Free Term Paper on The Boiler Room
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.