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Need for ethical governance in financial services sector.[File, Standard]
The success of financial intitutions has been evaluated largely by profit and contribution to the bottom line. However, the 2008 global financial crisis changed that by demonstrating that prioritising rapid growth and unchecked profit over risk management and transparency can jeopardise the entire global economic architecture.
Today, financial services organisations, especially those in the banking and insurance sectors, are being evaluated through a broader lens. Profits still matter, but so do governance, social impact, customer protection, transparency and the ethical conduct that underpins business operations.
The need for ethical conduct in financial services is indisputable because financial activity affects people’s livelihoods, businesses and long-term security, while opportunities for immense financial gains can tempt people and institutions to act unethically.
