1.
Staying On Track with Strategy Management

2.
• The role of business ethics
• The role of social responsibility
• Strategic planning
• Considering stakeholder wants and needs
• Bank of America overstepping ethical boundaries for stakeholder agendas
• Taking preventative measures to avoid another situation
• Summary
• References
• Question Session

3.
• The principles and standards determining
acceptable conduct within business
organizations (Ferrell, Hirt, Hirt & Ferrell, 2000).

4.
• An organization’s obligation toward maximizing
its positive effect and minimizing its negative
effect upon society (Ferrell, Hirt, Hirt & Ferrell,
2000).

5.
• Goals
• Issues
• Organic strategic planning

6.
• Organization
• Organization management
• Communities

7.
• The unethical problem: Fraudulent Loans
• Subprime loans
• Subprime mortgage lenders
• the Hustle
• The lawsuit

8.
• TARP (Department of the Treasury’s Troubled Asset Relief Program)
• CFU (The Civil Frauds Unit)
• Financial Fraud Enforcement Task Force

9.
• Federal prosecutors sued Bank of America for selling fraudulent loans to Fannie Mae
(Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage
Corporation).
• The Complaint seeks civil penalties under FIRREA, damages and penalties under the False
Claims Act for over $1 billion in losses suffered by Fannie Mae and Freddie Mac for
defaulted loans fraudulently sold by both COUNTRYWIDE and BANK OF AMERICA,
resulting upon repaying taxpayers totaling $45 billion in TARP investment.
• CFU (The Civil Frauds Unit) and Financial Fraud Enforcement Task Force established for
preventive measures.

10.
• Ferrell, O. C., Hirt, G. A., Hirt, G., & Ferrell, L. (2000). Business: A
changing world . (7th ed.). ISBN: 0073511722. ISBN-13:
9780073511726: mcgraw-hill. Retrieved from
http://highered.mcgraw-
hill.com/sites/dl/free/0070921989/226745/ferrell_sampleCH02.pdf
• Lo, P. (2012, 10 29). U.s. sues bank of america for $1 billion in bad
mortgages. Retrieved from http://www.corpwatch.org/article.php?
id=15792
• United States Department of Justice. (2012, 10 24). 2012e mae and
freddie mac. Retrieved from
http://www.justice.gov/usao/nys/pressreleases/October12/Bankof
AmericanSuit.php