Ethics and JP Morgan Chase

Written By: Joe Graczyk

Given the news regarding J. P. Morgan Chase while teaching ethics, it has provided the class with something to chew on.

Specifically, J. P. Morgan Chase recently announced an approximate $2 billion loss while Chief Investment Officer, Ina Drew, has decided to retire. Her decision to retire comes after earning approximately $14 million in 2011. Given Sarbanes-Oxley, FSGO, and increased SEC scrutiny, JP Morgan Chase is considering bonus clawback.

As listed below, the students have been given tools and frameworks from which to analyze the situation, most notably, derived from Ferrell, Fraedrich and Ferrell, 8th Edition, Business Ethics.

Stakeholders: primary stakeholders (employees, customers, community, government, suppliers, and investors), secondary stakeholders (special interest groups, mass media, trade associations, and competitors).

Social Responsibility: legal, economic, ethical, and philanthropic.

Elements of Culture: legal, core practices, voluntary actions; values, norms, artifacts, and behavior.

Will the constructs set forth in class and listed herein stick? Time will tell. I would love to be sitting on my recliner in 30 years while watching the evening news, only to find a former student doing the right thing despite tremendous pressure to look the other way.


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