University of Puerto Rico

Rio Piedras Campus

School of Business Administration
Department of Finance

FINA 3107 Short Essay

Instructions

1. Read chapter 16 in your textbook, Financial Markets and Institutions.

2. Go to www.scu.edu/ethics/practicing/decision/framework.html and read the article A
Framework for Thinking Ethically.
3. Choose one of the three areas of conflict of interest mentioned in the textbook chapter:
• Underwriting and Research in Investment Banking
• Auditing and Consulting in Accounting Firms
• Credit Assessment and Consulting in Credit-Rating Agencies
4. Write a short essay where you will analyze how to solve the conflict of interest you chose
according to each of the Five Sources of Ethical Standards mentioned in the article A Framework
for Thinking Ethically:
• The Utilitarian Approach
• The Rights Approach
• The Fairness or Justice Approach
• The Common Good Approach
• The Virtue Approach
5. Your essay should consist of 7 paragraphs and include :
a. A cover sheet with your name, student number, course section, faculty, and major.
b. An introductory paragraph explaining what is conflict of interest, why it is an ethical
issue, and a brief explanation of the area of conflict of interest chosen for the essay.
c. One paragraph for each of the standards mentioned in the article explaining how would
you apply the standard to analyze the chosen area of conflict of interest and proposing a
possible solution to the conflict according to the ethical standard (total of 5 paragraphs).
d. A concluding paragraph stating why you think it is important to use an ethical
framework to base business decisions.