Ethical Business Challenges

Ethical Business Challenges

Answer 1

The corporate culture in AIG was very rigid and bureaucratic as the CEO Greenberg emphasized on political contacts and made strong relationship with the government. He did not realize that there were not enough funds in the company to finance almost every company in United States. Due to lack of planning and weak culture, the company failed to pay back to its clients and thus bankruptcy occurred. Its controversy started when government rescued its funding by claiming that its bankruptcy can cause major financial crisis in the economy and can affect many companies' financial ...