A global city, recently Hong Kong has been gaining world attention due to the large scale protest against Beijing for limiting “2017 elections for Hong Kong’s leader, known as the Chief Executive, to a handful of candidates loyal to Beijing.” Because of the riot, many businesses have closed down their stores temporarily. Some of the more prominent ones include HSBC, Citigroup, Bank of China, and Standard Chartered. In addition, Hong Kong shares have dropped 1.9% on Monday despite limited chaos. However, despite the repercussions caused by the strike, I believe it is for the betterment of Hong Kong. Rather than being limited to vote for candidates loyal to Beijing, Hong Kong should keep their democratic ways and elect someone who is actually loyal and dedicated solely to Hong Kong. Although these protests are actually illegal, China has yet to crash down on these protests unlike Tiananmen Square in 1989 probably due to the fact it “could shake confidence in market-driven Hong Kong.” Furthermore, many countries would frown upon such dictatorship tactics, straining international relationships. I believe Hong Kong is right to protest and fight for a leader that is sympathetic to HK rather than a guinea pig ruler from Beijing. Hong Kong has remained a global city and financial leader without interference into their politics, and should remain that way.

http://www.reuters.com/article/2014/09/29/us-hongkong-china-idUSKCN0HN03Q20140929

This article is a great example of a lack of business ethics shown by the company SAC Capital Advisors. In this article, Mathew Martoma, a Stanford Business school grad who used to be the portfolio manager for the aforementioned company, was sentenced to nine years in prison for insider trading. Through insider trading, he made his firm 275 million dollars. When I first read this article, I thought back on the chapter of Corporate Ethics and Corporate Governance. Although it says a firm should “use it[s] resources and engage in activities designed to increase its profits”, the firm failed to “stay within the rules of the game… without deception or fraud.” By participating in insider trading, SAC Capital Advisors broke one of the basic rules governing stock markets and gained an unfair advantage over other investors. The lack of ethics and his participation in insider trading shown by Mathew Martoma caused him to be forced to forfeit 9.38 million dollars and his two million dollar home. In addition, SAC Capital Advisors paid 1.2 billion dollars to federal prosecutors and 600 million dollars to the SEC. Business ethics are important. Having a lack of business ethics will eventually come back and bite you, whether because of breaking laws, or by displeased customers.