Question

just gave you the initial headlines. I'm looking here at the statement from the bank itself, talking about the investigations that the FCA and the PRA have opened up into Jes Staley and some actions at Barclays. The FCA and the PRA are saying that Jes Staley, they're looking into his personal, individual conduct, and senior management responsibilities relating to a Barclays whistleblowing program. An attempt by Mr. Staley to identify the author of a letter that was treated by Barclays as a whistleblower. The board says that Jes Staley explained his mistake here, they believe it was an honest mistake, that Staley thought he was able to look into the identity of the letter author and try to find out who it was. The board is saying that they are going to reprimand, or have reprimanded, Jes Staley formally with a written reprimand and also that they are going to very significantly adjust his compensation. But the board is saying now that Barclays is fully cooperating with the FCA and PRA investigations, which are ongoing. And that they-that Jes Staley has the full support of the board after that written reprimand and very significant pay adjustment. So we'll continue to follow this developing story, but very interesting stuff coming across from Barclays on an investigation that is now open and ongoing into their search for the writer of a whistleblower letter.

>> Yeah Matt, just looking through that statement as well. John McFarlane, who is the chairman over at Barclays saying that he's personally very disappointed and apologetic that this situation has occurred. Referring of course to-well Matt, you were just saying that, is that Jes Staley went-it's alleged that he tried to identify who the whistleblower was. In a situation, McFarlane saying, "I'm personally very disappointed and apologetic that this situation has occurred, particularly as we strive to operate to the highest possible ethical standards." The board takes at Barclay's culture and integrity of its controls extremely seriously. "We've investigated the matter fully at using external law firm, and we will be commissioning an independent review of Barclays processes and controls to determine what improvements can be made." So of course, the reprimand being made, it might work, some would say it hurts immediately, and that is in your pay packet. Matt.

>> For sure, and I think it's interesting, you know, Staley at the end of the statement,

he's quoted as well saying, "our whistleblowing process is one of the most important means by which we protect our culture and values at Barclays, and I certainly want to ensure that all colleagues and others who may utilize it understand the criticality," I didn't even know that was a word, criticality, "which I attached to it." So basically saying,

he shouldn't have looked for the author of that letter and going forward, they won't try and identify whistleblowers who wish to remain anonymous.

1. The video title refers to a pay cut for the CEO. What prompted the board of directors to take this action?

a.Unethical actions in regard to a whistleblower's identity

b.Ongoing investigation by the UK Financial Conduct Authority (FCA)

c.Unhappy customers

d.Concerns about falling stock prices

2. CEO Staley remained in the position after this scandal was revealed. Who is ultimately responsible for Staley's past and future behaviors in his role as CEO?

a.Staley's fellow executives

b.The whistleblower

c.The board of directors

d.CEO Staley

3. The whistle-blowing program at Barclays is part of the corporation's governance mechanisms. Which of the following categories of corporate governance would it fall within?

a.Ethics

b.Customer

c.Financial

d.Innovation

4. Which of the following statements best characterizes the behavior of the board of directors after learning of the FCA and PRA investigations?

a.The board is committed to cooperating with ongoing investigations by the FCA and PRA.

b.The board is committed to drafting a code of ethics.

c.The board is committed to defending Staley's actions.

d.The board has resisted any attempts to allow outsiders to conduct investigations into the matter.

5. The board directors reprimanded Staley but did not dismiss him from his position as CEO. This action appears to stem from belief in Staley's profession of innocence about the wrongdoing and his willingness to take responsibility. The two sides—fire him for an unethical action or keep him because he took responsibility—create which of the following situations for the board of directors?

a.Complex strategy

b.Ethical dilemma

c.Opportunistic exploitation

d.Code of ethics

6. Although the video does not provide the content of the whistleblower's letter, which of the following unethical behaviors best describes Staley's actions in trying to find out the whistleblower's identity?

a.Opportunistic exploitation

b.Information manipulation

c.Self-dealing

d.Corruption

Answer 1

Answer:

1.a.Unethical actions in regard to a whistleblower's identity

Explanation:

Board of directors prompted to take this action because Staley was finding to look at the identity of the author letter and find out who the whistle blower was.This unethical action made the directors to prompt this action

2.c.Board of directors

Explanation:

Board of directors are ultimately responsible for Staley's past and future actions because they took the decision to reprimand him and not dismiss him because he accepted his mistake and gave another opportunity to correct his mistake

3.a.Ethics

Explanation:

Whistle blowing program would fall within ethics to be followed in an organization.Corporate governance is a set of rules to be followed.So ethics falls under the category of corporate governance because ethics is a moral prinicple that should be followed within an organization

4.a.The board is committed to cooperating with ongoing investigations by the FCA and PRA

Explanation:

Board of directors were fully supportive in cooperating with the ongoing investigations because Staley had given a written reprimand and accepted his honest mistake

5.b.Ethical dilemma

Explanation:

Board of directors didnot fire him from his position rather they reprimanded him for his mistake but Staley accepted his mistake honestly so they want to give another opportunity to him.So this is an ethical dilemma whether to fire him or give another opportunity to staley

6.d.Corruption

Explanation:

He used his power to  find out the whistle blower's identity and this is an dishonest action