100% Original, Plagiarism Free, Tailored to your instructions

Order Now!

Business Ethics: Of Banks and Bonuses

Paper Outline

Defining business ethics
Deontological approach in bank bonuses using taxpayer’s bailout

Utilitarian approach in bank bonuses using taxpayer’s bailout

Business Ethics: Of Banks and Bonuses
Ethics in business is defined as the use of ethical reasoning particularly to business set ups and transactions so that moral issues that come up in business can be determined and solved or at least clarified (Morgan & Smit, p. 3). There are two ethical approaches that people follow in determining what is wrong or right in a given action and they include: deontological theory and utilitarian theory.
Deontological approach is derived from the word “deon or duty” which means that the theory is based on the concept that people have a duty to perform certain things and not to perform certain things (Department of Biology, Davidson College, para 10). Deontologists do not focus on how much good is brought by a given action, but whether the action is prohibited or made mandatory by their rules. The argument of whether awarding top executives with taxpayers bailout according to deontological theory, was clearly unethical because one cannot award those whose decisions led to problem with the money meant to solve it. This is true because deontologist believe that a person should always stick to their obligation and duties whenever faced with any dilemma that involves ethical issues (Muirhead, p. 27). For instance, they were to choose between using government rescue package in ways that directly affect taxpayers and honoring contracts signed between the bank and top executives. Being that the executive had failed on their side of the contract, they had to face the consequences of their actions. This means that the bailout given to banks was supposed to help mostly in canceling the mortgages because those loaned doubled as taxpayers rather than giving bonuses to employees (The Washington Times, p.1).
Utilitarian approach is derived from the word utility, which means benefit obtained from a given action. This theory is based on the ability to predict the results of a given action and it argues that the choice that benefits the most people is ethical (Department of Biology, Davidson College, para 14). Using utilitarianism theory to explain the bailout issue, it can be said that looking at the future benefits, the banks were not wrong because salaries, bonuses and other benefits to top executives are legal expenses of the company and if honoring their commitment to their employees would see the banking industry revived then their actions were legal. In the end, when the financial sector is back on its feet as result of the motivated employees then the benefit will be realized by the entire economy (West, p. 3)
One of the disadvantages of such an approach is that a precedent of lack of accountability will be set and that means that there is a high likelihood of going back to the economic crisis (Smart & Williams, p. 16). Therefore even if we are finding a means to increase happiness or reduce suffering, those who do the contrary should not be allowed to enjoy in the happiness. It also comes out that there are those charged with the duty to evaluate the future outcomes of different alternatives and therefore depending on their understanding and interpretation, they will make choices which in turn might not be for the greatest good of most people. For instance three companies, Morgan Stanley, JP Morgan Chase and Goldman Sachs Group Inc., collectively paid out 40% of their combined bailout as bonuses yet they made a profit $9.6 which is 21% of the bailout. Citigroup incurred losses of over $27 billion while paying bonuses of $5.33 billion (Freifeld, para. 5 & 10).

Our Service Charter

  1. Excellent Quality / 100% Plagiarism-Free

    We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
  2. Free Revisions

    We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
  3. Confidentiality / 100% No Disclosure

    We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
  4. Money Back Guarantee

    If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
  5. 24/7 Customer Support

    We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.

Excellent Quality
Zero Plagiarism
Expert Writers

Instant Quote

Single spaced
approx 275 words per page
Urgency (Less urgent, less costly):
Total Cost: NaN

Get 10% Off on your 1st order!