Ethcality of Derivatives Sales

Issue at hand The main issue in the oblige is the relationship managers acts of selling complex derivatives to customers without making sure they amply understand the product. This notion is captured in the question, is selling such products without a clear explanation ethical? Stakeholders involved The stakeholders involved in this altercation include the managers who sold the products, the banks that employ these managers, their sh areholders, investors who bought the products (many of which are retirees), their families and the Monetary government agency of Singapore (MAS). Alternative Theoretical Perspectives Applying different ethical principles willing result in different ethical determinations. Utilitarianism states that a decision is ethical if the overall consequences are good and unethical if the consequences are bad. In this situation, the managers benefit because they get to meet their sales quotas and the banks thereof earn higher revenues. However, in the event that these managers are gear up guilty of mis-selling, not only will their own reputations be ruined, but also that of their employers. Furthermore, the banks might give way to compensate investors for their losses.

Investors and their families have to bear excessive risk, endure the resulting stress and possibly dawdle their hard-earned money. Clearly, the overall consequences are bad. Hence, managers acts are deemed unethical. Deontological ethics states that an action is ethical only if it conforms to moral principles. As the saying goes, A half- virtue is a whole lie. In this case, by not providing the entire truth about the product, the managers are going against the moral law of do not tell lies (BBC, 2010). Moreover, it opposes the principle of rights. By not disclosing the take away details of the product, managers are disregarding investors right to know the truth. jibe to deontologists, the managers acts are unethical. Ethics of care states that individuals have an obligation to... If you fate to get a full essay, order it on our website: Orderessay

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