Ethics, Values, and Social Responsibility Ethics has been broadly
defined as concerning certain...

Question

Ethics, Values, and Social Responsibility Ethics has been broadly 
defined as concerning certain issues or situations as being fair/unfair,
 right/wrong, or just/unjust according to the values adopted by a given 
culture or society. These values act as the acceptable standards 
developed and nurtured by society. As societies have developed and 
become more knowledge-oriented and socially alert, the need for social 
responsibility has increased. According to Davis and Blomstrom (1975), 
social responsibility is "the obligation of decision makers to take 
actions which protect and improve the welfare of society as a whole 
along with their own interests" (p. 39). Many banking organizations 
have been "bailed out" by the federal government, but yet they have been
 caught spending these additional funds/monies on items that may not be 
acceptable by public policy or federal regulations. As a result, the 
federal government has had to rethink and reevaluate their approach to 
the administration of these funds. In an Internet search of ethics and 
recent federal bail outs of several banking/financial institutions, 
please provide the following items of discussion: 1.	 A historical 
overview of the reasoning for the federal bailout of these financial 
institutions and reasons for such federal infusion of these external 
funds. 2.	A discussion of the ethical implications that have surfaced in
 the media concerning the misuse and/or abuse of federal funds 
distributed to several key banking/financial institutions. 3.	An 
examination of the ethical issues surrounding the misuse and/or abuse of
 this federal funding in terms of the following perspectives: a) federal
 government; b) private business sector; and c) public in general. 4.	
Finally, create a socially responsible plan for the federal government 
to use in the future administration of federal funding, with this same 
industry (banking), in order to prevent such misuse and abuse of federal
 funds in the future. You will need to include in-text citations and a 
references list for external references used in supporting your points 
for this question. You should have no fewer than 7 references for your
 response to this particular question.

David · Accepted Answer

Ethics
Ethics, values and social responsibility 
Project on bailing and ethics during the financial crisis
Ethics
History and background of the financial crisis  
US Government is having a long history of bailout. It started way back in 1792 when 
they bailed out 13 states, which were highly burdened by debt due to revolutionary war. Over 
last two centuries federal government has come up with their bailout program several times 
where they have bailed out different banking and financial groups.  
 During great depression of 1933, the unemployment rate went up to 25%. Innumerable 
Americans lost their jobs and homes (Caroll, 1999). At that point of a time Federal government 
intervened and created an agency which bought back defaulted mortgages from banks, hence 
refinanced those. This was a bailout program to banks but due to this around a million of 
American got benefited. All of this led to the examination of the ethics involved in the financial 
processes of the biggest of the financial houses. It was against the theory of utilitarianism as the 
masses faced losses (Caroll, 1991).  
In the year of 1989, Federal Reserve came up with another loan and savings bailout. But 
in 2008, during financial crisis federal government came up with the biggest financial bailout 
program ever where the amount was around USD 786 billion. For this Emergency Economic 
Stabilization Act of 2008 was passed. The main mandate of this law was to authorize US 
treasury to buy non-performing and high risk debt from various financial institutions. Citibank, 
AIG, Fannie May and Freddie Mac are some of the financial institution where Federal Reserve 
infused fresh fund. 
Examination of misuse of bailout package in several perspectives  
The bailout packages were greatly misused. Federal Government was supposed to be 
more cautious in analyzing and understanding the real funding needs for several institutions; and 
in monitoring the use of that fund. In that case abuse of federal fund and public’s money was not 
possible by the financial institutions. Private and public businesses were supposed to understand 
the underlying reason and motive of bailout funding and hence use it for it right motive.

Ethics, Values, and Social Responsibility Ethics has been broadly defined as concerning certain issues or situations as being fair/unfair, right/wrong, or just/unjust according to the values adopted...

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