Jul 15, · business ethics Essay BusinessethicsBusinessethics (also corporate ethics) is a form of applied ethicsor professional ethics that examines ethical principles and moral or ethical problems that arise in a businessenvironment. It applies to all aspects of businessconduct and is relevant to the conduct of individuals and entire organizations view essay example. Business Ethics Ethics 2 Pages. Lack of quality integrity as an ethical issue may be explained in simple terms of ethical values that supports to provide the best and do not do anything that harms others. Do something positive and try to improve the quality of life for everyone blogger.com proudly presents an open-access database of free essays on Business Ethics intended to demonstrate students what worthy academic papers of various kinds look like, be it in high school, college, or university. Skim this samples collection, select an essay about Business Ethics that suit your requirements, and use it as a prototype to follow while composing your own piece
Essay on Business Ethics: Definition, Factors and Objectives
We use cookies to enhance our website for you. Proceed if you agree to this policy or learn more about it. Type of paper: Research Paper. Topic: EconomicsBusiness EthicsBankingEthicsMoneyCrisisFinanceBusiness. In the Business Ethics course, we encounter philosophies dealing with the appropriate decisions and actions in the face of business circumstances.
It is often that business practices solely prioritize raking in money that is possibly disregarding economic impact. To expound on this issue, we would discuss the infamous Subprime crisis. The year made a critical impact to the world of business, especially to the economy of a powerful nation, the United States of America.
The economic downfall or in other terms, the financial crisis, that took place in the late s made a lot of people pay for the unfortunate events that happened. Even people who were not part of it were made responsible for this mess. Understanding this Subprime crisis would enable us to recognize the factors that contribute to such economic failures.
Furthermore, we would be able to prevent crises like this from happening again. It is important to note that even a powerful nation such as the United States has gone through this issue.
Factors such as high unemployment rates and the growing deficits from loans and securities are said to be the root of this problem Biktimirov and Cyr However, we argue that although critics essays on business ethics out many variables, such as lending, deregulation, and securitization that are said to have led to the subprime crisis, it is the ethical business behaviors that ultimately caused these suspecting variables.
We believe that one of the leading factors in the financial crisis was the unethical business behavior, which complicated the crisis even further. Given the importance of this paper and essays on business ethics stand on the issue, in order to proceed, we are going to discuss what had happened in the Subprime crisis.
We would recount the regulations and procedures done in the US financial sector at the time. Before tackling business ethics, let us put the circumstances of this complex crisis into more understandable bits. The crisis revolves around two key concepts. The first involves the risky loans. Basically, what happened here was that the financial institutions had lent essays on business ethics more finances than they had in their reserves.
Residential housing loans, for example, were allowed a 25 to 1 and 60 to 1 leverage ratio. This was the case when loans were pooled together and backed with securities. Lenders were encouraged since the loans were sold to investors for higher returns. Moreover, investment banks gained interests in shorter terms. This was again for profit. So far, there was no danger as the basis was historical data indicating minimal risks. Eventually, this was extended nationally.
It also served as a way for the government to give people the hope of owning a home. The second key concept that is to blame for the crisis is the mortgage essays on business ethics securities.
US home prices rose to record levels as traced back from Due to this price increase, more borrowing and loans were encouraged. People were assured since it was traditionally recognized that the real estate never depreciates, essays on business ethics.
The financial institutions as well saw this and took the essays on business ethics of investing in these securities. The mortgage loans supported these securities. Unfortunately, the economy began to wobble, essays on business ethics. Suddenly, homebuyers could not fulfill their financial obligations.
Consequently, the accumulation of these two and other factors pressed considerable financial tension until everything collapsed. The economic meltdown was so immense that it was made into a documentary entitled The Inside Job. In the documentary, one of the main reasons for the financial collapse was the lack of business ethics. Bad derivatives were sold as an AAA rating investment. This led most investors to purchasing those bad derivatives, believing that they were good, essays on business ethics.
The ethical issue caused the USA labor market to lose 8. This is equivalent to 6. Business would always have a side to it that is dedicated to making profit. With this in mind, selling investments is essentially the way to go. Fundamentally, this was done on the said derivatives. However, it was deemed unethical, essays on business ethics. Let us find out what makes it unethical through brief definitions of business ethics elements and concepts.
In order for a business to operate, several departments have to fulfill their roles, essays on business ethics. Essays on business ethics these roles is keeping the operations known to the public and the government. This is done through the legal department.
It is the one that ensures that the business activities follow civil requirements, which would be labeled as lawful. While an act may be regarded as lawful, it does not automatically mean that it is also ethical. The idea of ethics comes in when human rights and morality come into question. The bottom line is that rights must be protected from greedy tendencies.
Clearly, the ones who uphold the ethics in a business are the essays on business ethics makers and influencers such as the managers, suppliers, and the customers Arnold, Beauchamp, and Bowie Chapter 1. The issues surrounding the crisis can be traced to where the financial institutions were excessively leveraged. Also, the lending practices emerged despite complicated risks, borrowing, and investor speculation.
According to Nielsenthere are four ethical issues that the crisis had to deal with. The first is the transfer of income and wealth. People leading an ordinary life of working and eating were further dulled through the recapitalization of financial institutions.
The ordinary masses, in a way, essays on business ethics taken advantage of. The funds to support the activities of the financial institutions were from the fixed incomes of the people. The sad part is that these people are vulnerable to changing money values such as in the commodities, inflation, currencies, and deficits. Instead of enabling people to stabilize their life, they are threatened due to the income reduction that is going to the financial institutions Nielsen 2.
The next issue is that of moral hazard. This is in connection to the first issue. Moral hazard supposes that risks were undermined while rewards were exaggerated. This means that the trade-off between the risk and the reward was skewed, making the public unable to exercise neither informed nor sound financial decisions. Moreover, when the financial institutions failed to perform, their way out was through the funds collected from the pool.
The third issue is transparency. The financial service sector admits to the lack of transparency since the loans are pooled and securitized, essays on business ethics. However, this gives them a way to select details and discriminate people whom they share information with. Certainly, there would be bias as to who would receive particular information.
It hampers the rights of people in a way that they could not responsibly participate in the growth of their own financial stature and in turn, the economy Nielsen The last issue is conflict of interest. It pertains to the self-serving behaviors of the financial practitioners.
As a result, essays on business ethics responsibilities to the stakeholders are set aside since each of the different financial groups has other goals in mind. For example, traditional banks may uphold their duties to the stakeholders, yet the new banks think otherwise and choose to profit through short-term maximization fees Nielsen 4.
Here, we see that the business operation is being prioritized. The institution wants to rake in money to keep living. What it missed, however, is that money comes from the stakeholders it serves and needs to satisfy. With this in mind, if it cannot serve them well, it cannot earn the money that it needs to live. Since the crisis happened, people suffered. Thus, essays on business ethics, they were not able to cash out and spend for the mediocre services they have been receiving.
In conclusion, we learned that the Subprime crisis sprung from risky loans and mortgage backed securities. These two financial procedures encouraged people, including the ones who are less financially stable, to invest in building their lives.
However, the fault exactly is in allowing even the ones who cannot pay to participate in this kind of schemes. This is where business ethics enters. In this study, there were four issues tackled, namely the transfer of wealth, moral hazard, transparency, and conflict of interest. Putting on the ethical glasses, we may infer that the masses put their entirety on the line, believing in the stable life that was promised to them.
They have invested. However, the promises they were made were empty due to the purely profit-directed intention of the financial institutions, essays on business ethics.
Because of their self-serving behaviors, what these institutions have leveraged on is the incapacity and unpreparedness of the people for better decision-making, essays on business ethics. In this regard, they have violated the rights of the people to information as well as their right for the conscious and responsible exercise of freedom.
Clearly, the result of all these is what we have known as the Subprime crisis. It may have happened in the United States but it also affected the world.
Essay writing for business students
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essay on business ethics and social responsibility in the marketplace. Concepts Unwrapped. 30+ short videos explain behavioral ethics concepts and basic ethics principles. Research-based, animated, and with students’ life examples. Giving Voice to Values The Ethics Of Business Ethics. Words | 4 Pages. deciding what to do in certain situations, ethics is what guides an individual to act in a way that is good, or right. Those involved in business settings apply ethics to business situations, known as business ethics view essay example. Business Ethics Ethics 2 Pages. Lack of quality integrity as an ethical issue may be explained in simple terms of ethical values that supports to provide the best and do not do anything that harms others. Do something positive and try to improve the quality of life for everyone
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