Fight at the Investment Club Case

DESCRIPTION:

Lenn Width was the leader of a 26 member investment club called Golden Years Investment Club. He was the one who made the decisions of the group, some members would have said it was either “his way or the highway.” Width was named a “dazzling role model” for individual investors in Business Week. (Fight at the Investment Club, p. 1) One of the newest members of the group, David Korn, who was invited to the group by Width, decided to speak up and bring what his thoughts were about some of the stocks he thought the club should let go.

DIAGNOSIS:

When Korn decided to speak up and suggest the club sell the McDonald’s stock, saying it was a “stagnant” company, Width wasn’t too happy with that suggestion. It was made known throughout the case that it was either Width’s way or no way at all. When it came to a decision of buying a new stock, Width also had some sort of reason behind not buying the stock. The reason would that the new stock was either too risky, too expensive or too speculative. After Korn shared his first ideas, he came to realize they weren’t the best but it was a start. Since Width denied the suggestion to buying the stocks Korn mentioned, Korn wanted to study up on the club’s portfolio to see what good comparison’s he could gather for the group. The meetings resulted into an argument between Width and Korn. Width then decided to put together a petition calling for the club to split and start new, without Korn.

THEORY:

Throughout this case there were ethical and cultures factors that played major roles amongst the investment club. When Width decided to put together the petition to all in all get rid of Korn, he could have taken a more ethical route. Instead he decided to host a secret meeting with the club members who were for Width were invited to attend, and the other members who were more for Korn, were not invited. Ethics involves moral issues and choices and deal with the right and wrong behavior within an organization. (Luthans, 2011, p. 46) Width could have made a more ethical decision and set up a meeting with Korn to try and discuss their differences, when the problem was between them two and not the entire club. Having to make the club choose between a long term leader of the group and a new member was not a fair game.

Cultural theory was also part of this case. The dominant culture of the investment club is hard working loyalty to each member and the leaders and trying to maximize the clubs utility in keeping good investments