Connect on Whatsapp : +1 206 673 2541, Get Homework Help 24x7, 100% Confidential. Connect Now

Bank Scandals: Bad Apples versus Bad Barrels | Get Assignment Help

ON ETHICS: Concerning the banks implicated above, are some of their employees “bad apples,” or are these banks “bad barrels”?

Based on the case study, the implicated financial institutions are “bad barrels” because they shape employee conduct. Most individuals tend to view themselves as principled. Within the context of the financial sector, there are large entities in which behavior patterns are frequently influenced by the team or group’s standards and norms. The organizational culture within financial institutions can stimulate immoral conduct if the culture focuses on profitability and shareholder return at the cost of other stockholders’ interests. Many financial institutions work towards maximizing profits for shareholders at the cost of clients, personnel, and adjacent lending institutions (Johnson Folkes & Wang, 2018). Bank staff opt to engage in malpractices since their performance is evaluated or compensated regarding the outcomes. Moreover, the thought of losing their employment if they fail to satisfy the targets may prompt them to sidestep procedures or policies to break the rules for personal benefit. Instead of being the case of a few “bad apples,” unethical practices start at the corporation’s top management. Management that fails to enforce regulations curbing the ethical practices encourages the personnel not to abide by the rules and guidelines. Thus, it is the case of “bad barrels” assignment questions that results in significant levels of misconduct.

ON ETHICS: As a new CEO for one of these banks, how are you going to clean up the mess and restore reputation?

Foremost, I would begin by investigating where these problems originated from. If individuals instigated the scandals, the pronouncements need to be made regarding whether they should be dismissed, transferred to a new department, or placed under probation.  If a system triggered them, then a new system may be installed. The fundamental goal involves guaranteeing that the problems are suppressed. The second preferred mechanism involves making an official apology to the firm clientele and personnel not implicated in the scandal. This would assist in developing trust amongst the personnel and clients. When an organization breaches customer trust, it takes time to regain that faith and confidence to its previous level. Therefore, the company should improve its customer service and develop a new persona for their corporation. Third, proper incentives along with assessment systems are vital in encouraging the entire labor force. For example, I will guarantee personnel are compensated based on their contributions to the corporation’s achievements rather than on the basis of achieving set objectives.

ON ETHICS: As a regulator, what would be your response to deter the next wave of scandals?

It is essential for a company to restore its public image and ensure that all staff are not considered  “Bad Apples.” To facilitate this aspect, I would guarantee that the corporation’s personnel are fully cognizant of local, state, and federal statutes. This includes supplying every individual with a guidebook and conducting training activities to certify that everybody is updated. Having periodical and annual corporation inspections to ensure no embezzlement would be a great addition to the corporation. It is vital to identify weaknesses of the inner controls and compliance concerns to eradicate numerous violations. Another aspect involves making certain that a more agent-centric framework is used to dissuade individuals from participating in malpractice. This would be achieved through the enactment of regulations that seek to deter improper conduct. The mechanisms include prosecution, get rid of, or decreasing remuneration incentives, thus exterminating excessive risk-taking undertakings among the personnel. It is similarly vital to make certain that the corporation itself is not a position that creates “Bad Apples.” All this contributes to ensuring the hiring of individuals keen on safeguarding the company’s reputation. A good hiring process plays a critical role in ensuring that the company has trustworthy personnel (Scholten & Ellemers, 2016). For the banking sector to be prosperous and retain a good reputation, it is essential to perfect this process and guarantee that the employment procedures executed are the best possible technique for the corporation.

Cite this Page

Bank Scandals: Bad Apples versus Bad Barrels | Get Assignment Help . (2022, June 07). Essay Writing . Retrieved March 25, 2023, from https://www.essay-writing.com/samples/bank-scandals-bad-apples-versus-bad-barrels-get-assignment-help/
“ Bank Scandals: Bad Apples versus Bad Barrels | Get Assignment Help .” Essay Writing , 07 Jun. 2022, www.essay-writing.com/samples/bank-scandals-bad-apples-versus-bad-barrels-get-assignment-help/
Bank Scandals: Bad Apples versus Bad Barrels | Get Assignment Help . [online]. Available at: <https://www.essay-writing.com/samples/bank-scandals-bad-apples-versus-bad-barrels-get-assignment-help/> [Accessed 25 Mar. 2023].
Bank Scandals: Bad Apples versus Bad Barrels | Get Assignment Help [Internet]. Essay Writing . 2022 Jun 07 [cited 2023 Mar 25]. Available from: https://www.essay-writing.com/samples/bank-scandals-bad-apples-versus-bad-barrels-get-assignment-help/
Get FREE Essay Price Quote
Pages (550 words)
Approximate price: -