UNIVERSITY OF SARAJEVO

SCHOOL OF ECONOMICS AND BUSINESS SARAJEVO

FILM ANALYSIS: ETHICAL CHALLENGES

''ARBITRAGE''

Course: Business Ethics

Students: Džejlana Harbaš 76771
Faris Ibrahimpašić 76764
Melika Mundžić 76616
Vedran Omanović 76744
Vedad Tatić 76751
Teo Žigić 76777

Mentors: Prof. dr Jasna Kovačević

Prof. dr Fatima Mahmutćehajić
Ass. mr Berina Šahinović Hajrić

Sarajevo, May 2023

Table of Contents
1. INTRODUCTION....................................................................................................................1
2. ANALYSIS OF ROBERT MILLER.......................................................................................1
2.1. Utilitarianism........................................................................................................................2
2.2. Unethical leader....................................................................................................................3
3. ANALYSIS OF BROOKE MILLER.......................................................................................4
3.1. Consequential analysis and weighing interests.....................................................................4
4. ANALYSIS OF ELLEN MILLER...........................................................................................5
5. ANALYSIS OF DETECTIVE MICHAEL BRYER................................................................5
6. CONCLUSION........................................................................................................................6
References........................................................................................................................................7
 1. INTRODUCTION
The movie ''Arbitrage'' displays the cautionary tale of a man who had everything he wanted, and
how he begins to lose it all due to his flaws and bad judgement. Rober Miller, the central
character in this film, is a successful businessman who gets involved in a financial fraud scheme
as well as a car accident which get intertwined and then threaten to distroy his career and
personal life. Through the main character of Rober Miller, the movie explores many ethical
challenges faced by individuals in positions of power and how their decisions can greatly impact
not only their own lives, but also the lives of others.
The purpose of this paper is to delve deeper into the analysis of the ethical challenges presented
in ''Arbitrage'' and to explore how the film raises important questions about corporate
responsibility, unethical leaders, personal integrity, and the consequences of unethical behavior.
By analyzing the choices made by some of the characters in this movie and the moral dilemmas
that they face, we can gain insight into how complex decision-making can be in high-pressure
situations.
This paper is structured as follows. In the first part, we will analyze the central character – Rober
Miller – and his many unethical deeds. Afterwards, we cover the behavior of his daughter,
Brooke, and later his wife, Ellen. Next, we will focus on the character of Detective Michael
Bryer. Finally, we will conclude by discussing the implications of the film's message and its
relevance to contemporary discussions of corporate ethics.
The overall goal of this essay is to illustrate the value of ethical decision-making in business and
the necessity for those in positions of authority to take a larger perspective into account when
making decisions. We can better comprehend the complicated problems that emerge in the
corporate world and the significance of upholding integrity in the face of pressure and temptation
by analyzing the ethical dilemmas raised in "Arbitrage"

2. ANALYSIS OF ROBERT MILLER

The main character of “Arbitrage” is Robert Miller, a successful business tycoon and family
man. Everything seems to be going his way and he and his family seem happy and content with
the current chapters of their respectful lives. However, as it often appears to be, nothing is as it
seems.
The first instance where Robert’s morals are questioned is when we are shown that he has an
ongoing affair with an aspiring artist named Julie. He seems well adjusted to this lifestyle and is
shown casually leaving his whole family on his birthday party to spend time with his mistress. In
this instance, we can start by hypothetically arguing in Robert’s favor, saying that he is not
directly causing anybody pain since neither his wife nor his family are aware of this secret
relationship. Robert appears to see this behavior as completely sustainable and non-threatening
towards his family life.

1
2.1. Utilitarianism
A consequentialist ethical theory known as utilitarianism determines the morality of a course of
action by looking at the results or consequences it has. Utilitarianism's fundamental tenet is to
enhance the general happiness or well-being of all parties involved. (Hartman, et al., 2018)
This theory holds that a deed is morally right if it produces the greatest amount of happiness for
the largest number of people and that a deed is morally bad if it produces the reverse. According
to utilitarianism, a behavior's value is decided by its total impact on society rather than by the
individual performing it or their intentions.
Now, a question as old as time is presented to us: “Is it okay to keep doing someone wrong if
they are not aware of it?” If we argue in favor of this argument, we can say that if the wronged
person doesn’t feel the harm being done to them, that there is no harm at all. This is a mindset
commonly adopted by highly manipulative and sociopathic individuals, where Robert,
objectively, belongs. In his world of deception and lies, if a person is not aware of his schemes,
there is no harm being done and he is perfectly fine in continuing his harmful behavior and
reaping its benefits non-apologetically. Rober Miller displays many signs of ethical egoism. He
appears to believe he is not doing anything wrong, because all he does is for his own benefit
(Tilley, 2022). However, the main thing that Robert and individuals like himself don’t
understand is that they are still members of society. As much as they try to avoid that fact by
separating themselves from others, often by dedicating their lives to making large amounts of
money and finding above-average success in their business endeavors, they are still members of
the human race and are still only human. If we were to judge them according to utilitarianism, or
for the matter of fact, practically any other ethical ideology we would clearly see that they are
completely unethical human beings without morals. They are gods, but only in their own eyes.
Saying this, we still cannot consider Robert Miller to be without any morals or emotions. In the
movie, there are definitely moments where he is shown trying to do the right thing, and
sometimes even succeeding in doing so. He is also portrayed as a big philanthropist and if we
were to ignore the possible motives behind his charitable actions (such as trying to maintain
good publicity and reputation), we can say that he is actually bringing a fair amount of good to
the society by helping the ones that are in need. However, there still exists a significant ethical
problem within his philanthropy, to which we will be returning later.
Now, we must talk about the biggest ethical dilemma that Robert is faced with in “Arbitrage”.
The accidental death of his mistress by his hand. This event leaves Robert guilty with
involuntary manslaughter, which will land him in jail if he is to be convicted for it. For Robert,
getting convicted of a crime means losing everything that he has built over the years. It is
important to mention that he is already facing allegations related to fraud. When the accident
occurs, Robert immediately calls his acquaintance Jimmy, who appears to owe him a favor.
Immediately, he makes him an accomplice in a crime, endangering his life and freedom in order
to save himself. Because of this, Jimmy is faced with multiple hardships and ethical dilemmas of
his own throughout the movie.

2
This event gives us a great picture of the person that Robert Miller is. He is not evil when he
doesn’t have to be. He just draws the line further than a moral person would. Of course, this does
not excuse any of his actions, neither in the eyes of the viewers nor his family’s eyes. This
behavior of putting yourself and your own interests first, regardless of morals, is often seen in
business tycoons, CEOs, successful salesmen, etc. It arises from a mixture of narcissism and
entitlement which is then triggered by a highly competitive environment. When Robert Miller is
competing with his rivals, the rules are often broken and most of the moral values are thrown out
the window. This could possibly be considered okay, since they are all willingly playing that
game and are aware of its wild nature and the risks. However, they are not the only ones that are
hurt by this. Their workers, their families and sometimes totally unsuspecting people are hurt.
And badly so. Miller, of course, is confirmed to have broken many of these business rules later
on in the movie. This is the main reason why, even with all his charity works and philanthropy,
we cannot say that he is bringing good to the society.
If he is acquiring his wealth by deceiving and (by doing so) hurting other people and then giving
it away to people in need, we can’t say that he is helping anyone, he is just transferring pain from
one person to another.
At the end of the movie, we can see that Robert’s actions sometimes cannot be escaped, but also
that justice does not always come. In the conclusion of the ethical maze that Robert and other
characters were going through throughout the movie, Ellen (Robert’s wife) forces Robert to give
away all of his riches to charity by threatening to tell the truth to the police if he refuses to do so.
When Robert does what she asks of him, she is left with the illusion of doing the right thing, and
Robert gets away with his crimes and walks away a free man.
2.2. Unethical leader
In order to be a good leader, you must be an ethical leader; follow good and strong moral values,
lead by example, be responsible (Hassan, et al., 2023). One follows the other; while you can be
successful and unethical for a certain amount of time, the characteristics of a truly good leader
are ethical ones. Rober Miller is shown to be a very successful man. He is the CEO of his
company, so we assume that he is a good leader. However, when analyzing his behavior, it is
clear to see that Rober is a very unethical man, and an unethical leader. He puts his company and
his employees at risk for the sake of his benefit and monetary gain. The leader is acting out of
self-interest, and he justifies his actions by convincing himself that he is acting in the best
interests of his family and his company. Miller is a prime example of an unethical leader.
We could say that Robert Miller lost everything at the end and that, in some sense, justice was
served to him. However, if we said this, we would be forgetting about Julie and her family.
Because of Robert’s actions, a life was lost and a family was left in a lifetime of mourning
without ever getting even a little amount of closure. In one of the scenes Robert can even be seen
effortlessly lying to Julie’s mother at Julie’s funeral in order to make himself less suspicious.
Does a mother who has lost her child deserve less of a happy life than Robert Miller, a billionaire
who pursued his own (and on occasion, his family’s) interests at any cost and essentially bought
his innocence and freedom at the end? Of course not, but it’s the stories like this one that remind
3
us that we are living in a world that is far away from moral and that the human race has a lot of
work left to do.

3. ANALYSIS OF BROOKE MILLER

One of the supporting characters followed in this film is Brooke Miller, portrayed by Brit
Marling, who plays the role of Robert Miller's daughter. Initially depicted as a determined and
industrious professional, Brooke closely follows in her father's footsteps within the corporate
world. As the Chief Investment Officer in her father's company, she exhibits proficiency in her
role.
This proficiency becomes evident when Brooke begins to detect irregularities in the firm's
financial statements and confronts Robert regarding these concerns. However, even after the
meeting, her skepticism regarding the integrity of the firm's practices persists, leading her to take
matters into her own hands. Brooke proactively contacts one of the firm's clients to validate the
unusually large amount recorded on the balance sheet. Unfortunately, her inquiry offends the
client, who reveals that the amount is significantly lower. This discovery solidifies Brooke's
conviction that the firm is engaged in unlawful activities. Fueled by her fury, Brooke confronts
her father once again. Robert eventually confesses his misdeeds, attempting to manipulate her. It
is at this juncture in the film that Brooke demonstrates her resemblance to her father, as her
reaction exhibits signs of ethical egoism. Her primary concern centers around the potential loss
of her brokerage license and CIO position, overshadowing the gravity of the fraudulent acts
perpetrated by her father.
3.1. Consequential analysis and weighing interests
After the preceding events, Brooke finds herself confronted with a significant ethical dilemma.
She must decide whether to remain loyal to her father and uphold honesty and morality or to
remain silent and risk the firm's and her reputation. This decision poses a formidable challenge
for Brooke, as her values come into conflict with her loyalty to her father. As the movie ends on
a cliffhanger, leaving the outcome uncertain, we can assume that Brooke chooses not to expose
her father based on a closing scene where he is announced to deliver a speech at a gala. With this
assumption, it can be concluded that she engages in deception, a deliberate act of misleading
someone through means such as lying, fraud, or creating false impressions (Dees & Cramton,
1995).
From a utilitarian perspective, Brooke's ethical dilemma can be analyzed through two
approaches: consequential analysis and weighing interests. Using consequential analysis, Brooke
would consider the potential consequences of her decisions. By exposing the fraudulent
activities, she could protect investors from financial losses and contribute to a fair and
transparent financial industry. This aligns with the utilitarian principle of maximizing overall
well-being and minimizing harm (Gustafson, 2013). However, she also needs to take into
account the potential negative outcomes, such as legal repercussions for her father and the
potential financial instability of the company.

4
To evaluate the morally optimal course of action from a utilitarian standpoint, Brooke would
need to carefully weigh the potential positive and negative consequences for all parties involved,
aiming to maximize overall well-being and happiness. Ultimately, the decision Brooke makes in
light of these considerations would determine the alignment of her actions with utilitarian
principles.

4. ANALYSIS OF ELLEN MILLER

Ellen is the wife of Robert Miller. She can be described as a strong woman and a very supportive
partner. She is a very classy and well-maintained woman with an attitude who is not afraid to
challenge her husband when she suspects that he is engaged in unethical behavior. One of the
defining scenes of Ellen as a character is when she confronts her husband about the crimes he
had committed, including financial fraud and involountary vehicular manslaughter. Despite the
betrayal and emotional damage that this information caused Ellen, she remained calm. She
presented him with an ultimatum, showing that she does not condone this behaviour and will not
overlook it or forgive her husband for it.
Throughout the film, she is portrayed as complex and multifaceted. She is more of just a victim
of her husband’s unethical actions and a passive observer. She is actually an active participant in
their relationship. In some scenes, she leaves quite a show with her intelligence and loyalty,
making her a very compelling character. Her interactions with her husband and daughter also add
to her characteristics and charm too. However, it is unfortunate that she is not present in many of
the movie's scenes.
Ellen's confrontation with Robert occurred near the movie's close, whereupon she resorted to
some questionable tactics and used the information she had to force him into signing a document.
Since Robert had run from the scene of a car accident where his mistress died, Ellen had
incriminating evidence against him. The police put a lot of pressure not just on her but on all of
his friends. She would cooperate and tell Robert’s lies to the police if he signed the paper, if not
she would tell them the truth. In that separation agreement document stated next: “All ownership
of voting rights transfer to the Miller Charitable Foundation, to be administered, Brooke Miller”
(Arbitrage, 2012). Here we can see that Ellen does not prioritize herself, or her marriage, or
money. She only cares for the wellbeing of her daughter Brooke.

5. ANALYSIS OF DETECTIVE MICHAEL BRYER

As an unmistakable personalisation of law enforcement, Michael Bryer represents a true
adversary for Robert Miller. This character puts pressure to the whole Miller family into solving
their mutual conflicts while seeking justice for the victim of wrongdoing of such rich and
powerful man as Robert Miller is. This set of circumstances shows us Bryer’s true beliefs and
practices that are their product. Throughout the whole movie, Bryer does everything to prove a
point that no man can be untouchable, emphasising the importance of law and moral codexes.
However, in order to achieve his goals, he deliberately violates moral and ethical codexes
himself, as seen on the example of evidence falsification. Bryer justifies such action as a

5
necessity in order to make things right. This type of behaviour shows us that Detective could be
seen as a Machiavellian, since the main principle of Machiavellianism is that the goal justifies
the means (Venegoni, 2023). Furthermore, we can see throughout the interrogations that
Detective Bryer has a very developed ability for manipulation, which is another Machiavellian
trait (Hartman, et al., 2018).
On the other hand, we can see a lot of good qualities that make him a worthy law enforcement
representative. Such qualities include commitment, sense for justice, great capability for
analysing the given circumstances quickly and in detail, creating factual interconnections
between them. Although these factors depict Detective Bryer from the professional side, his
personal traits also play a big role in his presence in the movie. He has been shown as a
persistent and even stubborn character, giving no space to the other side to mislead him from the
facts. In addition to this, he shows empathy and gives a chance to those who are innocent to
dodge the bullet of being wrongfully accused, although he does it in not very gentle way, using
strong vocabulary in the process to emphasise the importance of what he has to say. In the case
of asking for answers, rather then offering them himself, we can see all of these traits as well.
As a true detective, he keeps asking only the real and important questions that require answers
essential to resolving the case and proving all of his suspicions. By doing so, he shows a great
devotion to his job, as he sees himself as the one that needs to make everything around him right,
bringing justice to the victims, and punishments to everyone that truly deserve them.

6. CONCLUSION
The moral dilemmas people in the business sector must deal with are compellingly shown in the
2012 film "Arbitrage." The movie emphasizes the temptations of power, the difficulty of making
decisions, and the repercussions of immoral behavior through the figure of Robert Miller.
We have learned about the value of individual and corporate accountability, the function of
integrity in decision-making, and the effects of unethical action on oneself and others by
critically assessing the ethical dilemmas that the film presents. We've seen how the decisions
made by the main characters mirror more significant commercial and financial difficulties, and
how these issues can have a significant impact on both specific people and society as a whole.
It is crucial that we reflect on the takeaways from "Arbitrage" and put them into practice in our
personal and professional lives as we proceed. Even in the face of pressure and temptation, we
must work to uphold our moral principles on a personal and professional level while also
keeping in mind the wider effects of our choices on people around us. By doing this, we can
foster a business environment that is more moral and accountable and help to build a society that
is more just and equal.

6
References
Arbitrage. 2012. [Film] Directed by Nicholas Jarecki. United States of America: Green Room
Films; Treehouse Pictures; Artina Films.
Dees, J. G. & Cramton, P. C., 1995. Deception and Mutual Trust: A Reply to Strudler. Business
Ethics Quarterly, October , 5(4), pp. 823-832.
Gustafson, A., 2013. In Defense of a Utilitarian Business Ethic. Business and Society Review,
118(3), pp. 325-360.
Hartman, L. P., DesJardins, J. & MacDonald, C., 2018. Business Ethics - Decision Making for
Personal Integrity and Social Responsibility. 4th ed. New York: McGraw Hill Education.
Hassan, S. et al., 2023. Unethical Leadership: Review, Synthesis and Directions for Future
Research. Journal of Business Ethics, p. 511–550.
Tilley, J. J., 2022. Does Psychological Egoism Entail Ethical Egoism?. The Review of
Metaphysics, 76(301), pp. 115-133.
Venegoni, M., 2023. Global Citizen Year. [Online]
Available at: https://www.globalcitizenyear.org/updates/the-ends-justify-the-means/
[Accessed 3 May 2023].