ESSAY ESSAY 3 3 COMPARATIVE BUSINESS ETHICS AND SOCIAL RESPONSIBILITY Name of Student Name
Added on 2020-04-13
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Running head: ESSAYCOMPARATIVE BUSINESS ETHICS AND SOCIAL RESPONSIBILITYName of StudentName of UniversityAuthor note
ESSAY1Business ethics are some of the primary codes of conduct that needs to be followed byany business firm in order to practice sustainable and ethical business. In the recent times, thebanking sector is accused of practising different unethical practices such as frauds in stockselling, accepting risk prone financial assets, compensation to millionaires and inhumanevictions. These events have been reported in the past decade in different newspapers andreflects the inefficiency of sharing the corporate responsibility that needs to be carried out bythem. It is required of the bankers to regain the value and trust of the customers.In a recent report published in the CNBC on 11th September 2018, it says of a formerpartner of the Goldman Sachs Group who claimed about some of the unethical practices ofthe bank in 2015. In the report, the banker reported about the bank trying to use unethicalpractices of obtaining and sharing customer information, which were supposed to remainconfidential (Reuters 2018). Bankers are required to be more transparent about their operations where they require bemore objective with the roles that they play. Concerning the reports, it is the responsibility ofthe banks to safeguard the information of the customers with utmost care. The informationare shared by the customer are done with trust and a vow of confidentiality (Fetiniuc andLuchian 2014). However, in cases such as the reported one, it breaks the vow of trust that isrequired to be practiced by the bank. Moreover, the bank also tried to subdue the former employee by requesting him todrop the matter and move on, keeping in mind the future of the bank. However, the bankersaw this as an improper way of covering up the crime and later left the bank to proceed onwith the accusation. The key unethical practice that has been highlighted in the report is theimproper use of information by the bank and trying to cover up the misdeeds. These aspects
ESSAY2reflect the unethical attitude of the bank to gain profits. The unprofessionalism of the bank isalso highlighted in the report. It is very important to understand the social responsibility that a firm requires to carryout while performing business. In this case, the firm is the bank. As a bank, the primaryobjective is to create wealth and provide financial support to families and businesses in theform of credit (Paulet, Parnaudeau and Relano 2015). However, in this process, collectinginformation is a very important aspect, which allows the bank to assess the credibility scoreof the customer in order to process the loans. The information are shared solely for thebanking purposes and are required to be preserved with confidentiality. The socialresponsibility of the bank is to safeguard the information, but on the contrary, it is being seenthat they are only responsible for the sharing of information.Another important business ethics is the non-misuse of the position of power. Asbanks attain a position of power related to the social and financial support, it is improper forthe banks to exploit the customers on the basis of their requirements. Customers often dependon the banks for financial aids. Similarly, the bank also depends on the customers for theirrevenues. So the policy obtained is a mutual sharing of interests, but it has been seen thatbanks such as the Goldman Sachs Group try to implement their power by holding the upperrole in the dealings and exploit the customers, taking advantage of their financialrequirements.Most banks in the recent times are seen to pressurize their employees to sell thefinancial products. The amount of sale determines the incentives that are paid to theemployees. The inclination towards money, drives the employees to force or influence thecustomers to buy the products which are not suitable for them. Financial products boughtwithout planning can be profitable for the banks but can put the financial burden on the
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