Ethical Leadership case study

You are a trader who joined a large investment bank two years ago. Pat, one of your fellow traders, is well known on the Street for being a big risk taker and a big money maker for the firm. Consequently, he is popular among your firm's senior management. You see him at a party one night and notice him surreptitiously using cocaine several times. A few weeks later in the office, you notice that he seems exceptionally high-spirited and that his pupils are extremely dilated — you know that both are signs of drug use. You have already voiced your concerns to Bob, his managing director, and you are thinking of mentioning your latest observations to Bob, when Pat makes a particularly impressive killing in the market for your firm's own account. Bob jokes that he does not know how Pat does it, but he does not care. ‘‘However he is pulling this off, it’s great for the firm." You feel strongly that this is a problem and that it places your firm at risk. It is obvious to you that Bob will not do anything about this problem. Do you raise it further? How can you voice your values in this case?

1. Identify the ethical issue(s) in this scenario and the stakeholders involved;

2 Describe your possible courses of actions and the consequences of each one – and how does your Cognitive Moral Development influence these courses of action?

3. Describe how these actions would be influenced by looking through various theoretical lenses (consequentialist, deontological, virtue ethics); and

4 Explain how you personally would handle the situation and explain why.