In prior components of this series dealing with management at a mortgage-equities investment company, it was noted that mangers involved in the planning process formulate the mission, objectives, and goals of an organization and develop action programs that will lead to the attainment of the objectives and goals in ways that are consistent with the mission (Higgins, 1994). In this context, it is necessary for the company's managers to establish ethical principles to govern the behavior of the organization, to follow those principles, and ensure that all employees conformed to ethical standards.
Growth at the company led to diversification and decentralization. In turn, the delegation of authority meant that ethical standards for the company needed to be clear, publicized, and enforced (Woodring, 2004). Because the operations of the company involved customers, investors, employees, communities, and a variety of other stakeholders, decisions and behaviors by the company, its managers, and its employees needed to be consistent and fair to everyone affected by the company (Jones, 2003). Planning at the company, thus, was more than developing strategies that would lead to the highest levels of short-term profits.
This current paper evaluates the management planning function of the mortgage-equity investment company within the context of (a) assuring adherence to relevant laws, (b) observing ethical principles, and (c) maintaining socially responsible corporate behavior in relation to dealing with loss mitigation risk management, portfolio management for delinquent accounts, and other operational functions of the company. An important responsibility of management in the planning process is to assure that adherence to laws, observing ethical principles, and maintaining socially responsible corporate behavior are pursued simultaneously, continually, and effectively (Bateman & Snell, 2003).
Bateman and Snell (2003) noted that and ...