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 notices 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. <?XML:NAMESPACE PREFIX = O />
1. What are Harriet’s ethical responsibilities with respect to the information she has learned through her duties as an accountant for New World?
2. What are the implications to her planned purchase of New World shares?
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