The financial predicaments, choices and their impact as happened during the financial recession lend itself to the analysis of ethical dilemmas. The essay is an analysis of the ethical dilemmas involved in businesses and individuals as represented in the movie ‘Margin Call’. The Movie Margin call is a fictitious representation of a firm that is about to face dangerous loss in the next 24 hours, and which tries to save its balances by trading away its reputation. This essay identifies the business-ethical dilemmas, and associates them with the people involved, and analyzes their consequences on stakeholders. Alternatives are then suggested.
Business Issues and Ethical Issues in Business Practices
Peter Sullivan a risk analyst finds information that shows the company he works for will be losing a considerable amount of money because of bad mortgages, and the firm will suffer a loss that would be considerable greater than its market capitalization. In this context, the CEO and the other chief managements suggest a fire sale has to be done, such that the toxic securities be dumped on the clients by the traders working with the firm and Sam Rogers, a supervision head is assigned to work with the traders to conduct the fire sale.
School of through employed by characters in their Ethical Dilemma
Consequences of Ethical Decisions made by the Firm Leaders
The ethical decisions made by the CEO, the other chief officers and Sam Rogers led to the loss of jobs (career) for the Traders as no clients will now trust them with their advice again. The clients lost money and other investors working with the bank.
The CEO and the people who were working with the Chief management for the fire sale gained from the proceeds, the company was saved (albeit without its reputation).
Alternative actions and Consequences (For Firm and for Individuals)
One alternative action would have been for the firm to have announced what was going to happen as soon as they knew it, or they could have just proceeded with their normal course of working till the crash happened and then they could have worked towards recovery.
Sam Rogers could have asked the traders to quit before hand, this would have saved the traders reputation at least.