Ethical Dilemma of Loan Officer - Essay Example

LOAN OFFICE A loan officer acts as a link between a financial and a loan applicant. The officer’s duty is to protect the financial institution by ensuring that only credits worthy applicants are approved for loans. He or she also protects applicants from adverse consequences of failure to repay an offered loan. A number of ethical principles and theories, therefore, govern the role of loan officers in approving loans to customers. One of the applicable ethical principles is the doctrine of beneficence which establishes the need for every member of society to do well.

Beneficence calls for actions that will benefit members of society and not bring harm. Another applicable principle to a loans office is the doctrine of justice which advocates for fairness when dealing with other people (Rainbow, 2012). The principle of the common good that promotes well being of macro elements of society is also applicable (Ascension, 2012). Ethical theories such as deontology and utilitarianism are also applicable to the scope of a loan officer (Rainbow, 2012). Approving the loan approving the loans will violate my personal code of ethics.

This is because I strongly believe in principles of beneficence, justice, and the common good (Rainbow, 2012; Ascension, 2012). Resolving the ethical dilemma would advise loan applicants of all potential risks involved in taking the loans and allow them the freedom of choice as illustrated by the doctrine of respecting people (Ascension, 2012). People’s reactionThe organization’s strategy would elicit negative reactions because it aims at exploiting society against theories of deontology and utilitarianism (Rainbow, 2012).