Staying On Track with Strategy Management

• The role of business ethics • The role of social responsibility • Strategic planning• Considering stakeholder wants and needs• Bank of America overstepping ethical boundaries for stakeholder agendas • Taking preventative measures to avoid another situation• Summary• References• Question Session

• The principles and standards determining acceptable conduct within business organizations (Ferrell, Hirt, Hirt & Ferrell, 2000).

• An organization’s obligation toward maximizing its positive effect and minimizing its negative effect upon society (Ferrell, Hirt, Hirt & Ferrell, 2000).

• Goals• Issues• Organic strategic planning

• Organization• Organization management• Communities

• The unethical problem: Fraudulent Loans• Subprime loans• Subprime mortgage lenders• the Hustle• The lawsuit

• TARP (Department of the Treasury’s Troubled Asset Relief Program) • CFU (The Civil Frauds Unit) • Financial Fraud Enforcement Task Force

• Federal prosecutors sued Bank of America for selling fraudulent loans to Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation).

• The Complaint seeks civil penalties under FIRREA, damages and penalties under the False Claims Act for over $1 billion in losses suffered by Fannie Mae and Freddie Mac for defaulted loans fraudulently sold by both COUNTRYWIDE and BANK OF AMERICA, resulting upon repaying taxpayers totaling $45 billion in TARP investment.

• CFU (The Civil Frauds Unit) and Financial Fraud Enforcement Task Force established for preventive measures.

• Ferrell, O. C., Hirt, G. A., Hirt, G., & Ferrell, L. (2000). Business: A changing world . (7th ed.). ISBN: 0073511722. ISBN-13: 9780073511726: mcgraw-hill. Retrieved from http://highered.mcgraw-hill.com/sites/dl/free/0070921989/226745/ferrell_sampleCH02.pdf

• Lo, P. (2012, 10 29). U.s. sues bank of america for $1 billion in bad mortgages. Retrieved from http://www.corpwatch.org/article.php?id=15792

• United States Department of Justice. (2012, 10 24). 2012e mae and freddie mac. Retrieved from http://www.justice.gov/usao/nys/pressreleases/October12/BankofAmericanSuit.php