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Ethical Issues Paper

Decent Essays

Ethical issues are a significant area for companies doing business deals on a daily basis. In today’s high tech and the ultra-competitive business world, unfortunately, ethical conduct is often ignored. Many huge companies like Enron, Arthur Anderson, AIG, Fannie Mae and Freddie Mac, as well as Bank of America, are crushed, or seriously damaged with the lack of ethics compass in place. Organization ethics is the guidelines and principles by which businesses operate; “the principles and values of each person in a business” will have “a direct influence on the company’s success” (Renshaw, Kubat & Angellotto, 2013, p. 11).
The ethical principles can be employed to address organizational issues regarding financial ethics, business entities, confidentiality, and decision-making. In which, the organizational ethics are expressed the values of the organization to its employees and stakeholders. The ethical principles would influence by external pressures; as well as the organization’s ethical climate affects employee and management performance (Al-Khatib, Rawwas & Vitell, 2004, p. 1). …show more content…

In a lot of cases, ethical obligations go beyond legal responsibilities. But “in some cases, the activities may be legal, but “not perceived as ethical at the same time” (Anstead, 2012). Many organizations can act ethically to meet expectations of the public and consumers. However, the irresponsible lending of subprime mortgage loan became a recurring problem to Bank of America. According to Reuters, “Bank of America has logged some $50 billions of expense for settlement of lawsuits and related legal cost since 2008-2009 financial crisis” (Rudegeair, 2014). The crisis caused millions of homeowner went in bankruptcies, and many financial workers lost their jobs. Bank of America has been hit particularly hard than other banks by the financial crisis. It would take years for the Bank to recover by major

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