Glen Grossmith is an outstanding family man, a frequent coach for his children’s teams, and a dedicated athlete who enjoys individual and team sports. One day, his boss at UBS Securities Canada Inc., Zoltan Horcsok, asked him to do a favor for a colleague, Mark Webb, with whom they had done business for a while. Glen did the favor without asking why it was needed. Here is the story of what happened:

“At about 2:30 P.M.” on February 4, 2004, “Mr. Webb called Mr. Horcsok.

“I need your help with something badly right away,” Mr. Webb told the Toronto trader. The two spoke soon after, working out a way to call one another without being taped. Mr. Webb, according to Mr.

Horcsok, then told him: “You need to find a buyer for 10,000 Phelps Dodge. I may have a problem …

you’ve got to be quick.”

Mr. Horcsok then told Mr.

Grossmith he needed a Canadian buyer for the Phelps Dodge shares.

Without knowing the details behind Mr. Webb’s request, Mr.

Grossmith got in touch with a client and asked the client to buy the shares. The client agreed.

Mr. Horcsok then spoke to about a dozen traders in the Toronto office, trying to find a trade ticket stamped at about 2:15 P.M. “Webb is in trouble,”

he told his traders, according to the settlement documents........

Questions:-

1. Loyalty is a highly desirable ethical value, and disloyalty is a serious unethical and often illegal activity. Explain how and to whom Grossmith, Horcsok, and Webb were disloyal.
2. Although Grossmith’s actions did not negatively affect the wealth of any client, why did UBS fire him?
3. How should an employer like UBS encourage employee loyalty?