ACC5216 Accounting Theory - Barclays Whistleblowing Case Study

This assignment provides an analysis of the Barclays whistleblowing case, examining the roles of the CEO, the whistleblower, and the regulator through the lens of accounting theory. It delves into the CEO's attempts to expose the whistleblower, the ethical implications of such actions, and the responsibilities of the regulator in ensuring accountability. The case study correlates accounting theories with the behaviors observed, comparing and contrasting the actions of the CEO, whistleblower, and regulator. The analysis concludes that the CEO's actions lacked integrity and accountability, highlighting the importance of corporate governance and regulatory oversight in protecting whistleblowers and maintaining ethical standards within financial institutions.

Running Head: ACCOUNTINGTHEORY
ACCOUNTING THEORY
Name of the Student
Name of the University
Author Note

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Abstract
The aims of this paper are the assessment of role of CEO in respect of whistle
blowing. For this analysis, Barclays case have been taken into consideration. This CEO of the
company was penalized by the regulatory officials for trying to expose the whistleblower.
Hence, under this assignment, analysis will be done on whole issues of the case. In addition,
the discussion will also be done on why CEO was trying to expose whistleblower. Further,
theories of accounting will be correlated with CEO behavior, whistle blower behavior and
quest of regulator for the accountability of CEO. Therefore, from the analysis it has been
find that CEO must work with honesty, integrity and accountability for complying with the
regulatory as well as protecting whistleblower.

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Table of Contents
Introduction................................................................................................................................3
Overview of Case...................................................................................................................3
Exposure of Whistleblower by CEO......................................................................................4
CEO Behaviour......................................................................................................................4
Whistleblower Behaviour.......................................................................................................4
Regulator’s Quest for making CEO accountable...................................................................5
Comparison, Contrasting and Evaluation of CEO, Whistlebehaviour and Regulator’s
behaviour................................................................................................................................6
Conclusion..................................................................................................................................7
Bibliography...............................................................................................................................9

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Introduction
The aim of this assignment is the analysis of the Barclays case and accounting theory
relating to whistle blowing. Barclays is the financial services company and multinational
investment bank of British that is headquartered in London. The company operates in its four
core business that is corporate banking, personal banking, investment management and
wealth management. Under this assignment, discussion will be done on the case related to
Barclays and the whistleblower of the company. In addition, identification and discussion
will be done on the reason why the CEO of Barclays was trying to expose the whistleblower.
Moreover, accounting theory will be used for explaining the conduct of CEO that has led to
whistle blowing, the whistleblower behavior and the quest of regulator for making CEO
accountable. Lastly, comparison, contrasting and critical evaluation will be done on the
theories explained (Mesmer-Magnus and Viswesvaran 2019).
Overview of Case
Barclays was fined with $15m for breaching of whistleblowing. This was fined by the
regular of US after the chief executive officer of Barclays Jes Staley has attempted to expose
the whistleblower. The state department of financial service sof New York has find in its
investigations that, the whistleblowng function of Barclays was consisted of shortcomings in
the governance, corporate culturte and control. Staley has deliberately tried to tracking down
the whistleblower with the help of internal security unit of bank for protecting the seniour
executive Tim Main, who was also his friend cum former colleague at the company JP
Morgan (Mesmer-Magnus and Viswesvaran 2019).
The whistleblower of the one who was knowing the fact about the relatioshp between
Staley and TimMain. The whistleblower was knowing the contact flagged issues regarding
Main and Staley’s personal nature and their role in the major concerns of JP Morgan.

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Exposure of Whistleblower by CEO
The CEO Staley has attempted twice for identifying the whistleblower of the
company. It was because one of the senior executive of the company was also the friend as
well as colleague of Staley who was working together in JP Morgan. Moreover, both have
been indulge in some issues at that company. Hence, the whistleblower was aware of these
issues and personal nature of both, Staley and Tim Main. Therefore, CEO was trying to
expose the whistleblower for taking action against the person behind whistle blowing (Phil
Papers 2019).
CEO Behaviour
According to Daniel Burnham, the role of the senior management is to set the tone,
the managers of the company sets the role model for their employees for their values and
priorities that is good or bad. The managers are encouraged for setting the benchmark for
looking beyond the structures and walls of their own company. Whenever, there is the real
test of the ethical leadership comes while investigation relating to such matters, the CEO and
their team has the opportunity for demonstrating their true values (Fulmer 2019).
The behavior of CEO at Barclay has also demonstrated the supports from the
management and opportunity of having his colleague working in the organization who were
involved in the fraudulent activities. Staley support towards the wrongdoing has affected
overall organization and the people associated with it (Fulmer 2019).
Whistleblower Behaviour
According to Ariane David, whistleblowers are recognised as the most powerful as
well as the posiive force for the change with the laws protectecting the rights of the
whistleblowers. Most of the whistleblowers are consdered as the best employee of the
organisation, among many have been in the organisations for the years and are highly

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respected because of their contribution and their loyalty. Hence, they speak out because they
observe the situation prevailing in the organsation is unethical, illegal and damaging the
company and their employees. Therefore, in order to prevent the harm to the organisation,
they takes the decision for disclosing regarding wrongdoings. In general, it is witnessed that,
they have enough trust in the management of the company, because of this trust, they come
forwards and then report their observations internally (Ariane David 2019).
The whistleblower behaviour plays the important role in the exposure of the
misconduct and poor practice in the sector of financial services. They provide the information
secretly regarding any of the alleged wrongdoing happening in the organisation by any of the
member of the organisation. In support of the whistleblower, appropriate protection is
providedd to them. Moreover, in case of Barcley, it has been observed that, after the
whistleblower has attempted to provide the information to secretly through the mechnaism of
whistleblowing, the attempt has been made by the CEO to expose the whistleblower. It has
breached the required standard of care. Therefore, there was no protectection given to the
whistle blower, which exempts their rights (Nat 2019).
The theory matches with the practice, it is because in the theory, it is mentioned that
the behaviour of the whistleblower is affected by the attitudes of the company. However, in
practice also it is shown that, even there is good intention of whistle blower regarding the
good faith of the company, the board and CEO affects this intention by exposing them rather
appreciating this effort (Dworkin and Baucus 2019).
Regulator’s Quest for making CEO accountable
According to Lee B. Boyar, the CEO is responsible for the effective formulations and
implementations of the strategies and policies for enhancing the polies of the organisations.

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The responsibility of the board of directors is to observe and moniter that CEO is fullfilling
its accountability (Emeraldinsight.com. 2019).
The regulator is responsible for ensuring that CEO and the other members of the
organisation is working honestly with the integrity for protecting the rights of the employees.
The CEO of the company should be accountale for the board of the directors. In case of
Barclays, the CEO Staley has retained support from the board of the company. Which was
added benefit to him. He was working fearlessly without having any accountability for his
work (Ferrell and Ferrell 2019). Hence, as per the theory, if CEO is not working with the
accountability, then it is assumed that they will loose the confidence of stakeholders.
Therefore, it is beacause of non-fufillment of aacountability by the CEO, intervention has
been done by regulator. Likewise, in case of Barclays, the regulator investigated the
wrongdoing of CEO. They indicated that the serious accusations regarding acting with less
integrity should be stopped, and it may cost in loosing the job. Whistleblowing is placed by
the regulator. Hence, the protection of them becomes quite important by regulator. Therefore,
regulator is responsible for ensuring accountability of CEO and protection of whistle blower
(Chen et al. 2019).
Comparison, Contrasting and Evaluation of CEO, Whistlebehaviour and Regulator’s
behaviour
The theories of CEO behaviour, whistleblower behaviour and regulators quest’s for
making accountability of CEO is linked with each other. The CEO behaviour in comparisoon
to whistleblower behaviour shows that the CEO must not involve in any wrongdoings, if they
follow such activities then it have major consequences. However, whistleblower has good
and positive intention for exposing and provide information regarding any such fraud
prevailing in the organisation because, they have this right given by the regulator itself for
disclosing the fact secretletly. This situation can be seen in the Barclays, where CEO was

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involved in wrongdoings and tried to expose the whistleblower for taking actions against that
person. However, whistle blower was having good intention of disclosng the fact but the
factor related to the top level has influences such action (Jubb 2019). Lastly, the theory have
imphasized about the regulator who makes sure that the CEO is accountable to the board of
directors for increasng the confidence of stakeholders, improves the level of honesty and
integrity and craetes the environment of culture for the complaince. Therefore, there should
be proper link between all these theories (Mesmer-Magnus and Viswesvaran 2019).
Conclusion
Therefore , it is concluded from the analysis of the Barclay’s case of whistle blowing
that, CEO and other top management was responsible for the supporting the wrongdoing.
Even after the investigations regarding the allegations on the CEO has been proved, the
management have supported him by permitting such actions by giving statement “honestly
but believed mistakenly. Exposing of whistleblower by the CEO shows that the there is no
corporate governance in the company and CEO is not accountable towards board of directors
of the company. Further, the role of regulator is commendable as because of their
intervention and protection of the whistle blower, the investigation have been proved for
CEO and he has been also penalized for the same. Hence, CEO should be accountable to the
board of the company and should work with integrity and honesty for the compliance with
the regulatory requirements.

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Bibliography
Ariane David, P. (2019). Whistleblowers. [online] Graziadio Business Review | Graziadio
School of Business and Management | Pepperdine University. Available at:
https://gbr.pepperdine.edu/2010/08/whistleblowers/ [Accessed 6 May 2019].
Chen, J., Cumming, D., Hou, W. and Lee, E. (2019). CEO Accountability for Corporate
Fraud: Evidence from the Split Share Structure Reform in China. [online] Philpapers.org.
Available at: https://philpapers.org/rec/CHECAF-3 [Accessed 6 May 2019].
Dworkin, T. and Baucus, M. (2019). Internal vs. external whistleblowers: A comparison of
whistleblowering processes. [online] Philpapers.org. Available at:
https://philpapers.org/rec/DWOIVE [Accessed 6 May 2019].
Emeraldinsight.com. (2019). Assessing a golden opportunity: CEO performance at
McDonald’s | The CASE Journal | Ahead of Print. [online] Available at:
https://www.emeraldinsight.com/doi/abs/10.1108/TCJ-12-2017-0118 [Accessed 6 May
2019].
Ferrell, O. and Ferrell, L. (2019). The Responsibility and Accountability of CEOs: The Last
Interview with Ken Lay. [online] Philpapers.org. Available at:
https://philpapers.org/rec/FERTRA-3 [Accessed 6 May 2019].
Fulmer, D. (2019). Dialogue With Four Executives. [online] Graziadio Business Review |
Graziadio School of Business and Management | Pepperdine University. Available at:
https://gbr.pepperdine.edu/2010/08/dialogue-with-four-executives/ [Accessed 6 May 2019].
Jubb, P. (2019). Whistleblowing: A restrictive definition and interpretation. [online]
Philpapers.org. Available at: https://philpapers.org/rec/JUBWAR [Accessed 6 May 2019].

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Mesmer-Magnus, J. and Viswesvaran, C. (2019). Whistleblowing in Organizations: An
Examination of Correlates of Whistleblowing Intentions, Actions, and Retaliation. [online]
Philpapers.org. Available at: https://philpapers.org/rec/MESWIO-2 [Accessed 6 May 2019].
Nat, H. (2019). The patriot whistleblower. [online] Philpapers.org. Available at:
https://philpapers.org/rec/NATTPW [Accessed 6 May 2019].
Phil Papers. (2019). The Impact of CEO Characteristics on Corporate Social Performance.
[online] Available at: https://philpapers.org/rec/MANTIO-7 [Accessed 6 May 2019].