You Must Watch The Movie The Inside Job From EBay First Week

You Must Watch The Movie The Inside Job From Ebay Firstweekly Tasks

You must watch the movie The Inside Job from eBay first weekly tasks or assignments (individual or group projects) will be due by Monday, and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. Note: All submission posting times are based on midnight Central Time. In the movie, there are many examples of corporate social responsibility (CSR) being blatantly ignored. For this assignment, answer the following questions:

- Based on the definition of CSR, was the decision to avoid the Glass-Steagall Act for or against CSR? Explain.

- Identify 2-3 examples of opportunities for CSR that you noted in the film, and explain why following CSR could have avoided the crisis.

- The movie discusses deregulation throughout. Do you think deregulation is consistent or inconsistent with ethical practices? Defend your response.

Paper For Above instruction

Analysis of CSR and Ethical Practices in The Inside Job

The documentary "The Inside Job," directed by Charles Ferguson, critically examines the causes and consequences of the 2008 global financial crisis. A recurring theme in the film is the apparent neglect of corporate social responsibility (CSR) by major financial institutions and regulators. This analysis explores whether their actions were consistent or inconsistent with CSR principles, focusing on the decision to sideline the Glass-Steagall Act, the potential opportunities for CSR that might have prevented the crisis, and the ethical implications of deregulation within the financial sector.

CSR and the Decision to Avoid the Glass-Steagall Act

The Glass-Steagall Act, enacted in 1933, was designed to separate commercial and investment banking activities, thereby reducing risky speculation that could threaten the financial system's stability. The decision to weaken or repeal key provisions of this act, notably through the Gramm-Leach-Bliley Act of 1999, effectively abolished the barriers between banking sectors. From a CSR perspective, this decision was clearly against the principles of responsible corporate behavior. CSR emphasizes accountability, risk management, and safeguarding stakeholder interests, including those of customers, employees, and society at large.

By lobbying for deregulation and removing restrictions that limited risky financial activities, banks prioritized short-term profits over long-term stability and societal well-being. This aligns with a shareholder-centric view that prioritizes corporate gains at the expense of broader social responsibility, thus representing a move against CSR. The abandonment of regulatory safeguards contributed to the systemic risk that precipitated the financial collapse, illustrating a blatant disregard for the societal responsibility to maintain a stable and trustworthy financial environment.

Opportunities for CSR Noted in the Film

Several instances in "The Inside Job" reveal opportunities where the financial industry, if practicing genuine CSR, could have averted the impending crisis:

1. Implementing Risk Management Practices: Financial institutions could have adopted more robust risk assessment procedures and transparency measures. For example, greater oversight of complex financial derivatives (like mortgage-backed securities) could have flagged potential vulnerabilities.
2. Ensuring Ethical Conduct and Avoiding Conflicts of Interest: Investment firms and rating agencies could have prioritized honest evaluations over profit motives, avoiding conflicts of interest that led to inflated credit ratings. This ethical stance would align with CSR, fostering trust and stability.
3. Corporate Governance and Accountability: Banks and financial institutions could have promoted stronger corporate governance, ensuring responsible decision-making, and protecting stakeholders from reckless activities. This includes holding executives accountable for risky behaviors that could jeopardize consumer interests and systemic stability.

Following these CSR principles—transparency, ethical conduct, and stakeholder consideration—might have significantly reduced the likelihood of the financial meltdown. These measures promote long-term stability and trust, essential components of a resilient financial system.

Regulation, Deregulation, and Ethical Practices

The film underscores the pervasive deregulation of the financial industry leading up to the crisis. Deregulation, from an ethical standpoint, presents a dilemma. On one hand, proponents argue it fosters innovation and efficiency; on the other hand, unchecked deregulation often encourages reckless behavior, unethical actions, and systemic risks. In "The Inside Job," deregulation is depicted as inconsistent with ethical practices because it removes necessary safeguards designed to protect consumers and the economy.

From an ethical perspective, deregulation becomes problematic when it prioritizes corporate profits over societal well-being. It can create environments where unethical practices flourish, driven by the pursuit of short-term gains. This situation reflects a misalignment with CSR, which advocates for balancing profit-making with societal responsibilities and ethical standards. The film illustrates how deregulation effectively allowed financial institutions to engage in risky and unethical practices without sufficient oversight, ultimately harming millions of people.

Thus, deregulation, as portrayed in the film, appears inconsistent with ethical business conduct because it compromises accountability, transparency, and stakeholder protection. An ethically responsible regulatory framework should promote sustainable practices and risk mitigation, aligning corporate actions with societal interests.

Conclusion

"The Inside Job" highlights the critical need for integrating CSR principles into financial practices and regulatory policies. The decision to reverse the Glass-Steagall Act exemplifies a disregard for societal responsibility, favoring deregulation and short-term profits over stability and ethical standards. Opportunities for CSR—such as risk management, ethical conduct, and stakeholder engagement—could have contributed to preventing the crisis. Furthermore, deregulation emerges as inherently inconsistent with ethical business practices because it reduces accountability and enables risky, often reckless, behaviors. Moving forward, a balanced approach that honors CSR principles and maintains appropriate safeguards is vital for fostering a sustainable and ethically accountable financial system.

References

• Ferguson, C. (2010). Inside Job [Film]. Sony Pictures Classics.
• Coffey, B. (2010). The Subprime Crisis: Causes and Consequences. Financial Analysts Journal, 66(3), 38-49.
• Sims, R. R., & Brinkmann, J. (2003). Enron Ethics (Or: Culture Matters More than Codes). Journal of Business Ethics, 45(3), 243-256.
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• Friedman, M. (1970). The Social Responsibility of Business is to Increase its Profits. The New York Times Magazine.
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• Jones, T. M. (1995). Instrumental Stakeholder Theory. Academy of Management Review, 20(1), 85-97.
• Strawser, B. (2014). Business Ethics: A Textbook with Cases. Pearson.
• Vogel, D. (2005). The Market for Virtue: The Potential and Limits of Corporate Social Responsibility. Brookings Institution Press.