Imclone Business Ethics

1042 WordsOct 5, 20085 Pages
Running head: Case Study Report 3 Case Study Report 3 Deb Gephart Western International University LDR 620 Ethics and Corporate Social Responsibility Ray November January 28, 2008 Case Study Report 3 I chose to report upon the case study involving ImClone and Samuel Waksal’s deceitful practices involving selling personal shares of ImClone stock. Samuel Waksal knowingly participated in insider trading which involved selling his ImClone stock and then notifying his family of the impending refusal by the FDA for the approval of their first drug Erbitux. Waksal was privy to non-public information which he knew would negatively impact the value of ImClone stock. Rather than perform his corporate duty and abide by the…show more content…
Nothing is guaranteed in the world of investing except unpredictable financial loss, gain, and anxiety. Samuel Waksal’s reaction was motivated by the desire to prevent financial losses to himself and his family regardless of the price paid by his stockholders, employees, and other investors of the company, including those employees who held no ImClone shares but dedicated their expertise to ImClone and developing its anti-cancer drug. Why were Samuel Waksal’s actions unethical? Samuel Waksal’s actions were unethical because he was acting with information his staff, board of directors, and stock holders were unaware of. Samuel took advantage of confidential information provided to him and used it for personal financial gain and for the financial gain of his family. His actions were deliberate and taken with the clear knowledge that what he was doing was ethically and morally wrong. The sentencing of Samuel Waksal to 87 months in prison and the order to pay $3million in fines and $1.2 million in restitution to the New York State Sales Tax Commission should serve as a stern reminder that although one may sit very high up on the corporate ladder, the code of ethics, integrity, and high personal standards cannot be put aside for even a moment. The higher one goes up the ladder, the harder the fall to the bottom will be when they abuse their position. Company officers are held to high standards of personal and professional conduct and are expected to
Open Document