Summary:
In this article, the author has talked about the 41 years old CEO of Bank of California, Steven Sugarman who lends his brother with $100 million for the Los Angeles’ New Soccer Stadium deal. In this regard, the author also talked about the fact that the Bank of California has the potential to lend $100 million.
However, no doubt the amount of $100 million is the richest price in the Major Soccer League. Sugarman tried to support his family in the field of business by helping his brother with such a huge amount that banks ever lend for the deal like soccer stadium.
However, within the article, the author has also incorporated the interview of one of the narrators of the company that Steven’s brother had no such involvement in the stadium deal. Also, Steven along with his father in law who is the Hollywood executive Peter Guber did not even reply to massages looking for their comments.
For this fact, the action took by Sugerman for his brother was not regarded by many of the activists and consultants, as they regard such favor as kin-support accomplished just for the development of kinship business (Jennifer Surane, 2016).
Key Points:
After reading the article, it becomes clearer that the Sugerman’s favor of offering $100 million to his brother shows his kinship interest. However, no doubt, all the independent members of the board have approved and signed the treaty of lending $100 million to Sugarman’s brother.
In this regard, the first key point revolves around moral considerations or Business Ethics. It is highly immoral to serve others for personal interests. In the case of Sugarman, he tried to support his brother who was not even included in the soccer stadium deal.
This is immoral or unethical to support those who are not even on the right track of doing business and who wished for loans for their private business and not for any public benefit (Morrison, 2015).
Another key concept that is linked to the current topic is Corporate Social responsibility. Over the idea of Corporate Social Responsibility, it is the duty of a corporation to serve its employees, while offering them suitable services according to their needs and self-aptitudes.
Also, over the idea of CSR, it is the responsibility of a corporation to serve the society, but it does not mean to serve kinship relationships as Sugarmen served his personal kinship business. (Zu, 2009).
The third key point about the article is the idea of business Morality over which values, behaviors, and unwritten rules are observed through. In this case, Sugarman established unwritten rule as a CEO, while supporting his brother out of the legal terms and conditions. The idea of morality revolves around cultural grouping, religion, and kinship groups.
So, this article raises the key points of morality over which businesses are progressed and control with respect to their relationship with others outside of a business (Morrison, 2015).
Course Concepts and Analysis:
Ethics is one of the most significant concepts in business. Over this idea, there are ethical limitations for corporations to deal with both its internal and external affairs. In this regard, it becomes clearer that under the ethical limitations of business it is immoral to involve others in personal decision-making power as an executive of a corporation, especially those working for humanity.
Secondly, over the idea of social corporate responsibility, it becomes the duty of a corporation to secure the future of its employees and to offer them different services for their professional and social well-being. So, overall, I believe that instead of terminating jobs at such a high rate it is better to develop a strategy to overcome the issues of corporations not like the way of direct cut-off its employees, but in the way to secure the future of the company and its employees.
I also believe that Sugarmen has overlooked the morality of doing business, as he tried to support the kinship group over the use of unwritten rule which actually led to the personality fall of Sugarman.
References:
Jennifer Surane, Z. F. (2016, 9 7). CEO Helps Brother, Again, With $100 Million Soccer Stadium Deal. Retrieved from Bloomberg: http://www.bloomberg.com/news/articles/2016-09-07/ceo-helps-brother-again-with-100-million-soccer-stadium-deal
Morrison, J. (2015). Business Ethics: New Challenges in a Globalised World. Palgrave Macmillan.
Zu, L. (2009). Corporate Social Responsibility, Corporate Restructuring, and Firm’s Performance. Springer Science & Business Media.
