AIG’s ethical problems in 2008

Paper instructions:
Write a case study on a major company and how they have handled an ethical decision. Please introduce the company, provide background information on the ethic issue, and what the company did to deal with the issue. Make sure you include how employees and the general public responded to this. Do you agree with the steps that the company took? What suggestions would you make? it should be with work cited or reference page.

I pick up the AIG`s ethical problems for final paper. In 2008, AIG undergo tremendous financial crisis. This is because a department of AIG, Financial Products (AIGFP), misjudged about profitability of Collateralized Debt Obligations (CDO) products. Even though other departments of AIG were stable condition, AIG could not avoid the crisis because huge money of mutual, pension, and hedge fund were related to it. In this situation, US government entered and gave 85$ billion bailout to AIG extraordinarily. It was the first time in the US history to protect a private company by pumping huge money. Despite the worst situation, AIG decided to pay huge bonus to member of executives. This happen was big controversial issues in US.


AIG's ethical problems in 2008