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max2010maxim [7]
3 years ago
6

Conflicts of interest a. have become less frequent today. b. always involve personal financial gain. c. are morally worrisome on

ly when the employee acts to the detriment of the company. d. occur when employees have special or private interests that are substantial enough to interfere with their job duties.
Business
1 answer:
exis [7]3 years ago
5 0

Answer:

D

Explanation:

Conflicts of interest occur when employees have special or private interests that are substantial enough to interfere with their job duties

For example, imagine that there is an analyst who works in a firm. He comes across material non public information that the value of the shares of the company is about to plummet. This analyst has shares in the company.

A conflict of interest arises, he can either trade his shares and engage in insider trading or not trade his shares so as to protect the integrity of the capital market

the ethical step is not to trade

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Employee Stock Options or ESOs are equity compensations given be firms typically to high-range executives. The company provides the workers with call options so employees can purchase the derivatives at a certain price and time. These types of compensations are useful as motivations for the employees to help them perform better in their duties.

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