Noticing the financial
institutions delivering extraordinary results for years based on the factors
above, Northern Rock under the leadership of the Chief Executive Officer Adam
J. Applegarth, quickly became an industry frontrunner by employing the past
profits to invest primarily in mortgage securities. As mentioned prior the
collapse of the bank, Northern Rock had projected an ethic of care according to
Linsley and Slack (2012), which was based on the excessive feelings of
betrayal. Overconfident on their plan to capitalize on then current assets, the
bank invested all the previous savings ignoring the enormous risk involved. In
contrast with their shareholder’s goal to protect the principal by managing
less risk. Including the previous existence of Northern Rock as a building
society as well as the Northern Rock Foundation, the bank was strengthening the
image of a caring and loving institution that its ultimate goal was to serve
the community as best as they can. However, there was a noticeable feeling of
acrimony and disappointment with their investment’s direction and Northern Rock
itself, as the change in leadership brought many changes and different


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