Ethics Is Defined By Hellriegel And Stocum

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Ethics is defined by Hellriegel and Stocum (2011) as “the values and principles to distinguish right from wrong” (pg. 10). As we can all agree a big portion of the sub-prime mortgage crisis was caused by unethical decisions by both individuals and companies as a whole. A good example of this is BNC Mortgage where individuals put their own greed ahead of solid banking practices by trying to get as many loans approved as possible no matter the cost, even resorting to fraud in many cases. BNC had created a work environment were illegal and unethical activities were widely accepted because profits were high. When employees did not want to participate in fraudulent activities they were harassed by management and shunned by the company.…show more content…
250). Managers were putting value on the quantity of loans pushed through rather than the quality.
Many employers now have a code of conduct and a code of ethics on how they want their employees to behave and act. They take certain values that the company wants their employees to adhere to and emphasize them. These are included in company manifestos such as the mission statement. Many companies have expounded on the mission statement by creating a code of conduct and a code of ethics along with their company bylaws. These statements are the core of what the company is and what it aims to be as a whole. In this particular case, BNC Mortgage should include ethics statement included in their mission statement and create an ethics and code of conduct statement. Upper management will need to supervise the implementation of these new values into the company and ensure that people implement these in their daily activities. As Ronald James states, “senior leaders typically emphasize the importance of performance and the bottom line. But if they don’t also emphasize ethical behavioral messages, then all employees hear is that it’s all about the numbers.” (as sited in Hellriegel and Stocum, pg. 10) Had this been a priority for BNC Mortgage, they would have not allowed this unethical behavior to start in the first place.
As the housing market boomed the sky became the limit on how much money a wholesaler could make and people resorted
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