Explain the ethical dilemmas depicted by the main characters – Jared Cohen, John Tudd, Sam Rogers and Eric Dale. Explain the conflict faced, resolution.

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Presentation transcript:

Explain the ethical dilemmas depicted by the main characters – Jared Cohen, John Tudd, Sam Rogers and Eric Dale. Explain the conflict faced, resolution principles and the ethical theories and reasoning that explain the actions of each character.

Jared Cohen Suggested that they should sell all the products Not responsible Should consider the long term effect of every action that they take

John Tuld Decided to sell all the products to the same buyers and any new buyers He argues that the action made is for the sake of the company Agency problem - conflict of interest Ruin the company reputation and loss people trust

Sam Rogers Facing a dilemma whether to follow the CEO’s plan or not Utilitarian theory - Sam was actually wanted to act in a way that can give a greatest utility to the majority Decided to keep staying with the company.

Eric Dale Former Head of Risk Management The company needed him and persuaded him to come back He accepted it due to the incentives that the company can offer Egoism - which the act is done to promote the greatest good for oneself.

Was any character in the movie concerned with corporate social responsible (CSP)?

The character that concerned with CSP is Sam Roger The part where he disagree with Jared Cohen, of selling those non-value asset to company Because this will spread the risk throughout the financial sector and will affects the firm relationship and trust with its counterparties Also causes the public to suffer losses

What part did corporate governance play in the events depicted in the movie? How was Sarah Robertson (Demi Moore) involved in this? Explain.

Corporate governance basically involves balancing the interests of the many stakeholders in a company which include its shareholders, suppliers, management, customers, government and the community. These days, it is not enough for a company to merely be profitable, it also needs to demonstrate good corporate governance

Sarah Robertson, played by Demi Moore, as Chief Risk Management Officer shows good corporate governance to the company. Robertson, especially since the financial crisis, she is included in strategic discussions about the firm’s future or invited to discuss potential risks inherent in the plan. She will ensure that the decision making made by the board of directors are right

QUESTION 5: What will I do if I were Peter Sullivan?

If I were Peter Sullivan, I would also make the same career decisions from physics to investment banking. Both jobs deals with numbers and varying quantities Physic usually develop mathematical models which can be applied to the complex behaviour of the financial markets. the pay for an investment banking is much higher compare to a rocket scientist as what many people would say about the job.

I would inform someone about the findings that I made in the company. The information is important to the company It is ethical to do so. By doing so, it shows that we have play our part and not just a bystander and watch how a company falls

I would accept the offer. by accepting the offer, I can in the future predict such movement or volatility much early, by doing so can help the company in dealing with such situation if the situation arises.