Ethical Issues of Barclays Essay Example | Topics and Well Written Essays - 3000 words

Ethical Issues of Barclays - Essay Example The research has provided valuable insights in respect of how the firm can improve its relationship with customers and investors so that ethical norms can be met more effectively. In June 2012 Barclays Bank’s rate-fixing scandal had mottled its reputation in a horrendous manner. The bank was fined  £ 290 million pounds for altering LIBOR. The investigation into the matter had revealed that the bank indulged in LIBOR manipulation to earn fraudulent profits and to make the bank activities secure against risks arising out of the financial crisis. The LIBOR is considered as one of the most vital information in respect of benchmark rates and it crucially impacts financial trading contracts across the globe. In the light of such events, Bob Diamond, the former chief executive of the bank had submitted his resignation. Subsequently, Anthony Jenkins was chosen as the chief executive officer (CEO). The bank was involved in a number of scandals such as the fraudulent selling of PPI (Payment Protection Insurance) and interest rate rigging which tarnished its reputation and had seriously affected consumers who had shifted to other banks. Almost 12 million holders of current bank account had switched to other banks as the credit rating and overall reputation of the bank declined. Public relations in respect of financial services institutions are essentially about communicating important and accurate information to the stakeholders. PR executives are required to maintain the trust of consumers and shareholders so that their investments remain with the financial institutions.