“Margin Call” Film Goh Ing Yeh BB10110179 Lau Ung Soon BB10110269 Ng Shi Ling BB10110395 Tsen Fui Thin BB10110682 Wong Wey Yiin BB10110705

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.

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.

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.

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

(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

(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

(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