Barclays scandal reflects the lack of business ethics
Source link: http://www.collegiatetimes.com/stories/20232/barclays-scandal-underscores-need-for-business-ethics
The news indicated the Barclays scandal. In June 2012, Barclays was found that changing Libor(i.e., London Interbank Offered Rate)to increase their bottom line. After that, some world-dominate banks were under suspicion of cheating the Libor system. Investors had scammed by those greed capitalists.
This issue reminded people to think of the business ethic. What is the most important thing in operating a business? The answer should obviously be the profit. However, a successful business involves several groups of people, such as the customers, employees and the shareholders. The entrepreneur has to consider of creating the mutual benefit for those participators. If the CEOs only want to maximize their own profits, the business won’t have great success. Just as the Barclays’ case, the corporation was cheating the investors for their own benefits; consequently, the corporation was fined hundreds of millions of dollars. However, the worst result is not about the fine, some of the investors will lose confidence about the company forever. It is really difficult for a company to rebuilt its brand and good reputation. Therefore, operating the business ethically and honestly is the right way for companies to survive in the long run.