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The importance of business ethics
Negotiation skill desired outcome
The importance of business ethics
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Towards the middle of the film Bud Fox finally gets a chance to meet up with Gordon Gekko after telling Gordon’s receptionist that he is just here to deliver some cigars. Gordon likes Buds persistence and says that he will give Bud a few seconds of his time. Bud tries to convince Gordon about a potential trade in Blue Star Airlines and after Gordon does not like Bud’s original pitch, Bud says he knows about a favorable ruling about a crash that happened a year before. Gordon says he hears multiple deals in one day and he only picks one. The conversation then concludes and Bud Fox walks out of the office depressed but he later finds out that Gordon likes his deal and he wants Bud Fox to get more insider information.
As the relationship starts
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to build Gordon tries to convince Bud to do more unethical acts, His excuse is “The SEC can’t go after you” and Gordon is trying to use aggressive behavior. Later in the conversation, Gordon says that he will make Bud rich enough to own his own jet and “You are either a player or nothing” which is a mix of a snow job and the intimidation hardball tactic. Bud Fox eventually concedes and Gordon is the winner in this negotiation. The way Bud Fox handled this situation was appalling on an ethical and moral standpoint.
As we have learned in this class unethical tactics are frowned upon in the business world and once these accusations are proven true, it is very hard to do another deal in the future. Bud Fox should have stuck to the principles that his father taught him and walked out of the room immediately. He should have created a BATNA because in his line of work there are many other large clients that do not act like Gordon Gekko. Bud Fox was too honest and too trusting with Gordon Gekko, a man who he just met and it ultimately ruined his life later in the …show more content…
film. If we were in this situation we would come back at Gordon with our own hardball distributive approach.
We would inform Gordon how illegal his actions are and that we would want no part in his illegal plans. We would also apply the duty and social contract ethics that were talked about in Chapter 5 of the textbook. As a stock broker, you are required to uphold the federal laws and statutes that the governing body creates in order to have a fair and transparent market. Bud Fox in this film broke the most important law and lost his license to practice because of this. Sometimes the winner of a negotiation is the person who sticks to his BATNA and moral principles and we believe that would have been the best decision for Bud Fox when he was negotiating with Gordon
Gekko.
Ans. 7 From my point of view I would have reported the scheme to senior management. The scheme would have proved very harmful for the whole company and the harm of the company is bad for each and every employee of the company. Many people may have lost their jobs due to this scheme.
I was assisting Vince in a deal with a new potential buyer. He offered a structured deal stating that he would authorize his company to pay a higher price, if we report selling the product for a lower price. I don’t want to get caught doing this, because I know it is unlawful. Vince reassured me it was not an uncommon deal, and that the product would still be going for a good price. We even had a solid plan on what to say in the event that people suspected us of doing such a thing. The buyer could get half the money, Vince and I could split the other half and no one would ever know.
Jordan Belfort is famous for his crooked way of earning his millions as a stockbroker on Wall Street. Even Belfort started at the bottom, on his first day in Wall Street he was told he was “lower than pond scum”(Belfort 1). After writing a book about his happenings on Wall Street, we’ve seen the
In conclusion, the film was very effective in illustrating how unethical business practices can easily exist in the business world. Most of the time, unethical business practices remain strong in the business world because of the culture that exists within companies. By following Ricky Roma, we learned that a business transaction should only be executed after all legal and ethical ramifications have been considered; and also if it will be determined legal and ethical to society.
Review of “Situationism and Virtue Ethics on the Content of Our Character” by Rachana Kamtekatar
This report will analyse the leadership style of two main characters, Bud Fox and Gordon Gekko. This movie shows corporate America and the ethical behaviour in the workplace at the Wall Street. Bud Fox a smart, yound and very motivated stock broker has the desier to become the highes salesperson in his company. His main target is centered on big share trading account like Gordon Gekko. He says, “Just once I would like to be on that side” he dreaming of the day when he will be big corporate shot controlling the flow of millions of dollars like his hero Gordon.
Jordan Belfort is the notorious 1990’s stockbroker who saw himself earning fifty million dollars a year operating a penny stock boiler room from his Stratton Oakmont, Inc. brokerage firm. Corrupted by drugs, money, and sex he went from being an innocent twenty – two year old on the fringe of a new life to manipulating the system in his infamous “pump and dump” scheme. As a stock swindler, he would motivate his young brokers through insane presentations to rile them up as they defrauded investors with duplicitous stock sales. Toward the end of this debauchery tale he was convicted for securities fraud and money laundering for which he was sentenced to twenty – two months in prison as well as recompensing two – hundred million in restitution to any swindled stock buyers of his brokerage firm (A&E Networks Television). Though his lavish spending and berserk party lifestyle was consumed by excessive greed, he displayed both positive and negative aspects of business communications.
As the part of the personality that identifies wants and needs, “the id doesn’t care about reality, about the needs of anyone else, only it’s own satisfaction.” (Heffner). People that manipulate others for their own personal gain are typically powered by their id, as it considers only it’s own long-term benefits, ignoring the outcome for anyone else. The princess in the short story, “The Lady Or The Tiger?” by Frank Stockton embodies the id specifically, with little portrayal of the ego or superego.
This case study is not about Ms. Stewart direct participation with illegal insider trading as the media had steered the public to believe. To begin, Ms. Stewart received a phone call from Ann Armstrong, her assistant, stating that Peter Bacanovic, her stockbroker, “thinks ImClone is going to start trading down.” (Arnold, Beauchamp, Bowie, 2013, p. 390) Although Ms. Stewart was not able to get a hold of Peter, she talked to his assistance, Douglas Faneuil,
In his plea bargaining, Ivan Boesky agreed to pay one-hundred million dollars in fines and to fully cooperate with the SEC members in other investigations of insider trading cases. His cooperation has also led to major charges against Kidder Peabody, Martin Siegel, and other financiers. Without Boeskey’s help, catching other insider-trading criminals would have been almost impossible. Ivan Boesky even wrote a book about his involvement in the world of insider trading; he called it Merger Mania.
Morals and principles rule our behavior, these elements are termed ethics. When working as a counselor or psychologist these ethics determine our level of professionalism and commitment to our clients. A case study will be reviewed in the context of ethics. Ethical standards and codes will be evaluated and relevant standards will be utilized and justified for relevance as it pertains to the case study. Multicultural issues within the decision-making model will be considered. The steps used in the process of decision-making will be discussed, as well as an ethical reasoning model will be applied with evaluation of the advantages and disadvantages of using the chosen model. A solution for the dilemma will be
Jordan Belfort is the notorious 1990’s stockbroker who saw himself earning fifty million dollars a year operating a penny stock boiler room from his Stratton Oakmont, Inc. brokerage firm. Corrupted by drugs, money, and sex, he went from being an innocent twenty – two year old on the fringe of a new life to manipulating the system in his infamous “pump and dump” scheme. As a stock swindler, he would motivate his young brokers through insane presentations to rile them up as they defrauded investors with duplicitous stock sales. Toward the end of this debauchery tale he was convicted for securities fraud and money laundering for which he was sentenced to twenty – two months in prison as well as recompensing two – hundred million in restitution to any swindled stock buyers of his brokerage firm. Though his lavish spending and berserk party lifestyle was consumed by excessive greed, he displayed both positive and negative aspects of business communications.
Everyone in this world has experienced an ethical dilemma in different situations and this may arise between one or more individuals. Ethical dilemma is a situation where people have to make complex decisions and are influenced based on personal interest, social environment or norms, and religious beliefs (“Strategic Leadership”, n.d.). The leaders and managers in the company should set guidelines to ensure employees are aware and have a better chance to solve and make ethical decisions. Employees are also responsible in understanding their ethical obligations in order to maintain a positive work environment. The purpose of this case study is to identify the dilemma and analyze different decisions to find ways on how a person should act
...ollow them either. It is clear that there are many ethical violations and if a company were to act in a manner that this today they would strongly be looked down upon.
Ethics are values based on each individual’s environment. They are instilled in your being by parents, grandparents, friends and culture. Ethics are a vital part of society by showing others that we are different and not only by physical appearance. Below are my ratings of each ethical style.