How is misconduct being managed?
Almost every month we continue to hear of some sort of corporate ethical issue or scandal. Even though financial services regulators have flexed their muscles, organisations such as Barclays, UBS and Deutsche Bank have recently received multimillion pound fines.
Financial services regulators continue to impose larger and larger fines on organisations deemed guilty of wrongdoing. Recently-published data from the professional services firm EY states that fines have risen by 271% in the last two years, to £2.25 billion – and that criminal prosecutions against organisations and individuals have also increased, with the amount of prison time for misconduct increasing 124%.
We are familiar with the debate surrounding some of the purported causes such as hubris, lack of internal compliance, regulatory failure and of course the culture of organisations.
Even though organisations have been taking steps, much remains to be done. For example, the efforts of former Barclays CEO, Anthony Jenkins, nicknamed the ‘saint’, are well documented. For example, value statements in lifts at Barclays headquarters in Canary Wharf. It will be interesting to see the approach of new Barclays CEO, James ‘Jes’ Staley.