MGMT520 – Marianne Jennings wrote an article, Why an International Code of Ethics would be good
Marianne Jennings wrote an article, “Why an International Code of Ethics would be good,” which was assigned to be read at the beginning of the course. As you have worked throughout this session, you should have considered this article and how it may or may not have impacted different situations in the world economic/business/legal/political environments. The essay you will write on the next question should show that you have read Marianne’s article and can apply her theories and thoughts from that article to the scenario provided. Feel free to rely on the information you know about the situations (if real) or analogize to one that is real, if you wish. Include in your answer at least two specific concepts from Marianne’s article, and apply those concepts to your reasoning in your answer. You will be graded on your knowledge of the article as well as the application of ethical theories to international situations.
Arguably, the United States and other countries have been experiencing one of the longest and hardest hitting economic crises since the Great Depression over the last few years. This economic downturn is a result of multiple things, but the housing bubble burst was one major event that continues to ripple throughout the bank/lending world. As a result of the downturn in housing sales, foreclosures, bank lending overvaluations, and bank failures, lending practice changes and bank bailouts have become the norm.
The U.S. financial crisis has not gone unnoticed in the international world. The impact has been worldwide. The value of securities tied to real estate fell, which damaged financial institutions globally. New rules regarding appraisers, appraisals, and bank oversight have gone into place, but not in time to save many investors and foreign banks from huge losses.
Many people think that this crisis could have been avoided if better regulations had been in place. Some feel that the U.S. bank/lending and borrowing ethical standards may have been partially responsible for this downturn.
Argue for or against an ethical basis for the housing bubble collapse. Use Marianne Jennings’ article as a basis for a solution to avoiding a future collapse such as this. Can you think of a way that an international code of ethics would have helped avoid this crisis or could keep another one from occurring in the future? What challenges would there be in implementing ethical codes that may prevent such a situation in the future? Be sure to include specific ideas from Marianne’s article along with your own thoughts, analysis, and evaluation of this essay question.