Noticing the financialinstitutions delivering extraordinary results for years based on the factorsabove, Northern Rock under the leadership of the Chief Executive Officer AdamJ. Applegarth, quickly became an industry frontrunner by employing the pastprofits to invest primarily in mortgage securities. As mentioned prior thecollapse of the bank, Northern Rock had projected an ethic of care according toLinsley and Slack (2012), which was based on the excessive feelings ofbetrayal. Overconfident on their plan to capitalize on then current assets, thebank invested all the previous savings ignoring the enormous risk involved.
Incontrast with their shareholder’s goal to protect the principal by managingless risk. Including the previous existence of Northern Rock as a buildingsociety as well as the Northern Rock Foundation, the bank was strengthening theimage of a caring and loving institution that its ultimate goal was to servethe community as best as they can. However, there was a noticeable feeling ofacrimony and disappointment with their investment’s direction and Northern Rockitself, as the change in leadership brought many changes and differentpolicies.