Insider Trading and the Social Contract

1995 ◽  
Vol 5 (2) ◽  
pp. 313-328 ◽  
Author(s):  
Steven R. Salbu
Keyword(s):  
Social Contract ◽  
Insider Trading ◽  
Equality Of Opportunity ◽  
Fiduciary Duty ◽  
The Social ◽  
Core Components ◽  
The Law ◽  
Unites States

Abstract:The law of insider trading has progressed from an expansive approach, according to which all trading on nonpublic information was considered illegal, to a constricted approach, under which corporate outsiders are permitted to trade on nonpublic information provided such trading does not breach a fiduciary duty. This article analyzes both the former, expansive theory and the currently utilized constricted theory, within a framework of basic tenets of the American capitalist social contract regarding legitimacy of property claims. The existing constricted approach to the regulation of insider trading is found to be deficient in meeting the expectations of two core components of the social contract: it discourages procedural equality of opportunity, and it endorses claims to property that are not characterized by legitimate methods of acquisition or transfer. Because the old, expansive regulatory interpretation was more consistent with the terms of the social contract in regard to property claims, it served our economic and ethical expectations more effectively than the system presently in place. Accordingly, the article culminates in a recommendation that the expansive approach to regulating insider trading be reestablished under Unites States law.

Justice in a Market Economy

2006 ◽  
pp. 60-76
Author(s):  
Robert A. Schultz
Keyword(s):  
Social Contract ◽  
John Rawls ◽  
Equality Of Opportunity ◽  
Original Position ◽  
Difference Principle ◽  
The Social ◽  
Principle Of Justice ◽  
Fair Equality Of Opportunity ◽  
The Difference ◽  
Principles Of Justice

As we saw from the last two chapters, the ethical IT professional is embedded in contexts of management, organization, and society. Ethical behavior for the IT professional is, therefore, impacted by the ethics of people and institutions in his or her environment. The primary term for ethical institutions is justice.1 In the next three chapters, we will examine the justice of institutions impacting the IT professional. The framework used will be that provided by the works of John Rawls (1999, 2001). Rawls’ work is based on the idea of a social contract, that a justly ordered society is one to which individuals can freely decide to obligate themselves. But our decision will very likely be biased if we base it on our current situation. So Rawls’ major addition is to say that the decision must be made prior to being in society, without knowledge of what our position will be in society, and it will be a decision we will be obligated to stick to and expect others to make and stick to as well. The basic principles for society chosen in this position (which Rawls calls the original position) will be the Principles of Justice. According to Rawls (1999, 2001), there will be two: 1. The First Principle of Justice or Greatest Equal Liberty: Society is to be arranged so that all members have the greatest equal liberty possible for all, including fair equality of opportunity. Each individual has basic liberties which are not to be compromised or traded off for other benefits. Besides the basic freedoms such as freedom of speech, assembly, religion, and so on, it includes equality of opportunity. Thus society’s rules are not biased against anyone in it and allow all to pursue their interests and realize their abilities. 2. The Second Principle of Justice or the Difference Principle: Economic inequalities in society are justified insofar as they make members of the least advantaged social class, better off than if there were no inequality. The social contract basis for this principle is straightforward: If you are entering a society with no knowledge of your specific place in that society, the Difference Principle guarantees that you will be no worse off than you need to be to keep the society functioning.

scholarly journals An Overview of Violence as a Vice of Consent

2021 ◽  
Vol 7 (2) ◽  
pp. 158-164
Author(s):  
Loredana VLAD ◽  
Keyword(s):  
Human Nature ◽  
Social Contract ◽  
The Other ◽  
Natural State ◽  
The Social ◽  
The Law ◽  
The Individual

People are considered bio-psycho-social beings. From the beginning of mankind, violence as part of human nature has manifested itself in relation to the other through the crime committed by Cain against his brother Abel. As time passed, it was found that a form of protection is needed to prolong the life of the individual, and thus by accepting the "social contract", man gave up his natural state in which freedom was absolute, in order to obey the law. In this paper I will bring to the fore a series of considerations with a focus on violence, emphasizing the idea of the vice of consent.

The prosecution of insider trading: Obstacles to enforcement

1989 ◽  
Vol 22 (2) ◽  
pp. 65-81 ◽  
Author(s):  
Roman Tomasic ◽  
Brendan Pentony
Keyword(s):  
Empirical Study ◽  
Social Control ◽  
Insider Trading ◽  
Research Council ◽  
Stock Exchange ◽  
Criminal Sanctions ◽  
The Social ◽  
Securities Industry ◽  
The Law ◽  
Depth Interviews

Insider trading has been criminalised in Australia for over a decade. Yet there have been few prosecutions in respect of such conduct, and none of these have been successful. There is little doubt that insider trading in Australia is extensive and is to be found across many sectors of the securities industry. Despite this, the law has not proved to be an effective vehicle for the social control of insider trading or for the deterrence of such conduct. It seems that the criminal sanctions for insider trading have been largely symbolic in nature. This article explores the obstacles to enforcement of criminal laws in this area by reference to findings from a national empirical study funded by the Criminology Research Council. The study involved in-depth interviews with almost 100 key figures in the Australian securities industry (brokers, lawyers, merchant bankers etc) and of officials involved in its regulation (from the Corporate Affairs Commissions and the Australian Stock Exchange). Problems in detection, proof and punishment, in the nature and extent of regulatory resources devoted to this area and in the content of the law itself are identified and discussed.

3. Liberal Equality

2001 ◽  
Author(s):  
Will Kymlicka
Keyword(s):  
Political Theory ◽  
Social Contract ◽  
Equality Of Opportunity ◽  
The Other ◽  
Radical Politics ◽  
Free Markets ◽  
Theory Of Justice ◽  
The Social ◽  
The One

This chapter examines the notion of liberal equality by considering John Rawls’s alternative to utilitarianism. In his A Theory of Justice, Rawls complains that political theory was caught between two extremes: utilitarianism on the one side, and what he calls ‘intuitionism’ on the other. The chapter presents Rawls’s ideas, first by discussing the two arguments he gives for his answer to the question of justice: the intuitive equality of opportunity argument and the social contract argument. It also analyses Ronald Dworkin’s views on equality of resources, focusing on his theory that involves the use of auctions, insurance schemes, free markets, and taxation. Finally, it explores the politics of liberal equality, arguing that liberals need to think seriously about adopting more radical politics.

scholarly journals AL-ARIYAH, AL-QARDH DAN AL-HIBAH

2015 ◽  
Vol 1 (2) ◽  
pp. 128
Author(s):  
Novi Indriyani Sitepu
Keyword(s):  
Social Contract ◽  
Infrastructure Development ◽  
The Social ◽  
The Law

<p>Sometimes, social contract is overlooked in society which in turn can cause problems. 'ariyah is seldom to be discussed in relation to the law, it is showed by the absence of DSN-MUI fatwa, about <em>ariyah</em> and specific discussion in KHES. Qardh that is applied in the banking and other LKS (<em>qard al hasan</em>) can be found  in the DSN-MUI Fatwa and KHES, as well as Grant. <em>Ariyah</em>, <em>qardh</em> and grants are <em>Sunnah</em> for the giver and the permission for the recipient. The social contract, the contract, <em>tabarru’</em> contract is used all these social contract are allocated properly,  the contribution for infrastructure development will be better.</p>

Overton, Richard (d. circa 1665)

2018 ◽  
Author(s):  
Udo Thiel
Keyword(s):  
Social Contract ◽  
Natural Law ◽  
The Social ◽  
The Law

Overton was one of the leading figures of the radical Leveller movement in England in the 1640s. He fought for the equality of all men before the law and for complete religious and political toleration, often by appealing to notions such as the social contract and the natural law. In metaphysics he denied that the soul is a separate immaterial and immortal substance, arguing that immortality is not achieved until the resurrection. His views on the soul may have influenced Milton.

scholarly journals Normatywność w Hobbesa koncepcji prawa

Etyka ◽  
2004 ◽  
Vol 37 ◽  
pp. 249-267
Author(s):  
Sebastian Szymański
Keyword(s):  
Social Contract ◽  
The State ◽  
The Real ◽  
Law Of Nature ◽  
Binding Force ◽  
The Social ◽  
Ultimate Source ◽  
The Law

The paper concerns conception of law presented in Hobbes’ Leviathan. The author argues that for Hobbes the ultimate source of the binding force (normativity) of law is the sovereign’s will, and reasons for that are „technical”. The sovereign creates laws, because he is a representative of the estate (“moral” or “artificial” person) which is the real author of the law. However, the existence of the state is dependent on its members’ will expressed in the social contract which Hobbes describes in terms of laws. The contract, however, needs background norms to bind its parties. Thus the social contract also cannot be the basis of normativity of the law, although it could be the cause of its being in force. Instead. the source of the binding force of the law is, on Hobbes’ view, the law of nature. This law is unchangeable, eternal, autonomous, and rationally knowable.

scholarly journals The Moral Foundations of the Constitution

ICR Journal ◽  
2018 ◽  
Vol 9 (3) ◽  
pp. 401-404
Author(s):  
Tengku Ahmad Hazri
Keyword(s):  
Social Contract ◽  
Moral Foundations ◽  
The Social ◽  
Recent Trends ◽  
The Law

Despite the primacy of Malaysia’s written constitution and despite its lofty status as the very foundation of the nation and the embodiment of the social contract, recent trends reveal a shift away from the black letters of the law towards a search for the moral foundations of the constitution, foundations that are largely unwritten. Significantly, from all sides of the debate the sanctity of the constitution itself has been upheld and, although different parties have advanced different interpretations of its ideals and history, none have gone to the point of challenging its validity. This is interesting, especially with reference to Malaysia, because the constitution itself was drafted by the Reid Commission, comprising five members, none of whom were Malayan. The constitution could have easily been construed as a remnant of neo-colonialism, but this has not happened. At least not so far.

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