FIN-01-046

Managing Ethical Risk: The Securities Industry and the Law

October 2001

Larry Alan Bear and Rita Maldonado-Bear

ABSTRACT

We examine the interplay of markets, ethics and law, and rising demand for ethical behavior in a market driven society coping with the promise and peril of rapid technological innovation. We analyze the market affecting role of our Common Law/Rule of Law System, its adaptability to social need and resultant legal and regulatory action promoting adherence to the spirit as well as the letter of the law. We provide examples of manager and firm harm from sanctions imposed despite adherence to “the rules.” Finally, we discuss competitive market/common law interplay in the coming era of the genome.

Larry Alan Bear
Institution: Stern School of Business, New York University, 44th West 4th Street, New York, NY 10012
Telephone: (212) 998-0049
Fax: (212) 995-4230
Email: lbear@stern.nyu.edu
Homepage:http://www.stern.nyu.edu/~lbear

Rita Maldonado-Bear
Institution: Stern School of Business, New York University, 44th West 4th Street, New York, NY 10012
Telephone: (212) 998-0360
Fax: (212) 995-4233
Email: rmaldona@stern.nyu.edu
Homepage:http://www.stern.nyu.edu/~rmaldona

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