Essay about The 2008 Financial Crisis - 3160 Words

Have banks responded to the public accusation that the 2008 financial crisis was caused by a â€Å"crisis of character† in their industry by actively seeking candidates of integrity and character? There are two components to this research question: The first draws on strategic management research and the notion of organizational legitimacy and to what degree organizations operationally respond to public opinion; the second is the concept of â€Å"character,† what it means, how it is conceptualized, measured and operationalised through the selection of new employees. I hypothesize that, since September 2008, banks: 1. have changed the qualities they seek in employee candidates; 2. and are now actively seeking candidates with higher levels of†¦show more content†¦National Public Radio (NPR) in the US has suggested there is â€Å"moral rot† on Wall Street. In all, an acute level of pressure has befallen the global banking industry, shining a bright spotlight on the role of ethics, integrity and character in organizations. And rightly so. The benefits of hiring and training employees with â€Å"character† and â€Å"ethics† have been shown to relate at an individual level to well being (Park, Peterson Seligman 2004), and at an organizational level to performance and leadership success (Sarros Cooper 2006). Ethics also aids in retaining employees (McDaniel, Organizational Ethics: Research and Ethical Environments, 2004), which is increasingly business-critical as the â€Å"war for talent† intensifies (Michaels, Handfield-Jones, Axelrod, War for Talent, Harvard Business School Press, McKinzie Co, 2001). McDaniel suggests leaders have two ways to instil ethics in their firms -- the selection method and the training method. However, Beer (1998) asserts that selection is really the only reliable method for finding employees with desired characteristics, as unlike skills and knowledge, personalShow MoreRelated2008 Financial Crisis: Icelands Then Now Essay examples1558 Words   |  7 PagesCauses of the Crisis On September 15, 2008, the American bank Lehman Brothers, with holdings over 600 billion USD, filed bankruptcy. This was by far the biggest bankruptcy in U.S history and it marked the beginning and the largest financial crisis ever. How can one of the biggest banks in the world fail? How can a bankruptcy in US make someone on the other side of the world unemployed? The answer is Collateralized Debt Obligations (CDOs) and it all started by new innovations in the financial sector combinedRead MoreThe Financial Crisis Of 20081384 Words   |  6 PagesThe turmoil in the financial markets also known as the financial crisis of 2008 was considered the worst financial crisis since the Great Depression. 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