Unit 3 Assignment
Ethical development levels demonstrated by the executives
London Interbank Offer Rate which is also known as LIBOR is a rate of interest which banks have to pay to the other banks when they are borrowing g money from them. (Lamb. C, Hair. J, McDaniel. C. 2014). The rates which the banks apply when lending money are usually put into consideration when deciding the LIBOR. The rates applied by the banks are at times all over and therefore, the highest, as well as the lowest rates,have to be dropped off automatically and hence the ones which areleft in the middle are used to form the average. Therefore if the rate is low, it is an indication that the financial position of the bank is stable and hence they have confidence in each other and when the rate is high it indicates that the banks lack confidence in each other.
The levels of ethical development are often development.The executives who are bank exhibited high levels of unethical development. The levels are seen to be at a morality stage which is preconvention. (Lamb. C, Hair. J, McDaniel. C. 2014). As a result of this, many people have been talking about LIBOR as the actions affected the integrity position of the firm as it was not honest and also resulted in financial problems in the bank. The bank made the manipulations so that it could be seen by others as having a financial position which is healthy and also it wanted to benefit itself by making more money. The bank only thought of how its actions would benefit it but not how they will impact on the other banks even if their action had negative impacts.
Neglectof social responsibility and what they might have done
In addition to focusing only on how they could only benefit themselves, they also neglected their social responsibility. They mainly focused on satisfying their personal needs instead of putting a lot of focus on those things that could benefit the society as a whole. (Lamb. C, Hair. J, McDaniel. C. 2014). The executives could not have the numbers of the firm manipulated so as to benefit them if they really cared for the society as well as the customers. The firm should have put a lot of emphasis on its integrity as well as the rates charged on loans to prove that it was socially responsible.The greed they had could have ignored to ensure that the whole society benefits, a culture of ethical behavior should also be developed and maintained to ensure it was socially responsible as well as carrying regular audits on the firm’s records.
Corporate Social responsibility actions that the firm could have done
Some of the actions that the bank could have put in place include all the executive stepping down and arrangements made so that the money can be paid back. The bank should also have engaged agencies so that they give them the necessary advice in order to prevent the action from recurring in the future as well as assisting the bank to move out of the scandal it had created. The bank should, therefore, begin from paying the additional profits it had realized to the customers as well as to the other banks so that they can renew their faith in the bank again and definitely conduct business with it once more
If it was the right thing for the executives to do in the long run
It the level of post conventional morality is the one that the executives of the bank were operating under, they should have put a lot of consideration on the long term impact of their actions.(Lamb. C, Hair. J, McDaniel. C. 2014). The case of Barclay clearly shows how crucial it is for the people working in the company to maintain ethics which are of high level. It also indicates that it is important to put the needs of the society first rather than the ones which are personal as they look out for the society. The community has to be given a lot of consideration since it consists of customers and anything that can break them can also make the companybreak
Importance of ethics
Ethicsare very important to any company as a firm which exercises them and also how high levels of being socially responsible usually experience great sustainability. Therefore when a business plan is created and it recognizes the environmental and social problems that are being experiences as opportunities, the business is more likely to make profits.The sustainability allowsa company to deal with competition at every level.
Lamb. C, Hair. J, McDaniel. C. Accessed 2014. http://extmedia.kaplan.edu/businessess/AB219/1403C/Assignments/U2/BarkleyStudy.pdf