Dung (Jenny) Tran

Insurance companies were pushed into a tight spot where they stood between two choices: being ethical or being business sane.

In order to go about the new policy and decrease the profits loss that might be caused by the policy, these insurance companies decided to transfer the burden into part of their customers. As the new policy established by the government only cover the social concerns but not the other side of the organizational concerns, this is considered a “wise business move”. So, does ethics in business mean that companies should do everything they can to fulfill their social responsibility, even that it means the companies will suffer from financial aspect? And so it seems, even though they might want to maintain a high ethical level, it is business after all.

One more important message delivered in the case is that the federal interference in business might not be the best solution at times. Even though the concern of individuals’ healthcare was high appreciated, the government did not take the protests and issues raised by the new policy toward the insurance companies into account. This demonstrated the poor communication between the federal and monetary systems.

http://www.usavanguard.com/opinion/business-ethics-meets-business-sense-1.1649305

AIG’s financiers, who only claim their responsibilities of the transactions they offered for the customers without the slightest concern on the consequences of their actions, at heart initiated the financial crisis that disfigured millions lives of peoples worldwide. Even though most experts is criticizing the system’s structure that lacks of regulation and oversight for this devastating result, they missed the core ethical value that was ignored by the corporation. They are trying to avoid the ethics that were violated in order to gain rewards for the executives and the corporation paid by the price of the destructive scenario of the global economics.

This is not only the concern of the people who are directly hit by the consequences of the transactions those transactional institutions, but everyone to think about for the spread have had the great impact in the global scale. As Shoshana Zuboff, the reporter believed that they can not account the blame on the system and the crisis that everyone is suffering to hide their individual judgments that caused such horrifying result. Otherwise, no one would be judged for their actions using the same excuse, no one would be blamed for the Holocaust but the cruel leaders without any volunteering support, and no one to be blamed for “the existential security of millions of people”.

The ethics and responsibilities in judgments and actions should be raised soon before we all fall into a devastating economics Holocaust globally.

http://www.businessweek.com/managing/content/mar2009/ca20090319_591214.htm

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