Introduction
Values in business ethics refer to the ideas and standards that direct an organization’s behavior both internally and in its interactions with stakeholders. Given how they handle debit card overdrafts in this situation, Bank of America’s values are questioned (Wayne, 2009). By processing debit card transactions from the highest to the lowest dollar amount, the bank increased the overdraft fees customers had to pay. Despite the settlement, Bank of America maintains that the processing sequence was correct, suggesting a possible discrepancy between the bank’s and clients’ values.
Ethical Analysis of the Bank of America Case
Even though no laws were broken, it is complicated to determine whether Bank of America behaved unethically. Legally speaking, the bank might not have transgressed any laws (Brusseau, n.d.). However, the bank’s actions could be viewed as exploitative from an ethical perspective because it puts profit before the financial security of its clients. This is especially clear when considering that the bank collected $4.5 billion in overdraft fees and only had to repay less than 10% of that sum in the settlement (Judge OKs $410M BofA overdraft settlement, 2011).
Gordon Brown discusses the need for a global business ethic in his TED Talk, highlighting the significance of keeping the greater good in mind (Brown, 2009). This viewpoint supports the notion that companies should think beyond their own interests and consider how their decisions will affect their clients and the larger community. This idea is supported by the New York Times article, which talks about how MBA programs are beginning to emphasize how business is a component of a larger social community.
Conclusion
In conclusion, even though Bank of America may not have violated any laws, its behavior can be viewed as unethical when considering the significant impact it had on its customers and the larger community. In addition to returning a significantly larger portion of the overdraft fees, a genuinely fair settlement would require the parties to significantly alter their business procedures to prevent similar occurrences in the future.
References
Brusseau, J. (n.d.). Business ethics workshop. MBS Content. Web.
Brown, G. (2009). Global ethic vs. national interest [Video]. TED Talks. Web.
Judge OKs $410M BofA overdraft settlement. (2011). NBC News. Web.
Wayne, L. (2009). A Promise to Be Ethical in an Era of Immorality. The New York Times. Web.