Question

In: Finance

What are the basic causes of group misconduct? What are the basic cures for group misconduct?

  1. What are the basic causes of group misconduct?
  2. What are the basic cures for group misconduct?

Solutions

Expert Solution

Causes of Group Misconduct:

1. Narrow focus: short term focus or primarily focus on insiders.

2. Failure of leadership: Leaders are not having sufficient oversight and control over the group which lead to group misconduct.

3. Dilution of personal responsibility in groups: in groups few people start avoiding their responsibilities and this dilution leads other to follow his footsteps which lead to group misconduct.

4. Organizational process, culture and structure: Sometime organization itself is responsible for the group misconduct due to wrong process, culture and structure in place.

Cures for group misconduct:

1. Develop a ethical culture in organization which will lead to good group and ethics and minimize the risk of group misconduct.

2. Meaningful oversight: Oversight of group activity is very important it is one of the best technique to reduce group misconduct at very early stage.

3. Take personal responsibility and be a leader so that one can set a best example which can be followed by other in group and chances of misconduct can be minimized or eliminated.

4. Broaden Focus: Organization focus should be long term and cover all stakeholders so that we can minimize the group misconduct.


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