Pattern of Ethics Scandals

Pattern of Ethics Scandals

The report study has different causes that are associated with bad management. The USB provides an excellent oversight of the bad governance in the case development and wrong tone that are stated in the top MiniCase. There was a conflict of interest between US companies and USB. This conflict was arising since USB was many US companies to evade taxes that were imposed by the IRS according to the case study (Aspan, 2013). The development of the case generated some aspects of selfish accounting practices due to poor control of the government system.

For example, the case indicates there is some sort of libor manipulation scandals where the USB was associated with the second conflict in the act of colluding traders and brokers. The dispute arose when the USB showed some interest in the process of adjusting banks’ panel for interdealers. This was meant to create an advantageous position for the adjustment of trading positions on libor submissions. The USB generates some facts on protection on some ethics that include the idea process of evading from taxes, which is a scandal. Other scandals in the report involve the act of colluding with rogue traders and brokers. Th USB was equally involved in the act of manipulating things in the process of internal lending. As such, it is true to conclude that the Swiss Bank is operating while disregarding required compliances and without ethics. The Swiss bank is now known to be financial culprits, according to the case study.

The requirement of a corporation’s performance according to legal provisions is to ensure better stakeholders’ returns. These requirements are instituted according to society’s values on the performances of corporations. This means that organizations are to be blamed since they have responsibilities and duties to push for social value in their performances. The ethical and moral principles of the organization are required to be upheld in the case development. The recommendation for the violated ethical and moral principles requires the engagement of society and a legal system like the court. This means that stakeholders involved in the case development are to be held responsible for value degradation (Kirdahy, 2008).

The ethical fall out in the institution is as a result of customers, employees, the board of governor, and CEO engagements. The transformation of the rogue business organization does not only require meager fine for the violations. This is because the organization can be treated differently according to the activities of traders and brokers. The board of directors and both CEOs are to be held accountable for a violation based on legal provisions of professional and ethical ways of failure. Mr. Oswald Grubel did not consider his responsibilities by breaching and resigning despite the concerns of customers and the company. Equally, Mr. Adoboli was neglecting risk limit terms, which were considering the three-year term for Mr. Oswald.

Based on the development of the case study, financial fraud is developed in the context of the rigging of LIBOR, which cannot just be addressed as a clique of mastermind violation of ethic patterns. The occurrence of a larger scam in the case study development is seen in the injustices, which happen to junior traders. The junior trader is punished without valid reasons for violating legal standards. This means that superior managers are held responsible for the act of punishment, which needs to be brought into justices (Stewart, 2011). The 11 years jail term for Hayes was not harsh because it was corresponding to his violation’s consequences. The letter from the prison saw a reduction of jail term to 11 years as a way of solitary confinement. The authority needs to reduce the jail term as a way of showing protection despite violations done. The corrupt ring of the persecutor was initiated through the engagement of brokers and traders internationally. The development of the jail term was associated with his acts of trading in the global platforms, especially when he signed a $3 million bonus for USB. Tom Hayes was able to serve as a scapegoat because the conviction was reduced to 11 years in jail despite his legal violation actions.

The USB can effectively avoid failure to regain reputation through the idea of competitive advantage. There is a need for the USB to consider different initiatives to ensure a reputation in the undertaking of the organization (Thomasson, Bosley, 2011). The following are things to consider for an effective process of coming back to the business.

• There is a need to appoint a strong CEO through the reconstitution of the board and reputations of people selected.
• There need to influence the organization to follow ethical values explicitly.
• The audits conduct and ethical policies need to be reviewed in terms of internal practices in the organization.
• There is a need for the organization to train stakeholders and employees to understand ethics and conducts in the company.
• The USB needs to reject any request from customers based on principles and policies that are well written as the guideline to the performance of the organization.
• The market system needs to know that the bank has intentions of dealing with legitimate customers with new adjustments.

With adherence to these initiatives and recommendations, the organization is able to have hope in its engagement to regain its lost reputation in the market system.