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4. HONORABLE LEADERSHIP I assertively believe regulation alone is unlikely to change collusive behavior in the market. We need to ruminate in how we can efficiently create a culture of ethical behavior within financial institutions. If the increase regulation, on its own, has altered conduct at Barclays, who have been fined for mis-selling financial products and LIBOR rigging? We need to consider the consequences of weak leadership, poor management of risks, inadequate training and relatively partial indulgent of the significances of such misconduct. The abuse by Barclays’ personnel of their positions of trust for the sake of corporate and indirect private gain was ethically corrupt behavior. It exposes weaknesses in corporate governance and …show more content…
One can see the increase complexity of this market just by looking at the oligopolists demand a “kinked demand curve”. We have never encounter the demand curve that looks like this before so what gives. This demand curve is effectively composed of two different demand curves because the game playing behavior of the firms in this industry will change depending on whether the firm is implementing a price increase or price decrease. When the oligopolistic firm goes to increase its price, the rivals will not follow. They will let that one firm increases price and then they will gain the customers as buyers are driven away by the initiating firms’ higher prices. This mean for the firm is that, if it raises its price and no other producer follow suit than the initiating firm will see a large decrease in quantity demanded i.e. the demand is more elastic, when the firm attempts to increase its price. What if the firms lower its price? The rivals are aware that they could lose substantial market share, if they not follow along and lowers their prices as well. But if everyone lowers its prices, the firm which initiated the price changes will see very little change in the quantity demanded because for most part the customer stays where they
During the 19th century robber barons were at an all-time high; one important robber barons was J.P Morgan owner of J.P Morgan & Co. Soon after he died his son J.P Morgan Jr. who worked at and inherited the company became a robber baron himself. Both men did different things that changed business and our nation today.
The case study of Jacob Franklin, aged 25, offers an analysis of how unethical decisions can damage a company and the repercussions that these decisions cause. Jacob was aware of the unethical situations happening around him, but he was new and unexperienced to the business and it seems that at some point, his hands were tight and he did not have much control to change them. On the other hand, he had plenty of opportunities to make ethical decisions.
Known as the kingpin of wall street J.P Morgan was known for many ambitious endeavors. J.P Morgan became one of the richest and most powerful businessman in the world during his era. He was one of the most powerful bankers of his time who founded private banks and industrial partnerships in the late 1800s. He financed railroads, and helped establish many major corporations such as U.S Steel, International Harvester and General Electric. He was born in New England to a prominent family and his father was a banker and founder of Aetna Insurance company. He started to work for his father’s firm Duncan, Sherman & Co as a clerk. The Morgan’s started to grow their wealth through directing foreign investments into American businesses. Morgan started to take his fathers responsibilities after the Drexel Morgan merger. This extended the
It has been said that after deregulation in the early 1990’s, corporate conduct was running fast and loose. This deregulation allowed corporations and the accounting industry to self-regulate itself and it was expected that corporations and their boards would do the right thing, thus softening up the business climate and promoting commerce. Unfortunately, when it comes to self-regulations, greed and self-advancement often come to light.
...ht, J. R. (2012). Ethics and the Conduct of Business. In Ethics and the conduct of
Building standards of ethical behavior is essential for public companies. Otherwise, it causes accounting scandals and bankruptcies. Over the last decade, there have been a lot of enormous bankruptcies because of unethical behavior of investors and auditors. Lehman Brothers Holding Inc. is an example of an accounting scandal. In this research paper, I am going to analyze this firm.
In today’s business world, an accountant and business owners should work together in order to become aware of scandals that occur in corporate companies. Since 2008 a series of corporate scandals and collapses have highlighted the importance of effective board oversight. One of the largest scandals in the corporate world was known as the Madoff’s Ponzi scheme. I will discuss the details of how an accountant allowed Maddoff to continue with his involvement in the Ponzi scheme. Since then, the board of accountancy is mandating that all corporate companies have good internal controls and getting more involved managing risks within the organization. This is becoming an essential role in maintaining a good system of internal control.
In an organisation ethics are supposed to set standards as to what is the right thing to do in conduct and decision making however this is not always the case. Over the years different scandals have occurred which have shown that companies and in particular the people that run them are not at all ethical and only seek to maximize profits. Economical analysts throughout the years have suggested that the way to avoid such incidents is by either having a code of ethics along with ethics training or through strong ethical leadership.
What makes oligopoly so competitive is by how companies cannot base decision making just by technical information, but must be aware of other reactions that their competitors make in the market. “Choosing how much to produce and what price to charge, each firm in an oligopoly is concerned not only with what its competitors are doing but also with how its competitors would react to what it might do”(Mankiw pg.330). There are exceptions of oligopolies that engage in price wars. A price war is a commercial competition that characterized cutting price below those of competitors. From this effect, one company may decide to reduce their price against their competitor that results into a spiraling effect to the others in the market by having to reduce their price’s.
The aftermath of the scandal is that each senior staff does not want to accept that a mistake was made while in charge and how they need to deal with the issue. What the directors need to do is that they are supposed to take the necessary actions which shall help in reinforcing the right working environment and culture so that they ensured that lessons were learned and all types of misconduct in the banks were all well addressed and lastly every process and system was supposed to be improved(Reuters,
“The truth shall set you free!” a quote my parents recite to me oftentimes which has become part of me, my childhood and course to become a well-established surgeon. I desire to develop intellectually, broaden my mind to resolve the innermost issues of society and make a profound impact on the world. By following in the footsteps of legendary leaders and scientists at Johns Hopkins University, I can truly conceive myself reaching my full potential.
Coates, B. E. (2004). Corporate culture, corporate mischief, and legislated ethics: The sarbanes-oxley act. Journal Of Public Affairs, 7(1), 39-58.Retrieved from EBSCOhost.
Ethics is a discipline in dealing with staff, customers, partners, supplier and other parties as it relates to the bank’s moral duties and obligations. Hence, the bank’s corporate governance encourages the ethical standards which are vital for its long term survival. The NBD has implemented a comprehensive corporate governance framework which is supported by legal and regulatory regime, risk based supervision, detailed responsibilities and/ or roles of the board and management and ethical policies that encourages the code of ethics. An important attribute of corporate governance that improves the standing of the bank is the adoptions of ethical standards in dealing with the fight against corruption and related offenses. As such, the NBD has executed “Whistle blowing.” This is an established policy, encouraged by the board, which is focused on the “conditions and procedures for investigations of allegations of corruption, fraud and misconduct/ inappropriate behavior.” (National Bank of Dominica Ltd 2012) The policy’s main aims are
The third type of market structure available in today’s market industry is an Oligopoly. "An oligopoly involves only a few sellers of a standardized or differentiated product, so each firm is affected by the decisions of its rivals and must take those decisions into account in determining its own price and output" ( Brue & McConnell, 2004, p. 3,4). Examples of an oligopoly can be found in the petroleum industry. Shell and Texaco for example must consider a number of different factors when trying to increase revenue. Due to the limited number of petroleum companies in the market, companies must depend on low level sellers to make price adjustments weekly to capitalize on demand. As with most oligopolies some price variation is necessary to maintain healthy profits. Companies like Texaco and Shell should make note however that too much deviation in price can create an unstable product market. Many companies in an oligopolistic market will use consumer perks to assist with price deviation. Texaco and Shell, for example, offer incentives su...
...ng than others is hardly determined. Since the standard in a bank and the banking system depends on the licensing authorities, shareholders, sponsors/directors, top management, the regulators, and the government, it follows that for ethical dilemmas in the banking sector to be managed, all stakeholders must be up and doing. It is essential for a bank to be clear about the key ethical values to which it subscribes. It then needs to ensure that the organization and the employee act in accordance with these values. It is also necessary to have policies and procedures designed to ensure Compliance with the standards specified in the code of conduct. Codes of conduct and the means to enforce them are important tools for management of ethical issues and attitude in the banking sector. However, narrow compliance-based approach towards ethics management should be avoided.