The Film Wall Street Directed by Oliver Stone - Movie Review Example

 Representation of organizations: Wall Street Introduction: The film “Wall Street” deals with the underhand dealings that are a part of the financial world as played out through the stock markets on Wall Street. Directed by Oliver Stone and starring Charlie Sheen and Michael Douglas, the film portrays the shrewd machinations that propel money into the hands of a few unscrupulous men with “ninety percent of the American public out there with little or no net worth.” (Gordon Gecko in Wall Street). The major issues raised by this film are the ruthless and exploitative aspects of business that is founded upon greed and profit maximization, where social roles and motivational aspects are also fashioned by greed and the changed concept of the American dream. Summary of the story: “Wall Street” is the story of Bud Fox, a young, ambitious stockbroker who idolizes Gordon Gecko, a ruthless, corporate raider engaged in the business of wheeling and dealing on Wall Street. Fox has been raised to be an honest, ethical person by his blue collar worker father, but is anxious to make money in stock brokering. Through sheer persistence, Fox manages to worn his way into Gecko’s inner circle and is given a chance to prove his worth. Desperate to make an impact when Gecko remains unimpressed by the stocks offered by Fox, the young man provides the information about his father’s company that was given to him in confidence. He tells Gecko about an out of court settlement that had been reached and was likely to push the values of stocks of the company high when the news was released. This finally grabs Gecko’s attention and Fox becomes a part of Gecko’s elite inner circle. The film details the progressive deterioration of the young man’s sense of ethics, as his greed overpowers him. Finally, it is only after the occurrence of a personal tragedy that Fox realizes just how unethical Gecko is and destroys his mentor using means as underhand as his previous activities in the stock market. Analysis of workplace issues raised in the film: Champoux (1999:206), points out that “film enhances the learning process in ways unavailable in other media.” In dealing with the issues related to corporate greed and exploitative organizations, the film Wall Street illustrates the new American dream that is centered upon the acquisition of wealth, as exemplified in the character of Gordon Gecko. Boozer (1997) has highlighted the differing perceptions about the American dream that have occurred over the years through a comparison of the characters of Gecko and the Great Gatsby, in order to demonstrate how the original American dream of owning a nice house and raising a family has yielded to a new concept wherein attaining wealth and becoming a ruthless business tycoon epitomizes corporate success. The young Bud Fox in Wall Street idolizes Gordon Gecko for the size of his pocket book. The conflict between the two father-figures, Carl Fox and Gordon Gecko represent the conflict between the old and new American dreams respectively. Bud Fox’s belief that “there’s no nobility in poverty” as opposed to Carl Fox’s view that a man’s success is not be measured by the “size of his wallet” further highlights the disparity in the underlying beliefs that condition the changed American dream where “what’s worth doing is worth doing for money” (Gecko in Wall Street). Organizational identity: According to Albert and Whetten (1985) organizational identity is that aspect of an organization that is enduring and distinctive, comprising the beliefs and values that are shared by the top managers and at the individual level; it is a representation of the cognitive image held by a member of the organization. This has been distinguished through research as being distinct from organizational image which is the external representation of the organization to outsiders (Dutton et al, 1994). As Ashforth and Mael (1989) have pointed out, member identity and organizational identity are closely linked and Gioia observes that the concept of organizational identity “develop[s] over time in interaction with internal and external parties.” (Gioia, 1998:45). In the film Wall Street, the changing identity of Bud Fox is a central aspect of the film, wherein the beliefs and value systems of Gecko’s circle slowly begin to override the beliefs he has been raised with. It is the interaction between the managers and the stakeholders of a firm that fashions its organizational identity, it is management action that creates the desired image among stockholders.(Elsbach and Sutton, 1992). The film Wall Street represents that corporate identity so defined is inextricably a function of the financial worth of a Company. Corporate ownership versus control: Demsetz and Lehn (1985) have argued that the actual structure of corporate ownership within a firm varies in a manner that is in step with value maximization. They undertook a study of 511 U.S. corporations and found that firm size and instability as far as profit rates are concerned are significant factors in determining ownership. Large financial institutions have a diffused ownership structure wherein those purportedly in control of the organizations in terms of ownership may not necessarily be in a position to exercise control as far as corporate decisions are concerned. The diffused structure of ownership in large publicly traded organizations has also been corroborated by Fama and Jensen (1983) who have also pointed out that in such firms, value maximization and the accumulation of profits drives its identity, ideology and functioning style. The film Wall Street amply demonstrates that the bottom line for publicly traded corporations is profit maximization while individual investors seek to exploit weaknesses in corporate decisions through stock speculation. The perception of success and the images of corporate worth are conditioned by wealth, for example Gecko is the epitome of a man who spells success through the wealth he has accumulated despite the ruthless and exploitative methods he uses to prey upon firms and exploit them because “they’re wreckable”. Real control therefore resides with those who control the monies – investors like Gecko – who wield the actual power in determining the position of a firm on the stock exchange. Fama’s(1965) Efficient Market hypothesis postulates that stocks already have an intrinsic value in the market, however Higgins (1992) points out how the markets respond to new information like piranhas pouncing upon fresh meat, thereby highlighting the value of insider information in playing the stock market. The corporation has a legal status as a person and this limits the liability of directors, which has been deemed beneficial for the improved efficiency of the securities markets (Ramsey and Noakes 2001:254). However, the facility that exists for publicly traded corporations to sell stocks to outside investor(s) results in stock speculation that has bred stock market crashes, as greedy individuals use the cover of the corporation to trade shares and make profits while riding on the wave of market speculation. Therefore corporate behavior is driven by greed and the real system of controls exists with those who are able to speculate successfully in stocks of publicly traded firms. The dichotomy between ownership and control is highlighted often in the film Wall Street. For example, the character of Gordon Gecko points out “Today, management has no stake in the company! All together these men sitting here [Teldar’s vice presidents] own less than three percent of the Company.” Profit maximization drives corporate behavior, and ruthless tycoons such as Gecko represent the new image of success. Ethical aspects: Since directors’ liability for losses of a corporation are limited, it leaves room for unethical conduct that is motivated by sheer greed for profit, since that is the ultimate aim and objective of business. According to Mangan (2006:A14), greed is the cause of most corporate scandals today, such as Enron (McLean, 2001), WorldCom, HIH (Saville, 2003), Arthur Anderson and Tyco- cases of the ‘Breach of Trust’. She has highlighted the views of Rakesh Khurana, an associate professor of organizational behavior at Harvard, who has pointed out that “an important theory of business is maximizing profits”(Mangan, 2006:A14), therefore this can be seen to only fuel the greed for profits that drives the behavior of corporate executives. In its conclusion, the film Wall Street illustrates how greed ultimately leads to destruction and unethical decision making can destroy a company’s integrity and reputation in the marketplace. This is shown through the transformation of the character of Bud Fox when he is finally faced with a personal tragedy that shakes him up and makes him question who he really is. It is at this time that the core values taught to him by his father take precedence over the lessons in greed that have been taught by Gecko. As articulated by Colson (1989:67), “societies are tragically vulnerable when the men and women who compose them lack character”. The spate of corporate scandals has only served to highlight the need for ethical conduct of corporate employees and executives. As articulated by John Fernandes, the president of an association of business schools, the question of maximizing profits by a business is “not at any cost. A company’s reputation is hard earned and easily lost.” (Mangan, 2006:A14) Motivation and human behavior in the workplace: The film Wall Street also offers valuable insight into motivational factors conditioning employee behavior. The film promotes the idea that greed is acceptable motivation for corporate employees, since the objective of business is after all profit making, but motivation is essential to accomplish any task (Hannagan, p 314). Behavior of employees in the workplace can be an important indication of how they wish to be perceived. (Linstead, Fulop and Lilley, 2004:308-310). Management theorists have argued that human behavior in the workplace is conditioned upon the anticipated reactions of others (Mead 1934). Goffman (1959:19) employs a dramaturgical perspective where people are like actors on a stage, wearing an outer mask that represents their conception of what they “would like to be.” Individuals enter into a social interaction with certain perceptions and beliefs about their own selves and what they are, however in the workplace or social situations, they assess the situational characteristics, the roles and social rules within which they will have to interact and on this basis they design desired identity images that will help to preserve or enhance their own self esteem in that situation. (Leary 1983). This social identity forms a crucial part of the self concept of an individual within a particular group or organization. (Ashforth and Mael, 1989). Therefore, on this basis, individuals are motivated by those aspects that they believe will contribute towards enhancing their own self worth or self esteem within the particular group they have to operate in. The film Wall Street demonstrates that even social situations revolve around discussions of money and its visible, outwards symbols are vital to gain self respect among the elite circles that people like Gecko move around in. In his article titled “One more time: How do you motivate employees?” Herzberg argued that “employees were more likely to be motivated by factors such as achievement and the work itself rather than simply money (Redman and Wilkinson, 2001:101). However, in the film Wall Street, greed is the underlying basis of everything – as stated by the character Gordon Gecko, “Greed is good.” The greed of the employees for wealth is often the factor that is used by employers such as Gecko to motivate their employees and prey upon the talent, skill and hard work of their subordinates, by pushing them to excesses without compensating them adequately. The underlying implication is that garnering wealth involves hard work and the sacrifice of morals, which may not necessarily merit fair or due consideration from employers. Member of organizations ethnic minority groups were poorly represented as they played roles of menial or janitorial work e.g. drivers, cleaners, secretaries etc. As increasing numbers of organizations are beginning to recognize that there is a very strong business and competitive case for a diverse workforce as a result of the diverse ideas, approaches and values such a system attracts. Patriarchy and male hegemony: In the film Wall Street, women are not well represented among stockbrokers. As also pointed out in the proposals on diversity, women represent 11.2% of the corporate workforce, with men still dominating earnings rates (www.fcc.gov:44). Several researchers have pointed out the male hegemony of American society (Theberge 1984; Bray 1993) where systems of inequality and exclusion of women exist in order to meet the needs and desires of the dominant male group and to perpetuate the system of patriarchy. Sage 1990:17) defines such hegemony as ...”….a systematic engineering of mass consent to the established order.” Wealthy socialites are a large part of the financial industry, however the activity of women is primarily restricted to social situations while organizational identity within financial circles is primarily male. The character of a snobbish, gold digger played by Daryl Hannah in the film is a notable example of the greed for wealth that also drives women -however, these women are involved in the industry on a peripheral basis, playing with money earned by their rich husbands/boyfriends and with their power restricted within the sphere of the class ceiling. Some evidence of change could be found for on the executive seats at the Annual Meeting. However, as Preda (2005) has pointed out, economic sociologists argue that financial markets should be analyzed as intermediary groups and social networks operating on uncertainty, where alliances and cooperation is short lived and dependent upon the volatility of the markets. This is also the reason for the undermining of the status ascribed to women in the industry, since they are regarded as unethical and power hungry, yet male dependent. Conclusion: On the basis of the above, it may be concluded that Wall Street represents the uncertainty of stock speculations; however it epitomizes the new American dream which is centered upon corporate wealth, resulting in a ruthless exploitative environment within which individuals struggle to survive. The film also highlights the low representation of women in the industry and the predominantly patriarchal nature of Wall Street. The film also highlights in its conclusion, the inevitable destruction that results from materialistic, self serving goals in organizations and provides food for thought on the need for the introduction of ethical standards in the functioning of corporations. Bibliography * Albert, S., & Whetten, D. A. 1985. Organizational identity. IN L. L. Cummings & B. M. Staw (Eds.), Research in organizational behavior, vol. 8: 263-295. Greenwich, CT: JAI Press * Ashforth, B. E., & Mael, F. 1989. Social identity theory and the organization. Academy of Management Review, 14: 20-39. * Boozer, Jack Jr, 1997. “Wall Street: The commodification of perception: the films of Oliver Stone.” (Donald Kunz edn) London: Scarecrow * Bray, C. (1983). Sport, capitalism, and patriarchy. Canadian Women's Studies, 3, 11 - 13. * Champoux, J.E., 1999. “Film as a teaching resource.” Journal of management Inquiry, 8(2): 206-217. * Colson, Chuck, 1989. “Against the Night” Michigan: Servant publications * Demsetz, Harold and Lahn, Kenneth, 1985. “The structure of corporate ownership: Causes and consequences” The Journal of Political Economy” 93(6):1155-1177 * Dutton, I. E., Dukerich, I. M. and Harquail, C. V. 1994. Organizational images and member identification. Administrative Science Quarterly, 39: 239-263. * Elsbach, K. D., & Sutton, R. 1. 1992. Acquiring organizational legitimacy through illegitimate actions: A marriage of institutional and impression management theories. Academy of Management Journal, 35: 699 -738. * Fama, Eugene F. (1965). “Random walks in stock market prices”. Financial Analysts Journal. September/October 1965. Reprinted 1995. * Fama, Eugene F and Jensen, Michael, C, 1983. “the separation of ownership and control.” Journal of Law and Economics, 26: 301-325. * Gioia, D. A. 1998. The identity of organizations. IN D. A. Whetten & P. C. Godfrey (Eds.), Identity in organizations. Building theory through conversations. 40-79. Thousand Oaks, CA: Sage. * Goffman, E. 1959. The presentation of self in everyday life. New York: Anchor Books. * Hannagan, T. (2002) Management: Concepts and Practices (3rd edn.). London: Prentice Hall * Higgins, Robert. (1992). “Analysis for Financial Management” McGraw Hill. * Leary, M. R. 1983. “Understanding social anxiety. Social personality, and clinical perspectives”. CA: Sage. * Mangan Katherine, 2006. “Are business schools creating a generation of greedy managers concerned with nothing but personal gain?” The Chronicle of Higher Education, 52(42): A14 [online] available at: http://chronicle.com/free/v52/i42/42a01401.htm * McLean. Bethany, 2001 Is Enron overpriced? [online] available at: http://money.cnn.com/2006/01/13/news/companies/enronoriginal_fortune/index.htm * Mead, G. H. 1934. “Mind. self, and society”. Chicago: University of Chicago Press. * Preda, Alex, 2005. “Legitimacy and status groups in financial markets” The British Journal of Sociology, 56(3): 451 * Ramsay IM and Noakes DB, 2001. “Piercing the corporate veil in Australia.” 19 Company and Securities law Journal 250:254 * Redman, T and Wilkinson, A, 2001. “Contemporary Human resource Management” Prentice Hall * Sage, G. H. (1990). “Power and ideology in American sport”. Champaign, IL: Human Kinetics Books. * Saville, Margot, 2003. HIH: The inside story of Australia’s biggest collapse [online] available at: www.smh.com.au/articles/2003/03/14/1047583693489.html * Theberge, N. (1984). :Joining social theory to social action: Some Marxist principles.” Arena Review, 8: 11-19. * Best Practice Report [online] available at: www.fcc.gov/DiversityFAC/040614/recommend/BestPracticesReport.doc * US Department of Commerce: Minority Business Development Agency, “Minority Purchasing Power, 2000 – 2045.[online] available at: http://www.mbda.gov/Emerging_Markets/Purchasing Read More