Week 3 Case Study 1
Organizational Behavior – MGMT 362
“Week 3 - Case Study #1” The year 2004, for my wife and I would be a year to remember as we had just become a homeowner in the lovely State of California. As a single income family, we were only able to fit into in a negative-amortization loan known as, “The Interest-Only Home Loan.” However, several years later in 2008, we would find ourselves along with the rest of the Nation in what was called, “The subprime mortgage meltdown,” whereas, “Sex, Lies, and Subprime Mortgages” have gone wild/wrong. (Bloomberg)
In this case study, Ms. Coleen Colombo, is a thriving senior underwriter (2003-205) at BNC Mortgage Inc.; a subprime subsidiary for Lehman Brothers Holdings Inc... As the story would go; an outstanding employee who exceeded expectations, reflective in her personal reviews, forced to resign because of a company’s inabilities to acknowledge, fraudulent lending practices/fraudulent information, sexual harassment, and workplace hostilities/aggression, all which was shared by Coleen Colombo to the vice president, only to be ignored.
Fact Finding One - BNC Mortgage Inc. as a whole lacks proper decision-making and ethics, which is evident by the alleged case of Coleen Colombo. A male employee (wholesaler), attempts to have Coleen approve loans which reflected “inaccurate salaries, occupations, and home values” and with a bribe from the same employee. (Hellriegel, 250)
Recommendation One – “Ethics competency involves the knowledge, skills, and abilities needed by individuals, teams, and organizations to incorporate values and principles that distinguish right from wrong when making decisions and choosing behaviors.” (Hellriegel, 34) “Right” and “Wrong” (ethical) to include, moral values in an organization are and often difficult to enforce unless there are policies in places. It begins from day one, policies, procedures, trainings, and external inspections to ensure adherence this becomes the core concept.
Cited: Hellriegel, Don, and John W. Slocum. Organizational Behavior. 13th ed. Mason, OH: South- Western Cengage Learning, 2011. Print. "Sex, Lies, and Subprime Mortgages." Bloomberg.com. Bloomberg, 12 Nov. 2008. Web. 8 Apr. 2015.