ETHICAL DECISION MAKING & CASE

Group 1: Nguyen Thuy DuongNguyen Ngoc

Mai

SUMMARY

1. CASE SUMMARY2. ISSUES OF CASE3. ADVANTAGE & DISADVANTAGE4. PRESSURE

1. CASE SUMMARY

SUMMARY Obtain prestigious brokerage jobs in the New York area

Learn to add some expenses to their professions such as try to “look” and “act” successful

Also used a strategy: get information from people with a little alcohol in their client gain significant profits in their portfolios

SUMMARY Albert’s uncle is working as a janitor

He gave Albert access to many law offices had information on a number of

companies, especially those about to file for bankruptcy

The Chens use these information to benefit their clients’ portfolios

Albert was given permission to buy and sell non-risky stocks at will from his uncle’s friends

SUMMARY The Chens soon have enough money to make

their own investment

Old management

Help Albert place Chen’s trade before the client order

BARRYMARY’S FATHER

SUMMARYMary forwarded email with off-color jokes and nude photos without checking

That person were found and fired

Mary did forward messages that contained such material, so the head of her division decided to fire her

Because of this mess, SEC wanted to check all her trades for the last 8 month

SUMMARYCOME BACK TO TAIWAN

ALBERT’S PARENTS

SUMMARY

Albert tried to make up for the loss by trading in some high risk markets. But many of these investment evaporated.

The investment of him, as well as his clients, was a big mess

Some of his uncle’s friends’ portfolios were losing significant value.

SUMMARY

asked for inside information on several companies where Albert was working with for

an IPO

NO

ask for the IPO information a DEMANDING

Agree or Disagree?

SUMMARY

ask for a specific order to buy the stock as soon as possible and sell stock when the price goes to $112

Albert will receive a little bonus for that action.

=> Argee or Disagree?

ALBERT’S SUPERVISOR

2.ISSUES OF CASE

ETHIC ISSUE

ETHIC ISSUE

SexualHarassment

InsiderTrading

Conflict of

Interest

Sexual Harassment

The mail included some nude photos, anyone’s private images. ->forwarded it without opening-> Cause consequences unpredictably.

Insider TradingGet inside information after the “players” has

one too many drinks.A very hot IPO->talk to some of his best

venture-capital friends.Mary informed her best clients about a

company interested in doing a hostile takeover.

Conflict of Interest

Choose to invest in high-risk market, he chooses his own interest over the interest of his clients.

Has financial problem, he invested in some high-risk market using his own money as well as those of his clients without informing to his clients.

LEGAL ISSUE

LEGAL ISSUE

Law regulating

competition

Laws protecting consumers

Law regulating competition

Stolen information from law offices (because his uncle work as a janitor there)

Barry has demanded for inside information on several companies that Albert was working with for an IPO

Laws protecting consumers

After Albert and Mary’s income was cut in half, he tried to make up for the loss by: trading in some high risk markets

turn all his clients’ portfolio into the black

Albert just had the permission to buy and sell non-risky stocks at will.

He traded in high-risk markets without informing his uncle’s friends

3. ADVANTAGES & DISAVANTAGES

Decision 1:Demanding of Barry

YES NOAdvantage • Barry will continue to

help him put his trade before the client order

• Barry won’t denounce the collusion with him in the past

• Keep this information in secret, make fair in the market to all others IPO investors

Disadvantage • Get more favor from Barry who will benefit from it.

• Commit insider trading which is considered as an unethical and illegal issue

• Break the relationship with Barry (may be some others friends)

• Financial loss• Barry may denounce

Albert and he will get exposed for spinning

Decision 2:Request of Supervisor

YES NOAdvantage • Make some money to

make up for the his wife jobs

• Maintain a positive relationship with his supervisor

• Get chance to develop the career fast

• Stay away from ethical and legal problems=> feel comfortable

Disadvantage • Get more favor from his supervisor after that

• Possibility to face to the court because of violating the law

• Lose the chance to make some money

• Damage the relationship with his supervisor, which could make his jobs harder as he already had plenty of troubles

4. PRESSURE

ALBERT CHEN

Pressure of expensive cars, house, luxury lifestyle and others items to fit tin with the crowd.

The investments without permission turned into black

Barry, his friend asked him for some inside information of several companies...

His supervisor asked him to buy some stock as soon as the market opens

MARY CHEN

The need to find for her father a better management at the hospital

The worst mail was sent for her and asking her to forward them

The fire of SEC -> their income was cut in half

-> she may never got the same job againThe Albert's parents weren't happy

with her - a non Chinese woman

THANK FOR YOUR

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