- Information
- AI Chat
Was this document helpful?
Discussion on Harry Markham’s loyalty dilemma
Course: Introduction to Human Psychology (PSYC 1111)
547 Documents
Students shared 547 documents in this course
University: University of the People
Was this document helpful?
Discussion on Harry Markham’s loyalty dilemma
Harry Markham, who graduated Master of Finance in 2004 in a top business school in the United
States, had worked for a firm called Investment Consulting Associates (ICA) as an investment
advisor. The main mission of the ICA was to give investment advice to pension funds. While
working at the firm, he gradually realized that the public sector pension fund viabilities were
undervalued, which lead him to the dilemma of reporting it or not, or he had to give advice for
state treasurers and boards of trustees using those wrong numbers.
If he reported it, he and his firm would be fired. But as an investment advisor, Markham had a
responsibility to help plan sponsors to make good investment decisions. Moreover, Markham had
to attest to his compliance with Code of Ethics and Standards of Professional Conduct and he
might not make any misrepresentations in investment analysis recommendations. Now, he was in
between his firm and the investors who needed his advices. And he had to take his side before
the conference presentation. He had duties to his employers which was loyalty, additional
compensation arrangement, responsibility of supervisors. And he also had duties to his clients
(loyalty, prudence and care, fair dealing…). What should his decision be? Loyalty to his firm or
loyalty to his clients?
To solve this situation, critical thinking must be use. Prom my point of view, some question
should be used to understand the situation, analyze data and draw conclusion (College success,
2015).
Firstly, what was the problem about? The problem was about Markham’s dilemma in choosing
sides, his employers or his clients when he realized there was a mistake in accounting data of his
firm which undervalued the reliabilities of the public sector pension fund. He then hesitated
between telling the truth or not.