Page 11 - Flip Banks TG

Culture is not static. It is multi-faceted and reflects the

environments within which it interacts. If business controls

are bypassed the consequence are that culture may not

simply cease to function it may in fact be transformed

through the exercising of a new quasi-norm e.g. GRG’s

property valuations.

Compensation is also a rich ground for influencing culture

for example bonuses can distort actions particularly if they

are linked to sales target such as happened with Wells Fargo
Bank. Moreover, how believable is it that the 5,300 sacked

staff at Wells Fargo were all unethical?

The CEO of an organisation to a great extent sets the culture

and its tone. If the CEO condones or turns a blind eye the

example is set for those below him in the organisational

structure to do similarly. For example, Barclays and the
LIBOR scandal or Bank of America and racial discrimination

over mortgages.

The problem with the breaking of cultural norms and values

is the identification of those that participated in them. It may
be true that the ‘buck stops with the CEO’ but the reality is

that it is extremely difficult to prove knowledge afore

thought e.g. Bank of America and racial discrimination over

mortgages.