Marxwell Ethical Dilemma Discussion Questions

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1-Mr. Maxwell’s motivation to the change of contribution handling is motivated by the fact on
corporate investment account. When funds are pooled together and invested in one corporate
account, it will be able to attract high returns by increase in the interests on savings. More so,
having a corporate account improves the loan accessibility and amount for corporates since the
account makes high deposits and investments. He is also motivated by the fact that corporates
make double contributions of those of the employees in the mutual fund account, so he thought
of finding a way of investing in corporates first. On the other hand, having the money deposited
in personal investment account attracts lower interest since the amount invested is small thus the
change of investment to corporate investment account.
2-Yes, there is ethical dilemma since the employers are disadvantaging the employees in terms
of their contribution and investments. The employer’s first deposit the employer contributions in
their corporate investments account and gain it’s interest before each quarter where they will
then deposit to the employer-sponsored mutual funds account. Although, the employers give out
more contributions to the mutual funds account, it is not right for them to first invest in their
accounts before investing on the mutual funds account.
3-The employers will benefit. This is because, the funds are first invested in corporate accounts
before being deposited quarterly in mutual funds account. Therefore, with frequent and high
amount of funds in corporate accounts, the investment returns are high and loan accessibility is
improved.
4-The employee’s will be injured. This is because the contributions of their funds are deposited
quarterly in the mutual accounts despite the fact that they give the contributions earlier. This
results to low returns on investment and status of the account’s loan accessibility

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