Suppose you were a loan officer for a bank. The leaders in the organization have encouraged all loan officers to approve loans regardless of income or credit background. If you predict that people will not be able to make the payments and are likely to eventually lose the property, would approving this loan violate your personal code of ethics? Why or why not? How would you resolve this ethical dilemma? If borrowers, shareholders, and the community had knowledge of your bank’s strategy, how would they react?
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