Question.2558 - Assessment Description The purpose of this assignment is to review a relevant business scenario to determine if the code of conduct and SEC prohibition may have been violated during a potential insider trading incident. In 2011, Warren Buffett reluctantly (and belatedly) acknowledged that David Sokol violated Berkshire Hathaway's insider trading rules to score a $3 million windfall profit on shares of U.S. chemicals maker Lubrizol, which rose by nearly a third after Berkshire Hathaway announced it would buy the company. Using the topic Resources, write an essay (500-750-words) in which you address the following: Review Sokol's conduct as reported in the Reuters timeline and describe if and how you believe he may have violated the "Berkshire Hathaway Inc. Code of Business Conduct and Ethics." Review Sokol's conduct as reported in the Reuters timeline and describe if and how you believe he may have violated the SEC prohibition against insider trading. Review Sokol's defense of his actions in the CNBC transcript and, in your own words, compare "unlawful behavior" and "unethical behavior." Through the Christian worldview it is believed that one should carry out one's work within the public arena with compassion, justice, and concern for the common good. Utilizing the Christian worldview, determine whether Sokol's actions were unethical using support from the "Statement on the Integration of Faith and Work." While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center. This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion. You are required to submit this assignment to LopesWrite. A link to the LopesWrite technical support articles is located in Class Resources if you need assistance.
Answer Below:
Sokol x purchase xx Lubrizol xxxxxx while xxxxx in xxxxxxxxxx with xxxxxxxxx Hathaway xxx in xxxxxxxx to xxxxxxxx business xxxxxxxxxxx with xxxxxxxx violated xxxxxxx company xxxxxxxx including xxxxxxxxx Hathaway xxxx of xxxxxxxx conduct xxx Ethics xxx its xxxxxxx Trading xxxxxxxx and xxxxxxxxxx The xxxxxxxxxx of xxxxx on xxx purchase xx shares xxx incomplete xxx violated xxx candour xx owed xxx company xxxxx should xxxx disclosed xxx time xxx the xxxxxxxx of xxxxxx purchased xxxxxxx of xxxx a xxxxxxx remark xxxxxxxxx to xxx code xxx directors xxx executive xxxxxxxx of xxx Company xxx the xxxxx executive xxxxxxxx and xxxxx financial xxxxxxxx of xxxxxxxxx Hathaway x subsidiaries xxxxx disclose xxx material xxxxxxxxxxx or xxxxxxxxxxxx that xxxxxxxxxx could xx expected xx give xxxx to xxxx a xxxxxxxx to xxx Chairman xx the xxxxxxx s xxxxx Committee xx action xxx be xxxxx with xxxxxxx to xxxx transaction xx party xxxxxx and xxxxx such xxxxxx has xxxx approved xx the xxxxx Committee xxxxxxxxx HATHAWAY xxx CODE xx BUSINESS xxxxxxx AND xxxxxx Sokol xxx not xxxxxxx his xxxxxxxxxxx after xxxxxxx about xxxxxxxx with xxxx bankers xxx narrowed xxxx to xxx company xxxxxxx eighteen xxxxxx Even xxxxx asking xxx arranging x meeting xxxx the xxx of xxxxxxxx the xxxxxxxxxx was xxx made xx Citi xxxxxxx The xxxxxxxx cannot xx said xx be x sec xxxxxxxxx for xxxxxxx trading xx Sokol xxx not xxxxxxx any xxxxxxxx non-public xxxxxxxxxxx if xxxxxxxxx Hathaway xxxxx buy xxxxxxxx or xxx when xx did xxx investment xx the xxxxxxx Sokol xxxxx have xxxx accused xx insider xxxxxxx if xxxxx would xxxx acquired x stake xxxxxxx that xxxxxxxxx Hathaway xxx preparing xx buy x large xxxxx of xxxxxxxx stock xxxx information xxxxx have xxxxxxxxx the xxxxx price xx increase xxxxxxxxxxxxx Sec xxxxxxxxx would xxxx happened xx Sokol xxxxx have xxxxxx onmaterial xxx public xxxxxxxxxxx obtained xxxx Berkshire xxxx INSIDER xxxxxxx POLICY xxxx Unlawful xxxxxxxxx can xx defined xx behaviour xxx recognized xx made xxxxxxxxx by xxx court xx law xx distinguished xxxx a xxxxx of xxxxxx Ethics xxx be xxxxxxx as xxxxx principles xx of xx individual xxxxxx has xx do xxxx inner xxxx Illegal xxxxxxxxx takes xxx law xxxxxx as xxxxxxxx making xxxxxx For xxxxxxxxx behaviour xxx deciding xxxxxx is xxx s xxx conscience xx unethical xxxxxxxxx may xxx necessarily xx unlawful xx unethical xxxxxxxxx can xx ethical xxx other xxxxxx But xx case xx unlawful xxxxxxxxx be xx any xxxxxx the xxxxxxxxx would xx unlawful xx does xxx change xxxx different xxxxxx Compassion xx the xxxxxxx of xxxxxxx which xxxxx in xxxxxxx how xxxxxx might xx feeling xxxxxxxxxx ensures xxxxxxxxxxx with xxx sufferer xxx being xx solidarity xxxx compassion xxxxx to xxxxxx Jesus xxxx the xxxxx of xxxxxxxxxx as xxx core xxxxxxxx block xx Christianity xxx attempt xx religion xx to xxxxx compassion xxxx work xx ensure xxxxxxx to xxxx and xx others xxxxxxxxxx and xxxxxxx is xxxxxxxx closely xxxx justice xxxxxxx charity xxx justice xx believed xx form x societal xxxxx where xxxxxxxx is xxxxx and xxxxxxxxx The xxxxxxx idea xx to xxxxxxx service xx leading xxxxxx Jesus xxxx whoever xxxxxx to xx the xxxxx come xxxxx among xxx must xx your xxxxxxx and xxxxxxx wishes xx be xxxxx among xxx must xx your xxxxx just xx the xxx of xxx came xxx to xx served xxx to xxxxx Bible xxxxxxx Sokol xxxxxx the xxxxxxxxx Hathaway xxxx full xxxxxxxxx The xxxxx too xxxxxxxxx that xxx should xxxxxx wisely xx businesses xxx there xx nothing xxxxx in xxxxxx profit xxx amp xxxxxxxxxx As xx is xxxx For xxxxx one xx you xxxx he xxxxx to xxxxx a xxxxx does xxx first xxx down xxx calculate xxx cost xx see xx he xxx enough xx complete xx Otherwise xxxx he xxx laid x foundation xxx is xxx able xx finish xxx who xxxxxxx it xxxxx to xxxxxxxx him xxxxxx This xxx began xx build xxx was xxx able xx finish xxxx Business xxxxx to xxxx profit xxx one xxxxxx strive xxx earning xxxxx grow xxx succeed xxxxxxxxxxx as xxxxxxxxx can xxxx short xxx long xxxx plans xx not xxxx build xxxxx own xxxxxx but xxxx to xxx to xxxxxxxxxxxx s xxxxx Sokol xxx not xxxxxxxxx as xx has xxxxxxxx in xxx firm xx his xxx research xxx at xxx same xxxx proposed xxx idea xx Berkshire xxxxxxxx as xx sensed xxxx it xxxxx be xxxxxxxxxx for xxx firm xx invest xx it xxxxxxxxxx INSIDER xxxxxxx POLICY xxx gov xxxxxxxxx February xxxx https xxx sec xxx Archives xxxxx data xx htm xxxxxxxxx HATHAWAY xxx CODE xx BUSINESS xxxxxxx AND xxxxxx Ebook x Retrieved xxxxxxxx from xxxxx www xxxxxxxxxxxxxxxxx com xxxxxx ethics xxx Greenberg x Greenberg xxxxx At xxx Very xxxxx Violated xxxxxxxxx s xxxx of xxxxxx CNBC xxxxxxxxx February xxxx https xxx cnbc xxx id xxx D xxx Fontrodona x Christian xxxxxx and xxxxxxxxxxxx in xxxxxxx Business xxxxxxxxxxxxx Editorial xxxxxxxxxxxx Journal xx Business xxxxxx - xxxxx doi xxx s x - xMore Articles From Finance
.ico)
.ico)
.ico)
