Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

تمرين 21

Ethics In Action
Tommy Gunn is a division manager for K-Cern Inc., a small pharmaceutical company. Tommy's division has been working on a new drug that has the potential to revolutionize the treatment Once the drug is proven to be effective in clinical trials, it will be approved for sale by government and patented by the company. Because of the potential market for this drug, it is highly likely that the company's revenues and net income will increase significantly when it is approved. Tommy recently saw an internal company memo indicating that the drug passed its final clinical trial and that the company has received government approval to sell the drug. The company will issue a press release announcting this news in the next two days, price. Tommy knows that there is "free money" to be made if he invests in the stock before the announcement is made. However, K-Cern has a strict policy against employee purchases of company stock outside of established employee stock purchase plans. To get around this rule, Tommy ask his father to purchase the stock for him. The next morning, Tommy's father purchase the stock with the understanding that he will split the profits with Tommy.
Is Tommy behaving ethically? why or why not?