Ethical hazard can be described as a circumstance where the actions that are of best interest to one party is detrimental to operations of another after a transaction (Conrad, 2010). This study aptly explores the…
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I agree with the author’s statement that a conjunction of motive, means and opportunity creates an ethical hazard (Pendse, 2012). This approach is complimented by the definition of fitness hazard as a tendency of an entity to take undue menace whose costs are not borne on them (William, 2007).
I deem author is aiming at providing rules and procedure that will help curb ethical hazards. This is seen in the light of providing an ethical hazard marshal to minimize these tribulations (Pendse, 2012). An instance is given of the leading company, Enron. The management styles and executive decisions of the executives of the company led to an enormous financial crisis.(William, 2007). Therefore, the executives were convicted and received extensive penitentiary terms.
Although I liked the way the writer proposed the initiative of teaching ethics in business schools to curb future occurrences, I think the proposal would be essential in schools of all disciplines and not only business school(Pendse, 2012). This is because, ethical deeds are a must for the growth of any being in their job place, in households, and in their day to day actions.
In my view, I think the author is wrong in assuming that other past scandals were restricted in the corporations they occurred in since for every ethical hazard that happen other institutions and individuals suffer with it(Pendse, 2012). The difference is in the magnitude, for example, in the article the scandal at Enron destroyed, not just the company, but the rest of the world, as well (Conrad, 2010). This does not inevitably mean that other scandals that seem restrictive do not spread their downfall.
In stating that the fiscal crisis at Enron was totally “unforeseeable and unpredictable”, I feel that the author is contradicting himself. This is seen in the subsequent line where he states that Warren Buffet had previously warned of the looming danger. The danger was, as a result of the the increasing leverage and
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It is possible for individuals working at one of the investment houses or the other involved negotiators to make millions. They would let their associates know the merger is going to happen. These associates invest. After the merger is completed the stock shoots up, and the secret investors make a lot of money.
Between 2005 to 2009 they created over 6,000 phony invoices to doubled their assets on the company's books, reflecting an overall increase in value of the company. The SEC also fined the company's accountants, Price Waterhouse, $6 million for allowing the fraud to go on without reporting it.
Bribes were paid to obtain competitive advantage over firms. They were hidden by 10 percent price increases marked on such drugs and medical supplies branded Janssen and Cilag. Illegal marketing practices to foreigners such as bribing are covered under the federal Foreign Corrupt Practices Act (FCPA).
The securities were collateralized debt obligations and actually represented the transfer of risk to unknowing buyers who later suffered gigantic losses reaching billions of dollars. Wells Fargo sold these securities through a Wachovia bank in Charlotte, North Carolina, that it finally purchased in 2008.
It has represented the large banks such as Wells Fargo and JPMorgan that have been quick to initiate foreclosure procedures instead of mortgage modification negotiations to take people from out the ownership of their homes. Schneiderman represents the effort of attorneys general all over the country who are conducting inquiries over the conduct of foreclosure proceedings and its many common people victims left over from the recession fallout.
While six African and two Caribbean developing countries, which were former European colonies, were against the resolution but they did not vote against the resolution rather they also refrained from voting. Though the resolution had not brought any immediate changes but it is viewed as a first step toward resolving this problem and creating the awareness about the importance of clean water and proper sanitation for everyone.
The code I will present is based on a personal code. Even if some of my ethics coincide with present ethical codes, these codes are what I feel should be implemented in my field of profession.
My core value
The ‘bad apple’ concept which is usually suggested as a reason of unethical business consequences has been referred by the author as a mere myth. The perception that formal code of conducts can ensure ethics has been disproved in the article. It has been pointed out that
Business ethics researchers David De Cremer and Henri‑Claude de Bettignies explore these predicaments and attempt to answer questions about particular ethical predicaments in ordinary and executive business
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