Ethical dilemma-Chapter 1: You are the general manager of a home mortgage issuin

Question

Ethical dilemma-Chapter 1: You are the general manager of a home mortgage issuing business within a large diversified financial services firm. In the firm's mission statement, there is a value that emphasizes the importance of acting with integrity at all times. When you asked the CEO what this means, she told you that you should "do the right thing, and not try to do all things right." This same CEO has also set you challenging profitability and growth goals for the coming year. The CEO has told you that the goals are "nonnegotiable." If you hit those goals, you stand to earn a big bonus and may get promoted. If you fail to hit the goals, it may hurt your career at the company. You know however, that hitting those goals will require you to lower lending standards, and it is possible that your unit will end up lending money to some people whose ability to meet their mortgage payments is questionable. If people do default on their loans, however, your company will be able to seize their homes and resell them, which mitigates the risk. What should you do?

Explanation / Answer

As the Company mission statement explained, Do the right thing, and not try to do all things right says the most about the answer.

If you want to hit the goals which are nonnegotiable, and prevent your career at the company, you must strategies your way which is to lower the lending rates for mortgage. While the risk of defaulting is available but the option of their homes will be available.

Now to achieve the goals, only right thing to do is lower the rates and achieve the targets. Thus it is the only option to attract the lending rates and achieve the target because You should not try to do all things right.

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