The Financial Industry (the banking sector)
The University of Zurich Article
BUSINESS CULTURE IN THE BANKING INDUSTRY FAVOURS DISHONEST BEHAIOUR
A new study by Alian Cohn, Ernst Fehr, and Marechal from the Department of Economics at the University of Zurich done to show if the rumours saying that bank employees in nature are less honest people true. Their results show that bank employees are in principle not more dishonest than their colleagues in other industries. They did so by randomly assigning bank employees to one of two experimental conditions.
• One group was reminded of their occupational role and the associated behavioural norms and with appropriate questions.
• The other control group was reminded of their non-occupational role …show more content…
Either their occupational roles or those associated with leisure time were activated. These employees were not more dishonest when reminded of their occupational role. Their results suggest that the social norms in the banking sector tend to be more lenient towards dishonest behaviour and thus contribute to the reputational loss in the industry.
Analysing the challenges in the article using the 4 types of Organisational Cultures found in different organisations in South Africa in part 2.
1. The Collaborative culture.
The business culture in the banking industry implicitly favours dishonest behaviour.
Employees in the banking industry where persuading their own interests
In that manner this culture is not emphasised because of the mere fact that it focuses on teamwork and the combination of man skills.
2. The Controlled Culture
Dishonest behaviour that is implicitly favoured is not creating a basis of trust in the industry between the public and the bank.
The fact that they are emphasising on being cost effective and highly effective according to the requirements of the culture, important information to the public is then done …show more content…
They believe that social norms that are implicitly more lenient towards dishonesty are problematic, because the people`s trust in bank employees of the bank is of great importance for the long-term stability of the financial service industry. The banks could encourage honest behaviour by changing the industry`s implicit social norms. They suggest that bank employees should take a professional oath. If the oath was then supported with a corresponding training program in ethics and appropriate financial incentives, this could lead bank employees to focus more strongly on the long-term, social effects of their behaviour instead of concentrating on their own, short-term
The University of Zurich Article
BUSINESS CULTURE IN THE BANKING INDUSTRY FAVOURS DISHONEST BEHAIOUR
A new study by Alian Cohn, Ernst Fehr, and Marechal from the Department of Economics at the University of Zurich done to show if the rumours saying that bank employees in nature are less honest people true. Their results show that bank employees are in principle not more dishonest than their colleagues in other industries. They did so by randomly assigning bank employees to one of two experimental conditions.
• One group was reminded of their occupational role and the associated behavioural norms and with appropriate questions.
• The other control group was reminded of their non-occupational role …show more content…
Either their occupational roles or those associated with leisure time were activated. These employees were not more dishonest when reminded of their occupational role. Their results suggest that the social norms in the banking sector tend to be more lenient towards dishonest behaviour and thus contribute to the reputational loss in the industry.
Analysing the challenges in the article using the 4 types of Organisational Cultures found in different organisations in South Africa in part 2.
1. The Collaborative culture.
The business culture in the banking industry implicitly favours dishonest behaviour.
Employees in the banking industry where persuading their own interests
In that manner this culture is not emphasised because of the mere fact that it focuses on teamwork and the combination of man skills.
2. The Controlled Culture
Dishonest behaviour that is implicitly favoured is not creating a basis of trust in the industry between the public and the bank.
The fact that they are emphasising on being cost effective and highly effective according to the requirements of the culture, important information to the public is then done …show more content…
They believe that social norms that are implicitly more lenient towards dishonesty are problematic, because the people`s trust in bank employees of the bank is of great importance for the long-term stability of the financial service industry. The banks could encourage honest behaviour by changing the industry`s implicit social norms. They suggest that bank employees should take a professional oath. If the oath was then supported with a corresponding training program in ethics and appropriate financial incentives, this could lead bank employees to focus more strongly on the long-term, social effects of their behaviour instead of concentrating on their own, short-term