Case 4: ‘Margin Call’ Film Group MembersMatrix Number Elizabeth Cheng Siew ChienBB Ho Tet SengBB Mohd Zainuddin bin Mat UsengBB Tea Fei NaBB Tung Shau YuBB

Question 2 Explain the ethical dilemma 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 Requested to provide the best strategy for the company individual vs. community conflict individual for self interest or community interest in whole Jared Cohen acts in community perspective for the best interest of public with selling the holdings to the public with knowledge of real situation

Golden Rules, Deals with the question how you wish to be treated if you were the person in the same position Jared Cohen decide to disclose the problem to the public and selling the holdings as much as possible Utilitarianism Emphasize on the consequences of an action and seeks the overall outcome from the decision made Jared Cohen decide to sell the holdings of the company to the outsider with their knowledge of crisis This can be show the sincere and honest of the company to the public

John Tudd Dilemma whether to make the margin call, dumpling the worthless holdings before the news spread that they are worthless Truth vs. loyalty conflict Honestly disclose the real situation or just promise to gain the loyalty from the public John Tudd decide to disclose the real situation truth instead of betraying to the public with promise to get loyalty from public

Rules- based principle Ends cannot always be known, therefore this principle focus on the means John Tudd acts in good faith of the company itself with focusing on the means but not the result at the end merely. Virtue ethics Focus on character traits to define a good person and direct the person toward a good behavior. John Tudd acts in the best interest of public with the character traits owned by him

Sam Rogers Whether take consideration of short term or long term effect of the company Short term and long term effect conflict Short term effect to sustain the survival of company Long term effect to retain the loyalty of public because of honest

Golden Rules Focus on how you wish to be treated if you were the person in the particular position Sam Rogers should decide to disclose the real situation to the public in order to retain loyalty of public Right theory Human have certain fundamental rights that should be respected in all decisions Public have their right to know the real situation faced by the company and their right should be respected

Eric Dale Whether should disclose the problem faced by the company to the management Individual vs. community conflict individual for self interest or community interest in whole Eric Dale finally disclose the information to Will before he is fired and leave the company

Ends- based principle Concerned with the ends, results and consequences Eric Dale care about the consequences of the issue if he failed to investigate and disclose it to the public Deontology Morally right actions that carried out with a sense of duty Eric Dale morally and passing the issue to Will with the good intention that Will manage to come out with the consequences to the public

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

Sam Rogers - Tells his traders they will receive seven figure bonuses if they achieve a 93% reduction in certain mortgage backed security asset classes in a fire sale

Peter Sullivan - Identifies the financial disaster of the company - Informs the risk of the company to his colleagues

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

Corporate Governance - Self- regulation which intend to ensure business prosperity and corporate accountability - Making corporate decision - Objection of Cohen about selling no value assets to their counterparties which will affect their relationship - Sarah Robertson (Chief Risk Management) - Examination the effectiveness of the risk assessment and warned the CEO

Question 5 If you were Peter Sullivan, would you: (a) make the same career decisions from physics to investment banking No - Does not related to my study - Unless same field or related to my study

If you were Peter Sullivan, would you: (b) inform someone about your findings in the findings Yes - It is the responsibility of a risk analyst to reveal the findings

If you were Peter Sullivan, would you: (c) accept the promotion at the end of the movie Yes - A chance to move up in career