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Film Assessment

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Film Assessment: Margin Call
Existing ethical issues
Peter Sullivan was a newly hired risk management analyst at a profitable investment banking firm. Less than two weeks after he joined the risk management team, his boss, Eric Dale, was laid-off by the upper senior managers of the company. As Dale was leaving, he passed on the project that he was working on to Sullivan, and noted him to “be careful”. While working past night, Sullivan learned of the company’s inevitable future predicament, in which the packets of shares that they hold for selling could result in a loss greater than the company’s current market capitalization value. Here, the question of whether to dump the shares, or to be honest with their buyers and sell at transparent price, is a serious ethical dilemma for the company. This is definitely an interesting situation where a single major ethical decision could push the entire company to the edge; leaving nothing but liquidation.
Participants of the issues and their method
There were two main characters in the movie with clashing views: Sam Rogers (head of risk management department) and John Tuld (CEO). John Tuld claimed that the company should make a maximum effort to sell all the shares at the false price, while Sam Rogers believed that this is not an ethically right act to pursue. Tuld used the incentive and culture approach to persuade his employees to turn to his side. The Wall Street culture, infamous for the concept of taking others down for survival, allowed the employees to morally think that their unethical actions were “okay” given the setting. Furthermore, the CEO offered up to $1.3 million for every 93% of the portfolio sold, which pushed the employees to commit even more towards this scam. Sam Rogers later joined the CEO’s side, explaining that he “needed the money”.
Personal insights on ethical decisions
Initially, I had thought

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