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The Role and Importance of Poor Ethical Standards in Forming the 2008 U.S. Financial Crisis
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Abstract: (9571 Views) |
| Abstract Ethic crisis is being identified as a source of economic crises in recent economic literature. When the 2008 financial crisis unfolded in the US and started to cause a severe recession across the globe, some economists approached the exploration of the roots of this crisis from ethical point of view. This article challenges capitalism (as the prevailing philosophy), which is based on the rationality and claims the self-interest and maximization of profits lead to an increase in the welfare. It seems that the growing financial crisis was a tremendous blow to the capital’s hegemony to the extent that today we are witnessing the failure criterion of maximum profit. Echoes the importance of individual morality and therefore business ethics in opposition to the ruling capitalist philosophy, has established a new paradigm in which the importance of ethics beyond what is reflected in the various samples of code of conduct and ethics as a set of human virtues is viewed as a major determinant of welfare function. This study analyses the role of ethics on financial markets by analytical - descriptive method. in addition, it explains how ethics may affect the expansion of welfare and the reduction of turbulence in the financial market. |
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| Keywords: Economic Ethics, Ekopati, Financial Crisis, Economic Crisis, Subprime Lending |
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Full-Text [PDF 235 kb]
(1095 Downloads)
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Article type: Research |
Subject:
General
Received: 2015/12/1 | Accepted: 2015/12/1 | Published: 2015/12/1
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