Ethical decision-making frameworks and considerations

Ethical Decisions

Given that the credit manager's salary is based on the number of accounts opened, he would definitely feel tempted to offer the solicitor the loan requested. However, the solicitor has a rather negative history of paying back his debts. But he seems like a nice person in need of some help. When making the decision, two ethical issues are being raised:

Should the credit manager open the new account as it is in his best financial interest? And Should the credit manager open the new account knowing that in the past, the solicitor has encountered difficulties in returning the borrowed money?

The first ethical issue is of a more personal nature and it depends on the character of the credit manager. If he is a person highly focused on money and with limited moral values, he will grand the solicitor the loan. If on the other hand, the person is a highly fair and correct one, implementing all moral regulations, he might not approve the loan.

The second ethical issue could be approached from a personal angle as well. As such, if the credit manager is a caring person which desires to help the people around him, he will tend to approve the loan. He will do this only if he is convinced that the past will not be repeated itself and that the solicitor is able to pay back the borrowed sum.

Another issue being raised is the effect which the manager's decision might generate. All these potential effects must be taken into consideration before making the final decision. As it is a financial operation, approving a loan may generate both successful and unsuccessful outcomes. Each situation can generate at least two effects. As such, were the credit manager to approve of the loan in the given and uncertain circumstances, the bank might:

Be reworded for the trust they had bestowed in the client, who would pay up his debts; in this case the bank will earn a loyal customer

Be faced with financial losses as the client is unable to pay up his debts and return the borrowed money.

If on the other hand, the credit manager denies the loan request, the bank could:

Lose a potential customer and lose the financial resources derived from his payment of interest rate

Protect itself from the risk of not recovering its loan.