Wednesday, July 11, 2012
This essay reports the results of a survey of financial executives. Twenty-four percent of them said rule-breaking was an essential part of being successful. That included illegal and unethical conduct such as insider trading. If this is a true reflection of the industry, CEOs of financial firms should be concerned. They know already the perils of being caught, the enormous fines and harm to the reputations of individuals and organizations. How is it that financial executives could be so short-sighted? It seems that winning day-to-day is more important to them than success in the long run. Unfortunately for them, they will be judged by their actions and more will go to prison. From a PR perspective, such conduct is dumb, and corporations should get rid of these people sooner rather than later. It is difficult enough to work in financial markets with intensified regulation. One doesn't need to battle regulators at the same time.