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Ethics and the global financial crisis : why incompetence is worse than greed / Boudewijn de Bruin.

By: Bruin, Boudewijn de.
Material type: materialTypeLabelBookSeries: Business, value creation, and society.Publisher: Cambridge : Cambridge University Press, 2015Description: xiv, 228 pages ; 24 cm.Content type: text Media type: unmediated Carrier type: volumeISBN: 9781107028913 (hbk.).Subject(s): Financial crises -- Moral and ethical aspects | Finance -- Moral and ethical aspects | Business ethics | Global Financial Crisis, 2008-2009 -- Moral and ethical aspects | BUSINESS & ECONOMICS / Business EthicsDDC classification: 174.4 BRU Online resources: Table of contents
Contents:
Machine generated contents note: Trust and trustworthiness Moral decision making and moral intensity Motivation or competence? Epistemic virtues Warning and outline 1.Financial ethics: virtues in the market Friedman's argument Corporate responsibility Shareholders Job requirements A theory of the firm Hierarchy of command Corporate law A company's goals The economics of banking An argument for liberty Politics Arguments Epistemic preconditions for liberty Responsibility Criticism Summary 2.Epistemic ethics: virtues of the mind Instrumental epistemic value Intellectualism and psychology Intrinsic or instrumental value? Motivation and enablement Courage Generosity Epistemic actions Doxastic voluntarism Investigation Doxastic stance Justification Courageous soldiers and evil demons First improvement Second improvement Courageous villains Contents note continued: 3.Internalizing virtues: the clients Love Avoiding elitism Financial planning Justice Tax advice and functional food Epistemic injustice Temperance Efficiency Online investing Humility CEO hubris Long-Term Capital Management Talking about retirement The meaning of guarantee Minding your audience 4.Case study I: primes and subprimes Costly and complex contracts Behavioural biases 5.Incorporating virtue: the banks Corporate entities Plural subjects and a puzzle Corporate internal decision structures Structures, functions, cultures and sanctions Back to the puzzle Matching virtues to functions Board roles Virtues of overconfidence Organizational support for virtue Structure Culture Sanctions Organizational remedies against vice Macro-level remedies Micro-level remedies Contents note continued: 6.Case study II: nerds and quants Split strikes and Ponzi schemes Uncovering the fraud Volatility and diversification Epistemic virtue 7.Communicating virtues: the raters Other-regarding epistemic virtues First difference from non-epistemic virtue Second difference from non-epistemic virtue Credit ratings Credit risk: asserting creditworthiness Monitoring: directing management Stamps of approval: directing investors Compromising epistemic virtue Testimony Outsourcing epistemic responsibility 8.Case study III: scores and accounts Professional accountants Joint epistemic agents Codes of conduct Expectation gap Accounting options Conclusion.
Summary: "Professor De Bruin has written an important book. For all of the thousands of pages written on the recent global financial crisis, there is very little solid ethical analysis of the underlying causes and concepts. He makes a critical distinction between the motivation of financial actors and their competence, then argues that most of the analysis of the crisis has been about motivation. In particular many have called into question the very idea of capitalism as seeking to maximize profits for shareholders. While DeBruin admits that motivation is an important idea, he traces much of the difficulty to incompetence on the part of multiple stakeholders, who have no real motivation to learn about how the basic ideas in finance actually work"--
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Item type Current location Call number Status Date due Barcode
Book Book Indian Institute for Human Settlements, Bangalore
174.4 BRU 008309 (Browse shelf) Available 008309

Includes bibliographical references (pages 205-221) and index.

Machine generated contents note: Trust and trustworthiness
Moral decision making and moral intensity
Motivation or competence?
Epistemic virtues
Warning and outline
1.Financial ethics: virtues in the market
Friedman's argument
Corporate responsibility
Shareholders
Job requirements
A theory of the firm
Hierarchy of command
Corporate law
A company's goals
The economics of banking
An argument for liberty
Politics
Arguments
Epistemic preconditions for liberty
Responsibility
Criticism
Summary
2.Epistemic ethics: virtues of the mind
Instrumental epistemic value
Intellectualism and psychology
Intrinsic or instrumental value?
Motivation and enablement
Courage
Generosity
Epistemic actions
Doxastic voluntarism
Investigation
Doxastic stance
Justification
Courageous soldiers and evil demons
First improvement
Second improvement
Courageous villains
Contents note continued: 3.Internalizing virtues: the clients
Love
Avoiding elitism
Financial planning
Justice
Tax advice and functional food
Epistemic injustice
Temperance
Efficiency
Online investing
Humility
CEO hubris
Long-Term Capital Management
Talking about retirement
The meaning of guarantee
Minding your audience
4.Case study I: primes and subprimes
Costly and complex contracts
Behavioural biases
5.Incorporating virtue: the banks
Corporate entities
Plural subjects and a puzzle
Corporate internal decision structures
Structures, functions, cultures and sanctions
Back to the puzzle
Matching virtues to functions
Board roles
Virtues of overconfidence
Organizational support for virtue
Structure
Culture
Sanctions
Organizational remedies against vice
Macro-level remedies
Micro-level remedies
Contents note continued: 6.Case study II: nerds and quants
Split strikes and Ponzi schemes
Uncovering the fraud
Volatility and diversification
Epistemic virtue
7.Communicating virtues: the raters
Other-regarding epistemic virtues
First difference from non-epistemic virtue
Second difference from non-epistemic virtue
Credit ratings
Credit risk: asserting creditworthiness
Monitoring: directing management
Stamps of approval: directing investors
Compromising epistemic virtue
Testimony
Outsourcing epistemic responsibility
8.Case study III: scores and accounts
Professional accountants
Joint epistemic agents
Codes of conduct
Expectation gap
Accounting options
Conclusion.

"Professor De Bruin has written an important book. For all of the thousands of pages written on the recent global financial crisis, there is very little solid ethical analysis of the underlying causes and concepts. He makes a critical distinction between the motivation of financial actors and their competence, then argues that most of the analysis of the crisis has been about motivation. In particular many have called into question the very idea of capitalism as seeking to maximize profits for shareholders. While DeBruin admits that motivation is an important idea, he traces much of the difficulty to incompetence on the part of multiple stakeholders, who have no real motivation to learn about how the basic ideas in finance actually work"--

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