Question: mba ethics amp values covering a bank overdraft jon...
MBA - Ethics & Values
Covering a Bank Overdraft
Jon Corzine, CEO of MF Global, was accused by US government of breaking the law in 2015. The government charged him with “directing one of his managers, Edith O'Brien, to transfer $175 millions of customer money to cover a bank overdraft that threatened to sink the company. However, Corzine's lawyer claims his client "never directed Ms. O'Brien or anyone else regarding which account should be used to cure the overdrafts.” He added that his client did not explicitly asked O’Brien to do so nor he was informed of that specific transaction. Corzine’s lawyer explained that his client did not intend to use the money permanently, rather it was a temporarily transfer for a short period of time. O'Brien said that she had to do something to please her boss and rescue the company from falling down financially. She did not dispute the fact that Corzine never explicitly ordered her to take the funds from customer accounts. She admitted that she knew what she was doing was wrong, but she had no choice because customer accounts were "the only place where we had the $175 million" needed to cover the overdraft. MF Global has subsequently declared bankruptcy.
· What the factual issue in this case?
· Did Corzine act appropriately to save his company?
· How would you characterize his behavior ethically?
· Did O’Brien followed a managerial order or intentionally broke the law?
· Covering the overdraft is an internal transaction that no one should care about it - no?
· Is it ethical to use the money temporarily and return it later?
· What other choices did Corzine or O’Brien have?
· Is it a bad judgement or unethical behavior?