COUNTRYWIDE FINANCIAL

Countrywide Financial: The subprime meltdown

Countrywide Financial: The subprime meltdown

Ethics relates to the moral principles of values. Organizations often decide between profit and moral. Some organizations acquire both, yet ethical issues arise every time. Fairness, justice, rightness or wrongness is some issues of concern. Ethical standards are a way to resolve these issues.

Primarily, the task of management is to do business according to the ethical standards. Organizations need to incorporate set standards and be one of the same as an individual. Additionally, organizations have certain social responsibilities that need to be met. Responsibilities include the way they treat customers, employees and society. On the other hand, every organizations main goal is to make a profit and they should keep their original purpose of functioning. Balancing the load of social responsibility and the traditional standards of profitability is not an easy task. Setting standards of corporate ethics has been a trend to a high degree of morale. This paper will apply six ethical decision-making steps towards the social responsibilities of organizations. The six ethical decision-making steps are as follows: Issue clarification, Stakeholder analysis, Values identification, Issue resolution, Addressing objections, and Resolution implementation.

Issue Clarification

For businesses to be successful, goods or services need to be provided. They must be desired by the public in order for business to occur. Businesses need to acquire a profit so they can keep delivering on their goods or services. While these can be important components to successful business, many more components play a role to achieve success. The social responsibilities of a business are also vital to the success of an organization.

The main social responsibilities are to protect the environment, maintain the safety of employees, and to make sure the products are safe and not hazardous for the consumers. When making decisions, these three social responsibilities should be kept in mind. Environmental protection and preservation is a big concern for organizations. The big concern is to try to get the negatively affected businesses to stop interfering with this matter. Polluting and corrupting the natural environment has brought scrutiny under certain businesses. Sequentially, bad publicity by the media and the general population has negatively affected businesses.

In most cases, many businesses slowly faded away due to the negative aspects behind it. Part of the jobs of the managers, leaders, and employees are to make sure that they deal with the environmental issues and they make socially responsible decisions accordingly.

Stakeholder Analysis

Many groups of people have an interest in financial or in the performance of a business, these different groups are known as stakeholders. Stakeholder analysis is important for successful implementation of projects and strategic activities within any organization. Stakeholder analysis classifies stakeholders according to their power, influence and interest. Analyzing stakeholders is important in order to understand them. Stakeholders are people who have an interest in a profitable unit.

They include people within the organization and outside the organization. These can include the owners, employees, customers, suppliers, and the government. Everyone plays an important role in the implementation and ...