Saturday , June 25 2022

Crichet and banks have been caught up in ethics


The royal commission has lit up a fierce light on what appears to be a more widespread and more difficult misconduct, although the parallels between cricket and the financial services sector may go deeper than the review of the Ethics Center has allowed it to prove.

However, it put the situation of the cricket in a wider context when it referred to the community's response to the events in South Africa.

The answer was related to a sense of "shame that the ethical disposition of our society moved from politics, business, to churches … and stains that were constantly spreading and which eventually corrupted the holy green holy bearers" .

When Royal Commissioner Kenneth Hayne presented his interim report on shocking misdemeanor cases, he accused defects of culture and governance in financial services largely in terms of remuneration practices and policies.

The main conclusion of the APRA group that called for CBA governance and culture was somewhat different. It concluded that the bank's financial success "destroyed the institution's senses".


In general, it is the case "what is measured becomes done" and also that success produces patience.

What is measured and rewarded in cricket, as in all sports, is victories and losses – successes or failures.

At board and management level, there is another dimension. After Crawford and Carter's review of CA governance in 2011, the council has adopted the principles and governance structures for "best practices" in recognition that elite cricket has become a big deal.

With the contemporary Argus analysis of the success of the male team's performance – earnings and dollars without ethical filters – seems to have been the singular lens through which CA has judged and rewarded its directors and players.

The Ethics Center came up with an interesting description of CA culture, which could be relevant to deviations that have occurred in the financial services sector and elsewhere.

Rather than "winning at any cost" the culture that many blame for the behavior of the Australian team, the center said that winning was pursued "as a perfectly reasonable goal without taking into account the cost."

Administrators either did not recognize that there was a cost of misconduct in the field or completely reduced its significance.

In financial services, mistaken behaviors, accompanied by a slap from regulators and some modest financial sanctions, seem to have been considered as an intrinsic aspect of enterprises whose success has been mainly concerned with the dimensions of their core lines.

In cricket and business, success is measured and rewarded at both individual and organizational levels. At the commercial level, CA has been very successful, and elite administrators and players have been kindly rewarded.

Cricket Australia President David Peever joined last week the long line of directors and executives who lost their stance in response to the ethical flaws of their organizations.

Cricket Australia President David Peever joined last week the long line of directors and executives who lost their stance in response to the ethical flaws of their organizations.Credit:AAP

As Justice Hayne said, when an employee and others in an organization, including the supervisors and colleagues of the employee, are remunerated according to the income or profits that they contribute then the sales or income or profit – or, for cricketers, because the pursuit objective and the way it is pursued is less relevant.

The revised review by APRA in the CBA highlighted that the focus on financial results and its structure, in which directors received considerable authority, allowed the board of directors to believe that the group was well-run and potential risks.

It seems that the CA Board and the management's senses have been destroyed by the financial success of the organization and the distance and layers between them and the team.

Stimulation structures are easy to change; changing crops is not as simple.

In financial services there are "balanced balance sheets", "increasingly with behaviors", "gateways" to be negotiated before incentives can be triggered.

If, as concluded by the Ethics Center, a particular focus on performance, is not surprising, a strong focus on performance, then the answer for CA is to develop a proper version of a balanced balance sheet for management and players; one with an ethical dimension.

It will also have to consider how it could generate cultural changes, not just at the elite level, but also at the basic levels and the ways in which the elite players originate.

The frictional nature of cricket – the complex relationships between headquarters and states – means it will not be as simple as the council and / or the executive that sets a new cultural framework. CA may, however, learn from the way large banks and AMPs respond to their ethical defects.

Source link