Jp Morgan: Ethical Issues

Introduction:

JP Morgan is the largest Commercial and banking corporation, it was founded by JP Morgan in 1871. On 17th June, Gayane the Shipping Vessel owned by JP Morgan was given on the lease to MSC was on its way to Delaware Bay in between at the Philadelphia port, the United States Customs and Border Protection Seized the Cocaine of 20 tons From this Ship vessel. This basic audit assesses the ethical and business ramifications of this issue, drawing upon three hypothetical viewpoints to be specific Kantianism and Individualism. After assessing and dissecting a set Conclusion and recommendation is being made regarding ethical business practices.

Case Study:

The MSC Gayane is the Shipping vessel owned by JP Morgan and it was given on lease to Mediterranean Ship Company. On the night of 16th June, the Shipping Vessel Owned by JP Morgan MSC Gayane was on its Way to Delaware port, at the Philadelphia port inspection conducted by the US border and US customs, and during the inspection, customs officers climbed the ship and found out that, some of the containers were not properly sealed. The next morning some of the vessels were X-rayed by the Customs officers they found out the only cocaine in the not proper sealed vessels. There were about 39,525 pounds of cocaine which is nearly about 20 tons. This was the largest seizer of cocaine in US history. The amount of Cocaine cost was $1.3 billion, MSC Gayane was having more cocaine than the cocaine seized in West Africa between 2013 and 2016. MSC Gayane sailed many times under the Liberian flag which is based in West African countries. West Africa is the most popular route for drug dealers this shows the evidence of drug smuggling between West Africa and the US.

MSC Owned by Gianluigi and Rafaela Aponte was already having a bad history, There Shipping vessels were already being caught three times in drug trafficking. The first was in Philadelphia and the 2nd was in Italy. According to MSC, the Shipping Vessel was on its way to Europe until it was intercepted by the US customs at Philadelphia Port. The Route of MSC Gayane was Columbia, Peru, Panama, and Bahamas At first US border protection decided to seize only containers but later they Seized the whole Ship, and many of the ship's crew members were arrested for getting caught involved in this Drug trafficking. The Spokeswoman of the US Attorney of the Eastern District of Pennsylvania Told that Court was unable to confirm the owner of the ship so this case is currently sealed by the court.

There are lots of questions raised in this case, JP Morgan Decided not to give any information about this case to the media, their silence creates a lot of doubts about whether JP Morgan was involved in the drug trafficking or they were involved for the only profit of their company or MSC were involved in the drug trafficking. United States government is currently trying to solve this issue.

The ethical issues, in this case, will be Kantianism and utilitarianism.

Utilitarianism: it is the theory which decides what action is taken right or wrong depending on the consequences. Utilitarianism believes in making life better by increasing good things and decreasing the bad things this concludes in terms of business that “the decision taken should be in a manner that consequence of that decision is to maximize the happiness of others”. Utilitarianism uses cost-benefit analysis. But there is ambiguity in this case. How should measure happiness? Suppose in the company is paying less wage to the workers but they are still happy, So, in this case, the workers are happy about their wage but they are being less paid, There is the issue in this theory which is distributive justice.

Kantianism: According to Kant if Person's actions are through their desire or for the inclination than a person is morally wrong, So Kant Proposed the Principal Which is applied in Kantianism. First principle is “ All the decisions are made rationally with the consideration of everyone’s opinion”. 2nd is “To treat everyone rationally not use people for getting what you want”. The third one is “ The decision depends on the motive of the Organization”.

KantianismAccording to Kantianism, all the decisions should be made rationally with the involvement of everyone, thus Kantianism will ethically view JP Morgan. JP Morgan made a deal with one of the best shipping companies in this world, they thought the chances of getting involved in the drug bust will be very small. It will be irrational to blame JP Morgan for giving the Shipping vessel on the lease to MSC. In the Kantianism, there is another Imperative which states that “To treat everyone rationally not use people for getting what you want” JP Morgan Doesn’t Violate this Imperative as they were trying to do a Normal Business deal they were not trying to take advantage. There is 3rd Imperative in Kantianism which States that “the decision depends on the motive of the Organization”. JP Morgan Motivation was unbiased they thought there shipping vessel was used for an only business deals.

Utilitarianism views JP Morgan as unethical because they took no action in this case. Utilitarianism says that the consequences of the action should be made in a manner that the happiness of everyone should be maximum, JP Morgan only Owns the shipping vessel they are not responsible for Filling of the Containers and transporting it, But when the Organization gets involved in this type of drug burst, they should respond and clear and clear their name. JP Morgan didn’t do that, this can Shareholders and people dissatisfied.

I think JP Morgan didn’t commit any by getting involved in the drug bust. They were just conducting business with one of the largest Shipping organizations. JP Morgan didn’t hire any crew members and they were not responsible for loading the containers of the Shipping Vessel, But they could have given a statement or could have talked about this issue. They could have talked to the shipping company that how should have they handled the shipping vessel.

Conclusion:

After considering two ethical issues, It can be Stated that JP Morgan didn’t do anything wrong. They just used their Shipping vessel for business purposes but they could have talked about this issue rather than being quit. Being silent on this issue could have given the doubt to shareholders and this could have affected the share price and company products.