Investigating Banking Ethics
The unethical actions of Barclay’s Bank in the abuse of LIBOR have been credited as “A monumental failure in business ethics and corporate social responsibility” (Kaplan University, 2014). The Executives of Barclays Bank falsified financial statements and manipulated LIBOR for personal financial gain. LIBOR is the base for interest rates on loans and marketing products. Barclays Banking executives molested the status of the interest rates making the financial status of the banking system appear strong. This affected the interest rates and currency worldwide.
When the executives at Barclays manipulated the LIBOR interest rates they demonstrated Kohlberg’s Level 1: Preconventional Morality, Stage 1 Punishment-avoidance …show more content…
The LIBOR interest rate is a worldwide estimator for interest rates for mortgages, bank loans, auto loans, student loans, and the value of currency around the world. Barclays Banks’ actions have affected the marketing, selling, and purchasing of consumer products. This is a clear violation of ethical values. The neglect of Barclays Banks’ social responsibilities is far reaching and as stated in the case study “ While the total sum of the LIBOR scandal’s consequences are yet to be seen, Barclay’s actions may go down in history as a monumental failure in business ethics and corporate social responsibility” (Kaplan University, 2014). Barclays Bank could have advised on the failing system and provided current and up to date information to the other financial institutions and the British Government preventing further damage to the entire world …show more content…
“This is the most basic level, it is childlike. It is calculating, self-centered, and even selfish, based on what will be immediately punished or rewarded” (Lamb, 2013). Had they considered the doing the right thing for the long run and not just about the profit they could have projected a Postconventional morality that is representative of a mature adult. According to Lamb (2013), “At this level, people are less concerned about how others may see them and more concerned about how they see and judge themselves over the long run” (Lamb, 2013). They would have asked themselves, “Might is do more harm than good in the end?” (Lamb,
The unethical actions of Barclay’s Bank in the abuse of LIBOR have been credited as “A monumental failure in business ethics and corporate social responsibility” (Kaplan University, 2014). The Executives of Barclays Bank falsified financial statements and manipulated LIBOR for personal financial gain. LIBOR is the base for interest rates on loans and marketing products. Barclays Banking executives molested the status of the interest rates making the financial status of the banking system appear strong. This affected the interest rates and currency worldwide.
When the executives at Barclays manipulated the LIBOR interest rates they demonstrated Kohlberg’s Level 1: Preconventional Morality, Stage 1 Punishment-avoidance …show more content…
The LIBOR interest rate is a worldwide estimator for interest rates for mortgages, bank loans, auto loans, student loans, and the value of currency around the world. Barclays Banks’ actions have affected the marketing, selling, and purchasing of consumer products. This is a clear violation of ethical values. The neglect of Barclays Banks’ social responsibilities is far reaching and as stated in the case study “ While the total sum of the LIBOR scandal’s consequences are yet to be seen, Barclay’s actions may go down in history as a monumental failure in business ethics and corporate social responsibility” (Kaplan University, 2014). Barclays Bank could have advised on the failing system and provided current and up to date information to the other financial institutions and the British Government preventing further damage to the entire world …show more content…
“This is the most basic level, it is childlike. It is calculating, self-centered, and even selfish, based on what will be immediately punished or rewarded” (Lamb, 2013). Had they considered the doing the right thing for the long run and not just about the profit they could have projected a Postconventional morality that is representative of a mature adult. According to Lamb (2013), “At this level, people are less concerned about how others may see them and more concerned about how they see and judge themselves over the long run” (Lamb, 2013). They would have asked themselves, “Might is do more harm than good in the end?” (Lamb,