. – But, the employee cannot be forced not to seek a change of job. –    The employer’s right to keep  the trade secrets  confidential  by a former  employee should be accepted at the same time, the employee’s right to seek career advancement cannot also be denied.

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