Because lending institutions stood to lose anytime borrowers defaulted on a loan, lenders always engaged in a very careful process of ensuring that loan applicants were capable of repaying any debts they sought to take on (Phillips, 2008). Deregulation shortly before the turn of the century eliminated the self-interest basis of rejecting risky debtors, leaving only legal and ethical obligations to exercise due diligence in good faith (Phillips, 2008). Unfortunately, mortgage lenders throughout the nation began issuing loans irresponsibly and often without any collateral or interest due on the loan. Since they intended to sell off the obligation anyway, they had little concern for what might happen subsequently. Likewise, home realtors and mortgage brokers began aggressively soliciting business from customers unethically, often by exploiting their ignorance about variable-rate mortgage loans. Unfortunately, this process also triggered an artificial housing bubble based largely on inflated property value statements and those overvalued but unstable...
economic crisis serves as one of the most comprehensive examples of the need for effective government oversight, business ethics, and corporate governance. Inadvisable government deregulation removed the most natural check on corporate and individual professional ethical conduct and precipitated a systemic failure of home property market on a national scale. Without formal regulation, unethical practices quickly overtook an entire industry and nearly bankrupted the nation.
Ethics, Corporate Governance and Company Social Responsibility OCED state-owned enterprises and Privatized companies In the past few decades, emerging economies have launched ambitious plans to privatize their state owned enterprises (SOEs). The volume of privatization in emerging economies has increased from $8 billion in 1990 to about $65 billion in 1997 (Dharwadkar, George, & Brandes, 2000). In privatization, ownership is transferred from the state to new private and public owners, which may
Governance and Ethics Corporate Governance & Ethics Dr. DoRight is the highly respected executive at Universal Human Care Hospital. He and Universal both stand to lose a great deal if it leaks out that patients have been dying due to lack of internal controls and simple negligence. Not only have patients been dying, but it has been going on for at least two years and while Dr. DoRight has been fully aware
Ethics, Corporate Governance and Company Social Responsibility Information that is essential to share includes financial performance, business strategy and overall company actions (Pfeffer, 1998). Sharing this information gives the employees the power to evaluate their performance and help them make the right decisions on how they can improve it. This is a simple and very straightforward practice but most companies are still apprehensive about this practice. One cause for this is
Ethics Corporate Governance & Business Ethics It is quite interesting to note that, academic research in business ethics was a totally distinct discipline from research in corporate governance, and the application of the word 'ethics' was uncommon in available research on corporate governance. The chief responsibility of corporate governance was understood to be safeguarding the benefits of the shareholders. Because of the severance between ownership and management, and the incapability of the
Corporate governance has attracted attention of a number of people due to its emerging importance for a proper economic development of corporations and the society in general. According to Trevino, Weaver and Toffler (1999) what has been seen as a practice within the corporation in the last two decades showed a sad tale of corporate ethics. In a number of times corporation managers or the CEO usually work together with
Reliability & Validity The key will be to find reliability and validity. Reliability, of course, is the concept that if someone else does the same exact research in the same exact way, the research conclusions drawn will be close to if not entirely identical. Validity is similar in that the conclusions met have to be directly applied and ascertained based on the data that actually exists and not based on the
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