Case Study: Lions Financials Description: In this project, students will explore the ethical financial model of Lions Financials, evaluate its current ethical framework, and propose reforms aligned with globally recognized ethical and regulatory principles. Overview: Lions Financials is a fictional regional banking and investment firm based in the Caribbean. The firm expanded rapidly over the past decade, becoming a leading provider of consumer banking, mortgage services, investment advisory and credit products. Its mission statement commits to "inclusive prosperity through innovation, transparency, and trust." However, beneath these aspirational values lies a troubling pattern of alleged unethical practices currently under regulatory scrutiny. These concerns include excessive trading in client accounts, repeated refinancing of mortgages without informed consent, and the issuance of high$-$risk credit cards to financially unqualified clients. For instance, a senior adviser reportedly executed $$80,000$ in commissions on a retiree$$s account through high$-$frequency trades, while middle$-$income clients were routinely steered into refinanced loans with hidden fees. Moreover, branch$-$level incentives led to the issuance of credit cards to university students without income verification, resulting in severe debt burdens. Further to these allegations, it was determined that the firm$$s rapid growth strategy has been anchored on aggressive sales performance, without commensurate investment in ethical infrastructure. The firm lacks both ethical KPIs and adequate whistleblower protections. The firm$$s leadership views ethics primarily as a compliance checklist, rather than as an investment$-$a source of value creation. The firm has formally stated that it adheres to core ethical values such as integrity, fairness, transparency, and accountability, but there were reports that internal practices deviate significantly such as incentives favor closing sales rather than advising clients, compromising fiduciary duty. Moreover, products are marketed to financially illiterate clients without full disclosure, marketing materials obscure risks and fees, especially in variable$-$rate loans and credit offers and there are weak compliance controls. What is worse, fear of retaliation deter internal reporting. Background: The Central Bank has hired your consulting group to assess the ethical and regulatory system of Lions Financials, apply an ethical financial model and international governance principles and codes to resolve the ethical breakdowns. Your Task: Carefully discuss the Richard Hattwick $(2001)$ ethical model of capitalism and explain how it applies to the ethical state of the firm. Present and discuss the regulatory and ethical financial codes and corporate governance to resolve ethical breakdowns. a$.$ Which standards, codes apply most to Lion Financial$$s failures? b$.$ How should Central Bank regulators enforce these principles and standards?