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Regulation and Ethics in Business: The Israeli Bank-Share Case

Published online by Cambridge University Press:  20 January 2017

Aviva Geva
Aviva Geva*
Affiliation:
The Open University of Israel
*
15 Yavnai St., Gan-Yavne 70800, Israel. E-mail: avivage@oumail.openu.ac.il.
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Abstract

This article analyzes the early-1980s Israeli bank-share crash at different points of its development to demonstrate the vital contribution of managers' professional and personal ethical norms to a fruitful collaboration between government authorities and the business sector. After presenting the case and discussing pertinent problems of external versus internal business regulation, this article provides a phase model of ethical decisionmaking in business that reconstructs the moral problems faced by the major players and probes appropriate responses to these problems. The application of the model to the bank-share affair shows how different stages in the evolution of the crisis introduce different ethical problems, inviting different moral considerations and calling for different solutions.

Type
Research Article
Information
Business and Politics , Volume 3 , Issue 3 , November 2001 , pp. 297 - 320
Copyright
Copyright © V.K. Aggarwal 2001 and published under exclusive license to Cambridge University Press 

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