Citizen Bank Case

The nuclear fusion re proceeding of U. S. Citizen chamfer and Louisiana Purchase trust (LPB) in 1998 resulted in a institution of a financial powerhouse possessing hollow out competencies in commercial lending and innovation. Upon recognizing the frequently needed annuity-driven market potential animate indoors the U. S. college population, the LPB pioneered the scholar citation bill poster program in 1989. Indeed, the student source r every last(predicate)y program proved to be more profitable with net in mystify bound around 6 percentage comp ared to that of 4 percent for non-student product offerings.In fact, LPB was ingathering revenue on 60 percent of its accounts. The sheer magnitude of honorable mention utilisation among college students caught human races attention. Well prise college professors claimed direct correlation between cite institutions success and college students ir responsible for(p) financial conduct sinking to debt and higher drop-out ra tes.Due to this change magnitude general awareness, The U. S.General Accounting pipeline (GAO) initiated an inquiring report to further consider the magnitude of student realization card usage and its consequences on students academic, financial, and personal puff up- creation. The GAO asked LPBs head of Student Card work portion, Michelle Jeffries, to participate in a stick to soliciting data pertinent to their college student accounts as s advantageously up as selective data regarding LPBs selling set about to this demographic.Data submitted would be compared to that of separate (unnamed) financial institutions and published (in aggregate) without identifying one-on-one responders. In addition, Michelle Jeffries was nonified that a popular investigative television serial, 60 proceeding willing be featuring a story on student opinion cards and plans to exhibit reliance card depicted objectrs in a prejudicial light similar to that of tobacco companies. I be lieve Michelle is in the outdo position to be the key last maker due to the fact that she has the near insight into componental operations, objectives, and set.She is the leader of the student credit card services division and should be the one to decide and herald next steps after having equanimous input from other constituents including the President, Risk conductor and other employees. Michelle needs to consider the interests of U. S. Citizen Bank, its employees and shareholders, every(prenominal) c whollying for a profitable and flourish organization.In addition, she needs to consider the rights of habitual public and media to know what U. S.Citizen Banks ultimate objectives are, including its corporate determine and goals. Does U. S. Citizen Bank need to have a chaste obligation to look after the lift out interests of guests it serves? If so, what is in college students best interest when it comes to credit cards? Is it honourable to go across credit to stude nts? Finally, Michelle needs to think about her induce virtues and character in addition to those of the organization. What virtues does the friendship value the most? Do those range with her personal virtues?The most important ethical issue at hand is the implied allegement that success of U. S Citizen Banks Student Card Services division was at the expense of college students financial well-organism. That begs the fountainhead of moral obligation and the ethics of extending credit to college students. A nonher important ethical issue is U. S. Citizen Banks chemical reaction to the public in regards to the GAO survey as well as 60 Minutes. The bank is universe asked to disclose confidential guest information as well as their championship and marketing plans.Lastly, Michelle needs to marry her birth personal values to those of the organization which she leads. She has a solid track record of being honest, fair and ethical and she needs to lead the organization keeping those core values in mind. Lastly, she needs to assure those divided values are developedly being practiced. Michelle is presented with the following possible options. She could disregard GAOs request for information on thousand of protecting customer privacy as well as corporate line and marketing plans in terms of promotional and marketing strategies.She could also choose not to publically address 60 Minutes to avoid the possibility of self-imposed negative attention on U. S. Citizen Bank in relation to the series. Another viable option would be to submit the requested information to the GAO as well as publicly address the 60 Minutes series while firmly defending keep compeverys current strategy without identifying any holes or areas for service. The third option would be to respond to the GAOs request as well as release a public statement in response to the 60 Minutes series understandably identifying U.S. Citizen Banks corporate values, objectives and responsibilities to all of its stakeholders.In both responses, Michelle could acknowledge things the smoke believes theyve through with(p) right as well as things they could and plan to mend on in response to helping college students perform more financially responsible when it comes to credit card debt. Michelle should respond to the GAO survey by submitting requested account data and marketing information while emphasizing familiaritys strong commitment to customer privacy and onfidentiality of information submitted.She should address the 60 Minutes series by clear identifying and defending her organizations values and commitment to its customers. She should highlight partys accomplishments and strides in the area of student credit card tenet method programs. Furthermore, she should identify areas of improvement with well-defined action plans that will come on the organization to the next level vs. only if pointing out weaknesses to the competitors.The overall theme should re-iterate unions commitment to all of its stakeholders, acknowledging what theyve done to support that commitment followed by an action plan to further evolve and improve their student credit card education programs. They should raise the bar for all credit card issuers on educating college students on responsible use of credit cards. More importantly, they should publicly acknowledge their ethical responsibility to reserve customers with information necessary to make hold out financial decisions.Michelle also needs to go out outside(a) communication aligns with the internal comment in order to successfully serve publicly announced action plan. subjective stakeholders need to be assured that external message is honest and action-driven and not sound a media spin to protect caller-outs interests. An internal communication to employees and shareholders should clearly translate the external message into sustainable long-term profitability and well-being of the family.Considering the interests of all parties involved, the suggested approach is clearly the right one. By publicly acknowledging and recognizing an increased concern border college students credit card debt, they will master publics sympathy and respect. By choosing to do something about it via a well defined action plan, they will take a shit publics trust. By gaining publics trust, they will gain a more loyal and increased customer base which will contribute to companys long-term profitability.In addition, this approach will clearly communicate companys values and traits of responsible corporate citizenship which will set an example for other companies in their industry, including their competitors. One might vie the organization should really re-evaluate the business they are in as it may not be morally responsible to extend credit cards to students. I would debate that the morality question sure does come into play and should definitely be considered when decision making on tactics used to sanction and market credit cards to students.However, the actual extension of credit to students, by its nature, is not unethical. In fact, when utilized properly, it serves students interests by allowing them to course credit history while teaching financial responsibility and spending within means. In conclusion, while credit lending geared towards college students is not considered unethical business to be in, marketing techniques utilized to supercharge such products and service may certainly cross ethical boundaries.