Home > Free Essays > Business > Case Study > Morgan Stanley Investment Company’s Ethical Challenges

Morgan Stanley Investment Company’s Ethical Challenges Essay

Exclusively available on IvyPanda Available only on IvyPanda
Updated: Nov 2nd, 2021

Introduction

Ethical approach in business is too significant for developing global chain companies with strong competencies and huge investments. The world of financiers looks for the better establishments or corporations for their money. This means that all constituent parts serving as the guarantees should be adhered to. Among them are two main ways of cooperation for global corporations: with governments and local customers. In such direction the body of every global enterprise can be sustainable in trade and legal fields of interaction.

MS background information

Morgan Stanley is one of the main American global banking investment companies which provides its current and potential customers with financial services worldwide, so that to follow the best standards in promoting its products and services due to three main directions of the company’s activity, namely: Institutional Securities, Global Wealth Management Group, and Asset Management. (Google Finance 2009) Talking about the company’s background it is known that it was founded by J. P. Morgan & Co. for the purpose of making business in its retail sector for banks and other financial establishments. (Morgan Stanley 1)

Then his grandson Henry S. Morgan accompanied with Harold Stanley made an idea of the company’s main goals and qualification and founded the well-known at present time company which counts its history from the date of September 16, 1935. (Morgan Stanley 2)

Moreover, the company strived to achieve its popularity and gained this aim in the year 1986. From this time up to the year 1997 the company encompassed few companies in order to make its influence on the financial world rather grave such as: Dean Witter and Discover Card Divisions. (Stockbroker 2009) At the present times Morgan Stanley has already bought Smith Barney and it is now represented as Morgan Stanley Smith Barney (Morgan Stanley 3) Multiple successful attempts to make corporation’s credibility and ability to expand new areas of impact made Morgan Stanley the brand for business circles with high stated challenges and possibilities.

Actually, the successful management from the very beginning of the company and its no less successful implementation of actions and procedure on markets nowadays are the stimuli for the individual as well as institutional clients to make their proof in the company. A general view of what the company proposes to its customers includes the following points:

Morgan Stanley’s products and services include underwritten public offerings of securities, mergers and acquisitions and other financial advisory services, securities sales and trading, research, consumer credit and investment, asset management, and consulting services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals around the world. (Morgan Stanley 1).

Statistics

The data of economic potentials and growth on the whole display that the company’s ability to deal with complex financial issues on global markets is proved by the facts which state that, for example, in the aggregate estimation the Morgan Stanley had in the year 2006, November 30 “assets under management (“AUM”) of more than $690 billion for these and other clients.” (Morgan Stanley 2) This fact needs the official statistics for a wider analysis. Considering the date of June 12,, 2009 Morgan Stanley has the following indexes provided by ‘Capital IQ’:

In accordance with multiple sources clients of Morgan Stanley can be assured in the stable and huge amounts of probable dividends and splits, especially for shareholders and those investors who are intended to have stakes in the company. The perspective of such collaboration seems rather attractive when analyzing the data as of this sort of the company’s activity.

In last month of 2008 when the economic crisis drew to a head many large corporations and global enterprises announced about internal and external cut in the prevailed fields of activities along with the staff reorganization on the way of its reduction. This happened to such giants as AIG Group, General Motors, Citigroup etc. The point is that when the majority of market players suffer from crisis effects due to the reduction of buying power within population, the rest of financial structures are able to earn extra profits because of global economic instability and plummeting of exchange rates or, as a result, price surge.

Being the bank holding company Morgan Stanley notwithstanding several collapses in the world economic and financial arenas urges to further provide best standards of services. This along with the rationality of the board of directors headquartered in New York and shareholders’ perpetual activity helps the company obtain more direct participants and customers of various ranges in order to reach the standpoints of Morgan Stanley’s strategical goals. Furthermore, the current stock price is 27.480.62 (2.21%). (Yahoo-Finance 2009)

Perspectives for the future

The organization is still provides spread of its activity in Asian region, so that to cover the countries of the Philippines and those being “Asian Tigers”. In other words, the Asian direction is one of the main standpoints for the future elaboration. Also, the company serves to be the Financial Advisor with the long-term run point on the character of investment, so the future of the company coincides somehow with the hopes of its shareholders, investors and customers.

The further actions of Morgan Stanley touch upon the three main divisions, which were mentioned above. Regarding to the institutional securities the company’s points for future three main responsibilities for clients are applied to: “Long-term health care insurance; Life insurance; Disability insurance.” (MS Plan for Future sec. 1:6) Speaking about asset management the company assures customers in further steps of improving “retitling your assets; removing assets from your estate through an annual gifting program; utilizing life insurance as a wealth replacement vehicle.” (MS Plan for Future sec. 1:7)

Such main programs of the company as “Life View” and “Life View Plus” support clients in strategic outlook on financial objectives and goals which are incorporated in wealth management approach of Morgan Stanley, “offering the flexibility and power needed to create a customized strategy.” (MS Plan for Future sec. 1:8)

The corporate culture of Morgan Stanley is connected with, first of all, the ability to learn as a vital skill. The current policy in structuring of employees is maintained in the extent of professionalism, team-work factor and team-building prospects. Being one of the multicultural and multinational corporations the board of directors and the management team provides the policy of internal relationships based on trust and tolerance.

Communication is a core aspect while promoting the services in the company. Various training programs tend to develop a higher level of experience and qualification within the personnel. Nevertheless, the company strives to fulfill the professional objectives of its employees in terms of increase of the “diversity and work-life initiatives.” (MS official site 2009) This approach is developed within the organization and leads to perfect results of work in all subsidiaries of the company. “Open and inclusive” (MS official site 2009) direction in evaluation of Morgan Stanley’s corporate culture pretend to be the core elements while elaborating and supporting the diversity trend in internal as well as external affairs as for the staff prospects.

Moreover, the ethical side of the management process is protected in Morgan Stanley, like in other global companies, by “the Foreign Corrupt Practices Act in 1977 which required that each publicly traded company establish and maintain an effective internal control system to ensure management’s responsibilities and actions could be pinpointed.” (Mihalek 2005) Hence, the ethical approach is vital for better business among global multicultural corporations because of great many factors concerning sex, race, religion and other aspects.

Conclusion

Thus, Morgan Stanley is the company which provides multiple financial products and services worldwide following the strict policy in terms of internal and external development, so that to approve customers’ hopes in the long run. The corporation strives to achieve the best data in all important fields of its financial and managerial strategies.

Works cited

Google-Finance. Web.

Hill, Charles W. L., Jones, Gareth R. Strategic management: an integrated approach. Ed. 8. Houghton Mifflin, 2007.

Morgan Stanley. 2007. Web.

Morgan Stanley Background Information. Web.

Mihalek, Paul H. The tone at the top and ethical conduct connection. Strategic Finance. 2005.

MS Plan for Future. Web.

Official site of Morgan Stanley. 2009. Web.

Yahoo-Finance. Web.

This essay on Morgan Stanley Investment Company’s Ethical Challenges was written and submitted by your fellow student. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.
Removal Request
If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda.
Request the removal

Need a custom Essay sample written from scratch by
professional specifically for you?

801 certified writers online

Cite This paper
Select a referencing style:

Reference

IvyPanda. (2021, November 2). Morgan Stanley Investment Company's Ethical Challenges. https://ivypanda.com/essays/morgan-stanley-investment-companys-ethical-challenges/

Reference

IvyPanda. (2021, November 2). Morgan Stanley Investment Company's Ethical Challenges. Retrieved from https://ivypanda.com/essays/morgan-stanley-investment-companys-ethical-challenges/

Work Cited

"Morgan Stanley Investment Company's Ethical Challenges." IvyPanda, 2 Nov. 2021, ivypanda.com/essays/morgan-stanley-investment-companys-ethical-challenges/.

1. IvyPanda. "Morgan Stanley Investment Company's Ethical Challenges." November 2, 2021. https://ivypanda.com/essays/morgan-stanley-investment-companys-ethical-challenges/.


Bibliography


IvyPanda. "Morgan Stanley Investment Company's Ethical Challenges." November 2, 2021. https://ivypanda.com/essays/morgan-stanley-investment-companys-ethical-challenges/.

References

IvyPanda. 2021. "Morgan Stanley Investment Company's Ethical Challenges." November 2, 2021. https://ivypanda.com/essays/morgan-stanley-investment-companys-ethical-challenges/.

References

IvyPanda. (2021) 'Morgan Stanley Investment Company's Ethical Challenges'. 2 November.

Powered by CiteTotal, free essay bibliography maker
More related papers