Business Ethics and the Housing Crisis

Paper Summary:

The paper focuses on the increased focus on acquisitive success and the display of wealth throughout the middle class and the ever-increasing habit of the American consumer to rely on credit. The paper then turns to the serious ethical violations throughout the mortgage and loan industry and a large spectrum of the major investment securities industries that ignited this crisis. The paper contends that avoiding similar disasters in the future will require a re-examination of corporate ethics that should also include a re-evaluation of so-called middle class values of contemporary Americans.

Outline:
Background, History, and Evolution of the Problem
The Contemporary American Consumer as the Ideal Lendee
The Concept of Mortgage Banking
The Housing Bubble
Multiple Ethical Violations Provide the Ignition for Economic Disaster
Considering the Damage Caused by Unethical Business Strategies and Credit Practices
Conclusion

From the Paper:

"During the 20th century, the United States emerged as the most prosperous nation on earth with living standards and economic opportunities that were the envy of much of the rest of the modern world. For most of the century, the American middle class enjoyed the comforts of a lifestyle that exceed those that have ever been available to most people who have ever lived.
"Just as many philosophers and social theorists have explained, the relatively widespread availability of modern convenience to the masses typically triggers a form of social status competition defined purely by relative wealth in comparison to others rather than defined by the objective value of highly prized trappings of financial success. In many respects, many people's personal identity and feelings of self-worth are substantially predicated on their ability to project an inflated image of their financial worth and perceived "class" designation."

Sample of Sources Used:

• Daft, R. (2005) Management 7th Edition. Mason: Thomson South Western
• Gerrig, R., Zimbardo, P. (2005) Psychology and Life 18th Ed. New Jersey: Prentice Hall.
• Halbert, T., Ingulli, E. (2000) Law & Ethics in the Business Environment. Cincinnati: West Legal Studies.
• Hursthouse, R. (1999) On Virtue Ethics. Oxford: Oxford University Press.
• Lowenstein, R. (2007) Subprime Time: How Did Home Ownership Become So Rickety? New York Times Magazine; Sept. 2/07.

More papers on Business Ethics and the Housing Crisis:

• Analytical Essay # 130559 : "Business Ethics and Corporate Social Responsibility"
• Term Paper # 113181 : "Lending and The Mortgage Crisis"
• Analytical Essay # 136325 : "Business Ethics and WorldCom"

APA Citation:

MLA Citation: