Essays on Enterprise and Social Responsibility - the Financial Crises Assignment

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The paper "Enterprise and Social Responsibility - the Financial Crises" is a perfect example of a business assignment.   The corporation’ s stakeholder is a group or an individual can either benefit or get harmed by the corporation or violates their rights or need to be accorded respect by the corporation (Crane & Matten 2010). Competitor banks such as Lehman Brothers and Northern Rock appear to benefit from stakeholder harms in cases where they experience inability to support their finances with their weak balance sheets. According to Crane & Matten (2010), stakeholders’ interests are intrinsically valuable and they are their particular identification.

This case presents a decision to change the banking system to a conservative and more regulated system from a risky bonus driven banking system (Singh 2007). Stakeholders and their needs either harm or benefit includes; The banks need more access to their retail operations thereby financing the operations of risky investments (Labrosse, Olivares-Caminal & Singh 2011). This circumstance eliminates the state’ s guarantee behind investment banks hence increasing the respective costs of borrowing. The UK government seeks a solution in regulation where a split could clear 0.3% of the country’ s GDP in times of increased fragility of the economy (Singh 2007).

This decreases the costs of resolving troubled banking institutions. On the other hand, the taxpayers would pay higher taxes in crises while bailing out failing banks. Therefore, total separation of the investment banking system and the retail banking will effectively protect and cloister the taxpayer against any market failure and increased security for the depositors’ money (Labrosse, Olivares-Caminal & Singh 2011). The increased house Owner prices relative to incomes drive the house owners to negative equity with the inability to sell (Singh 2007).

Mortgages and respective loans granted are increasingly accessible to individuals with poor credit history. The bank managers award themselves bonuses as they link the sales volume to staff bonuses. The value of shareholders is reduced to a minimum therefore the shareholders experience reduced rates of return since the banks fall and the depositor's finances and savings are lost (Crane & Matten 2010).

References

Boeckman, P., Greenwald, D. J., & Von Bismarck, N. (2013). Twelfth annual institute on

Securities regulation in Europe: overcoming deal-making challenges in the current markets. New York, NY, Practicing Law Institute.

Crane, A., & Matten, D. (2010). Business ethics: managing corporate citizenship and

Sustainability in the age of globalization. Oxford, Oxford University Press.

Giudice, G., Kuenzel, R., & Springbett, T. (2012). UK economy: the crisis in perspective: essays

On the drivers of recent UK economic performance and lessons for the future. London, Routledge.

Kant, I., Wood, A. W., & Schneewind, J. B. (2002). Groundwork for the metaphysics of morals.

New Haven, Yale University Press.

Labrosse, J. R., Olivares-Caminal, R., & Singh, D. (2011). Managing risk in the financial

System. Cheltenham, UK, Edward Elgar.

Singh, D. (2007). Banking regulation of UK and US financial markets. Aldershot, Ashgate.

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