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Business ethics issues in the movie “Boiler
room”
Business comprises principles and standards that guide behavior in the world of
business.
Stakeholders-investors, customers, interest groups, employees, the legal
system, and the community often determine whether a specific behavior is right
or wrong, ethical or unethical. Judgments of these groups influence society’s
acceptance or rejection of a business and it’s activities.
Every business has a social responsibility toward society. That means to maximize
positive affects and minimize negative affects on the society. Social
responsibilities includes economic-to produce goods and services, that society
needs at the price, that satisfy both-business and consumers, legal
responsibility-laws that business must obey, ethical responsibilities-behaviors
and activities that are expected of business by society, but are not codified
in the law, philanthropic responsibilities-represent the company’s desire to
give back to society (charietys, volunteering, sponsoring).
Ethical issues in business arise because of conflicts between an individuals
personal moral philosophies and values and values or attitudes of organization
in which a person works and a society in which one lives. Ethical issues can be
identified in terms of the major participants and functions of business.
Ethical issues related to ownership include conflicts between manager’s duties
to the owners and their own interests, also separation of ownership and control
of business. Financial issue includes, for example, the accuracy of reported
financial documents. Ethical issues can acquire between manages and employees,
then employees are asked to carry out assignments they consider unethical.
Consumers and marketing issues are related to providing safe desired products
for a fear price and not harming people and an environment. Accountants also
face ethical dilemma, they have to deal with competition advertising
commission. All of this places the accounting profession in situation of
ethical risk.
Ethical issues are also classified, as conflict of interest-when person has to
choose between his own interests and company’s interests. Communications-false
and misleading communications can destroy costumer’s trust, for example, false
advertisement, hard sell etc. Technology issue refers to both costumers and
organizations. Using technology many businesses invade consumers privacy, by
collecting an information, on the other hand, in organizations employers can
obtain private information about their employees, and there is always honesty
issue-what is fear and what is not. Issues related to fairness and honesty
often arises in business, because many participants believe that business is a
game or o warship and has his own rules.
The movie “Boiler room” was a good example of the company, which doesn’t
believe in such thing as business ethics.
In the beginning of the movie we see our main character “running” a home
casino, which is not legal, but it is not such a big ethics issue. I think
gambling is just passing time just like other hobbies. Nobody was promoting it
or forcing people to come and gamble. Costumers chose to come themselves and
had a good time, nobody was complaining. There was the only problem, the
establishment was illegal, so the “owner”put himself to risk, and if he will
get caught he will go to jail. In my opinion, this part of the movie did not
have business ethics issue.
I think all the problems began then our guy started the new carrier as a broker
in unknown brokerage firm. The institution there he started his carrier as a
stock investment broker had no such thing as business ethics.
The place did not look right from the beginning. First of all bosses where rude
to employees. While interviewing candidates manager was very ignorant to his
staff members. I don’t think that employers should treat their employees this
way, on the other hand all guys accepted it, which shows, that they don’t have
much respect for themselves and will do anything for money.
In the ordinary company this behavior wouldn’t be tolerated, it would raise
conflict between management and employees. Allthough nobody was talking back to
the manager they where all shocked and probably afraid to be faired. The
manager was using psychological pressure to keep everybody under control, to
avoid unwanted questions. Company was hiring uneducated and inexperienced
people, which is very unusual and makes you think, about company’s activities
and policies.
While unwritten companies policies where explained to the employees, I
identi9fied another ethics issue. It said that stocks cannot be sold to the
female clients, this is sexual discrimination. Ordinary business sells to every
client regardless of his or her gender.
Issues of fairness and honesty also arise in the movie. This firm is looking at
the business more like at the battlefield. Their theory is that the surprise
attacks, unfairness and all unethical behavior is tolerated in business, as
long as you make money.
Later in the movie, I noticed the technology issue, the firm was illegally
gathering information about costumers: what’s their occupation, how much money
they make, that is their family situation. Having this information, made it
very easy to convince clients tobuy worthless stocks. There was also a
communication issue. By lying to costumers about new developments, which will
bring a lot of money in the future, brokers were selling stocks that were not
real. I, also, can refer this as false advertisement and misleading which
sooner or later will destroy costumer’s trust.
The main character had to deal with all those issues during a movie. He felt a
pressure from his father, who was a judge, had very high standards, and was
very concerned about his own carrier. He wanted to prove to his father, that he
is not a looser and that he can make him proud. Deep inside he wasn’t a bad
person and then he found out what accompany is doing to costumers he had to
choose between right and wrong. Although, he enjoyed working in the firm and
was good at what he did, he understood that he is destroying people’s lives and
their trust. One positive think came out from this scam that was then he
decided to return money to his costumer, although, it was illegal it was
ethical.
Different people have different views of what’s ethical, and what’s not in
business world. Lack of rules and pure enforcement of rules that exist create
opportunities for unethical behavior. I think, one has to decide for themselves
what is ethical and what is not. An activity approved of by most members of an
organization and customary in the industry is probably ethical, but it could be
unethical to one or few individuals, because everybody has their own ideas and
beliefs about what’s ethical and what’s not.