Organizational Design
Ethics and the Green Movement. Today's managers face tremendous pressure from the government and the public to hold their organizations and employees to high ethical and professional standards. Following widespread moral lapses and corporate financial scandals, organizations are under scrutiny as never before. A recent survey of Wall Street workers by the law firm Labaton Sucharow found that almost 25 percent of finance professionals say they would cheat to make $10 million if they could get away with it. Moreover, 52 percent believe it is likely that their competitors have engaged in illegal or unethical activity.16 Big banks such as J.P. Morgan Chase & Company, Bank of America, and Citigroup are spending billions in legal expenses to clean up the mess related to Justice Department investigations of banking-industry activities during the housing downturn and the financial crisis. J.P. Morgan has added 7,000 extra risk-control employees and provided 750,000 hours of training on regulatory and control issues. "Fixing our controls issues is job No. 1," CEO Jamie Dimon said. The bank denies deliberately misleading clients and investors, but Dimon knows he has to prove to regulators and the public that J.P. Morgan is "as adept at maintaining controls as it is in recording profits." Agree? and Why?