Business Ethics Assignment Wallstreet Movie (1987) Summary

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Background : The movie tell us about: A Young, smart and very motivated man named Buddy Fox who works in the Wallstreet as a stock broker and has a desire to get on top. Bud Fox finally meets with Gekko, who takes Bud under his wing and explains his philosophy that "Greed is Good". Taking the advice and working closely with Gekko. Bud Fox is a young and ambitious Wallstreet stock broker who is determined to become rich and will do just about anything to get into the big leagues. Soon, Bud finds himself working with Gordon Gekko. Gekko teaches him to get/use inside (secret) corporate information to make deal, even though this is completely illegal. He buys companies cheap, only to destroy them and their workers jobs in order to sell off the companys assets (such as planes, lands, offices building, etc.). It all comes to a head however when Gekko targeted Blue Star airlines, the company where Bud's father has worked for 24 years, secretly planning to break it up and plunder the employees' retirement fund. Gekko manipulates the market using inside information and his motto best describes his approach: greed is good. Nothing will stop him from pursuing a good deal and he takes advantage of Bud's burning to desire to succeed. Character : 1. Gordon Gekko : a wealthy, ruthless and immoral stock trader and corporate raider (which is a person who buys and sells companies, often with horrible results for company workers) that has a motto : Greed is Good 2. Bud Fox : Young stock broker desperate to succed (making millions of dollars) who becomes involved with Gordon Gekko 3. Carl Fox : Buds father, loyal worker as an airplane mechanic, a very honest and good man, consistent with his principal. He is also a labor union leader at Blue Star Airlines. 4. Sir Larry Wildman : A rich British corporate raider; have values; that also wealthy and want to be succes in trading

Problems : 1. Family vs Professionalism (work) 2. Being good (honest) or being greedy

3. Willingness to get an illegal inside information taken through a ruthless and greedy coorporate raider 4. Breaking the law >> Break the law by manipulating stock values in order to keep the airlines out of Gekkos Hands 5. The ethical dillema is whether to act in the interest of the stockholder, or in ones own self interest.

Identifying Relevant Standard that had been found in the Wallstreet Movie: Principles Transparancy Dignity Requirement Disclosure of material information 1. Respect to fundamental human rights 2. Protect human life, provacy and dignity 1. Respect for law and Regulation 2. Recognizing Government Juridication Fidelity to commitment keeping promises 1. Fair dealing (in exchange) 2. Fair competition (conduct among rival) Prohibited Action Fraud and deceit Corecion, humilation, invasion of Privacy

Citizenship

Free riding, illegality damage to society

Reliability Fairness

Fraudulent promises Unfair competitive advantage discrimination supprising competition

Ethics Code of Broker that must be obeyed:

The half-truth - (or quarter-truth or three-quarter truth) - One of the most insidious temptations of bad brokering is to mix truth with untruth. For instance, a broker could tell a customer that he watches the market every day, implying that appropriate action will be taken in-line with market developments and events. Insufficient explanation - Some brokers simply do not take the trouble to explain things, and they prefer clients not to know too much. Discreet silence - It can be very tempting for a broker selling a structured fund, for example, to praise the built-in protection and guaranteed returns that it offers. Especially these days, investors love security plus (reasonably) good returns. But if this comes at the price of all the dividends, the investor really must be told this. There is no way it can be taken for granted, or assumed that they know.

Not offering alternatives - From both an ethical and legal standpoint, inexperienced clients in particular are not equipped to make meaningful decisions unless they are aware of other options. At minimum, the broker should point out to the client that this is merely a suggested option and that one could earn similar returns with a similar level of risk in many different ways. Avoid One-Size-Fits-All Approaches Nothing is more useless to a client than a standardized quarterly letter containing general information that he or she could get from the newspaper or any website. Most clients will switch off and not even read them. Ask the Client -Don't Expect to ask much A client won't ask for clarification if he or she doesn't realize it's needed in the first place. Make absolutely sure that the client knows what he or she is getting. They do not need to know every intricate detail, but they certainly need to know, at minimum, how risky the product is in relation to the probable returns. There should be no surprises in store for the unwary and trusting investor. Be Specific About the State of the Market Discussing the market with a client in general and with respect to the specific asset classes. This does not mean attempting to time the market, but the investor ought to know whether the market has been booming for years and is regarded as possibly overpriced, or whether the converse prevails. Be Open about Monitoring and Control A client should know how often you will monitor the investments and what this really means. But the client needs to know that he or she cannot expect more from broker Show the Client Visually How Things Work The classic multi-color pie chart with asset class combinations for high, low and medium risk is a great way to demonstrate the very essence of the investment process. Explain Brochures - Go through the main points with clients, so it can be sure they really understand the main elements of the investment and what the text means. There is an optimal (and minimum!) level of communication and understanding that is essential for good brokering practice.

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Objectives : This movie tell us about Carl Fox who provides consistent reminders that acting ethically and morally is the only way to achieve success and happiness in life. When Bud realizes that his father was correct, he finally accepts the fact that Gekko is only acting in his own best interest, with little regard for the interests of Bud. In the end, all the money and power could not relieve the guilt that Bud felt when he realized that his greed contributed to the destruction of a company and the loss of jobs.

Questions & Answers: 1. Is the action consistent with the actors basic duties? A basic moral duty is a requirement to act or not act in the certain ways. Bud Fox do not act activity as a normal broker. From the story, we know that Fox has sold some inside information regarding corporate activities to Gekko. Bud is happy to participate since Gekko is rewarding him with more money than he could ever have dreamed of earning. Does it respect the rights and other legitimate claims of the affected parties? NO, bud Fox doesnt respect to the rights of people and corporate. He required others to forbear from certain actions. Throughout the movie, both Gekko and Bud lie to colleagues, friends, family members, and each other in order to secure large sums of money, all the while making no secret of the fact that each desires more power and control. In the end, their action can destroy corporate and peoples future. Does it reflect best practices? Its not the best practices in positive way but it were instant practices (easy way) to be on top and potentially making millions of dollars illegally. Bud Fox and Gekko would make merit critics and blame. The way they did is not based on the certain principles or standard of excellence, ideals, values, or aspiration in trading exchange. Is it compatible with the actors own deeply held commitment? Commitment typically represents an important aspect of the actor identity. We can see Buds disgust and anguish over having to break the law in order to enrich himself. The initial encounter with Gekko should have been resolved by Bud realizing that he would not be able to legally conduct business with Gekko at the time of the initial meeting (which he did) and electing to walk away. Carl Fox (Buds father) has a commitment from the beginning and still keeping the commitment even the company will had been taken over. At the initial meeting between Gekko, Bud, Carl, and the union representatives, Carl immediately realizes that Gekko is a greedy man who is only interested in making a quick profit by liquidating the company.

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Conclution : 1. Always use the code ethic in each of professional duties, never break the rules (dont compromise with principals & ethical beliefs) in every situation instead of business condition. 2. Be honest, loyal Commitment of the duties not only in job but also any activity in life. Sacrificing morals may lead to short-term satisfaction; however the long-term effects will eventually turn negative. 3. Respect Rights due to the Human needs, and other legitimate claims that supposed to obey in the parties. 4. Profit is not anything, success is not measured by wealth. 5. There is a price to pay if you commit crimes to achieve financial success.