Assignment:
Management in the News
On Monday, November 22, 2010, the Financial Times ran an article announcing that Ireland had requested and received approval for an 80 to 90 billion euro loan from the European Union. Earlier in the year, Greece received a rescue package worth 110 billion euros. Both loans will come from the same financial stabilization fund, a 440 billion euro fund created by the European Commission, the International Monetary Fund, and the European Central Bank. According to the Times, the primary reason for the loan was "the recklessness of the banking sector" in Ireland. Ireland has four banks which hold 87% of the mortgages in the country. These banks will be restructured into smaller banks that can "gradually be brought to stand on their own two feet once more."
In the same issue of the Times, there was an article entitled "Latin American bankers' pay soars." This article states that because of a growing demand for investment bankers in countries like Brazil, salaries there have risen dramatically. Top investment bankers can make as much as $1.7 million a year. Latin America has record levels of mergers and acquisitions, and debt is rising dramatically.
Sources: Brown, J.M., Chaffin, J., and Barber, T. 2010. Europe agrees Irish rescue. Financial Times, Nov. 22: 1; Masters, B. and Baer, J. 2010. Latin American bankers' pay soars. Financial Times, Nov. 22: 15; Taylor, P. 2010. Fallout from Irish bailout. Herald Sun.
Imagine that you are the manager of a midsized investment fund. Your fund is committed to having international investments, and recently, people have been asking you to put more money in Europe and Latin America. Today, one of the partners of your firm came into your office and said, "Just put the money in Latin America. We can make the most money if we invest by placing bets that the Latin American economy will collapse. It might not be good for Latin America, but it will be good for us. There's no law against it, so we won't get punished."
The reason that the partner gave you for investing in Latin America is based on ______________________ approach to ethics.
The partner who gave you this advice is probably at the _________________________ stage of moral development.
The options for the first space are:
- a utilitarian
- a virtue ethics
- a justice
- an individualism
The answer options for the second blank are:
- preconventional
- conventional
- postconventional