Business related topic - Essay Example

Review: Obama urges tougher laws on financial frauds ABC 28 http www.nytimes.com 01/25/business/obama-urges-tougher-laws-on-financial-fraud.html?_r=2&ref=todayspaper The article ‘Obama urges tougher laws on financial fraud’ appeared in The New York Times dated 24th January’2012. 1. Briefly summarize the article. Who are the persons, groups or organizations with a direct or indirect stake in the situation being discussed? The above article is about making tougher laws in a bid to tackle the ongoing financial fraud.

President Obama observed that almost all major firms including Morgan Stanley, Goldman Sachs, Bank of America and JPMorgan Chase & Company have violated securities laws recently. Moreover there are a number of repeat violators as firms feel that penalties are a cost to do business. President Obama first hinted to crackdown repeat violators as he is urging for strict laws so that firms seriously take these laws and not just think it as another ways of conducting business. He also feels that governing bodies like Securities and Exchange Commission should be given more power to tackle repeat offenders (Wyann). 2. Briefly identify the moral issue; what are the ethical dimensions of the situation being described?

For example, what is the possibility of direct or indirect harm being caused to various persons, groups or organizations? Who is (or should be) held ultimately responsible for these harms? Are there any concern being harm? For example, is this a situation where one value (say individual or collective rights) is in conflict with another value (say, the idea of fairness, or justice)? Financial fraud is a severe ethical issue and most firms use this in the securities market. This is one way to accelerate the price of the shares and dupe investors to pump in more money to the firm.

However, such financial frauds when unearthed can lead to severe consequences including the closure of the organization. Not only this, many investors may lose considerable amount of money as the firm is in no position to return the money to the investor in case of bankruptcy. The enforcement bodies should be more vigilant in order to stop such fraud and save investors from losing money. Here the society as a whole should be blamed for being corrupt. Firms liaise with governing bodies and commit such frauds and at the same time the penalty levied is so meager that the firms continuously repeat financial frauds. 3. What do you think about this situation and why do you think it?

This should not refer to things like if you thought it was a good or a bad article, or whether or not it was well written, or influential. This should refer to the content of the article. What do you think? You must provide reasons for what you think. According to me financial fraud is one of the burning ethical problems we are facing. With the society being corrupt firms keep on rigging their accounts to show a positive profit and loss and a balance of payments. This is another way their share prices keep on rising and innocent investors are duped to purchase their shares.

There is an immediate necessity to tackle such ethical issue as it results in many people losing their jobs and also their entire savings. Hence, stringent laws must be enforced and such corrupt individuals should be severely punished so that others do not commit such frauds. This article informs us about President Obama’s concerns about this burning ethical issue and the need to curb it. Works cited: Wyatt, Edward. “Obama urges tougher laws on financial fraud”. The New York Times. 24 Jan. 2012. Web. 28 Jan. 2012.