Behavioral changes - From compliance to ethical values in the banking industry

• Published in: Revista de stiinte politice 2012-07 (35), p.192
• Main Author: Nicula, Ileana
• Format: Article
• Language: English
• Subjects: Bank compliance; Banking industry; Business ethics; Corporate governance; Social responsibility
• ISSN: 1584-224X

From the working people government to corporate governance, the management science has been experienced changes of appearance and substance. As the crisis has been extensively analysed, a new idea has emerged, that is a "more" ethical behaviour should be adopted by the corporations, especially the financial ones. How has been recently discovered, the organizational culture isolated by social responsibilities and appropriate control mechanisms can lead to unwanted drifts, and even outstanding entities have practiced such a behaviour. Of course financial entities must observe a web of laws and regulations for their operations; this activity is known as compliance. Moreover, their staff ought to attend periodically training courses. However these are not concerned with ethical aspects. One could argue that there is Code of Ethics in each and every bank, as they are part of professional bodies (Bank Associations). Ethic and compliance might have some connections, but there is no overlapping. Could corporate governance bring together ethical values and compliance? The paper work launches a glance over the specificities of corporate governance within the banks in connection to their obligation to observe laws and regulations, and the fact that good governance (self regulation) leads to a right functionality of the markets. Thus the entities, the state, the whole economy and people should benefit. [PUBLICATION ABSTRACT]