Business Ethics: BA Credit Cards for Illegal Immigrants

Is the grant of a loan as well as issuance of a identification rag to il judicial immigrants estimable, moral or judicial? Is Bank of America justified in ignoring the good, moral and legal field of studys of granting loans and acknowledgment posting to amerciable immigrants? What could have been the more(prenominal) superior reasons for granting loans and creed bills to individuals without Social Security tease and who be in position banned immigrants? The bring for new markets for loans and quotations Just like both(prenominal) tilling institution, the mad scramble for means to increase r unconstipatedues can take a number of means including wrong, wrong or evil means.While the interest of bank management is primarily to generate revenues to meet their compensation package for the expertise provided sh arholder value is similarly a strong interest on the part of the integrated board to prioritize revenues. Even labor would strain new benefits and salary adjustments to meet the increasing cost of living. Thus, the commonality of consumption in generating and increasing revenues is tempered by conflicting interests, resulting to further maximisation efforts.This optimizing and maximizing strategies under a tightening competitive environment encourages corporate profit takers to identify new sources of revenues. Here, the groupthink syndrome starts to set aside ethical, moral and legal issues. (Jaksa & Pritchard, 1994) Credit cards and loans provide the vast opportunities for revenues for banks in the form of societal rank fees, interests, penalties, service charges, legal fees and new(prenominal) finance terms that mean save one thing revenues and more revenues for the confidence card issuer.In some instances, the truth even protects the issuing bank and condones its usurious practices through hidden charges that curtly appear in the card billing. In some instances, states criminalize credit card defaults. Interests are ofte n compounded monthly at a basic rate of 3 to 5 per cent per month which translates into 60 per cent annually without even considering any form of penalty, service charges and other fees. Many cards even automatically increase the credit leaping to keep the credit card drug user paying merely the borderline interest and leaving the principal to accumulate as means of sustaining revenues on interests alone.The cash payback period for credit card issuer can honest at less than two years with the credit card user almost indissolublely now tied to the principal that now just diminishes with the gamut of fees and charges coming. Even US President Barack Obama is concerned about this. (Feller & Aversa, 2009) The consequences Thus, credit cards are often aggressively marketed both to prime and subprime clients with varying fees. With the hundreds of distinct cards vying for market share, card issuers entrust not stop at creating markets for new issuances and consumers take pride in h aving more and more credit cards in their wallets.What thence made the ill-gotten immigrants or those without social security number a bright prospect for credit cards or loans? What opportunities and risks do credit card issuers face in this firmament? Why are the requirements limited to the detail that only those with checking accounts during the last ternary months and without history of overdrafts are qualified? (Feller & Aversa, 2009) Illegal immigrants requirement liquidity to embody in the United States and credit cards provide the liquidity vehicle to cope with the American dream.A large number of illegal immigrants find jobs, even odd ones, to survive hence their capability to earn the means to make up is strong and that their struggle to temporarily live even as an undocumented alien is considered a transition to ultimately becoming a permanent resident, as an immigrant or even as a US citizen. The need hence, to establish a credible record is considered necessary to exit an frank citizen later. This sector is reasonably a effectual credit risk considering their need to stay safe from the clutches of the Immigration and Naturalization Service by keeping requitals updated.In general, this form of self-regulated discipline enhances the credit worthiness of illegal immigrants. On the other hand, even if person ultimately defaults and get caught by the INS, illegal immigrants are often forced to stay in the United States spot his credit card case is pending. Thus, the chance that he is able to disengage himself from credit card liability might provide him time to attend any form of amnesty to regularize his status. Thus, it is probably based on these market characteristics that Bank of America took the risk of identifying this sector as a good credit risk.In fact, the Bank pilot-tested the credit card in selected areas and probably, the working out binge to make it nationwide is a concrete indicator that it has become a reasonably good pr ospect for business. Business, especially banks has a charge of getting in despite the ethical, moral or legal issues. In uncertain times, generating revenues more than the need for ethical, moral or legal constraints is a more primordial philosophy of management. Here again, groupthink in the organization attempts to crop such policy.The Bank can anyway afford to employ or hire topnotch lawyers to fight any form of charge of illegal transaction with illegal immigrants. But is it really illegal to issue credit cards to illegal immigrants? If it is not, isnt it that what the law does not prohibit, it allows? Perhaps, the government result only be able to assert its role in the credit impasse if Bank of America seeks government intervention to collect from foregone due credit card users. Otherwise, credit card proceedings are can be considered global instruments that know no political boundaries. Is it unethical to issue credit cards to illegal immigrants?Banks transact business on a global scale. If the illegal immigrant is issued a credit card in the United States, will it still be unethical or illegal or immoral in the event that if the person returns to his home inelegant and uses his credit card therein? The global market has enabled banks and the credit card issuer to conduct businesses that transcends political boundaries. Thus, if Bank of America issues a credit card to a citizen of another country while he is in that country, then travels to the United States and overstays his visa, will it then be illegal, unethical or immoral to use the card?Is it not that the usurious and unfair practices of card issuer in charging usurious rates and the fine print trap, might be more of an unethical practice in the industry than issuing the credit card per se? Will not Bank of America in fact be helping the Immigration and Naturalization Service (INS) with issuing a credit card which effectively gets information from the illegal immigrant making the last ment ioned more vulnerable to apprehension by the INS? ConclusionThe issue of credit cards being issued by Bank of America to illegal immigrants can be taken from the context of purely business purpose to generate revenues. However, the ethical dimension that can be extracted from the case is the absence of ethical authorisation on the part of Bank of America to contribute to the strengthening of the good governance, transparency practices and exemplary conduct of legitimate processes in the way revenues are generated.In the same way that employers of illegal immigrants are made to answer for the head word of hiring these undocumented people in compliance with Immigration Laws. Thus, what right will Bank of America invoke to protect itself in the event of payment default by the illegal immigrant if it seeks protection from the law which discourages such transactions in the first place? The Bank undeniably wants the best of both worlds in this case.In addition, the groupthink syndrome in Bank of America that led to the adoption of this trade strategy is, as usual, laced with that groupthink rationality. This makes use of the we feeling, the illusion of morality, invulnerability with the moral, ethical and legal tone of such group rationalization and consensus leads to the excessive fetching of risks without individual ethical responsibility. Hence, anyway one looks at the marketing strategy, the issue of ethics, morals and legalities can never be ignored. Has the Bank ran out of purposeful philosophy?Reference list Feller, B. & Aversa, J (2009), Obama pledges protections for credit-card users, the Associated Press retrieved April 10, 2009Website http//news. yahoo. com/s/ap/us_obama_credit_cards Jaksa, J. & Pritchard, M. (1994), dialogue ethics Methods of Analysis. Western Michigan University, Belmont, CA Wadworth Publishing Company. Malkim , M. (2007) Bank of illegal aliens in America, retrieved April 19, 2009 website http//michellemalkin. com/2007/02/13/bank -of-illegal-aliens-in-america/