Question

1. identify ethical issues that arise in domestic and global business environments using an understanding of ethical concepts and of legal and business principles

USAA is a member-owned organization that provided insurance and financial services exclusively to current and former members of the military as well as their family members. USAA has an excellent reputation as a well-run organization and for giving its members good service. Many USAA members maintain checking accounts with it. Some of those members who have checking accounts had overdrawn their balances and had a negative balance in their accounts. When the $1,200 or $2,400 stimulus check were deposited, USAA used those amounts to offset the negative balances in some of its members’ accounts. Members were not informed in advance that this would be the case. This resulted in some USAA members not having any access to the stimulus money. The action USAA took in crediting the funds to existing account deficits was perfectly legal.

Answer 1

Ethical Issues that arise in domestic and global business environments:

The Business ethics concepts was began in 1960s as most of the businesses or corporates became more aware of a rapidly rising consumer based society that indicates the concerns related to the environment, social issues, and corporate responsibilty which leads to guaranteeing the public fair and equal treatment.

Ethics is the fundamental for an impartial internal atmosphere in an organization. Ethics indicate what is right/good and what is wrong/bad in business and also relates to the employees, employer and business managements with moral values.

Business ethics primarily focus on the following:

1. Appropriate business policies and practicies which includes corporate governance, bribery, discrimination, insider trading, corporate social responsibility, and fiduciary responsibilities.

2. Business ethics also ensures that a certain standard level of trust exists between customers and different types of business formats.

Principles of Business Ethics:

Integrity is the most important factor in business, if businesses act with integrity, ethical behavior is just progression. Follwing are the main ethical qualities.

1. Honesty

2. Respect

3. Personal responsibility

4. Compassion

5. Dependability. These qualities are further integrated into the six pillars such as

Trustworthiness, Respect, Responsibility, Fairness, caring, Citizenship.

USAA is specifically meant for current and former military members and their spouses and children to provide banking and insurance solutions.

As per the above question, USAA has played vital role in handling the miltary member's insurance and banking transactions. They keep an eye on the funds flow and streamlined the unethical approches in a systematic manner to justify the consumer.

USAA is an organization for insurance, banking, investing and advice. They have earned their members trust by providing convinient banking and competitively priced insurance, and a comprehensive suit of investment products through their strategic providers.