This report discusses the key issues faced by Barclays Bank, such as the LIBOR scandal, and the management theory adopted by the bank to resolve them. It also explores the CSR practices of the company and the impact of Brexit on the bank.
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Table of Contents INTRODUCTION...........................................................................................................................1 Q1 Key issue that organization is following and the management theory in reference to it......1 Q2Benefits of CSR practices for an organization.......................................................................2 Q3 Impact of Brexit....................................................................................................................3 Q4 Individual Reflection.............................................................................................................3 CONCLUSION................................................................................................................................3 REFERENCES................................................................................................................................4
INTRODUCTION Barclays is a multinational investment bank and financial offerings organization, founded in London. Thus, this report highlights the issues that the Barclay bank faces and comments on the management theory adopted by the Bank to resolve those (Burkett.2018). Further, The project will also outline CSR practices of the company and along with that it will frame the impact of the Brexit on the Barclay bank. Q1 Key issue that organisation is following and the management theory in reference to it Barclay bank is an international finance company that offers different investment products and services to its customer,However, recently the bank have committed one LIBOR scandal by manipulatingLIBORtoadvantageincomeandtoreducelossesfromderivativetrades. Further,among 2007 and 2009 the company had made deceitfully low LIBOR submission tax to suppress marketplace speculation and bad media comments about the firm's viability throughout the economic disaster (Ashton,and Christophers.2015). Thus, due to this reason the company have paid $450 million in fines. However, After the company have settle all their fines, the CEO of the Barclay Bank, Robert Diamond have resigned from the company and put all the allegations of violating LIBOR rate on its personnel and named their action ascondemnable. Moreover, after the company have paid fined , another three employees of Barclay bank manipulated the LIBOR and was arrested by the UK attorney. Further, due to this reason , the company was again fined with $ 2.4 billion by US authorities for changing foreign rates. Recently, Barclay bank was also fined by British government of around 70 million pounds for not following the ethical business practices and committing financial law-breaking which is ultimately harming the economy of the country (A look at Barclays' recent scandals and problems.2017). Management Theory In order to workaccording to the business ethical and regulations, the Barclay bank should followMax Weber's Bureaucratic Management theory which focuses on structuring businesses in a hierarchical style with clean rules of administration (Fabrizi,Huan, and Parbonetti. 2017). However, the company can adopt Weber's standards for developing an ideal bureaucratic organization encompass a clean department of exertions, a hierarchical chain, separation between
the non-public and organizational assets of the owner, meticulous document keeping and certification,strictandsteadyrulesandpolicies,andtherecruitmentandpromotionof employees primarily based on qualifications and not personalized relationships. Q2Benefits of CSR practices for an organisation Corporate Social Responsibility (CSR) is a self-regulating concept that facilitates an organization be socially responsible to itself, its stakeholders, and the public. Thus, by means of practicing company social obligation, also called business firm citizenship, organization may be conscious of the form of effect they're having on all factors of society together with economic, social, and environmental. CSR Practices Generally there are four types of CSR practices that should be adopted by an organisation in order to work according to the ethical practices. EnvironmentalSustainability:Environmentalsustainabilitytasksenactedthrough corporations commonly consciousness on two important regions i.e. proscribing pollution and decreasing greenhouse gases (Agarwal,and Jain.2015). However,as the notice of environmental troubles grows, organizations that take steps to lessen air, land and water pollutants can boom their standing as suitable corporate citizens at the same time as additionally benefiting society and the citizens. PhilanthropicActivities:Philanthropictasksconsistofthedonationofmoneyor resources to charities and companies at local, country wide or global stages. However, these donations can be directed to a selection of worthy causes such as human rights, country wide catastrophe relief, easy water and training programs in underdeveloped nations. Thus, such services benefits the charities and enhances their programs. Ethical Business Practices: The primary attention of Barclay bank should be on ethics by providing truthful personnel practices for groups’ employees as well as the employees of their providers (Park,and Ghauri.2015). Thus, fair business practices for personnel consist of identical pay for identical tasks and residing wage compensation tasks which will motivate employees to work towards the goals of the company. Economic Responsibility: Monetary duty of Barclay bank should specializes in practices that facilitate the long-time development of the company, even as additionally meeting the
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standards set for moral, environmental and philanthropic activities. Thus, with the aid of balancing monetary choices with their basic positive effects on society, company can improve their performance while also undertaking sustainable practices. Q3 Impact of Brexit According to survey, Brexit have hit the exports of the Barclay bank, thus,in 2015, they have got exported £133 of goods to the relaxation of the EU that's equal to 1/2 of global items exports. However, it is predicted that the economy of UK will face a lack of at least £4.0billion a yr, if they go away the EU without negotiating a new exchange settlement with the EU. Thus,this could take a primary hit on the company inside the united kingdom, as their charges will hike up with the extended tariffs (Cuadrado-Ballesteros, GarcÃa-Sánchez,and MartÃnez-Ferrero.2017). it will result in Barclay Bank being less aggressive inside the European markets .However, even if the company pick out to hold a aggressive side by way of decreasing expenses, it would mean lower earnings for them. Q4 Individual Reflection From the above group presentation, I have learned that the Barclay bank should operate according to the rules and regulations of the country, as any of their frauds and scandal impacts the economy of the country as whole. The primary advantage of working within the group presentation is that I have learn about the various CSR practices that the companies should work with, as adopting those practices helps the company to enhance their reputation and improves the sustainability of the society (Michelon, Pilonato, and Ricceri.2015). From the above Group presentation, I have observed that I need to develop is planning and management skill, thus by improving such skills I'll be able to handle the various issues that are faced by companies and provide appropriate solutions to resolve those issues. CONCLUSION This project briefly summarizes about the key issues faced by the Barclay bank and theMax Weber's Bureaucratic Management theory adopted by the company to resolve those issues. Further, the Project have outlined the various CSR practices adopted by the company for the sustainability of the economy. Eventually, the assignment have frame the impact of Brexit on the Barclay bank.
REFERENCES Books and Journals Burkett, J., 2018. ‘Don’t Bank on Apartheid’: The National Union of Students and the Boycott Barclays Campaign. InStudents in Twentieth-Century Britain and Ireland(pp. 225- 245). Palgrave Macmillan, Cham. Ashton, P. and Christophers, B., 2015. On arbitration, arbitrage and arbitrariness in financial markets and their governance: unpacking LIBOR and the LIBOR scandal.Economy and Society.44(2).pp.188-217. Fabrizi, M., Huan, X. and Parbonetti, A., 2017. When LIBOR Becomes LIEBOR: Reputational Penalties and the Contagion Effect of Corporate Misconduct in Banking. Agarwal,A.andJain,M.,2015.RecentdevelopmentinLibor.Abhinav-National Monthly Refereed J Res Comm Manag.4(3).pp.107-114. Park, B.I. and Ghauri, P.N., 2015. Determinants influencing CSR practices in small and mediumsizedMNEsubsidiaries:Astakeholderperspective.JournalofWorld Business.50(1).pp.192-204. Cuadrado-Ballesteros, B., GarcÃa-Sánchez, I.M. and MartÃnez-Ferrero, J., 2017. The impact of board structure on CSR practices on the international scale.European Journal of International Management.11(6). pp.633-659. Michelon, G., Pilonato, S. and Ricceri, F., 2015. CSR reporting practices and the quality of disclosure: An empirical analysis.Critical perspectives on accounting.33.pp.59-78. Online AlookatBarclays'recentscandalsandproblems2017.[Online].Available through:<https://www.foxnews.com/world/a-look-at-barclays-recent-scandals-and-problems>