Journal of Business Ethics

, Volume 52, Issue 3, pp 257–266 | Cite as

Ethics, Governance and Risk Management: Lessons From Mirror Group Newspapers and Barings Bank

  • Lynn T. Drennan
Article

Abstract

While corporate failures, such as Enron and WorldCom, have focused attention on issues of business ethics, corporate governance and risk management, there is nothing intrinsically new in the reasons behind their collapse. Neither is there anything fresh in the media's rush to identify a “scapegoat”. An examination of the financial collapse of Mirror Group Newspapers and Barings Bank, demonstrates failures within both these companies' corporate cultures and management systems, which allowed, if not encouraged, unethical behaviour by key individuals. It is argued that a combination of legislation, regulation, effective risk management and appropriate sanctions are needed, if such unethical behaviour, and resulting corporate failure, is to be prevented in future.

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Copyright information

© Kluwer Academic Publishers 2004

Authors and Affiliations

  • Lynn T. Drennan
    • 1
  1. 1.Centre for Risk and Governance, Caledonian Business SchoolGlasgow Caledonian UniversityScotlandUK

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