Organisational Behaviour and the Standard Chartered Bank Scandal Essay

Organisational behaviour and the Standard Chartered Bank Scandal - Essay ExampleThis was used to fund terrorist groups. The US split up of the lingo hid 60,000 transactions with Iran for almost a decade. Speaking in a press conference on August 8th, Standard Chartered Bank CEO, Peter Sands stated that there was no taxonomical attempt to circumvent sanctions in Iran. He admitted that some deals violated US sanctions of Iran but that was not the unscathed representative policy of the bank. However, this incident wiped off $17billion from the banks market value and sh bes fell by 7% at bottom the 24-hour period (BBC News, 2012a). According to the Telegraph (2012) the US Treasury department showed suspicion that some US banks are collaborating with Iran to fund the nuclear weapons programme of Iran. However, Standard Chartered Bank kept this secret until the lid was unfastened upon them. A senior business writer for the Guardian in the UK did a thorough critique of the placement at hand (Palmer, 2012). In his critique, he identified important pointers and actions that are relevant to the case and extend a broader view of the concepts involved in the breach. He identifies that widespread il juristic activities committed in opposite parts of the world cannot succeed unless some international banks cooperate with the persons indicted for the activity. In citing a similar case, Palmer identifies that HSBC bank was indicted for helping Mexican drug traffickers to circumvent sanctions by covering up their transactions and presenting them as legal (Palmer, 2012). In the events leading to the Standard Chartered scandal, it is said that the head of Standard Chartered Americas wrote to the director on 5th October, 2005 stating that the UK headquarters transactions with Iran were very serious and even catastrophic enough to cause major reputational molest of the bank (Palmer, 2012). However, the warning was not heeded and this led to the scandal. However, Standard Chartered went on and altered wire transactions for the Iranian government (see Appendix 1). Deloitte, the banks auditors came out and claimed that they had no knowledge of the actions of the banks employees and this activity was not disclosed to them (Palmer, 2012). However, Palmer insists that the authorized CEO, Peter Sands served as the finance director between 2002 and 2006 before assuming his current go under and he had served long enough to know about this spate of illegal transactions. This is an offence and the management and rung of Standard Chartered Bank are indicted for their role in breaking an international legal convention. This is understandably the case of an unethical behaviour and requires a lot of attention from the major stakeholders. This paper undertakes analysis of the display case and its implications to organisational behaviour. Organisational Structures/Culture and the Scandal In banking, there has eternally been an overlap between corporate governa nce and banking regulations (Gup, 2007 p13). This implies that banking has always had a corporate governance culture that requires the people charged with directing the affairs of the bank to take place some important regulations and considerations in decision making and the running of the banks. Gup goes on to state that these rules and imperative requirements were in place since the 1930s where most banks in the developed world had to react to the major economic crises that came up prior to the Second World War (2007).