Posted by & filed under Part 1 Business in a Global Environment, Part 3 Management: Empowering People to Achieve Business Objectives.

Description: Rajat Gupta, who reached the pinnacle of corporate America as managing partner of McKinsey & Co. and as a director at Goldman Sachs Group Inc. and Procter & Gamble Co. (PG), was convicted by a federal jury of leaking inside information to hedge-fund manager Raj Rajaratnam.

Source: Bloomberg.com

Date: June 15, 2012

Link: http://www.bloomberg.com/news/2012-06-15/rajat-gupta-convicted-of-insider-trading-by-u-s-jury.html

Questions for Discussions:

  • Is there a better way to run operations of the board of directors so that insider trading violations are easier to track and control?
  • How can management better control the flow of secretive information?
  • Do you believe the publicity surrounding this case will affect managers’ thinking or their behaviors?
  • What does this story say about the public image of people and the law?

 

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