Ethical lapses in finance sector hit headlines most often
The Institute of Business Ethics has monitored over 1000 news stories to analyse the business ethics issues and the sectors most at risk of integrity lapse.
Reporting on the finance sector (including insurance companies and payday lenders) contributed almost four out of every 10 news items (37%). The most commonly reported issue for this sector was executive remuneration, accounting for 18% of stories. The bonus culture of the city was a prominent source of news in both 2012 and 2013. This was closely followed by fraud/theft (17%), comprised of numerous articles related to the ongoing ramifications of the LIBOR fixing scandal.
The highest proportion of stories on mis-selling (90%) and money laundering (82%) occurred in the finance industry. Additionally, over two-thirds of those related to behaviour/culture (70%) and insider trading (67%); the majority of executive remuneration (60%) and discrimination (54%); and just under half of those addressing corporate governance and openness with information (both 45%), also were in the finance sector.
Philippa Foster Back CBE , IBE’s Director, commented: “In the analysis of the business ethics stories in the news, it is clear that the proposals in Sir Richard Lambert’s Consultation Paper on Banking Standards are long overdue. A change of culture is needed in the finance sector inorder for trust to be restored. The IBE will be responding to the Consultation Paper in due course and encourages others to do likewise. The IBE advocates that best practice in today’s environment to help to raise standards is to reward people for ethical as well as profitable behaviour.”
You can access Ethical Concerns & Lapses 2012-2013 here.
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