| United States of America is the financial hub of | | | | mantra of socializing the losses and privatizing the |
| the world operating with capitalistic approach | | | | profits. Never in the history of America has the |
| driven by the Laissez-faire principle. Being a | | | | government considered stepping into market |
| member and a dominant force in WTO and | | | | economy to use tax payers' money to bail out |
| NAFTA, it propelled the world markets to be | | | | private sector of a large magnitude. The much |
| more open, more integrated and more accessible | | | | failed policies of corporations seem to be getting a |
| to drive global competition. America connected | | | | second chance to charter new course. While the |
| the global business to business partners with rich | | | | congress debates on how to effectively use the |
| infrastructure and a world class SCM for importing | | | | tax payer's money to help the struggling |
| and exporting of goods for the benefit of | | | | companies, no one ever seems to ask what the |
| consumers. | | | | social responsibility of these organizations is when |
| With consumers at the center of attraction and | | | | they are profitable, rich and blooming? |
| housing market at boom trade flourished across | | | | The greediness of the corporations to hoard |
| all sectors pushing the Dow Jones to highest ever | | | | money under any circumstances got the |
| of 14,111 points in October 1st, 2007. Innovation | | | | economy to its knees leaving the responsible |
| peaked and capital markets confidence increased | | | | citizens to suffer. The CEOs always seem to |
| tremendously during this period and corporations | | | | make the big bucks in millions irrespective of the |
| started to relax the rules of trade in the absence | | | | results posted by the company. Though it's nice |
| of regulations to book record quarterly profits. | | | | to see a responsive government that is reacting |
| Each and every country, small and big, powerful | | | | to the market and trying to avoid a financial crisis |
| and powerless, social and economic looked up to | | | | of great depression in nature, the questions still |
| USA for direction, opportunity and leadership in | | | | remains to the extent the government should |
| trade. | | | | involve in the capitalistic market and how it can be |
| Asia witnessed some of the biggest booms in | | | | accountable to make sure tax payers money is |
| history lead by China and India. Europe stock | | | | recovered with interest. |
| index rose as well due to global competition. Early | | | | The ethical and social responsibility of the |
| part of 21st century witnessed unprecedented | | | | corporations towards their shareholders, |
| growth in the domestic housing market of United | | | | community and country has faded away when |
| States where the prices of the houses that were | | | | they got involved with predatory lending. Tricking |
| bought in 2002, 2003 increased a record 50% by | | | | the innocent citizens to deeper problems by luring |
| 2006. As per the data released by Office of | | | | them to short term gains for long term losses for |
| Federal Housing Enterprise Oversight, the HPI | | | | their bonuses is a sickening and unethical business |
| (House Pricing Index) increased by 12% each year | | | | practice. Clearly these corporations did not have |
| 2004, 2005 and 2006 and started to decline | | | | any true governance embedded into the culture. |
| starting 2007 ("OFHEO", 2006). When everything | | | | These unethical business practices that started |
| was looking rosy and green, greediness took over | | | | with the housing market has now sneaked to the |
| the corporate America sending the domestic | | | | financial sector, banking sector, automobile sector |
| economy to a free-fall and creating global crises. | | | | and may even to services sector creating a big |
| As corporations got greedy they started lending | | | | uncontrollable ripple effect. |
| money to people who were less than qualified to | | | | Corporations need to understand that their role is |
| own homes. While they might have increased the | | | | much larger than they realize in the in the world |
| customer base, the number of clients and gained | | | | of economy. It is the responsibility of these |
| in the short run, the long run yielded troubled | | | | corporations' executives to lay down a road map |
| results. Many dedicated and good citizens lost their | | | | for their share holders to create innovative |
| homes and life long savings as they became prey | | | | products in a cost efficient manner while enriching |
| to unethical marketers and salesmen forcing them | | | | the infrastructure and careers of their employees. |
| to declare bankruptcy as the payments after | | | | They share greater responsibility to their |
| ARM increased beyond what they could pay for. | | | | communities than they realize and they need to |
| There were schemes designed to pay just the | | | | look after those communities and not vice versa. |
| interest and no principle for few years to get | | | | While the CEOs are called upon to the capitol for |
| more people to buy the real-estate. In some | | | | hearings on why they should be bailed out, there |
| instances people bought more than one home out | | | | should be separate meetings from House of |
| of greediness so they can make money out of | | | | Representatives on what regulations to be |
| price increase. Land and homes which were | | | | enforced to avoid these situations from occurring |
| traditionally treated as assets were treated as | | | | again. Only way to put a tab on unethical practices |
| liquidity items and people started investing along | | | | is by regulating the ethical principles of public |
| the lines of day trading. | | | | sector. While some critics might argue that it is |
| As they declared bankruptcy, they lost | | | | not the responsibility of the government to |
| everything including their nest egg too. | | | | monitor ethical responsibility element of what |
| Corporations on the other side started to report | | | | private and public corporations do, then the same |
| record losses in later part of 2008 due to | | | | argument holds true for bailing them out as well. |
| increased foreclosures. Each and every | | | | There is no middle ground, either government |
| foreclosure started to impact the corporate | | | | gets fully involved or steps aside for organizations |
| finances and with house prices dropping | | | | to navigate their future. |
| corporations had to sell the foreclosed homes for | | | | Every company, every state, every school and |
| way less worth only to book losses. These losses | | | | every church that is in trouble is now looking for |
| were in the billions and as companies couldn't | | | | the government for financial assistance to bail |
| sustain the losses they started to go either | | | | them out. United States of America is in the |
| bankrupt or knock the doors of government for | | | | verge of becoming a socialist country. While bail |
| help to stay afloat. This was all a scheme of | | | | out may be a temporary solution, the |
| predatory lending or Sub Prime mortgage caused | | | | government needs to look harder for permanent |
| by unethical and socially irresponsible corporate | | | | solutions so that the corrupt CEOs are put on the |
| executives with greed as their core business | | | | hook through regulations. Corporations on the |
| model. | | | | other hand need should learn to be better |
| Corporations in United States of America along | | | | "corporate citizens" |
| with legislative council appear to be following the | | | | (Cutter Consortium and USAID, 2002, p. 6). |
