Business Ethics

Ethical Themes analysis of ‘The Big Short’

(Ethical Themes written analysis is an assessment of 1200-1500 words, due: Nov. 28, 2020. Your submission should use theories and ethical analysis skills from the module to consider some of the following questions)

The Big Short, released in 2015, is a Hollywood drama which provides shocking insight into the 2008 financial crash and the handful of individuals who not only saw it coming, but profited immensely from it. It follows the discovery of the fragility of the market by a hedge fund manager, and his creation of the infamous credit default swap, as well as those who stumbled on what he had discovered and, as a result, bet against the market. These stories are told in the context of the apparently thriving US financial system that is in fact cracking beneath the surface, which is gradually revealed during film, and culminates in the widespread financial devastation of the 2008 crash. The film both implicitly and explicitly deals with a number of ethical dilemmas and issues, such as the amorality of Wall Street and the world of finance, the human consequences of corporate and individual greed and the consequences of regulatory failure, as well as that of other bodies, for example ratings agencies

This film provides an interesting opportunity to discuss the issue of who holds ultimate responsibility for ensuring proper corporate governance controls and ethical organizational cultures – e.g., government, industry associations, individual businesses, senior managers, investors. This can then be followed by an examination of the moral approach of differing characters, including what they are each trying to achieve, and how they contribute to a culture of amorality and complicity. Is it ok to act amorally (or even immorally) in an amoral system? Is it ethical to benefit rom the collapse of many companies, a recession and widespread redundancies? Why does the financial industry appear to breed frequent cases of corruption, embezzlement and other unethical behaviour?

Finally, could such a set of actions and circumstances as those that led to the 2008 crash occur again? What checks and balances would need to be instigated to prevent it from happening again? Should filmmakers bear an unethical responsibility for glorifying often villainous Wall Street figures e.g. The Wolf of Wall Street?