BINUS BUSINESS SCHOOL Group 2 : Business Ethics

Brenda | Hendriana | Jefri | Pramita Wardani

Politician's Death Sparks Debate on Debt Collecting Ethics “

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THE SITUATION PROBLEMS ANALYSIS

RECOMMENDATION THE ACTION PLAN

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THE SITUATION “

Octa Irzen went to the Citibank for make a discussing regarding his credit card amount which rose from Rp 48 Million to Rp 100. Here’s the case then began to happen. He Octa Irzen who sought to find a truth about his debt, then finally found as a death body. Who’s taking part of this tragedy? The answer then suspected to three Citibank Debt collectors.

APRIL 2011

THE SITUATION “

The prosecutor is then being questionable. Because there’s no continues process regarding this case. The prosecutor Denies that they handling this case to soft. Reason lies behind their statement is that they have to make a deep investigation about this case, and have arrested three people who intentionally worked as a debt collector for Citibank named Arif Lukman, Donald Haria, Boy Anto.

JULY 2011

THE SITUATION “

It’s a long wait for answer regarding this case. As it is stated in the case that the member of Octa family has been suffer because of this tragedy. They were looking for a justice, but instead of even close to justice, what they have now is very big questionable things. Moreover, they were wondering either government has play a part to case close about Octa tragedy. Citibank has promise to give the family an appropriate money, but it has no prove at all. Some parties, who concern about this subject was giving a comment also, regarding the use of debt collectors, either it are ethical or no.

SEPTEMBER 2011

PROBLEMS “

Doing business ethically could possibly just a matter of word statement for some company, but regarding this case what happened to the victim, is concluded as value inside Citibank Company. Means that there’s a value conflicts appear on it. Now, the problem for our group would be “Is the using of debt collector inside the bank which causes a death consider to be ethical? Even though there’s a permission law about it”.

ANALYSIS “

Based on what happened on this case, our group would strongly agree that tragedy happened to Octa Irzen as a fatal unethical business exercised. Below this is a figure of impact from this Unethical Behavior:

ANALYSIS “

Stakeholders Impacts

Citibank Loss of customers’ truth; bad reputation; loss of

profit; unstable internal and external organizational

condition.

Family Disappointed feeling; suffer; traumatic; possibility

of discontinue studies; economically unstable.

Government More entrusted feeling coming from all parties

including family, society, and international public

eyes, regarding the policy of banking.

Community Creates public aware of fear regarding debt

collectors action; feeling of fear for bank; feeling of

entrusted of banking policy, and government

regulations.

ANALYSIS “

Some slogans come from public comments: Citibank - we'll beat anyone (for money) Citibank - Your privacy is assured (while we beat you to death) Citibank - Dying under a mountain of debt? Let us help you (die) Citibank - we can end your financial problems (and your life)

ANALYSIS “

For our group, it is no wonder why such of this comment can be made, because since this tragedy happened community and public are become aware of what is another bad action will come from any Bank in Indonesia. So, what these suppose to be mean? It means, by doing any unethical causing of murder will take part in a whole aspects of business ethics studies. Talking about running a business ethically will be always be connected to the term of Value. What is value? Value is a system that set a personal principles formalized into a code of behavior. Whenever there’s a value there will be a value conflicts as well. Value conflicts could be classified as: Lying is wrong - doing lie in order to protect something for better cause of one parties. Stealing is wrong- steal something in order to help another person. Killing is wrong- killed someone as a part of job, doing so will have a good impact on the other side. And would definitely help the best of other parties.

ANALYSIS “

Based on this case, value conflicts related to this case is the first one and the third. The reason lies, is that Citibank Company in any action always refuse to say the truth about what is going on, what is the truth about what happened which causing a death to one of their creditors. It is completely tragedy, since Citibank was consider as one of the best Bank in Indonesia. Moreover killing is still wrong, there would be no objections regarding that issue. That is why our group thought that in any way, Citibank way of treating people is wrong. What’s actually going on inside this company internal policy, culture and value?

RECOMENDATIONS “

When this case appear, things that comes out from our group mind is how to solve this problem, what is the best way to do in order to solve this problem. Some recommendation would be:

•For the Citibank In order to solve this problem, company should have a better understanding about how to make a better decision internally and externally so that every party could be mutually beneficial. Company should re-make their internal rules and policies regarding collections of debt, if possible evaluate each part of the company department in terms of how well they are implementing company policy. Also company should taking serious responsible regarding Octa Irzen case. •For the Government Again for the government, group would be suggested to direct point in which do not cover what is actually happen by saving the face of the one who consider to be one of the company that might be shake up the Indonesian economic conditions. •For the Police and Justice bureau. Investigate clearly, and no matter what and how the fact should be show up.

THE ACTION PLAN “

For our group it is obvious that problem about “Is the using of debt collector inside the bank which causes a death consider to be ethical? Even though there’s a permission law about it”. Well, the answer for this is definitely no. Consider to discuss about this case from the basic of business ethics “Doing the right thing”. As a matter of gaining the justice for the family member, those parties who are intentionally be part of this murder actions should be:

THE ACTION PLAN “

For Citibank Company •Simple tell the truth- means that since this case is become a public secret, then Citibank should tell the truth what is actually happen, and they have to give more attentions for the family member. •Applying the rules of appropriate behavior for customers who ever it is, and for the community or society. Means that to gain the community trust again seems to be hard right now, but it is possible if Citibank establish again the new standard of ethical ideas to apply inside this organization including the new code of ethics, rules and policies, especially about how they manage their own internal way of collecting the creditors’ debt. Applying good corporate governance beliefs in the right way.

THE ACTION PLAN “

For the Government •Since lately more unethical business problem comes from Bank, so government should make a strictly rules and policy for banking system. Talking about fraudulent, money laundry inside the bank is common, but case about murder a person just because of debt, it definitely become such a bad case that seriously affected the communities way of seeing the rule and policy of banking system made by government. So, our group suggests the government to assist again the Law forces regarding this case. •Government should give more attentions to this case, by force the court of justice to find the truth, either way even though finding out the truth might cause a “public shock” and will shake up the Indonesian economic as a whole, but truth is still a truth and the families deserve to find the truth.

THE ACTION PLAN “

The Police and Justice Bureau There is no other suggested action toward these parties because, since they play an important part of finding out the truth, so they have to find the truth until the end of this year. It took so long, for the truth to be show up. Indonesia is a country of law, ruled and command by the law. So, if law can’t give a truth, then when the justice will comes out.

THE ACTION PLAN “

Below of this diagram is a suggested value made by our group to be apply in the organization so that something like this will not going to happen anymore

Orgabizational Values

Integrity

Honesty

Safety

Respect

THE ACTION PLAN “

Diagram above shows that Every organizational should have a core values in which: Respect valuing others rights, opinions, and perspectives. Safety company should conduct a good environment of work so that everyone feel safe to be in part. Integrity living values in all activities, unified approach in doing business an d how to treat others Honesty being honest is very important. Because it is a part of doing the right thing and telling the truth.

THANK YOU

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