Ethics - What is an analyst allowed to accept? everything, correct, company, maintain

tango_gs

So I've come across a few of these questions which bascially go - An analyst is evaluating a company and the company pay for the analyst to come to their factory and pay for the analysts flights, acc and food expenses. Now there are three main 'correct' answers I have seen.

The analyst must pay for everything himself to maintain his objectivity.
The analyst may accept the company paying for everything but must disclose it in his report.
Since the stuff the company is paying for cannot be described as extravagant the analyst may accept it but disclose it in his report. If the company paid for anything extravagant then the analyst must not accept.

There are a few questions which I swear are the same but have different answers, so let me put it out there. How do you decide?



Edited 1 time(s). Last edit at Monday, May 17, 2010 at 12:30PM by mambovipi.

YAhmed

joseph213 Wrote:
-------------------------------------------------------
> idreesz Wrote:
> --------------------------------------------------
> -----
> > I would select the first option.
> >
> > If there is no mode of transportation to the
> > factory or no hotels nearby then I would accept
> > flights, acc and food expenses.
>
> If the subject company were in the desert with
> only the one lavish 8-star hotel within 100 miles
> radius and they only serve beluga cavier as kobe
> steak for food as the only food and the only way
> to get there was on a customized 747... and you
> HAVE to cover the company and do an on-site visit,
> then you can accept them but must pay for them
> instead of receiving them gratis.

I have yet to find a place like that.

Newhuman

thanks

firat

idreesz Wrote:
-------------------------------------------------------
> I would select the first option.
>
> If there is no mode of transportation to the
> factory or no hotels nearby then I would accept
> flights, acc and food expenses.

If the subject company were in the desert with only the one lavish 8-star hotel within 100 miles radius and they only serve beluga cavier as kobe steak for food as the only food and the only way to get there was on a customized 747... and you HAVE to cover the company and do an on-site visit, then you can accept them but must pay for them instead of receiving them gratis.



Edited 1 time(s). Last edit at Tuesday, May 18, 2010 at 10:52AM by joseph213.

Otabek

Its really about what you are given and choose the best one. But I agree with the post above. Best is the analyst pays for everything.

tobeornottobe

I would select the first option.

If there is no mode of transportation to the factory or no hotels nearby then I would accept flights, acc and food expenses.

Uranus08

Decide which is the best of them all.

The first priority is to prevent it, if its unpreventable then you go on to disclosure.

The first one may just be the best option.
Whereas the second option is a bit not good as in appearance your objectivity is affected.
The third option is probably the next best after the first option. So its all relative.