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Can corporate social responsibility help us understand the credit crisis?

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Author Info
Argandoña, Antonio () (IESE Business School)

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Abstract

The financial crisis which started in the United States in 2007 and which has spread throughout the world has many causes, one of which is the abundance of unethical behavior on the part of many of those who made the financial decisions, such as regulators, supervisors, managers and employees, and also on the part of a not insignificant number of their customers. In this paper, we will seek to shed light on the crisis's ethical content and show how the generalized practice of corporate social responsibility within financial institutions could have helped reduce the magnitude of the crisis, perhaps not systemically but definitely in some of the organizations that have been most affected by the crisis. For this to happen, however, a particular concept of social responsibility would have to have been applied, a responsibility with an ethical basis - or, more specifically, a voluntarily assumed ethics that was capable of giving rise to self-generated duties among financial decision-makers.

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Publisher Info
Paper provided by IESE Business School in its series IESE Research Papers with number D/790.

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Length: 27 pages
Date of creation: 19 Mar 2009
Date of revision:
Handle: RePEc:ebg:iesewp:d-0790

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Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
Web page: http://www.iese.edu/
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Related research
Keywords: Crisis; Ethics; Finance; Corporate Social Responsibility; Financial system;

Find related papers by JEL classification:
G12 - Financial Economics - - General Financial Markets - - - Asset Pricing
G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Investment Policy
M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Claessens, Stijn & Kose, Ayhan & Terrones, Marco E., 2008. "What Happens During Recessions, Crunches and Busts?," CEPR Discussion Papers 7085, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. Enrique G. Mendoza & Marco E. Terrones, 2008. "An anatomy of credit booms: evidence from macro aggregates and micro data," International Finance Discussion Papers 936, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
    Other versions:
  3. Inmaculada Carrasco, 2006. "Ethics and Banking," International Advances in Economic Research, Springer, vol. 12(1), pages 43-50, February. [Downloadable!] (restricted)
  4. Markus K. Brunnermeier, 2008. "Deciphering the Liquidity and Credit Crunch 2007-08," NBER Working Papers 14612, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. John B. Taylor, 2009. "The Financial Crisis and the Policy Responses: An Empirical Analysis of What Went Wrong," NBER Working Papers 14631, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. James Crotty & Gerald Epstein, 2008. "Proposals for Effectively Regulating the U.S. Financial System to Avoid Yet Another Meltdown," Working Papers 2008-15, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
  7. Bert Scholtens, 2006. "Finance as a Driver of Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 68(1), pages 19-33, September. [Downloadable!] (restricted)
  8. Argandoña, Antonio, 2009. "The common good of the company and the theory of organization," IESE Research Papers D/777, IESE Business School. [Downloadable!]
  9. Douglas W. Diamond & Raghuram G. Rajan, 2009. "The Credit Crisis: Conjectures about Causes and Remedies," American Economic Review, American Economic Association, vol. 99(2), pages 606-10, May. [Downloadable!]
    Other versions:
  10. Antonio Argandoña, 2008. "Integrating Ethics into Action Theory and Organizational Theory," Journal of Business Ethics, Springer, vol. 78(3), pages 435-446, March. [Downloadable!] (restricted)
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This page was last updated on 2009-11-18.


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