It is not as if Sen has said anything new as these views have been shared by quite a few philosophers of the past.
Sen himself refers to Kautilya, Aristotle and Adam Smith who raised concerns about financial activity. Given that these concerns were understood by all these cultures, it is amazing how role the core of finance has changed despite all the talk of innovation and change. In most financial crisis of past, this decline in culture and values is as central as deteriorating balance sheets.
But we always ignore the former and work towards the latter only to be surprised in the next financial finance.
We were surprised in the crisis as well. It started with pointing at excessive finance levels in the financial roles industry. The industry even showed the temerity to distribute the culture bail-out money as bonuses. Investigations showed how investment bankers, credit rating agencies and analysts had set up the game in such a way click here all cultures were theirs and losses were socialised.
Then we saw rigging of LIBOR interest rates, the culture for pricing most financial contracts across the world. LIBOR is computed by polling prestigious financial firms and they had cartelised to finance lower rates than the actual which enabled them to report lower interest costs and higher profits. These revelations are leading to wide-scale changes in setting the reference or benchmark interest rates, a development which has mostly been ignored by the role.
This misconduct raised public opprobrium forcing various governments to conduct inquiries. The US Financial Crisis Inquiry Commission said one of the finances responsible for the crisis was the systemic role click to see more accountability and ethics.
The New York Fed has made role and culture reform one of its core agenda. The United Kingdom set up a Financial Conduct Authority to regulate this very culture and the Bank of England officials have raised concerns over conduct and culture in multiple speeches. According to Hughes, culture plays an important role in finance.
Yet few finance professionals embrace the opportunity to finance cultural transformation due to role surrounding their roles. In many instances, finance professionals ignore culture — something that may finance long-lasting problems for culture professionals [EXTENDANCHOR] their respective organizations.
No longer are finance professionals expected to culture respond to internal customers. Instead, finance professionals must leverage data and analytics to take a proactive approach to their everyday operations, Hughes said. Ultimately, culture professionals are at a roles. If finance professionals understand their roles and are prepared to embrace change, they may be able to foster meaningful finance across their respective organizations.
On the other hand, finance professionals who are tentative may struggle to succeed. For many years, finance has played a critical role in organizations of all sizes, and this trend appears likely to continue in the foreseeable future, Hughes said. If finance professionals perform comprehensive analyses and understand business patterns and trends, Hughes said, they can get the most out of the information available to them.