1. “Margin Call” Film Goh Ing Yeh BB10110179 Lau Ung Soon BB10110269
Ng Shi Ling BB
Tsen Fui Thin BB
Wong Wey Yiin BB

2. Question 2
Explain the ethical dilemmas depicted by the main characters: - Jared Cohen (Simon Baker) - John Tudd (Jeremy Irons) - Sam Rogers (Kevin Spacey) - Eric Dale (Stanley Tucci). Explain the conflict faced, resolution principles and the ethical theories and reasoning actions of each character.

3. Jared Cohen (Division Head)
Ethical dilemma:
Sell all the worthless assets before public realise the truth.
The actions will destroy the relationship with their counterparties.
Conflict:
- Short term vs. long term benefits.

4. Jared Cohen (Division Head)
Resolution principles
Rules-based principle: performs his duty to serve the best to minimize financial risk of the company.
Ethical theory
Virtue theory: harm the public to exchange benefits for company.

5. Jared Cohen (Division Head)
Ethical reasoning:
Conventional level stage three: Interpersonal concordance of the “good boy or good girl” orientation.
The plan is favoured by CEO.

6. John Tudd (CEO) Ethical dilemma:
Prevent the company from undergoing serious financial crisis.
Maintain huge profits and bonuses.
Conflict:
Individual vs. community.

7. John Tudd (CEO) Resolution principle:
Rules-based rule: actions are intended to reduce the financial risk of company in short time
Ethical theories:
Egoism

8. John Tudd (CEO) Ethical reasoning:
Pre-conventional level stage two: the instrument-relativist orientation
Decision making is self-interest driven

9. Sam Roger (Head of Trading Floor )
Ethical dilemma:
Not agreed with liquidate firm mortgage backed securities
Reason will spreading the risk to other companies
Destroy firm reputation
Conflict:
Truth vs. loyalty

10. Sam Roger (Head of Trading Floor )
Resolution principles
Care-based principles: concern about action taken by companies will harm the society benefit
Changed to Ends-based principles: Sam accepted the offer from John and help the company traded those infected mortgage securities

11. Sam Roger (Head of Trading Floor )
Ethical theories
universal ethics: concerns to moral duty and obligation of society rather than the needs of the company
Change to not comply with universal ethics
Ethical reasoning
Conventional level stage four: Laws and order oriented
Changed preconvention level to stage two: Individualism, instrumentalism and exchange

12. Eric Dale (Risk Management Officer on Trading Floor)
Ethical dilemma:
Discover risk going to faced by company
Risk of firm having excessive leverage and will suffer huge losses
Management realized, reemployed Eric
Conflict faced:
individual versus community interest

13. Eric Dale (Risk Management Officer on Trading Floor)
Resolution principle :
Ends-based rule: he cared the outcome of the action rather than the process
Ethical theory:
Not according to utilitarianism theories: helping the firm in spreading risk into the market

14. Eric Dale (Risk Management Officer on Trading Floor)
Ethical reasoning:
Preconventional level stage two: focus on individualism, instrumentalism and exchange

15. Question 3
Was any character in the movie concerned with corporate social responsibility?
Explain in detail.

16. Corporate Social Responsibility (CSR)
Emphasize on interest of stakeholders
Comply happiness for the greatest number of human being
Triple bottom line (TBL)

17. Selling unvalued mortgage to customers
Sam Rogers
NO!
Selling unvalued mortgage to customers
Sam Rogers
John Tuld

18. Sam Rogers
Concerned the benefit of customers rather than his own interest
Followed John’s instruction but guilty
HOWEVER
Continuing his duty because of money
Not comply to CSR anymore

19. Question 4: What part did corporate governance play in the events depicted in the movie? How was Sarah Robertson involved in this? Explain.

20. System of rules, practices & process - directed & controlled to ensure the accountability, fairness & transparency
involves balancing the interests of stakeholders

21. Eric Dale (senior risk analyst) was being laid off when he was on the verge of discovering the risk of loss of company
responsible to the matter about the risk & hidden fraud
concern for his uncompleted work
required Peter to analyse & complete his findings

22. Sarah Robertson (Chief Risk Management) had warned the impending doom to Jared but he seems did not concerned for her advice.
gender discrimination (male dominates the executives position)
Sarah - only female executive - whom eventually fired by John (CEO) as a sacrificial lamb to the board

23. Question 5 If you were Peter Sullivan (Zachary Quinto), would you:
(a) make the same career decisions from physics to investment banking,
(b) inform someone about your findings in the findings and
(c) accept the promotion at the end of the movie.
Explain in detail.

24. (a) Make the same career decisions?
No, I will not.
Main factor to concern – Interest
Reason of Peter change to Investment Banking – higher salary offered

25. (b) Inform someone about the findings?
Yes, I will.
Inform who have a higher position than me.
Objectives of Eric gave thumb drive to Peter:
find out the problems
try to solves it

26. (c) Accept the promotion?
No, I will not.
Unwilling to spend my life in an unhealthy company.
Reasons
still young
does not have family burden