1. Members: Catherine Lim Hsiao EiBB10110072 Huang Ee Ling BB10110205 Kong Mee Kiong BB10110262 Lau Eik Jin BB10110266 Ting Ann Kee BB10110678

2.  1. Ethical Dilemma faced by the main 4 characters 2.Character that concerned about Corporate Social Responsibility (CSR) 3. Corporate Governance take part by Sarah Robertson 4. If I were Peter Sullivan, what should I do? 4 Issues:

3.  1. Ethical Dilemma faced by the main 4 characters  John Tuld & Jared Cohen — same dilemma. (sell asset) 1. Conflict  Truth versus Loyalty Truth : Public interest- losses, bankruptcy, company’s reputation Loyalty: Consider future benefit of the company & stakeholders. 2. Resolution Principles  Rule Based Principles Make the decision based on the principles not the consequences. (loyalty to company.) 3. E thical Theories and Reasoning  P ost-Conventional Level (Universal Ethics) Decided to sell the toxics asset to prevent company bankruptcy.

4.  1. Ethical Dilemma faced by the main 4 characters (con’t)  Sam Rogers — dilemma whether to follow the instructions of his boss. 1. Conflict  Justice versus Mercy Justice : X spread risk throughout the financial sector Mercy : Staff might loss jobs if com. bankruptcy 2. Resolution Principles  End-based Principles Select option that are generate most benefits to most of people. 3. E thical Theories and Reasoning  Pre-Conventional Level (Utilitarianism) Self-centered (follow order to minimize staffs being fired)

5.  1. Ethical Dilemma faced by the main 4 characters (con’t)  Eric Dale — whether want to return back to the company. 1. Conflict  Short Term versus Long Term Short term : Persist his own point not going back to work Long term : Offer higher salary and allowances to him. 2. Resolution Principles  Golden rule Decided back to company because of allowances. 3. Ethical Theories and Reasoning  Conventional Level (Right principles) Return to company since there will be unemployment High salary & interest of his family.

6.  2. Was any character in the movie concerned about CSR?  Sam Rogers (Kevin Spacey) = Head of the Sales Department  3 Dimensions: Social dimension Economic dimension Stakeholders dimension

7.  1. Social dimension  Involves the relationship between the business and society as a whole.  RESPONSE from Sam :  X willing to sell under value stock to the public  X future value in the market  Buyers would be trouble if they buy the stock from the company.

8.  2. Economic dimension  The effect of CSR on the financial position of the company.  RESPONSE from Sam :  Disagree to sell the stocks (contribute to the economic development)  The market will be killed for several years

9.  3. Stakeholders’ dimension  The people are being affected by the company’s action.  RESPONSE from Sam :  Conduct meeting with top management to discuss about the issue. (MBS asset)  Worried about the employees who were fired after he had ordered his subordinates to sell all the stock. (get compensation)

10.  (a) It starts during the first meeting after they discovered there was a problem in MBS. (b) Sarah was warned by Sam about the risk of the MBS asset a year ago. To be a good player in Corporate Governance  Should immediately settle the problem to prevent the ship from sinking.  Might inform the upper level of management and discussed the possible solutions. 4. (a) Corporate governance in the movie? (b) Sarah Robertson (Demi Moore) involved in this?

11.   Yes.  Attractive income.  It can fulfill my the working satisfaction.  And thus, increase my the productivity in the workplace. 5. If you were Peter Sullivan, would you (a) make the same career decisions from physics to investment banking

12.   Yes.  It is risk analyst’s responsibility to inform the management, but not someone outside the company to protect the company’s interests.  If not selling out all the shares, it will cause serious financial losses to the company. 5. If you were Peter Sullivan, would you (b) inform someone about your findings in the findings

13.   Yes.  Earn higher salary  If I reject, I will be fired immediately as the company want to cut costs.  Might not able to find a new job during the financial crisis. 5. If you were Peter Sullivan, would you (c) accept the promotion at the end of the movie.