Running head: AIG BAILOUT
Clari McGougan, Shawna Wilson, Keasha Kessler, Lashonda Edwards, Dale Ballard, and Michael Baltzelle University of Phoenix
The main ethics categories and theories involved in the American International Group (AIG) bailout are duty based ethics which has its pros and cons, and the theory is deontological which puts the rightness of an action before good. The pros of duty based ethics are equal rights are important to every person, and duty based ethics focuses on moral principals rather than producing results. The cons would be no guidelines for determining priority when different duties conflict. To begin duty based ethics are called deontological and consequentiality ethics are often labeled as utilitarian. The deontological theory states that “people should adhere to their obligations and duties when analyzing an ethical dilemma. This means that a person will follow his or her obligations to another individual or society because upholding one's duty is what is considered ethically correct” (Rainbow, 2002). Deontology provides a basis for special duties and obligations to specific people, such as those within one's family. In the AIG bailout why do individuals have to have to pay to keep in place the people who put together ruinous financial deals? Mainly because individuals do not understand, political individuals are the only ones who understand how to unwind them – “and they’ll take that information and use it against their former company, and American taxpayers, if they don’t get their millions in bonuses” (Rainbow, 2002). In the AIG bailout one can easily link duty based ethics and deontology to this specific problem. For example, the U.S. government seized control of AIG one of the world's biggest insurers in an $85 billion deal that signaled the intensity of its concerns about the danger a collapse could pose to the financial system. The step marks a dramatic turnabout for the...
Please join StudyMode to read the full document