Vidovich received a year-end gift of a set of new golf clubs from a client who was delighted by the performance of her portfolio, managed by Vidovich. Vidovich may do all of the following EXCEPT: Accept the gift and donate it to charity. Accept the gift and disclose its receipt to his employer. Decline the gift. Accept the gift, keeping the matter confidential
This is tough. I put choice 2. Why is choice 2 incorrect?
I think 1, 2 and 4 all qualify as answers.
This question is VERY similar to question #13, page 113 in Ethics textbook. The example in the book is: One of the clients “…Will compensate the PM on the basis of capital appreciation of his portfolio…” The answer is: the PM must obtain permission from her employer PRIOR to accepting the compensation arrangement The trick to this above posted question, is that it is in the past tense. So, he’s busted b/c he received a gift which he did not disclose. The key is to disclose the compensation arrangement, and get written approval prior to agreeing to the arrangement.
rhythm, read the question… he can do all of the following EXCEPT --> so what can he NOT do? take the clubs and keep it confidential. that is a violation. all the rest are ok. tell employer, donate to charity, decline gift.
aaah! Thanks. You’re totally right. I misread the question.
cpk - 1. Accepting the gift, not telling the employer or anyone else and donating it to charity is okay? 2. Accepting the gift, without prior consent of the employer, and then going and disclosing it to the employer after taking it is okay? What if the employer declines the permission? 3. Agreed. 4. Agreed. I am still not sure about 1 and 2.
anupamjain008 Wrote: ------------------------------------------------------- > cpk - > > 1. Accepting the gift, not telling the employer or > anyone else and donating it to charity is okay? > > 2. Accepting the gift, without prior consent of > the employer, and then going and disclosing it to > the employer after taking it is okay? What if the > employer declines the permission? > > 3. Agreed. > > 4. Agreed. > > I am still not sure about 1 and 2. 1. It is not mentioned that he did not tell his employer. On the other hand, he also didnt use it for his own benefit, he donated it to charity. 2. Well even if he declines, you could return the gift. That is still a good situation when compared with not telling your employer at all.
I agree with cpk , it should be 4 , Keeping quiet would violate independence and professional conduct