1. Discuss the advantages and disadvantages of each decision that Elaine has made.

a. 1st decision Graphic, Inc. loan of $10 million. Graphco was a tobacco firm embroiled in litigation concerning the promotion of its products to children. Elaine based her decision by Moral Philosophies which refers to the specific principals or rules that people use to decide what is right or wrong (Ferrell, Fraedrich, Ferrell, Ninth Edition Business Ethics, p 153). The advantage to this decision is she did what she felt was morally acceptable, the disadvantage is she does not have their business and she has no reason to believe they would not pay the loan back and she would have made money for the bank if she accepted and approved the loan
The thought process was to get a potential 2 billion customers addicted to the product at a low price then when the time came to raise the price just a penny which could actually make millions of dollars. Dennis rejected the deal and the firm went with another company, losing money for the company and potentially allowed Dennis to work this account for years and possibly save enough for retirement.
c. UBC is losing a lot of business due to the standards that Elaine had written for the company and maybe some of the decisions she has made.

3. Discuss the Moral Philosophies that may be relevant to this situation
a. Teleology stipulates that acts are morally right or acceptable if they produce some desired result. Elaine could have made decisions on some of the loans discussed just to ensure the “end result” was a bottom line profit. That is what would make the different companies that were requesting money acceptable and in some situations morally right.
b. Egoism defines right or acceptable actions as those that maximize a particular persons self-Interest as defined by the individual. Elaine could have approved the loans that met the credit portion of the application, this would have probably been a good decision for her career since the bank would stand to gain a lot of money, especially the loans that were willing to pay above market