Ethical Issues in an Organisation : Report
Added on 2020-06-06
7 Pages1829 Words86 Views
Political Science
|
|
|
Ethical issues in an organisation
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1The facts......................................................................................................................................1Ethical issues...............................................................................................................................2Stakeholder analyses...................................................................................................................2Solutions......................................................................................................................................3Pluralistic ethical analyses..........................................................................................................3Decisions made by stakeholders.................................................................................................3CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
INTRODUCTIONPresent study will be based on ethical issues in organization. It will gibe in-depthexplanation of economy and customers related issues in organization after Financial crises 2008.Furthermore, it will discuss stakeholder analyses ad decision made by stakeholders sue to theseethical issues. MAIN BODYThe factsEthical issue of economy: case of Kaupthing Bank IcelandFinancial crises 2008 has affected economy of the nation badly. After that it was verydifficult for the entities to run their business smoothly. Recently number of unethical practiceshave been identified in investment banking system (Goh, Li and Yong, 2015). These unethicalpractices have affected economy, bank reputation and consumers believes as well to great extent.In the year 2008 Iceland financial collapse was the major ethical issue in banking industry.Kaupthing Iceland bank was performing well at the international stage. Before financial crises2008, it was having strong brand reputation and it had 3 billion pounds deposits of consumers.But after financial crises 2008 it was difficult for the cited firm to sustain in the market for longerduration. It had to pay huge liabilities and were not having adequate assets. After that Britishgovernment has taken over bank and special investigation commission was hired to investigateassets and liabilities of the bank. At that time it was found that Kaupthing is holding 14.8 billionprincipal assets and its liabilities are 26 billion. Ethical issue of customers and stakeholder analyses: Case of AIGFinancial crises 2008 has created big trouble for the financial sector and due to whichcompanies were facing difficulties in managing their operations. AIG company was responsibleto sale insurance products to consumers (Ferrell, 2016). But after financial crises it was identifiedthat indirect bailout of insured bondholders practices are taking places in the organization.Indirect bailout is unethical practice. In the year 2008 the issue came into existence where it isfound that 32.8 billion in collateral to counterparties. AIG was expected to giver bonuses tostakeholders but it did not do this and people were expecting that this money will be used forimprovement of business. But AIG has adopted individualism approach. Company was notrespecting its investors, customers and other employees. 1
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Ethics and Responsibilities in Accountinglg...
|6
|2102
|305
Importance of Ethics in Management: Case Studies of IOOF Holdings and Bupa Seaforthlg...
|15
|4235
|263
Stakeholders Analysis of Commonwealth Bank's Ethical Scandals and Role of Public Relations in Crisis Managementlg...
|11
|3341
|165
Ethics and Professional Practice in Common Wealth Bank of Australialg...
|7
|1468
|344