Business ethics and the “London Whale”

 BY    JiaJing ( Katherine) Shen

    

   Business ethics can be characterized as the moral standard of responsible decision making. In my point of view, I think business ethics can be related to the “London Whale” trading debacle. Depending on the news from September 2013, London Whale had caused 6 billion lost in a bank named JPMorgan Chase. This huge loss was mainly due to their wrong judgment on the small trader who worked for the chief investment unit.

How important is the Business Ethics to YOU?? 

What if it is not helping you make more money? then? 

 

I think one of the most important qualities for a businessman who has a high set of ethics is that they should be a good leader which not only means they should have the ability to handle normal business activities but they can also solved the potential risks exist in the operation of the company. Also the records showed that PMorgan’s chief investment officer has hidden their unprofitable investments to minimize losses. This obeyed the principle of honest in running a company as well as they failed to create a comprehensive company information system. The honesty of a company is significant because their managers need to make the decisions depend on the company’s real situation and they can also earn a better reputation even they made mistakes. All these disabilities in achieving the high set of ethics led to their crush with huge losses and ruined their reputation.

References:

picture:　http://lexicon.ft.com/term?term=London-whale

others: Isidore, C. and James O. (2013, September 19). JPMorgan fined $920 million in ‘London Whale’ trading loss. Retrieved from http://money.cnn.com/2013/09/19/investing/jpmorgan-london-whale-fine/

New York Time. (2013, January 19). Lessons from the London Whale. Retrieved from http://www.nytimes.com/2013/01/20/opinion/sunday/lessons-from-the-london-whale.html?module=Search&mabReward=relbias%3Ar%2C%7B%222%22%3A%22RI%3A14%22%7D&_r=2&