HSBC Hong Kong is currently operating under a five year deferred prosecution agreement and needs to change their organizational culture as part of an agreement. Over the years, HSBC has been involved in many instances of money laundering among other things. HSBC needs to do its own corporate soul searching to re-establish their lost values.

(Image taken from article)

One of the main influences on HSBC’s current culture is the lack of a coherent team unit. According to the article, there is a sense of hierarchy in HSBC’s staff that leads to lower level employees catering to the higher-ups. HSBC has a high level of individualism which creates an environment where workers do not share information, and are not able to embrace any core values. In my opinion, HSBC may need mass layoffs, and the hiring of new employees (through a stringent recruitment policy). While this may cause chaos in the short run, as workers are afraid to lose their jobs, I feel it is necessary in the long run because it’s impossible to build an organizational integrity with their current foundation.

I also feel that HSBC will have a hard time changing because they may feel above the law. This can, in the large part, be attributed to governments not taking drastic legal action for fear of disrupting the country’s financial system. This may dig HSBC’s grave as they may not be motivated to implement changes with the lack of a real threat of closure. As the article title states, “HSBC finds it easier to pay fines”.