Conflict on a Trading Floor
Poseidon Cruise Lines, a client of First America wanted to finance the construction of a new cruise ship to be built by a French shipyard at a total cost of $700 million. Linda, a top salesperson, made a financial structure alleged to cause the lowest cost in dollars aimed at this complex and big transaction. Seth, an assistant of Linda, found that Linda exaggerated the true situation about the secret transaction in the structure and misled Poseidon about the quoted price. Following Linda’s instruction would bring a lot of profit to the bank, Linda and Seth himself. However, Seth found that Linda’s tactic disobeyed his principle of being honest. Also, such sale strategy would have a bad effect on the relationship between the bank and its clients in the long run. Seth faced an ethical dilemma about making a decision based on his private principle of being honest or considerations on his company.
Questions: Short answer (no more than a few well-thought out paragraphs); minimum 11 point font, minimum 1” margin on the page)
What would Carr advise Seth to do? Give reasons why.
Carr would advise Seth to adjust himself to such ethical pressure, adapt to the different set of ethical standards in business and follow Linda’s instruction. First, business is set under special ethics. Violations of the ethical ideas of society are not necessarily violations of business principle. Strategies are made to seek maximum profit not to follow ethic standards. Second, obligations to the truth may lead to ignorance of opportunities permitted under the rules which can be used by the competitors. If Seth chose to tell the truth, the profit for his company would decrease a lot. Third, Seth should learn to deal with such ethical dilemma to fit the business rule. He should have a game player’s attitude to win in the business game.
What would you advise