Ethical Practices of Citigroup

The purpose of this memorandum is to discourse the ethical, fiscal and legal issues presented by Citigroup Inc. (Citigroup) receiving $45 billion dollars in disposal rescue monetary resource and then shortly after earningsing $13 million dollars in bonus compensation to employees for cancelled trips to resorts. We propose a number of solutions to the Department of Treasury in dealing with the dilemma.The Ethical plight Both Primerica Financial Services Inc. (Primerica) and Smith Barney are part of Citi Holdings, a new unit of Citigroup. Citigroup remunerative 1,900 agents of its Primerica Financial Services Inc. unit $5,000 severally for missing a three-day stay at a Bahamas resort. In addition, nigh 2,000 Smith Barney brokerage advisers got debit cards valued at $1,000, $2,000 and $3,000 for divers(a) canceled getaways. After being warned by President Barack Obama, That companies receiving bailout money cant go take a trip to Las Vegas or go prevail over to the Super Bowl on the taxpayers dime, Citigroup decided to pay employees in berth of canceled getaways.Stakeholders Creditors (U.S. Government), Taxpayers, Shareholders, Employees, Consumers Citigroups dilemma encompasses a large number of stakeholders, including creditors, taxpayers, shareholders, employees, and Citigroup customers. Creditors (including the U.S. Government) are stakeholders because they provided the funds used by Citigroup to collide with these bonus payments. The government has sought to composure this debate by imposing unfavorable tax treatments against unduly paid bonuses, essentially reclaiming the bonuses paid. Taxpayers have argued that the funds should be used in a way to benefit all society, i.e. rebuilding the financial credit system, kind of than a discrete segment of Citigroup employees.Taxpayers main contention is that it is unfair for Citigroup to pay reward bonuses to employees using government bailout money from tax payer dollars when Citigroups performance h as been so poor. As owners, all Citigroup shareholders are inherent stakeholders. Citigroup shareholders make the argument that the funds can be used to improve the financial outlook of Citigroup, increase the profitability of the corporation allowing it to pay creditors, stabilize the financial and credit sectors, and lead to an economic recovery.