Page 10 - The Banks Summary (H)

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.