Banking Industry Meltdown: The Ethical and Financial Risks of Derivatives

Best Applicable Moral Philosophy

The standards through which people live their lives are their general system of values. For the people to decide what is beneficial for them and what is not is a principle is followed known as moral philosophy. Moral philosophy helps a person to understand what is right and wrong for themselves and others around. In the business language these decisions are related to the company's benefits or profits.

Business ethics is based on the acts that effect the company's profits and operations. Commercial and financial success is also based on these ethics. Moral philosophies can help individuals in business organizations to have a more moral perspective of actions. If we consider an example of a single individual in a company then it would be harder to implement his moral philosophies within the company. However it is easy if a group of individuals have common moral philosophies. This helps create a better understanding of themselves with each other developing trust and common moral values. Most individuals within a company don't know what moral philosophy they are implementing within a company. But this change with the passage of time as the individual learns the business ethics through varies decision making tasks. Moral philosophies are related to ethical theories such as relativism and idealism.

Depending on these theories if someone benefits more than the efforts given then in that case it is completely ethical and reasoned. Idealism pays special attention to the effort and ideas that light the individuals mind. The terms ethical decision making and idealistic thinking can be related to each other in some aspects in realism it is thought that every man is competitive by nature, selfish and self centered according to his interests.

To define banking industry meltdown the most appropriate theory to concern would be egoism and utilitarianism. Egoism depends on the actions that benefit a single person. What can be beneficial for the individual himself and be appropriate according to his self interests. While, utilitiarism is defined as actions that can benefit the maximum number of people. (Ferrell, O. C., Fraedrich, J., & Ferrell, L., 2011, pp. 151-159)

Difference of white and blue collar crimes

After observing the results and analyzing the case study it is clearly shown that white collar crimes are absolutely different from the crimes related to blue collar. If we consider the white collar crimes then these crimes are related to financial issues which are of course non violent. These crimes are based on financial benefits and are done in an illegal manner but not violently. These types are based on dishonesty and breach of trust which is not physically challenged or contain any violence. This can also be different depending on the type of white collar crime and the position and level of the individual or group. It may not be considered a crime or offense seriously related to other crimes that are considered by law. These crimes are dependent on organizational behavior; these are rather ...