Discuss the Importance of Ethics in Business in Light of the Recent Global Financial Crisis (Gfc)

Topics: Subprime mortgage crisis, Ethics, Business ethics Pages: 4 (1132 words) Published: May 25, 2011
The 2008 global financial crisis has affected today’s economy severely based on the collapses on issues such as immoral practices, governance, regulations, enterprise ethics. Factors to consider with the collapse that lead to the financial crisis is the dangerous outcomes that financial companies were not foreseen in advanced of borrowing mortgages for the companies. The change of ethics through enterprises demonstrate how business approaches to ethics over the past years where ethics is seen in different perspectives. Lessons are learnt from financial failures in the lack of awareness in ethical performances to businesses. The recent global financial crisis has recently existed with a lack of awareness on business ethics policies where unprofessional practices are performed on dangerous mortgage borrowers have occurred without having any awareness of the outcomes of financial collapses (Lewis 2010). Business ethics is defined as the significance of moral performances on business in workplaces. Also Lewis (2010, p2) has mentioned that “lending practices” have become out of control and increasingly inexistence since the finance industry has given out mortgages to people that do not have the capacity to repay back their mortgages which worsens the situation into a financial deterioration. Greed is another issue to consider in the collapse of the financial crisis where financial institutions did not look at peoples abilities on whether the mortgages they have borrowed from the bank can be repaid without any debts arising like in this financial crisis. In other words greed and unethical performances can lead to such situation as the global financial crisis, seeing the collapse of mortgages and corporations in business ethics.

Governance is defined as policies or methods installed to administrate how businesses operate and Regulation is defined as a structured type of regulation managed in finance companies (Clarke 2010). There are certain problems existing...
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