The occurrence and effects of GFC has led many boards to think more on compliance than performance. The managements of organizations are now focusing towards reducing unethical practices and not just profitability.
Economic success is no longer the only measurement of organizational efficiency. Moreover, defaulting to what is legal does not cut it anymore. As a result, Google, Apple, Amazon and Starbucks, for example, are finding backlashes in the UK where they have been held for their adherence to tax minimizing regimes which offshore their profits.
According to the field research, the top ethical issues confronting business institutions today revolve around −
● Insider Trading
● Illegal Political Contributions
● Environmental Violations
● Health or Safety Violations
● Improper Contracts
● Contract Violations
● Improper Use of Competitor’s Information
● Anti-Competitive Practices
● Sexual Harassment
● Substance Abuse
Can Organization Culture become a Bottleneck?
The New York Times published an article by Greg Smith, the former executive director and head of the firm’s US equity derivatives business in Europe, the Middle East and Africa, on March 14, 2012 edition of the newspaper. Smith described Goldman Sachs’ culture as ‘toxic and destructive’. He said that he resigned because the firm had become a place where profit trumps all other considerations; what was good for the firm and making money was of dominant value.