Essay on Barclays Bank: Issues, CSR, Brexit, and Management Theory

This essay provides an in-depth analysis of Barclays Bank, addressing key issues such as financial scandals and ethical breaches. It explores the application of Max Weber's Bureaucratic Management theory to improve organizational structure and ethical conduct. The essay also examines the bank's Corporate Social Responsibility (CSR) practices, including environmental sustainability, philanthropic activities, ethical business practices, and economic responsibility. Furthermore, it assesses the impact of Brexit on Barclays Bank, particularly concerning exports and potential financial implications. The essay concludes with a reflection on the learning outcomes and the importance of ethical business practices and effective management within the banking sector. The provided references support the analysis with academic and online sources.

INDIVIDUAL
ESSAY

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
manipulating LIBOR to advantage income and to reduce losses from derivative trades.
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 as condemnable. 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 work according to the business ethical and regulations, the Barclay bank should
follow Max 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, strict and steady rules and policies, and the recruitment and promotion of
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.
Environmental Sustainability: Environmental sustainability tasks enacted through
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.
Philanthropic Activities: Philanthropic tasks consist of the donation of money or
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

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, García-Sánchez, and
Martínez-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 the Max
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. In Students 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. and Jain, M., 2015. Recent development in Libor. 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
medium sized MNE subsidiaries: A stakeholder perspective. Journal of World
Business.50(1).pp.192-204.
Cuadrado-Ballesteros, B., García-Sánchez, I.M. and Martínez-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
A look at Barclays' recent scandals and problems 2017.[Online].Available
through:<https://www.foxnews.com/world/a-look-at-barclays-recent-scandals-and-problems>