ETHICAL

DECISION
MAKING &
Group
1: Nguyen Thuy
CASE
Duong

Nguyen Ngoc Mai

SUMMARY
1.
2.
3.
4.

CASE SUMMARY
ISSUES OF CASE
ADVANTAGE & DISADVANTAGE
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

Alberts 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 uncles friends

SUMMARY
The Chens soon have enough
money to make their own
investment

Old
managemen
t
MARYS
FATHER

Help Albert
place
Chens
trade before
the client
order

BARRY

SUMMARY
Mary 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

SUMMARY
COME
BACK TO
TAIWAN

ALBERTS 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 uncles
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?

ALBERTS
SUPERVISOR

2.ISSUES OF CASE

ETHIC ISSUE
Sexual
Harassme
nt

Confli
ct of
Intere
st

ETHI
C
ISSU
E

Inside
r
Tradin
g

Sexual Harassment

The mail included

some nude photos,
anyones private
images.
->forwarded it
without opening
-> Cause
consequences
unpredictably.

Insider Trading
Get 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
Laws
protectin
g
consume
rs

Law
regulatin
g
competit
ion

LEG
AL
ISSU
E

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 Marys 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 uncles friends

3. ADVANTAGES &
DISAVANTAGES

Decision 1:Demanding of Barry

YES

NO

Advantag Barry will continue Keep this

e
to help him put his
information in
trade before the
secret, make fair
client order
in the market to
Barry wont
all others IPO
denounce the
investors
collusion with him
in the past
Disadvant Get more favor
Break the
age
from Barry who will
relationship with
benefit from it.
Barry (may be
Commit insider
some others
trading which is
friends)
considered as an
Financial loss
unethical and
Barry may
illegal issue
denounce Albert

Decision 2:Request of Supervisor

YES

NO

Advantag Make some money Stay away from

e
to make up for the
ethical and legal
his wife jobs
problems=> feel
comfortable
Maintain a positive
relationship with
his supervisor
Get chance to
develop the career
fast
Disadvant Get more favor
Lose the chance to
age
from his supervisor
make some money
after that
Damage the
Possibility to face
relationship with his
to the court
supervisor, which
because of
could make his jobs
violating the law
harder as he already

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 again
The Albert's parents weren't
happy with her - a non Chinese
woman

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