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Malaysia’s 1MDB Fund Scandal Spreads to U.A.E. WSJ 9-9-15 Instructor Notes & Suggested Discussion Questions Article: Malaysia’s 1MDB Fund Scandal Spreads to U.A.E. by Bradley Hope & Tom Wright, Wall Street Journal, September 9, 2015 Summary: The 1MDB, a Malaysian economic development fund set up in 2009 by Malaysian prime minister Najib Razak continues to be the focus of a corruption scandal as a United Arab Emirates state investment bank has reported more than a billion dollars missing from the fund via a payment claimed to have been made that was never received. In another ongoing scandal, Malaysian officials are investigating the transfer of hundreds of millions of dollars into the prime minister’s private bank accounts through organizations associated with 1MDB. Prime Minister Najib has claimed innocence of any wrong doing including taking money for personal gain. Honorable Topics: 

Ethical leadership, consequences of misappropriating funds, personal and professional rights and duties, ethical business practices.

Suggested Discussion Questions: Adapted from Ethical Decision Action Model Abbreviated (EDAM-A) 1. Who are the stakeholders in this issue and what are their positions? 2. What is your “gut” feeling about how this issue should be resolved? 3. Use the ethical lenses (e.g., utilitarian, deontological, and virtue) to evaluate one or more courses of action. 4. What ethical responsibility does the U.A.E. bank have to the stakeholder in this case?

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