Excessive risk exposure: A question of ethical decision-making

Jodie L. Ferguson

Journal of Business Research, 2014, vol. 67, issue 1, 2684-2685

Abstract: This commentary essay reflects on the article titled “When an irresistible force meets an immovable object: The interplay of agency and structure in the UK financial crisis” (Ashby et al., this issue). Specifically, managers took on excessive risk that ultimately contributed to financial crisis. This essay discusses whether the decision to accept excessive risk falls under ethical decision-making, including the degree of moral intensity as possibly perceived by risk and financial managers. The components for determining moral intensity include (1) magnitude of consequences, (2) social consensus, (3) probability of effect, (4) temporal immediacy, (5) proximity, and (6) concentration of effect.

Keywords: Ethical decision-making; Moral intensity; Excessive risk; Financial crisis (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:67:y:2014:i:1:p:2684-2685

DOI: 10.1016/j.jbusres.2013.03.016

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