In: Finance
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.