Ab219-01 Marketing Unit 3 Ethics And Social Responsibility

AB219-01 Marketing Unit 3: Ethics and Social ResponsibilityName:Institutional affiliationEthics and Social ResponsibilityBarclays Bank, a leading British bank was involved in a scandal referred to as the LIBOR rigging. The bank was found culpable of using its influence to manipulate the London Inter-Bank Offered Rate (LIBOR rates), which is a rate used for interbank lending (Giroux, 2013). The rate is also used to determine the prices of other financial products such as commercial loans, mortgages, auto-loans and students’ loans. Barclays suggested a very low rate, which did not reflect its true financial position. As the result, the bank made a lot of profits from the unethical decision. After an investigation, the bank was forced to pay a heavy fine of $455 million (Giroux, 2013), while the top management has to resign with some facing criminal charges. The level of ethical development portrayed by the executives at Barclays while manipulating the LIBOR interest rates is the pre-conventional morality because it was based on egocentric decision making. This refers to where the participants in the scandal were not concerned about the possible implications of their actions on the entire financial system, but