The death of a politician during a meeting to discuss his credit card debt sparked debate about the ethics of debt collection practices. Three debt collectors employed by Citibank were suspected of being involved in the man's death. While the prosecutors questioned why the case was not progressing, Citibank promised compensation to the family but provided no evidence. This raises issues around the use of debt collectors and whether their practices are ethical.

1. “
Politician's Death Sparks Debate
on Debt Collecting Ethics
“
BINUS BUSINESS SCHOOL
Group 2 : Business Ethics
Brenda | Hendriana | Jefri | Pramita Wardani

2. “
THE SITUATION
PROBLEMS
ANALYSIS
RECOMMENDATION
THE ACTION PLAN
“

3. “
THE SITUATION
APRIL 2011
Octa Irzen went to the Citibank for make a
discussing regarding his credit card amount which
rose from Rp 48 Million to Rp 100. Here’s the case
then began to happen. He Octa Irzen who sought to
find a truth about his debt, then finally found as a
death body. Who’s taking part of this tragedy? The
answer then suspected to three Citibank Debt
collectors.

4. “
THE SITUATION
JULY 2011
The prosecutor is then being questionable. Because
there’s no continues process regarding this case.
The prosecutor Denies that they handling this case
to soft. Reason lies behind their statement is that
they have to make a deep investigation about this
case, and have arrested three people who
intentionally worked as a debt collector for Citibank
named Arif Lukman, Donald Haria, Boy Anto.

5. “
THE SITUATION
SEPTEMBER 2011
It’s a long wait for answer regarding this case. As it is stated in
the case that the member of Octa family has been suffer
because of this tragedy. They were looking for a justice, but
instead of even close to justice, what they have now is very
big questionable things. Moreover, they were wondering
either government has play a part to case close about Octa
tragedy. Citibank has promise to give the family an
appropriate money, but it has no prove at all. Some parties,
who concern about this subject was giving a comment also,
regarding the use of debt collectors, either it are ethical or no.

6. “
PROBLEMS
Doing business ethically could possibly just a matter of word
statement for some company, but regarding this case what
happened to the victim, is concluded as value inside Citibank
Company. Means that there’s a value conflicts appear on it.
Now, the problem for our group would be “Is the using of debt
collector inside the bank which causes a death consider to be
ethical? Even though there’s a permission law about it”.

7. “
ANALYSIS
Based on what happened on this case, our group would
strongly agree that tragedy happened to Octa Irzen as a fatal
unethical business exercised. Below this is a figure of impact
from this Unethical Behavior:

8. “
ANALYSIS
Stakeholders Impacts
Citibank Loss of customers’ truth; bad reputation; loss of
profit; unstable internal and external organizational
condition.
Family Disappointed feeling; suffer; traumatic; possibility
of discontinue studies; economically unstable.
Government More entrusted feeling coming from all parties
including family, society, and international public
eyes, regarding the policy of banking.
Community Creates public aware of fear regarding debt
collectors action; feeling of fear for bank; feeling of
entrusted of banking policy, and government
regulations.

9. “
ANALYSIS
Some slogans come from public comments:
Citibank - we'll beat anyone (for money)
Citibank - Your privacy is assured (while we beat you to death)
Citibank - Dying under a mountain of debt? Let us help you
(die)
Citibank - we can end your financial problems (and your life)

10. “
ANALYSIS
For our group, it is no wonder why such of this comment can be made,
because since this tragedy happened community and public are become
aware of what is another bad action will come from any Bank in Indonesia.
So, what these suppose to be mean? It means, by doing any unethical
causing of murder will take part in a whole aspects of business ethics studies.
Talking about running a business ethically will be always be
connected to the term of Value. What is value? Value is a system that set a
personal principles formalized into a code of behavior. Whenever there’s a
value there will be a value conflicts as well. Value conflicts could be classified
as:
Lying is wrong - doing lie in order to protect something for better
cause of one parties.
Stealing is wrong- steal something in order to help another person.
Killing is wrong- killed someone as a part of job, doing so will have a
good impact on the other side. And would definitely help the best of other
parties.

11. “
ANALYSIS
Based on this case, value conflicts related to this case is the first one and the
third. The reason lies, is that Citibank Company in any action always refuse to
say the truth about what is going on, what is the truth about what happened
which causing a death to one of their creditors. It is completely tragedy, since
Citibank was consider as one of the best Bank in Indonesia. Moreover killing
is still wrong, there would be no objections regarding that issue. That is why
our group thought that in any way, Citibank way of treating people is wrong.
What’s actually going on inside this company internal policy, culture and
value?

12. RECOMENDATIONS “
When this case appear, things that comes out from our group mind is how to solve this
problem, what is the best way to do in order to solve this problem. Some
recommendation would be:
•For the Citibank
In order to solve this problem, company should have a better understanding about how
to make a better decision internally and externally so that every party could be
mutually beneficial. Company should re-make their internal rules and policies regarding
collections of debt, if possible evaluate each part of the company department in terms
of how well they are implementing company policy. Also company should taking
serious responsible regarding Octa Irzen case.
•For the Government
Again for the government, group would be suggested to direct point in which do not
cover what is actually happen by saving the face of the one who consider to be one of
the company that might be shake up the Indonesian economic conditions.
•For the Police and Justice bureau.
Investigate clearly, and no matter what and how the fact should be show up.

13. “
THE ACTION PLAN
For our group it is obvious that problem about “Is the using of debt collector
inside the bank which causes a death consider to be ethical? Even though
there’s a permission law about it”. Well, the answer for this is definitely no.
Consider to discuss about this case from the basic of business ethics “Doing
the right thing”. As a matter of gaining the justice for the family member,
those parties who are intentionally be part of this murder actions should be:

14. “
THE ACTION PLAN
For Citibank Company
•Simple tell the truth- means that since this case is become a public secret,
then Citibank should tell the truth what is actually happen, and they have to
give more attentions for the family member.
•Applying the rules of appropriate behavior for customers who ever it is, and
for the community or society. Means that to gain the community trust again
seems to be hard right now, but it is possible if Citibank establish again the
new standard of ethical ideas to apply inside this organization including the
new code of ethics, rules and policies, especially about how they manage
their own internal way of collecting the creditors’ debt.
Applying good corporate governance beliefs in the right way.

15. “
THE ACTION PLAN
For the Government
•Since lately more unethical business problem comes from Bank, so
government should make a strictly rules and policy for banking system.
Talking about fraudulent, money laundry inside the bank is common, but case
about murder a person just because of debt, it definitely become such a bad
case that seriously affected the communities way of seeing the rule and
policy of banking system made by government. So, our group suggests the
government to assist again the Law forces regarding this case.
•Government should give more attentions to this case, by force the court of
justice to find the truth, either way even though finding out the truth might
cause a “public shock” and will shake up the Indonesian economic as a
whole, but truth is still a truth and the families deserve to find the truth.

16. “
THE ACTION PLAN
The Police and Justice Bureau
There is no other suggested action toward these parties because, since they
play an important part of finding out the truth, so they have to find the truth
until the end of this year. It took so long, for the truth to be show up.
Indonesia is a country of law, ruled and command by the law. So, if law can’t
give a truth, then when the justice will comes out.

17. “
THE ACTION PLAN
Below of this diagram is a suggested value made by our group to be apply in
the organization so that something like this will not going to happen anymore
Integrity
Orgabizational
Respect Values Honesty
Safety

18. “
THE ACTION PLAN
Diagram above shows that Every organizational should have a core values in
which:
Respect valuing others rights, opinions, and perspectives.
Safety company should conduct a good environment of work so that
everyone feel safe to be in part.
Integrity living values in all activities, unified approach in doing business an d
how to treat others
Honesty being honest is very important. Because it is a part of doing the
right thing and telling the truth.

19. “
THANK YOU
“