Discussion 6 response
Charlene S.
The Federal Reserve Banking System is a perfect example of an organization whose over-arching goals and monetary strategy are in line with principle number eight of A Catholic Framework for a Catholic Life. Organizations have a social responsibility to create business frameworks that support and promote practices that are in the best interest of the public (Pimple, 2012). Created by Congress in 1913 the Federal Reserve Act established the central bank of the United States known as the Federal Reserve Banking System (Notes to financial statements, 2010). The Federal Reserve Banking System through its existence, governance and practices supports principle number eight “Society has a moral obligation, including governmental action where necessary, to assure opportunity, meet basic human needs, and pursue justice in economic life (A Catholic Framework for a Catholic Life, 1996).” According to Greenspan (1996, p. 1101) “We have to be sensitive to the appropriate degree of accountability accorded a central bank in a democratic society.” Greenspan (1998) asserted the responsibility of the central bank is to set monetary policy which directly impacts price stability, long term interest rates and employment. In addition, to these primary objectives there must checks and balances that hold policymakers accountable for the decisions they make because these decisions have a significant impact on the lives of people and the global economy (Greenspan, 1998). Corporate social responsibility places a substantial importance on the obligations an organization has to be socially responsible and good public stewards within the communities they serve (Pimple, 2012).
(1996, November ). A Catholic Framework for a Catholic LIfe. Washington : United States Conference of Catholic Bishops Inc. Retrieved from http://www.usccb.org/issues-and-action/human-life-and-dignity/economic-justice-economy/upload/catholic-framework-economic-life.pdf
Greenspan, A. (1993). Statements to the congress. Federal Reserve Bulletin, 79(12), 1100. Retrieved from https://saintleo.idm.oclc.org/login?url=https://s.earch-proquest-com.saintleo.idm.oclc.org/docview/219448703?accountid=4870
Notes to financial statements. (2010, 05). The Region, 24, 42-68. Retrieved from https://saintleo.idm.oclc.org/login?url=https://search-proquest-com.saintleo.idm.oclc.org/docview/507119566?accountid=4870.
Pimple, M. M. (2012). BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY. International Journal of Management Research and Reviews, 2(5), 761-765. Retrieved from https://saintleo.idm.oclc.org/login?url=https://search-proquest-com.saintleo.idm.oclc.org/docview/1425249063?accountid=4870