Disturbing Trends in the Financial Industry

Several trends in the financial industry are contributing to how we perceive Wall Street.

  1. CNBC reports, fewer individuals are participating in the markets, most likely due to the belief that large traders and high frequency trading are rigging the markets against the individual.
  2. In his blog, Matthew Yglesias, reports: “In a survey of 500 senior executives in the United States and the UK, 24 percent of respondents said they believed financial services professionals may need to engage in unethical or illegal conduct to be successful.”
  3. The Dodd-Frank bill, along with other legislation has been created to minimize the impact of the actions of large investment banks and trading organizations on the world economy.  This legislation often clumsily restricts the actions of the whole industry in order to protect our interests from unethical practices.

John G. Taft, in his blog How to Fix Financial Capitalism? Focus on Ethics, believes that the only way to restore public trust and confidence is to have each bank and trading house commit to and invest in professional and business ethics as a core principle and value for the company and each employee.  Many companies outside of the financial industry have done this resulting in excellent results with building trust with their customers and stakeholders.

Two more articles on corporate corruption and the need for ethical conduct with consulting:

The Spreading Scourge of Corporate Corruption,

Shared Ethical Responsibilities of Consultants and Clients

Finally, Susan Snyder describes a detailed process and critical steps to creating an ethical culture in her blog:

Creating an Ethical Culture: A CEO’s Checklist

Is an ethical approach to business and the community part of your company’s core principles?  What does it mean to your stakeholders, employees and customers to have an ethics first approach?

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