ESR case study
Enterprise social responsibility
Submitted by: Md shafiqul Islam
Student ID: 21248068
CASE STUDY
1.1 Identify each of the stakeholders and how they are affected. What are the main harms and benefits in this case for the different stakeholders based on the current situation?
Stakeholders are every person and organization directly or indirectly involved. This study case of financial crisis has affected many stakeholders such as banks, employees and their customers. The 2008 crisis is the scariest one after the Great depression. Lord Vicker, who showed the findings of the independent banking commission, argues that in order to keep the banking sector flowing, they need to have high capital, retailing and investments for lending. There were several British companies that were affected in this crisis, for example, Northern Rock and Bradford and Bingley. They were offering up to 125% of ‘Loan to value’ mortgages and loans based on individual’s statements. The institutions were affected by two major problems; they were not able to make high returns on capital and there were too much high level of money deposits.
Americans banks were ahead of others during the crisis as Chinese money was invested with them. They had more open opportunities compared to others during the crisis and they had much more freedom on how to run their businesses. A lot of people who did not have concrete income benefited from this crisis as banks lend them loans despite them having a poor credit history reputation. Lots of credit cards were given out and were charged in extremely high rate of interest so banks could earn some more money. They had the chance to get the money and pay back monthly, which definitely benefited them. Taking a loan was easy so many businesses developed and was created.
Collateralized Debt Obligations did not earn anything from this as list of bad debts kept increasing because a lot of people could not pay back what they took from the bank. This process is
Submitted by: Md shafiqul Islam
Student ID: 21248068
CASE STUDY
1.1 Identify each of the stakeholders and how they are affected. What are the main harms and benefits in this case for the different stakeholders based on the current situation?
Stakeholders are every person and organization directly or indirectly involved. This study case of financial crisis has affected many stakeholders such as banks, employees and their customers. The 2008 crisis is the scariest one after the Great depression. Lord Vicker, who showed the findings of the independent banking commission, argues that in order to keep the banking sector flowing, they need to have high capital, retailing and investments for lending. There were several British companies that were affected in this crisis, for example, Northern Rock and Bradford and Bingley. They were offering up to 125% of ‘Loan to value’ mortgages and loans based on individual’s statements. The institutions were affected by two major problems; they were not able to make high returns on capital and there were too much high level of money deposits.
Americans banks were ahead of others during the crisis as Chinese money was invested with them. They had more open opportunities compared to others during the crisis and they had much more freedom on how to run their businesses. A lot of people who did not have concrete income benefited from this crisis as banks lend them loans despite them having a poor credit history reputation. Lots of credit cards were given out and were charged in extremely high rate of interest so banks could earn some more money. They had the chance to get the money and pay back monthly, which definitely benefited them. Taking a loan was easy so many businesses developed and was created.
Collateralized Debt Obligations did not earn anything from this as list of bad debts kept increasing because a lot of people could not pay back what they took from the bank. This process is