Harriet Moore is an accountant for New World Pharmaceuticals. Her duties include tracking research and development spending in the new product development division. Over the course of the past six months, Harriet has noticed that a great deal of funds have been spent on a particular project for a new drug. She hears “through the grapevine” that the company is about to patent the drug and expects it to be a major advance in antibiotics. Harriet believes that this new drug will greatly improve company performance and will cause the company’s stock to increase in value. Harriet decides to purchase shares of New World in order to benefit from this expected increase. Required What are Harriet’s ethical responsibilities, if any, with respect to the information she has learned through her duties as an accountant for New World Pharmaceuticals? What are the implications of her planned purchase of New World shares?
Harriet Moore is an accountant for New World Pharmaceuticals. Her duties include tracking
research and development spending in the new product development division. Over the course of the past
six months, Harriet has noticed that a great deal of funds have been spent on a particular project for a new
drug. She hears “through the grapevine” that the company is about to patent the drug and expects it to be
a major advance in antibiotics. Harriet believes that this new drug will greatly improve company performance
and will cause the company’s stock to increase in value. Harriet decides to purchase shares of New
World in order to benefit from this expected increase.
Required
What are Harriet’s ethical responsibilities, if any, with respect to the information she has learned through
her duties as an accountant for New World Pharmaceuticals? What are the implications of her planned
purchase of New World shares?
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