Evaluate subprime loans with the idea of social responsibility. Compare and contrast the resulting consequences for these actions. What measures have been taken since to assure this will not happen again?
I am currently reviewing the following and making notes from them and need 3 more scholarly resources.
1- Leader Ethical Decision Making in Organizations: Strategies for Sensemaking by Chase Thiel, Zhanna Bagdasarov, Lauren Harkrider, James Johnson, and Michael Mumford. Journal of Business Ethics April 2012 Vol 107 Issue 1 49-64
2- Banking Ethics and the Goldman Rule by John P. Watkins. Journal of Economic Issues (M.E. Sharpe Inc.) June 2011 Vol. 45 Issue 2 p. 363-372.
Technically subprime loans are those whose borrowers have a FICC score below 640. Subprime lending is closely associated with social responsibility. Subprime loans are made to those people who might have problems repaying the loan on time. These loans have a higher interest rate, low quality of collateral, and less favorable terms. These loans are supposed to be more risky. Social responsibility is related to ethics that hold that an entity has an obligation to act for the benefit of the society at large (Lance Moir, 2001). Social responsibility is a duty that is imposes on every organization including financial organizations. There is a strong belief that subprime lending extends credit to those persons who would otherwise not have access to credit. In ...
This posting gives you a step-by-step explanation of the financial problems caused by sub-prime loans. The response also contains the sources used.