Outline: Accountability when it’s "too Big to Fail"
a. “too Big to Fail”
i. Rise of Corporations
ii. Taking advantage
b. Why is it important/relevant
i. From world market crashes to ignoring basic human rights
c. “In this paper I will discuss…”
i. Financial Crisis of 2008
ii. Global Sports Events
iii. Who is accountable and how to address the issue
a. The Financial crash of 2008
i. The “pop” and its affect
ii. The creation
b. Global Sporting Events
i. Corruption and Human Rights
ii. Who really gains?
c. Who is really accountable?
i. Government, Governing Bodies, Corporations?
a. My viewpoint
1. Systematic approach
Accountability when it’s "too Big to Fail"
The earliest form of corporation goes back to the sixteenth century for the benefit of exploring the New World. From this point onwards until the late 19th century legislatures and regulations kept control over big business (3). However, through the landmark Supreme Court Case of Santa Clara County v. Southern Pac. R. Co., corporations gained the same legal rights and protections of the Constitution as if it were a person (9). From this point on corporations have ballooned in size and amount, and have played a major factor in life today. They have done so by becoming a “citizen” of its state of incorporation; while taking advantage of being able to separate ownership from management, unlimited life spans, and limited liability (11). This has created situations in which corporations, or even other large entities, have become “too big to fail” where they become so large and ingrained in the economy that if they do fail, it would have a disastrous ripple effect throughout the economy (10). History has already shown how these “too big to fail” entities have adversely affected the global economy and civilizations. Lack of organizational culture, personal ethics, and unethical leadership have had adverse outcomes in corporations and organization that have become “too big to fail”. These situations have caused world recessions in the financial crisis of 2008, to corruption and ignoring basic human rights through global sporting events like the Olympics and the World Cup. In this paper I will discuss the financial crisis of 2008 and global sporting events to show how “too big to fail” entities take advantage of the lack of accountability; while highlighting the global ethical dilemma. The contents of my paper will be broken down into the financial crisis, global sporting events, and current accountability practices. In the conclusion I will then look at who should be held accountable and how we as a society can work to make the right individuals accountable. Contents
In 2008 the global economy saw its most dangerous crisis since the Great Depression of the 1930s. This crisis began in 2007 when extremely high home process in the United States crashed; first the entire U.S. financial sector crumpled, followed by the financial markets overseas spiraled downwards ushering in a global recession (10). This global recession affected every region of the world with countries’ economies contracting across the globe. Specifically in the U.S. we lost nearly two million jobs in the last four months of 2008 (10). Throughout the globe, different governments gave out billions in economic stimulus plans to different corporations that were essentially “too big to fail”. Different aspects of unethical and unaccountable actions in the financial sector were the primary roots of this global disaster. Essentially lending companies took on very high risked mortgage-backed securities and passed the accountability around as if it were a game of hot potato (10). Everyone profited as long as they did not hold the accountability, finally when the housing market crashed everyone had to pay the price. This unethical behavior...
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