For this essay, you must:

• Read the assigned case in Beauchamp. Briefly describe the problem it presents

• Come up with a solution to the ethical problem presented in the case, and use the Categorical Imperative to argue in support of your solution.

• Come up with one good objection and then defend your argument against it.

The following rules apply to all short case analysis essays:

Length: 750 words minimum

Format: 1-inch margins, in a font no smaller than 12 point Times New Roman, double-spaced, with page numbers on the bottom right of each page. No cover sheet is required for these essays. Put your name and other relevant identifying information at the top of the first page.

Sources: All essays submitted in this class must include appropriate source citations and a complete list of sources cited; your list of sources cited is not included in your word-count requirement. You may use APA, MLA, or Chicago as the style guide – check with the instructor for his/her preference.

WHY BAD THINGS ARE DONE BY GOOD PEOPLE

COMMISSIONS ON SALES AT BROCK MASON BROKERAGE by Tom L

Beauchamp

James Tithe is manager of a large branch office of a major Midwestern brokerage firm, Brock

Mason Farre Titmouse. He now manages 40 brokers in his office. Mr. Tithe used to work for

E. F Hutton as a broker and assistant manager, but when that firm merged with Shearson-

Lehman/American Express, he disliked his new manager and left for Brock Mason. He knew

the new firm to be aggressive and interested primarily in limited partnerships and fully

margined common stock. He liked the new challenge. At Hutton his clients had been

predominantly interested in unit investment trusts and municipal bonds, which he found

boring and routine forms of investment. He also knew that commissions are higher on the

array of products he was hired to sell at Brock Mason.

Although bored at Hutton, James had been comfortable with the complete discretion the

firm gave him to recommend a range of investments to his clients. He had been free to consult

at length with his clients, and then free to sell what seemed most appropriate in light of their

objectives. Hutton of course skillfully taught its brokers to be salespersons, to avoid lengthy

phone calls, and to flatter clients who prided themselves on making their own decisions; but

the firm also did not discourage the broker from recommending a wide variety of products

including U.S. government bills, notes, and bonds, which averaged only a $75 commission on

a $10,000 bond.