MANAGING BUSINESS ETHICS A CASE STUDY OF BARCLAYS BANK PLC

MANAGING BUSINESS ETHICS 21

MANAGINGBUSINESS ETHICS: A CASE STUDY OF BARCLAYS BANK PLC

Businessethics is the principles that define the right and the wrong thingsat the workplace. However, the meaning of the concept hasdiversified, in the business environment, to include the righttreatment of clients and handling of the external environment, whichare not part of the internal workplace of an organisation. Everysuccessful business requires establishing strict ethics forcontrolling relationships with stakeholders, as well as the effectsof the products and services it provides. Business ethics candetermine the profitability or loss of business since as they canattract or repel customers (Carroll &amp Buchholtz 2006: 23). Theethic principles are most pronounced in finance institutions such asbanks. For example, banks should inform its clients the rate ofinterest of the loan. This would make it possible for the customer todetermine the amount of interest he or she will pay by the end of thecontract. However, it is unethical for a bank to include hiddencharges that would increase the interest rate of a customer withoutinforming him or her. This case study is based on Barclays BankPublic Limited Company (PLC). The strong ethics management of theorganisation has played a critical role throughout the fundamentalevolutions the business has experienced since its establishment in1890 and expansion into more than fifty countries situated in variouscontinents (Carroll &ampBuchholtz 2006: 27). The bank has aresponsibility of managing its ethics as violation of the establishedprinciples can put their good reputation in grave jeopardy ofdrowning down the drain. The objective of this study is evaluatingthe systematic and comprehensive ethics management principles theBarclays Bank PLC has laid down for controlling behaviour of theemployees and ensuring they behave appropriately all the time. Inaddition, the study will investigate the essential managementprogrammes that the Barclays Bank uses in ensuring to provideadequate information and influence different stakeholdersrequirements.

Maintaininga culture of ethics

TheBarclays Banks PLC has developed strict measures workplace andbehaviour principles that all staff members must comply. Theinstitution has been practising the principles since itsestablishment hence, even new staff members are obligated tomaintain the same level of ethics. Since it began expanding intointernational markets, the organisation set operation principles thatare compliant with the International labour Organisation (ILO), aswell as the Universal Declaration of human rights (UDHR). Followingthe declaration, the bank’s ethical standards are suitable forusing in the international markets. The remuneration, relationship,as well as the rights of the employees, are equal and respected inall the branches in every country the organisation operates. Theemployee relations, financial services, and financial services arebased on the international standards. The mission statement of thebank complements the ethical mission it aims at achieving. Thestatement asserts that the company aspires to become the mostdependable and impressive financial services institution worldwide.Furthermore, it aims at earning recognition as the mostcustomer-focused and innovative financial service deliveringoutstanding services and products to its entire clientele at everyplace they are located while assuring exceptional careeropportunities, as well positive contribution in the societies thatthe company operates (Ackrill &amp Hannah 2001: 24).

Purposeand values

Overthe years, the Barclays Bank has reviewed its fundamental operationethics that have in turn helped it in attaining strong values that itneeds for acquiring long-term returns. The operation standards usedin all the branches of the company are standard internationally. Thepolicy of the company advocates the assessment and rewarding ofindividual achievement. The united purpose of the bank is assistingall its customers in achieving their ambitions appropriately. Thecompany measures and gives incentives to both staff members whouphold its standard of values, as well as the employees who excel inachieving commercial success. Since the achievement of the staff isdetermined based on a standard scorecard of effects, the entire staffof the company is motivated to maintain the standard ethics thecompany has established. The key values that have contributed to theexponential growth of the company include respect for everyone, aswell as the effort they put in making Barclays bank an admirablefinancial institution (Sun 2010: 5). The company observes maximumintegrity through acting fairly, morally, and candidly, in everythingit does (Miller 2009: 13). Third, the organisation gives priority toits customer through taking time in understanding the things theyneed. The staff members are dedicated to surpassing the needs oftheir customers. Fourth, Barclays Bank ethics advocates forexcellence through using its resources, energy, and skills inachieving long-term results. The ethical values, the company, applieshave been perfected through learning from their past mistakes.Lastly, the company is directed by a sense of stewardship thatmotivates it to leave things in better than they found them. Thisvalue ensures to protect and enhance the values of the company allthe times. The executives and managers of the company advocate forKantian ethics philosophy, which emphasises that, “humanbeings should act on the maxim by which they can and will that itwould become a universal law (Sullivan&amp Kant, 1997).” For example, the organisation had to reconsiderthe terms of the Trans-Thai-Malaysia Gas Pipeline after complaintthat the project could violate the human rights (Friends of the Earth2005: 5).

Theexecutive has also established a strong code of ethics, which everyemployee understands. In addition, breaking the routine attractssevere consequences. As every employee is determined to achieve thehighest performance, everyone strives to observe the highestdesirable behaviours. On the other hand, the company offersincentives to both individuals and teams that demonstrate highinnovation, dedication, and effort towards developing the company(Sun 2010: 20).

Inevery Barclays Bank branch, staff members often experience ethicaldilemmas that may compromise integrity of the company. Fortunately,the Barclays Bank has established suitable channels that it uses forboth reporting and requesting advice regarding moral dilemmas. A teamof officers and committees act as ethics managers. They determine themost appropriate solutions based on the Kantian ethics (Bowie1999:57). The team is in charge of analysing and solving potentialproblems that can taint the reputation of the company before theybecome public. If it identifies potential breach of the code ofbusiness ethics, they communicate the problem to the management thatin turn takes quick steps in solving the problems. The ethicshotlines of the company are available throughout day and night andseven days a week. The staff members, as well as the stakeholders inthe company, can call the hotlines if they need further assistancefor determining the moral standards (Sun 2010: 19).

Auditing,reporting, and accounting

Sincethe bank handles large transactions, the customers of the employeesmay accidentally lose of deliberately steal from the company withoutthe knowledge of the senior management staff in an organisation. As away of reducing such cases, staff members are supposed to reporttheir progress every day. Besides, the organisation often conductthorough auditing and accounting of the money in every branch, aswell as at the international level that help in analysing andcommunicating the effects and performance of an organisation as per avariety of ethical concerns involving its stakeholders (Sun 2010: 7).

Consultation

Theinstitution has also set a benchmark in ethics consultation. Somebranches have permanent specialists in ethics working in the businesswhile others prefer outsourcing external professionals. The objectiveof the consultants is educating the staff, clients, and other majorstakeholders in the business regarding the significance of practisingfair business. The consultants ensure that the bank’s activities donot damage its reputation, the environment, or negatively affect theinterests of its clients. Since the Barclays Bank is a privateinstitution, its mission is undertaking projects that will help it ingenerating the most attractive returns. However, the ethicsconsultants are responsible for determining the consequences andfuture costs that a project may cause. Ventures that externalise thecosts of conducting business to the external society are undesirable.For instance, disposing of waste products into the local river willforce the local community to spend larger sums of cash in purifyingthe water. Other consultants are involved in orienting and trainingnew employees on the code of ethics used in the organisation.Similarly, the consultants may also advice the banks managers on thepros and cons of potential projects. The consultants strategisesplans that the bank can use to avoid engaging in unethical practicessuch as increasing the cost of interest instead of charginglow-interest rates and then externalising operation costs of thebusiness to the community.

Mission

Allthe branches determine the institutions’ goals and communicate themto the staff. This makes managing business ethics easy since everyoneunderstands the ambition of the company within a given period. Thetraining and emphasis the staff undergoes help them in maintainingthe highest standards of moral concern. In many cases, the missionoutlines both social and ethical agenda that complements thestrategies, goals, and tactics of the company. The trainers do alsohelp understanding the effects of certain cultural practices in thesustainability of the business. Recently, the Barclays Bank Bossdirected all the staff members in the country to sign up with the new“code of ethics” or otherwise they should quit. The executive hadmade the assertion in early 2013 as the staff was preparing to learnthe amount of income they would get in return for their services in2012. According to the BBC Business News (2013), Jenkins introducedthe regulations in order to improve the image of the business. Thefive major values introduced in the organisation include service,respect, stewardship, integrity, and excellence. The managerexpressed his disappointment with the ethical codes within the lasttwo decades as it was focusing on generating profits on the expenseof achieving long-term sustainability and good reputation for thebusiness. Mr. Jenkin’s determination in introducing new code ofethics in 2012 became necessary after the previous senior manager,Bob Diamond, compromised the founding mission of the bank.

BarclaysBank and the Trans-Thai-Malaysia Gas Pipeline

TheTrans-Thai-Malaysia Gas Pipeline was one of the major unethical dealsthat have made the Barclays Bank to come under heavy criticism forbreaching its founding principles. The bank accepted to finance thecontentious multi-million contract in 2004. However, the NationalHuman Rights Commission (NHRC), above 1300 scholars and the ThaiSenate opposed the project because since it risked destroyingfishing, as well as a source of income for the local fishingcommunity. Nevertheless, the company ignored the protests andinterests of the stakeholders affected by the project throughfinancing the programme, The action breached the company’s foundingphilosophy and mission statement of being an inventive,client-focused Group, which offers excellent products and services,ascertains superb careers for its staff, and positively enhances thelifestyle of the communities that they reside and work. The bankbroke its foundational ethics that require it to protect theenvironment and improve the lifestyle of the local community byfinancing the programme,

Thefinanciers claimed that the project could help in acceleratingindustrialisation in Southern Thailand. Some of the gas extractedwere to be sold in Thailand while the rest could be connected to theMalaysian gas grid using an eighty-six kilometre pipeline. Inaddition, the pipeline was alleged that it would boost the localeconomy through reducing social-economic and poverty differences.Nonetheless, analysts claimed that the rich entrepreneurs were toreap the biggest benefits than the local society from the gas trade.This was because most of the villagers primarily depended on keepingcooing doves, fishing, and farming. All these economic activitiesrequired clean environment. The emissions and effluents from theindustry could pollute the environment, thereby endangering foodsecurity in the area.

Onthe same note, Barclays also acted against the Kantian ethics thatform a significant base of the policies used in running the company(Bowie1999: 61). The company had a responsibility of assessing therisk of the programme, both for determining that the debtors willmanage to repay the loan, as well as ensuring that the community theyserve will not suffer from any harm. In addition, the company failedto listen to the public outcry regarding the risk of the project(Friends of the Earth 2005: 12). The politicians, scholars, and localcommunity had expressed their concern that pipeline would pollute theenvironment, thereby crippling fishing, which is the main source ofincome. The Kantian ethics theory states that business managersshould use principles that do not contradict universally (Sullivan &ampKant 1997: 44).

TheBarclays Banks was among the major companies that were involved indeveloping “TheEquator Principles.”The principles are a standard risk assessing method used by financialinstitutions in evaluating the feasibility and danger of implementinga programme, The Equator Principles Financial Institutions (EPFIs)agree to use the EP when determining the social and environmenthazards of projects (Major 2006: 8). This implies means that theBarclays Bank managers were deliberately breaching the code of ethicsthrough financing a programme that could endanger the life of thelocal people.

TheBarclays Bank also breached its human rights ethics by accepting tofinance the programme, The company’s statement of human rightsasserts that it is an employer, buyer of goods and services fromlocal societies, and a financial services provider. Besides, thepolicy states that the company will take essential measures forunderstanding the effects caused by the business on the society.Furthermore, the company promises to take extra steps to alleviatenegative outcome the business may have on the society. According toAristotle, lawfulness functions as a gauge for equality, morality,and justice. Ethical businesses seek to do honest business withsincere customers. In addition, he claimed that just deals areequitable while unjust things are inequitable. Therefore, BarclayBank’s acceptance to finance the Trans-Thai-Malaysia (TTM) pipelinewas absolute moral ethics breach (Friends of the Earth 2005: 3).

TheTTM contract also breached the Aristotle’s theory of equitableethics through attacking peaceful protestors. The local communitythat was protesting against the construction of the firm wassuppressed through mounting intimidation, violence, and harassmentfrom various security patrols such as the police. The enormous breachof ethics that was instigated by the confrontation of the localpeople attracted international attention. Hina Jilani, the UN SpecialEnvoy on Human Rights, claimed that the people were living in a“stateof fear”(Friends of the Earth 2005: 4). At the height of the protests inDecember 2002, the villagers matched in an attempt to deliver aletter to the Prime Minister regarding the hazards of the project tothe local community. However, the police brutally clobbered somepeople and detained several others. Afterwards, the Provincial Courtof Songkhla acquitted the detained persons because they werepractising their constitutional right since they were peacefullydemonstrating with the objective of raising their concerns to therespective leader. In another incident in 2003, the police beat ateenager taking photographs at the location of the facility until hebecame unconscious. The teenager lay unconscious at the site, with afractured skull, for two days without assistance (Rowe 2005: 51).

Tomake matters worse, the TTM acquired a section of the land where thegas separation plant was constructed using illegitimate means. A partof the land was belonged to the “Wikaf”, which is an Islamicpiece of land that is inherited down the generations. Wikaf landcannot be exchanged or sold because God provides it for serving thecommunity. He forceful grabbing of the “holy land” sparkedfurther controversy since the method of acquisition was a breach ofthe Thai Law. The company was supposed to consult the localcommunity, discuss the land acquisition, as well as their preferredcompensation. In addition, the Thai parliament should have discussedthe form of land ownership of a piece of land so that they couldadjust it. Unfortunately, none of these procedures was followed. TTMfenced the piece of land where one of the separation plants wasconstructed, which amounts to forcefully grabbing and breaking Thailand ownership regulations (Friends of the Earth 2005: 4).

Themanagement in the Barclays Bank demonstrated its unwillingness inimplementing the foundational business ethics that have helped thecompany develop into an international organisation. The project wasso controversial that the company could have gathered adequatereasons for withdrawing as the financier of the programme, Awithdrawal could have been in line with the Kantian ethics thatdemands just policies that would suit universal instances (Miller2009: 30). On the same note, the Barclays Bank’s acceptance tofinance the programme was an indicator of poor management that wasoriented into generating accumulating profits without caring aboutsustainability and long-term reputation of the company. In fact, thebroad float of desirable ethics in the company can be associated withthe recent rating of the company as one of the most untrustworthyfinancial institutions in the UK in 2013 (Winch 2013: 1).

Accordingto Winch (2013, p.1), the ethical scorecard rated the Barclays Bankat the last position in terms of customer service and ethicaladherence. The survey was conducted among seventy financialinstitutions based in Europe. The analysts claimed that theinstitution scored four out of a hundred points because severalexpressed high dissatisfaction with the services the company renders.The bad score was a serious drawback to the Barclays back that hasbeen striving to convince the customers that it can manage their cashresponsibly. The management of the company shoulders the entire blameof the company since they have been too focused on generating profitsfor the business to the extent of neglecting the customers’ desireand ethical foundational principles that have helped the companyexpand internationally since the seventeenth century (Winch 2013: 1).

THEBARCLAYS LIBOR RIGGING SCANDAL

TheBarclays Bank poor ethics management could not help the institutionto escape the recent “Libor Rigging Scandal”. The scandal was achain of illegitimate manipulation of interest rates, through eitherinflating or deflating, so that they could generate higher income orcreate a false impression that they were performing better than theywere. The bank reached the peak of the scandal in 2012. Barclays Bankand other Libor members conspired in setting high-interest rates bycreating a false impression of high-market risks. The manipulation ofthe Libor rate system affects both the lending rate in the UK, aswell as the US derivative markets. This implies that Liborexploitation breaks both the rules and regulations of both theAmerican and UK laws (Ackrill &amp Hannah 2001: 9).

InJune 2012, Barclays Bank got in the middle of the Libor scandal afterthe market regulators claimed that the company had engaged in theunethical practices from 2005 to 2012. According to investigations,Barclays Banks manipulated Libor rates between 2005 and 2006 throughinflation so that some traders could achieve their desired returns.On the other hand, the banks deflated its interest rate during thefinancial crisis that lasted from 2007 to 2012 so that theinstitution could appear financially stable than it was. Since theLibor is used as the dipstick for determining potential interest ratethat should be charged on an institution, banks that placed higherrates traded at an advantage than others (Bowie1999: 70). Forexample, if Bank A charges bank B an interest rate of 10 % whilethe prevailing financial circumstances qualifies for 8.5 % lendingrates, the bank offering a high-interest rate will generate higherreturns illegitimately. On the other hand, banks that have borrowedat high-interest rate will pass the burden to the final consumer. Thegeneral regulation in bank ethics management restricts financialinstitutions from engaging in such unethical practices. The BarclaysBank acted against the Kantian ethics, which demands human beings toobserve truism that they can and would in all circumstances such thattheir decisions could be a universal law (Sullivan &amp Kant 1997:24).

TheBarclays Bank senior management manipulated the Libor throughinstructing the employees to lie about the status of the firm. Sincethe Libor rate benchmarks the rate of financial products, loans, andmortgages traded across the world, the institution raked in hugeprofit margin. During the financial crisis that lasted from 2007 to2012, the Bank charged low-interest rate that made it appearfinancially stable than it was. This put the institution at a betteradvantage than its competitors did, which was an unfair trade(Ackrill &amp Hannah 2001: 11).

OnJune 27, 2012, the bank’s reputation was significantly damagedafter the Commodity Futures Trading Commission fined the organisation$200 million. In addition, the Financial Services Authority and theUnited States Department of Justice fined the bank £59.5 million and$160 million respectively for attempting to manipulate Euribor andLibor rates. The scandal affected the business so negatively suchthat the Barclays bank chairperson, Marcus Agius, voluntarilyresigned from his position. The following day, the chief executiveofficer, Bob Diamond, also resigned (Ackrill &amp Hannah 2001: 16).

Marketanalysts have often rated Barclays Bank among the most untrustworthyinstitutions in Europe because it had engaged in a sequel of corruptdeals aimed at exploiting the clients. The bank’s ethics managementethics can then be said to be in conflict with John Stuart Mills’theory of utilitarianism. The philosopher claims that an action canonly be moral if it intends to bring pleasure to the entirecommunity. If the Barclays Bank upheld the utilitarianism theory ofmorality, it could have refrained from manipulating the rigging theinterest rates in its favour because it causes pain to its customersthrough making the borrowing cost high (Ackrill &amp Hannah 2001:28). The actions contrast with Stuart’s morality ideology, whichdemands pursuing actions that bring pleasure to the society.

Mill’sphilosophy asserts that utilitarianism becomes attainable sincebreaking the regular chain of events comes with severe consequences.The high fines, bad reputation, and distrust among the customers aresome of the negative consequences that Barclays bank experienced forfailing to observe the stipulated financial management ethics. Bothmanagers quit the CEO, and the chairperson of the bank resigned fromtheir positions for allowing the company to plunge into undesirablemanagement strategies (Mille 2009: 64).

Onthe same note, the Libor fixing was against the Aristotle’s ethicsof justice. The scholar argued that moral banks should give equitableservices to the customers otherwise, inequitable services areunjust. Barclays bank colluded with a few partners in exploiting theLibor system so that they can trade at an unfair advantage with theircompetitors. When the competitors were charging a small interest ratethat could help their customers to enjoy affordable loans, BarclaysBank had inflated its interest rate so that it could generate biggerreturns. During the lawsuit against Barclays, the management agreedthat the exploitation of the Libor rate spread its ripple effect tothe US market (Mcwilliams &amp Siegel 2010: 120).

Thebank’s actions also contrasted the Kantian ethics that advocatechoosing actions that would be universally acceptable. The actions ofexploiting the rate of swapping foreign currency, hedge, as well asthe derivative are universally immoral. This makes Barclays bankmorally weak businesses that risk losing long-term sustainability asthe customers have been losing faith with the strategies the bankhandle their money (Hiscott 2014: 1).

Inthe “Ring of Gyges”, Plato argued that the morality is a sense ofresponsibility as opposed to power. In a conversation withThrasymachus, who believed &quotJusticeis the interest of the stronger&quot,he insisted that the moral justice comes with responsibility suchthat a person will refrain from engaging in unethical behaviours evenwhen they are in power positions that give them the capacity fordoing injustice (Plato&amp Griffith 2000: 26).The Barclays Bank abused its power and duty of responsibility byexploiting its customers (Sacconi 2004: 9).

Internally,every bank has a responsibility of ensuring that the workforce fromall occupations is well represented. In addition, the managers shouldencourage the staff to practice high-end ethics. The Barclays bankhired a new Chief Executive Officer, Antony Jenkins, with theintention of improving the company’s image. Loyal customers to thebusiness have been shifting to using the services of othertrustworthy banks in the industry. Strict banking ethics is necessarysince a problem instigated by the management of a single institutioncan create a serious problem to the economy of a given country (Sun2010: 9). For example, firms that borrowed inflated loans from theBarclays bank in 2005 and 2006 passed the burden to the finalconsumer. In some cases, people default loans while individual withlow economic power refrain from seeking financial assistance frombanks. This in turn reduces the development rate of a countrysignificantly (Mille 2009: 18).

TheGold Fixing Deal

Despitethe several scandals that have rocked Barclays Bank, the embattledcompany has continued experiencing operation problems. The day afterthe company paid a £290million fine for manipulating the Liborinter-bank interest rate the Financial Conduct Authority, the Citywatchdog, further fined the organisation £26million after one of itsemployees attempted fixing the gold price. Daniel Plunkett, a golddealer, working for the Barclays Bank, facilitated the rogue deal. Aloyal customer to the bank had placed a bet on the cost of gold in 12months in June 2011. The client’s bet was accurate as the price ofthe gold by the maturity of the contract was above the fixed price(Kytle &amp Singh 2005 20). Barclays then was supposed to pay theclient 2.3 million for an accurate trade prediction. Nonetheless, Mr.Plunkett acted unethically by placing false bid that brought goldprice lower than the threshold. However, an upset customer launched acomplaint with the Barclays bank on the grounds of unfair trade(Hiscott 2014: 1). The investigators discovered that Plunkett hadbreached the code of conduct of the company once more throughexploiting the gold price, which in turn affected the customer’sincome adversely (Mille 2009: 23).

TheBarclay’s bank manager, Antony Jenkins, immediately dismissed theemployee for failing to maintain the ethical standards of thecompany. On the other hand, the FCA’s director of enforcement andfinancial crime, Tracey McDermott, fined the employee £96,500 forengaging in unfair trade (Rowe 2005: 46). Besides, the institutionprohibited him from seeking employment in the city. McDermott claimedthat Barclays was obligated to pay a huge fine since it had failed toestablish measures and principles that could help in preventing theemployees from exploiting the system since 2004. Furthermore, heaccused the bank of spoiling the reputation of the industry, whichdiscourages customers from venturing into the investments (Hiscott2014: 1).

Inthe “Republic”, Plato argues that a person with power carries hasa responsibility of implanting above reproach ethics (Plato&amp Griffith 2000: 19).In Plunkett’s case, Barclays Bank was heavily fines for neglectingits responsibility of establishing strong leadership that could helpin preventing exploitation of the leadership system. Since 2004, theemployees had been cheating the system while the business managerseither ignored or indirectly encouraged the manipulation of fairtrade ethics with intention of generating higher returns from thetrade (Mcwilliams &amp Siegel 2010: 118). On the same note, JohnStuart Mill’s utilitarian ethics asserts that businesses shouldengage in fair trade that would benefit the society instead ofindividuals (Kytle &amp Singh 2005 15). Furthermore, he claims thatbreaching the standard morals calls for severe consequences. Theregulatory authority has been punishing the culprits attempting tocheat the system with severe punishment. For example, fining thebank, the employee, as well as prohibiting an individual from workingin the city’s gold trade market is an adequate blow to discourageother dishonest persons in the industry (Mille 2009: 56).

Jenkinshas also learned from the previous managers that managing businessethics involves placing the desires of customers before individualdesires or corporate profitability. The previous managers in theinstitution focused generating high profits in the company even ifthey had to engage in unethical behaviours. The CEO’s new plan forrescuing the embattled company from further negative publicity is viaadopting the Kantian ethics (Cowton Thompson 2000: 13). Emanuel Kantadvocated that people should choose decisions that can be used witheveryone without raising controversy are ethical. For example,Jenkin’s informed the employees in Barclays that they had to signanother work contract immediately after he replaced Diamond as theCEO (Hiscott 2014: 1).

Managingbusiness ethics encompasses several people, institutions, andregulatory bodies. The government has revised the investment bankingservice regulations by establishing tougher penalties fordiscouraging firms from engaging in undesirable business tactics. Fora long time, Barclays bank was vulnerable to deception and abuse ofpower as it had asymmetry information flow. However, Jenkins iscorrecting the management weakness through correcting the asymmetryin administrative communication in order to remove doubt andsuspicion cases (Ackrill &amp Hannah 2001: 31). He has introducedopen book management that has significantly reduced opportunities fordeception, enhanced staff respect, and augmented freedom. The CEO isnurturing a new work culture through improving remuneration for thestaff, allowing the staff to exercise autonomy when working,refraining from meddling with the employees’ ethical development,as well as defining the rational capacities for the staff. Jenkins isalso obligated to act as a benchmark for the Barclays Bank’s ethicstandard through providing the staff with valuable working conditions(DeGeorge 2010: 6).

Inaddition, Barclays Bank’s new CEO is managing the business’ethics through implementing the Kantian ethic principles. Thisimplies that most of the administrative decisions incorporate boththe staff and the target clients. Every stakeholder in the company isbeing treated with the respect and dignity they command. The approachis critical since it would prevent a recurrence of controversialsituations such as the Trans-Thai-Malaysia pipeline project thatbreached the rights of the civilians (Lozano 2000: 16). Moreover, theexecutive has also adopted theory Y that advocates for the managementto allow the staff in making independent decisions. The employees areallowed to use their rational and moral responsibilities when doingtheir regular responsibilities. The new management approach will helpto root out unethical staff members, such as Plunkett, who cannotprovide honest services o the customers (DeGeorge 2010: 8).

Onthe same note, Jenkins is reviving the culture of the stewardshipethic in Barclays through encouraging the staff to give back totecommunity. The company has special programmes that aim at providingfurther training and learning opportunities to the staff members, aswell as developing infrastructure that would benefit the staff,customers, and the society members the banks are located (Miller2009: 33). Jenkins emphasises on embracing “respect for all”. Thenew management team is focused on building a moral relationshipsamong the employees and the outside community (Kytle &amp Singh2005 15). As such, the company is currently encouraging compliancewith the new code of ethics, which is all-inclusive and advocatesrespect for everyone.

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