Lack Of Ethics On The 2008 Economic Crisis Essay

Lack Of Ethics On The 2008 Economic Crisis Essay

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Lack of Ethics in the 2008 Economic Crisis
Beth Gardner writes about the implications of the 2008 financial crisis as a “trigger” for business schools to teach their students ethics. Ethics is a broad term about moral conduct and how the decisions of an individual affect others. As discussed in class, the three goals of ethics include: preventing harm from occurring, stopping harm from continuing, and minimizing unavoidable harm (Bryan, 6). As witnessed in the 2008 financial crisis, ethics was submerged by the political and selfish nature of corrupt business leaders who focused solely on money.
The three goals of ethics were comprised through the economic crisis. The 2008 financial crisis could have been avoided if banks valued ethical decision making. It is obvious that lending large sums of money for real estate escalates housing prices as banks anticipate profits through interest payments on loans. Instead, banks should have evenly distributed money to real estate, businesses outside the financial sector, infrastructure such as highway development, and so forth to avoid drastic fluctuations in the market. Additionally, banks continued to give out loans despite the fact that people struggled to repay these loans. Banks should have stopped the harm from continuing by being cautious about potential target investors and the amounts of loans given out. Lastly, although prices in the housing and financial markets dropped, banks limited lending regardless of the fact that the public had to keep up with the initial repayments on debt. The issue is that when people repay loans at a quicker rate than banks give out loans, prices and wages decrease. However, in reality, the value of debts does not change, leaving banks more expensive fo...

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...g fellow peers on academics creates a toxic learning environment. This pattern of unethical behavior foreshadows the corrupt and selfish nature that might emerge of student business leaders who solely care about the bottom line.
Loyola’s Commitment to Ethics
Nevertheless, Loyola University Chicago prides itself to its commitment to educating the student body about the concept of ethics. Abol Jalilvand, dean of SBA, states, “At Loyola…we strongly emphasize socially responsible decision-making and leadership” (Gardner, 2). Likewise, Gardner indicates that ethical behavior goes beyond simply avoiding corruptive practices such as cheating and selfishness. Recognizing and accepting that individuals have a social responsibility to build and maintain trust between their social network as well as to positively impact the larger community embodies the true purpose of ethics.

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