Background:Several big life insurers are going to have to set aside a total of at least $4 billion because New York regulators believe they have been manipulating new rules meant to make sure they have adequate reserves to pay out claims. And A sample of 16 insurers in the test were expected to increase their reserves by $10 billion, he said, but instead only $668 million was added.
Since the capitalists on Wall Street created economic crisis in 2008, I have already been familiar with their evil behavior. But after I read “The Social Responsibiliy of Business is to Increase Profits“. I began to wonder what is the real business ethics.
If I were a customer of these insurance companies, I would definitely think the measures these insurance companies are taking are jeopardize my interests, which should be considered immoral.
However, if I were a Chief Executive Officer of an insurer, I would absolutely do the same thing because it is my responsibility to make money for stockholders and shareholders. What’s more, I do not break the law, so according to the theory, which is mentioned in the article of “The Social Responsibiliy of Business is to Increase Profits“, what I am doing is moral.
As a result, business ethics is against the social ethics. If what I have just wrote was correct, government should just forbid business. That’s my confusion, and I hope I can figure it out in class.