Ethics a basic framework
1. It is about corporate takeover and liquidation business and it is common practice in real business world, but why is it so problematic? What moral issues emerge in the movie?
Answer:
Yes, it is about corporate takeover. There is a corporate raider, Garfield Investment, who wants profit by buying the New England Wire and Cable’s stocks and selling it on higher price. They knew that the company is not making profit because of the lowest product demand which is competing with new technologies product industry.
The problem is about the Garfield’s motive. He has motive or intention purely to take over the company just for making profit for the shareholder; buy the company’s stock, making company’s stock in higher price and in a short-term sells them all. He also breaks the commitment that both sided has been made, and he is trying harder inappropriate way in order to get as many as share in marketplace, so he will become as dominant shareholder. He does not care about the employees on New England Wire and Cable after he takes over the Company. He is greedy trader, not good investor. If he is good investor, he will concern by proposing a better management of the company in order to make profit. But he didn’t do that. He doesn’t care about the core business of New England Wire and Cable Company.
2. Is asset stripping in corporate liquidation business morally good or just good business?
Answer:
It depends on the intention and what goals we want by stripping the assets.
It will become good business and morally good, if the motive or intention are good in moral and healthy in business way. However, it will become only good business if the intention is purely making profit, because it will lead decision maker into amoral thing.
3. Do “corporate raiders” like Garfield create anything useful? Do they make positive contribution to the economy (and society)?
If there are more corporate raiders like Garfield, the world will have crisis in economy, because
Answer:
Yes, it is about corporate takeover. There is a corporate raider, Garfield Investment, who wants profit by buying the New England Wire and Cable’s stocks and selling it on higher price. They knew that the company is not making profit because of the lowest product demand which is competing with new technologies product industry.
The problem is about the Garfield’s motive. He has motive or intention purely to take over the company just for making profit for the shareholder; buy the company’s stock, making company’s stock in higher price and in a short-term sells them all. He also breaks the commitment that both sided has been made, and he is trying harder inappropriate way in order to get as many as share in marketplace, so he will become as dominant shareholder. He does not care about the employees on New England Wire and Cable after he takes over the Company. He is greedy trader, not good investor. If he is good investor, he will concern by proposing a better management of the company in order to make profit. But he didn’t do that. He doesn’t care about the core business of New England Wire and Cable Company.
2. Is asset stripping in corporate liquidation business morally good or just good business?
Answer:
It depends on the intention and what goals we want by stripping the assets.
It will become good business and morally good, if the motive or intention are good in moral and healthy in business way. However, it will become only good business if the intention is purely making profit, because it will lead decision maker into amoral thing.
3. Do “corporate raiders” like Garfield create anything useful? Do they make positive contribution to the economy (and society)?
If there are more corporate raiders like Garfield, the world will have crisis in economy, because