1.Discussion: 250 Words 2 responses (150 words each) 2.Case Study: 250 words (APA Format) 3. Journal Article: 450 Words ((Summary 150 Words and Discussion 300 Words) Discussion topic: why Goldman Sa

An article that was published by Albert Carr in the Harvard business review created ripples across the business community in which the author compared the business to the game of poker. In the article his hypothesis is that bluffing is just a form of game plan in businesses and one must be adept at this skill to accumulate more power and money. In addition, he believed that if there is no law forbidding it then it is not unethical. He further added to say that the person must not transcribe the set of business principles in their personal life because that would just end up causing psychological strain. Therefore, a smart individual would isolate the two facets and do what is right within the appropriate realm they are dealing in  (Carr, 1968).

Sparked by public anger - on April 16th, 2010 the Securities and Exchange Commission (SEC), filed a compliant against the Goldman Sachs and Fabrice Tourre companies for providing misleading information and deliberate omission of crucial information regarding the performance of subprime residential mortgage backed securities when the United States housing markets and securities were showing signs of distress. Following the court proceedings, the SEC released their statement according to which Goldman Sachs neither admitted nor denied the charges but agreed to pay a penalty of $550 million (United States Securities and Exchange Commission, 2010).

Based on the strategy that the Goldman Sachs implemented in improving their internal revenues with no regards of the repercussions that it would have on the recipients clearly establishes that the management firmly believed in the Albert Carr’s theory that has been aforementioned. They presented incomplete information which in the real world is basically falsifying information and depriving the customer base of the ability to take a fully informed decision.  They further believed that if there is no law forbidding it then it is not unethical – which is the prime reason behind having implemented a strategy that hid critical information. Although based on the “poker theory” the move made by Goldman Sachs is probably just a game strategy to fight the competition, that eventually led them towards a huge penalty that was the largest ever witnessed in the history of SEC (United States Securities and Exchange Commission, 2010).

Works Cited:

Carr, A. Z. (1968, January). Is Business Bluffing Ethical? Retrieved May 30, 2020, from Harvard Business Review: https://hbr.org/1968/01/is-business-bluffing-ethical

United States Securities and Exchange Commission. (2010, July 15). Goldman Sachs to Pay Record $550 Million to Settle SEC Charges Related to Subprime Mortgage CDO. Retrieved May 30, 2020, from USSEC: https://www.sec.gov/news/press/2010/2010-123.htm