Case Study : The Financial Crisis

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Enterprise and Social Responsibility Renato Passos 21271774 Assignment 1 – Case Study: The Financial Crisis The purpose of this case study is to provide an introduction to business ethics. The first section of the assignment is an overview of the stakeholders. The second part is the description of an utilitarian perspective and how it should be applied on the case study. This is followed by the definition of the three ‘maxims’, clashes of rights and two normatives theories examined and applied on the case study. The examples throughout this case study show the constructive side of the theories in terms of how they can be applied. 1.1 Identify each of the stakeholders and how they are affected. What are the main harms and benefits in this case for the different stakeholders based on the current situation? Stakeholders Harms Benefits Competitors Banks like Lehman’s Brothers and Nothern Rock faced weak balance sheets which made them not able to keep their finances. Banking bonuses are back’ which gives high street banks to maximise bank lending. Shareholder The value of shares drop drastically and became worthless. Shareholders had a low rate of profit during the crisis. Shareholders can have a greater rate of profit once banking bonuses are back, allowing banks to perform well. Property owners House owners face inability to sell and negative equity since house prices have increased. The loans have been provided for mortgages to people with poor credit history,
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