Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 605-619 |
| Number of pages | 14 |
| Journal | Journal of Business Ethics |
| Volume | 103 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 2011 |
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The credit crisis and the moral responsibility of professionals in finance. / Graafland, J.J.; van de Ven, B.W.
In: Journal of Business Ethics, Vol. 103, No. 4, 2011, p. 605-619.Research output: Contribution to journal › Article › Scientific › peer-review
TY - JOUR
T1 - The credit crisis and the moral responsibility of professionals in finance
AU - Graafland, J.J.
AU - van de Ven, B.W.
N1 - Appeared earlier as CentER Discussion Paper 2011-048
PY - 2011
Y1 - 2011
N2 - Starting from MacIntyre’s virtue ethics, we investigate several codes of conduct of banks to identify the type of virtues that are needed to realize their mission. Based on this analysis, we define three core virtues: honesty, due care, and accuracy. We compare and contrast these codes of conduct with the actual behavior of banks that led to the credit crisis and find that in some cases banks did not behave according to the moral standards they set themselves. However, although banks and the professionals working in them can be blamed for what they did, one should also acknowledge that the institutional context of the free market economy in which they operated made it difficult to live up to the core values lying at the basis of the codes of conduct. Given the neo-liberal free market system, innovative and risky strategies to enhance profits are considered desirable for the sake of shareholder’s interests. A return to the core virtues in the financial sector will therefore only succeed if a renewed sense of responsibility in the sector is supported by institutional changes that allow banks to put their mission into practice.
AB - Starting from MacIntyre’s virtue ethics, we investigate several codes of conduct of banks to identify the type of virtues that are needed to realize their mission. Based on this analysis, we define three core virtues: honesty, due care, and accuracy. We compare and contrast these codes of conduct with the actual behavior of banks that led to the credit crisis and find that in some cases banks did not behave according to the moral standards they set themselves. However, although banks and the professionals working in them can be blamed for what they did, one should also acknowledge that the institutional context of the free market economy in which they operated made it difficult to live up to the core values lying at the basis of the codes of conduct. Given the neo-liberal free market system, innovative and risky strategies to enhance profits are considered desirable for the sake of shareholder’s interests. A return to the core virtues in the financial sector will therefore only succeed if a renewed sense of responsibility in the sector is supported by institutional changes that allow banks to put their mission into practice.
U2 - 10.1007/s10551-011-0883-0
DO - 10.1007/s10551-011-0883-0
M3 - Article
VL - 103
SP - 605
EP - 619
JO - Journal of Business Ethics
JF - Journal of Business Ethics
SN - 0167-4544
IS - 4
ER -