Page 4 - RBS GRG F Teaching Note
P. 4
Questions
Objectives
Objectives
Where RBS should, after the 2008 financial crisis, have been
on its best behaviour, given that it had been bailed out by
the British taxpayer, it nevertheless proceeded to mistreat
those taxpayers it was specifically charged to help i.e. small
businesses.
But, ethical behaviour is often one of the first casualties of
perceived, emerging business failure. In the case of RBS and
its GRG Unit, there is enough evidence to suggest that
ethical misconduct was, if not a policy of corporate strategy,
to a great extent condoned. The objective here is to examine
and appreciate the culture that allowed GRG to attain
results, that helped its parent comply with the new
regulatory landscape, that overrode the moral compass.
However, even though 'culture', is an unfortunately vague
term it nevertheless, is often perceived as springing from
the strategic leadership of the organisation and is set out in
rules and procedures which are supported and monitored
by robust processes.
When misdemeanours were brought to the attention of
senior management, on numerous occasions, resistance to
test their validity was missed. A second objective may
therefore be to appreciate organisational entropy in light of
resistance by management to confront and where necessary
accept wrong doing.
