Milo Is the Young, Likable, Optimistic, and Generous Son of a Prominent

Essay

Milo is the young, likable, optimistic, and generous son of a prominent public official. He has a master's degree in business and is the business partner of Kent and Lily in an oil drilling and exploration business. Milo also serves as a director on the board of the Corley Savings and Loan Association. While serving on the Corley Board, Milo votes to approve major loans to Kent and Lily without disclosing to the other directors that he is a business partner of Kent and Lily . Milo also personally arranges for a $900,000 line of credit from Corley for an oil drilling venture in which he is a partner with Kent . The drilling venture is unsuccessful and Kent and Lily both default on their loans to Corley , which then causes the S & L to become insolvent. Federal banking officials seize Corley and liquidate its assets to pay creditors and depositors. Because Corley is federally insured, tax money is also used to pay off depositors whose deposits are insured under federal programs. Corley shareholders lose their investment money. Was Milo's conduct as a director of Corley ethical? Analyze his conduct in light of the following ethical theories:
a. Intuitionism and the "Television Test."
b. Milton Friedman's ideas on corporate governance.
c. Deontological theories.
d. Rule utilitarianism.
e. Ethical relativism.