Boiler Room Analysis

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Jessica Walsh
MGT 282
22 January, 2009
Boiler Room Analysis

A Primary Stakeholder is defined as those who are necessary for a firm to survive. A Secondary Stakeholders are not essential for the firm’s survival, and are not typically involved in any transactions with a company. The stakeholders affiliated with J.T. Marlin included the head bosses of the firm, as well as all the brokers. The clients of the firm, those who were investing their money in illegitimate companies, are also considered primary stakeholders, due to the fact that J.T. Marlin wouldn’t produce profit without them. In a sense, the secondary stakeholders are the companies that were used to scam the clients, but could also be considered primary because of their effect on the outcome. Seth was forced to deal with several ethical issues within this movie. One of the issues he encountered was realizing that he was stealing from innocent people. At first he felt like he was a true broker, and had truly made something of himself, but he soon uncovered that he was working within a scam. An ethical issue is defined as a problem or situation that requires the attention of an individual or group to choose among actions to be evaluated. Although many things can be deemed unethical, like starting your own casino, the most noticeable thing is that he was breaking the law in many more ways than one. The legal issue that Seth Davis was faced with is that he was stealing. He was working as a broker, encouraging clients to invest their money into many different companies that didn’t exist. In the beginning of the movie, Seth was running an illegal casino through his apartment, providing a place for minors to gamble, as well as people of age. While both of these scenarios were illegal, working as a broker at J.T. Marlin was as close as he came to having a legitimate career. An ethical issue is a problem or opportunity that requires an individual, group, or organization to chose several actions...
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