“A Crisis of Culture” (in Banks) – new report from Economist Intelligence Unit
I re-watched Inside Job again last night. Its a brilliant documentary on the 2008 banking crisis, and recommended watching for anyone interested at all in just how bad was the situation that culminated in September 15th, 2008.
So it was some ironical for me at least, that this morning the Economist Intelligence Unit came out with this new report. As is usual with EIU there is lots of empirical evidence and this statistic leapt off the page at me. More than half of bankers feel ethics get in the way of career progression. This statistic alone suggests that bank leaders, whose attitudes I believe drive culture, have much to learn.
…but executives struggle to see the benefits of greater adherence to ethical standards.
While respondents admit that an improvement in employees’ ethical conduct would improve their firm’s resilience to unexpected and dramatic risk, 53% think that career progression at their firm would be difficult without being flexible on ethical standards.
The same proportion thinks their firm would be less competitive as a consequence of being too rigid in this area.