Business Ethics And Practices Of Goldman Sachs - 3814 Words

Assignment 1 Q1 – What was up with Wall Street? The Goldman Standard and Shades of Gray. Go back through the case; make a list of each action/ practice that could be called a gray area. The problems to be investigated are the business ethics and practices of Goldman Sachs. There were several grey areas in which Goldman Sachs operated their business. Ethical Grey areas are situations and problems that don’t fit neatly into any existing mode of ethical analysis within the business (Marshall, 2007). Peter Drucker’s interpretation of business ethics is that personal ethics and business ethics cannot be separated. He uses the example of businessmen should not cheat, steal, lie, bribe, or take bribes. But nor should anyone else. He also mentioned that â€Å"men and women don’t acquire exemption from ordinary rules of personal behavior because of their work or job† (Drucker, 1986). The first grey area was Goldman Sachs using a technique called â€Å"layering†. Goldman would start a company and used their own money to buy 90% of the shares. The public would see how the stocks were selling so quickly and wanted a piece of the pie. The public were unaware that Goldman was buying their own stocks and then continuously increasing the price of the stock and selling it back at the higher price. Goldman saw how well this was working and decided to continue with this practice. He started new companies and followed the same formula as before, making bags of money, while investors had no ideaShow MoreRelatedEthical Problems Faced By The Wells Fargo Case Essay1731 Words   |  7 Pagesemployees engaged in illegal practices. Some of the problem include: I. Saying things you know are not true: Goldman’s analysts said many things that were not true to investors including saying that a security was a good investment when indeed it was not. II. Giving or allowing false impressions: Goldman’s layering strategy allowed the false impression that the stock price of the investment firms had increased or that the stock was very popular and wanted, but in fact, Goldman bought 90 percent of theRead MoreCase Study: What Is Up with Wall Street? the Goldman Standard and Shades of Gray1911 Words   |  8 PagesNORTHCENTRAL UNIVERSITY ASSIGNMENT COVER SHEET Learner: Demetrice S. Campbell | | MGT7019-8 | Douglas Buck | | | Ethics in Business | #3 Paper- Case study: What is Up With Wall Street? The Goldman Standard and Shades of Gray | | | Academic Integrity: All work submitted in each course must be the Learner’s own. This includes all assignments, exams, term papers, and other projects required by the faculty mentor. The known submission of another person’s work representedRead MoreKohlberg s Six Stages Of Moral Development1575 Words   |  7 Pages1. Goldman Sachs should have been punished for its behavior in the years leading up to the financial crisis. Goldman ended up settling with the federal government for $110 Billion, which I do not believe was sufficient based on the magnitude of problems created. This amount should have been much larger, and at minimum they should have forfeited the $14 Billion paid to them by AIG. (Inside Job, 2011) In addition, AIG should have had the right to sue Goldman Sachs for fraud. It was in the public’sRead MoreEthics in Accounting1196 Words   |  5 PagesEthics in Accounting By Pace University – New York Accounting for Decision Making, MBA 640 Fall 2011 Required Research Paper Page 1 of 11 Table of Contents Number Content Page Number 1 Introduction 3 2 Ethics in Accounting 4 3 Enron Scandal 6 4 Satyam Scandal 8 5 Conclusion 10 6 References 11 Page 2 of 11 Introduction †¢ What is â€Å"Ethics†? 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Ethics are prime elements that help a business to grow and to become more productive. It is by applying proper business ethics that a business can operate in a moral or ethical business environment and managed to conduct all activities in a manner that maximizes profits while not compromisingRead MoreShades of Gray (Ethical Behavior) Essay1783 Words   |  8 Pagesdisplayed very questionable behavior. Companies like Goldman and Sachs utilizing questionable trading techniques in order to gain a financial profit while leaving behind companies in the dust and eliminating hundreds if not thousands of jobs in the process. Ethics is more than doing what’s right or wrong. It’s a way of life and how we can have an effect on others. Question 1: Go back through the case and make a list of each action or practice that could be called a gray area. The Layering Strategy:Read MoreInside Job1673 Words   |  7 Pages ID NUMBER :05048569 INSIDE JOB: Inside Job  is a 2010  documentary film about the  late 2000’s financial crisis  . The film is in five parts the film explores how changes in the policy environment and banking practices helped create the financial crisis. The movie starts with showing the Iceland bank where it all started from the land scape is shown green and fresh but then as the corporations moves into the country it becomes muddy and dry land with pollutionRead MoreEthical Dilemma in Consulting Essays1406 Words   |  6 PagesEthics in Consulting Ethics dilemmas in consulting Ethics has become an important topic in business today with good reason. Just look at the headlines: Rajat Gupta Scandal, Anil Kumar and Rajaratnam scandal, Enron, Worldcom, Health South, Great depression, financial crisis due to unethical behaviour by the banks etc. All of these cases are related to consultants either directly or indirectly and they occurred due to the moral fallacy of some of them. Ethics is an extremely relevant value inRead MoreThe Enron And Enron s Scams, The Ponzi Scheme Perpetrated By Bernard Madoff Essay1183 Words   |  5 PagesBernard Madoff s, the latest accusations of Goldman Sachs tricking option traders to guarantee the company s personal profit. Incidents such as these designed us all, as upcoming corporation professionals as well as market leaders, think about ethics and its particular function in the commercial world (Gross, 2010.) Organization integrity can be a principle associated with comprehending what s morally appropriate and/or allowable on the job. Ethics by itself is really a relative idea: everything