Industry Ethics

In: Business and Management

Submitted By bami
Words 913
Pages 4
INDUSTR ETH RY HICS: ARE WE STILL IN S A W SELF-DENIA AL?
The Public Hates Financ Firm and O Members T c s cial ms Our Think T They y Know Why
By Kurt N. Schacht, JD, CFA S J more things change, the more they stay the same. c m y The m Thes words offer an astonishingly clear pic se r cture of the state of things some four ye ears since Ber rnard Madoff’s multi-billion ndollar scam and th worst finan he ncial crisis in decades rippe through th global mar kets, both lea d ed he aving a wide s swath of age w h rm nancial system and the world economy, m dama in their wake. Although we anticipated a long-ter impact on the global fin we did not expect the lack of fu undamental ch hange on Wa Street and beyond. In ot all ther words, it’ been business as usual ’s arge financial firms, which has left the gl h lobal financial system mos paralyzed by a crisis of confidence t stly f that began in for la 2007 7–2008 and has only intens sified since. With news about our industry’s ethical misst o s teps dominating headlines in 2012, it’s n surprise th the results of the 2013 no hat s ntiment Surve (GMSS) — which polled CFA Institut members o their outloo for world c ey d te on ok capital Global Market Sen mark kets in the com ming year — show that ma work is ne ajor eeded to resto market in ore ntegrity. Intere estingly, mem mbers think the e prima fix is to en ary ncourage a cu ulture of ethic inside finan cs ncial firms. Aske which facto has most co ed or ontributed to the current la of trust in the finance in ack ndustry, more than half (56 e 6%) of survey y respo ondents ident tified the lack of ethical culture within fin nancial firms. Surprisingly, conventional wisdom plac the blame l ces e for th industry’s low standing on market dis he o sruptions (faile IPOs, insid trading ca ed der ases, flash cra ash, etc.). Ou members ur rejec that notion. Their messag is clear:…...

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