The ethical issues involved with the current mortgatge crisis

Running Head : Ethical Issues

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For quite some period corporate executives have struggled with the issue of the firm 's responsibility to its society . The basic ethical issues vary from economic , legal to ethical responsibility . There has been a natural fit between the idea of corporate social responsibility and an organization 's stakeholders . The concept of stakeholders personalizes social or societal responsibilities by delineating the specific groups or persons business should consider in its corporate social responsibility orientation

The management challenge is

to decide which stakeholders merit and receive consideration in the decision making process . In most situations there are many stake holders groups which comprise of shareholders , consumers , employees , suppliers , community and social activist groups . The biggest problem in the management is how the manager identifies the stakeholders . The criteria that may be used include the stakeholder 's legitimacy and their power . This means that from the corporate social responsibility point of view the legitimacy of the manager is very important whereas from management point of view the power they posses are of great influence . When we talk of legitimacy we refer to the extent to which a group has a justifiable right to be making its claim

Therefore the challenge of stakeholder management is to ensure that the firms primary stakeholder achieve their objectives while other stakeholders are also satisfied . The important function of the stakeholder management thus is to describe understand analyze and finally manage their organizations (firms . The various stakeholders include : owners , customer 's , employees , community , competitors suppliers , social activist group , public at large and may be other interested party that is appointed by law (Carroll , 1987 , p14

There are basically three ethical issues involved with the correct mortgage crisis . This is clearly spelt out in the CSR pyramid . The issues include immoral , amoral and moral management issues . Immoral management is mostly characterized by mangers that make decisions suggesting that their action and behaviours are in the opposition to what is believed to be right and ethical . These managers could be doing not follow the law on how to handle the various shareholders and other stake holders . Their decisions are therefore not accepted as per the requirements of the accepted ethical principles . The only thing immoral mangers value and care is their self interests and their organizations profitability and success . They aim at exploiting opportunities for personal or corporate gains (Brereton , 1999 , p456

There other management ethics is amoral management . Amoral manager does not consider other people 's decisions in running a business are very important . They lack ethical perception or a awareness since they don 't focus a head by seeing that their business decisions and actions may be hurting those with whom they transact business or interact Mostly the amoral managers view ethical considerateness or law as a guide for the employees private but not for the success of business They believe that business activities are not based on the sphere in which moral judgments are applied . They engage in...