Discussion week 5 Assignment Example | Topics and Well Written Essays - 250 words

Discussion week 5 - Assignment Example Bear Stearns were also in contention as confidence in consumer markets also plummeted. This was another huge blow as it has been in business for a long time. Due to unemployment rates declining, consumer spending as mentioned in this article have slowly been increased. This was a swirling effect as the housing market was bundled and sold as mortgages. These toxic assets became a huge blow because Bear Stearn itself was borrowing money for these assets. This could have been rectified via ensuring that individuals were not getting approved for default loans in a hurry. Pre-qualified checks should have been conducted more closely for families that cannot pay big mortgages. Ethically, it was wrong for the banks and other stakeholders to approve these individuals of the loan and let moral hazard be a risk. This was a responsibility of the banks that got greedy because of the housing interest and the notion of real estate. Before attempting to address this questions, one must understand that corporate responsibility is a holistic approach that all companies must adhere to. It is clear that employees in companies have a lot of power in the community and hence must adhere to people that work for them. Additionally, they control a lot of assets, and may have billions in cash at their disposal for socially conscious investments and