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Malpractice in Real Estate Transactions and Stakeholder Theory: Case for Code of Conduct
by Sheila Giddings
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This is a literature review on malpractice in real estate transaction, examined within the theoretical framework of the stakeholder theory. Since the 2008 financial meltdown which we now know was triggered by malpractices in the financial markets and the fraudulent securitization of real estate the spotlight has been on business ethics in general and real estate ethics in particular. Further, the 2016 revelations from the Panama papers have added impetus to the creation of global ethics standards in real estate business.
The stakeholder theory, (Freeman, 1984) has much relevance in understanding business ethics and helps us to understand the inter and intra-conflicts in corporate boards and how these are manifested in the corporate decision making. By giving voice to other stakeholders the theory gives us insight into how decisions are made and the ethics of decision making.
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