Hostname: page-component-cd9895bd7-8ctnn Total loading time: 0 Render date: 2024-12-27T19:16:14.204Z Has data issue: false hasContentIssue false
  • English
  • Français

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.
Get access Rights & Permissions [Opens in a new window]

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 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aharoni, Y. 1998. “The changing political economy of Israel.” Annals of the American Academy of Political and Social Science 555: 127–146.Google Scholar
Beauchamp, T.L. and Bowie, N.E. (eds.). 1999. Ethical Theory and Business. 6th ed. Englewood Cliffs, NJ: Prentice-Hall.Google Scholar
Betz, J. 1998. “Business ethics and politics.” Business Ethics Quarterly 8 (4): 693–702.Google Scholar
Boatright, J.R. 2000. Ethics and the Conduct of Business, 3rd edition. Englewood Cliffs, NJ: Prentice-Hall.Google Scholar
Brady, F.N. and Dunn, C.P. 1995. “Business meta-ethics: An analysis of two theories.” Business Ethics Quarterly 5 (3): 385–389.Google Scholar
Danley, J.R. 1994. The Role of the Modern Corporation in a Free Society. Notre Dame, IN: University of Notre Dame Press.Google Scholar
Geva, A. 2000a. “Moral decisionmaking in business: a phase model.” Business Ethics Quarterly 10 (4): 773–804.Google Scholar
Geva, A. 2000b. “The Internet and the book: media and messages in teaching business ethics.” Teaching Business Ethics 4 (1): 85–106.Google Scholar
Keeley, M. 1995. “Continuing the social contract tradition.” Business Ethics Quarterly 5 (2): 241–256.Google Scholar
Machiavelli, N. 1950. The Discourses, translated by Walker, Leslie J. London: Routledge and Paul.Google Scholar
Maitland, I. 1997. “Virtuous markets: The market as school of the virtues.” Business Ethics Quarterly 7 (1): 33–50.Google Scholar
Maitland, I. 1985. “The limits of business self-regulation.” California Management Review 27 (3): 132–147.Google Scholar
Majone, G. 1997. “From the positive to the regulatory state: Causes and consequences of changes in the mode of governance.” Journal of Public Policy 17 (2): 139–167.Google Scholar
Nesteruk, J. 1999. “Reimagining the law.” Business Ethics Quarterly 9 (4): 603–617.Google Scholar
Newton, L.H. 1995. “The many faces of the corporate core.” In Business Ethics: Readings and Cases in Corporate Morality, 3rd edition, edited by Hoffman, W.M. and Frederick, R. E. New York: McGraw-Hill, Inc.Google Scholar
Peltzman, S. 1976. “Toward a more general theory of regulation.” Journal of Law and Economics 19: 211–243.Google Scholar
Post, J.E., Lawrence, A.T., Weber, and J. 1999. Business and Society: Corporate Strategy, Public Policy, Ethics, 9th edition. Boston, MA: Irwin McGraw-Hill.Google Scholar
Sen, A.K. 1987. On Ethics and Economics. Oxford: Blackwell.Google Scholar
Stigler, G.J. 1971. “The theory of economic regulation.” The Bell Journal of Economics and Management Science: 3–21.Google Scholar
Stone, C.D. 1975. Where the Law Ends: The Social Control of Corporate Behavior. New York: Harper & Row.Google Scholar