Inflating Value Essay Example | Topics and Well Written Essays - 750 words

Inflating Value - Essay ExampleOne ethical issue that prevails in Jacks case is the conflict of interest regarding the moral uprightness in professional undertakings. Apparently, at that place are conflicting values as to whether Jack should rank professional integrity, or whether he should prioritize the interests of his superiors. Apparently, changing the peer group would undervalue ABC Lighting and increases the potential of upsetting superiors, especially the managing theatre director and the client hence compromising Jacks prospects of being touched by the investment strand after graduation. On the contrary, knowingly inflating the value of the company constitutes the lack of integrity in duty commitance. In essence, conflicts of interest emerge whenever employees feel obliged to please and respect a rigid chain of overshadow within an organization. When under conflicts of interest, employees are expected to uphold the ethical principle of integrity.Apparently, the investm ent bank has an super strict chain of command. In such organizational cultures, subordinate employees can only report to their contiguous superiors. Therefore, Jack should report the issue to David, his Associate. As a financial analyst, Jack is professionally obliged to perform his duties in an objective and accurate manner. Therefore, he should mention that to the best of his knowledge, the peer group selected for the valuation function by his Associate is not accurate, and that he is technically conflicted as to whether due diligence should be followed in selecting companies to form the right peer group.