Business Ethics and Credit Cards

What ethical issues should the senior management team of our financial company address relative to the marketing of credit cards to college-aged consumers, and what processes should senior management use to address those issues?

The increased use of credit cards among college-aged students has become a concern as credit card debt continues to grow. While credit card usage has its advantages, we are concerned that credit card solicitors unfairly exploit inexperienced young adults into adopting excessive spending habits when they may not understand the long-term implications of their credit card spending and payment practices. This paper will investigate the ethical issues that the senior management team of your financial company should address relative to the marketing of credit cards to college-aged consumers, and the processes that should be used to address those issues. Situation
Banks target college-aged consumers because they are the only adult demographic – with abundant purchasing power – primarily made up of non-credit card holders. Banks attempt to provide students with credit cards and bank accounts because young adults do not have many established financial relationships and have a long credit life head of them. Secondly, many students tend to be loyal users of their first credit card for many years. The brand loyalty of first-time credit card users may translate to greater returns over time as these consumers grow in age and affluence, and seek additional services such as car loans, mortgages, and investment accounts.

Major credit card companies have been accused of targeting young adults, many of whom have accumulated debt with college tuition fees and loans and are generally uninformed on the potential dangers associated with mismanaging their assets. For college students who accumulate a significant amount of credit card debt, the stress associated with the debt may negatively impact their academic performance, as they are more likely to