Why honest people break the rules

A trader, who was paid millions in compensation, cheated by overstating the value of his trading position. “A Disgraced Trader’s Struggle for Redemption,” The Wall Street Journal, April 30, 2016 A1.  He now teaches classes to business students.

“He started off furious with the bank for encouraging him to take so much risk. He resented the industry for its no-holds-barred culture, which he blamed for making him think it was OK to cheat. He raged at the media for invading his privacy.”

Does your company culture encourage cheating or compliance?  If you violate the rules, do you look for weaknesses in your environment or in yourself?

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Filed under Business Case, Controls, Culture, Duty, Employees, Governance, Internal controls, Risk

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