New York–based law firm Labaton Sucharow LLP has announced the results of its survey of 500 financial services professionals across the United States and United Kingdom. Conducted by Populus in June, Wall Street, Fleet Street and Main Street: Corporate Integrity at a Crossroads reveals startling data on corporate ethics, the regulatory landscape, and individuals willingness to blow the whistle on wrongdoing.
According to the survey, 24 percent of respondents reported a belief that financial services professionals may need to engage in unethical or illegal conduct in order to be successful, while 26 percent of respondents indicated that they had observed or had firsthand knowledge of wrongdoing in the workplace. Particularly troubling, 16 percent of respondents reported that they would commit a crime—insider trading—if they could get away with it.
When misconduct is common and accepted by financial services professionals, the integrity of our entire financial system is at risk, said Jordan Thomas, partner and chair of the Whistleblower Representation Practice at Labaton Sucharow. In this era of corporate scandals, we must refocus our energies on corporate ethics and encourage individuals to report wrongdoing—internally or externally.
Labaton Sucharows survey also revealed the following:
•39 percent of respondents reported that their competitors are likely to have engaged in illegal or unethical activity in order to be successful;
•30 percent of respondents reported their compensation or bonus plan created pressure to compromise ethical standards or violate the law, while 23 percent of respondents reported other pressures that may lead to unethical or illegal conduct; and
•30 percent of respondents feel that the SEC/SFO (regulatory agencies) effectively deter, investigate and prosecute misconduct—despite the new leadership, record enforcement actions and new reforms
Chris Keller, partner and head of case development at Labaton Sucharow commented: It is shocking that four years after the global economic crisis began there continues to be a fundamental lack of integrity in the financial services industry.” Labaton Sucharow has launched an on-line tool to aid US whistleblowers in dealing with the U.S. Securities and Exchange Commision Between June 19-25, 2012, Populus conducted 250 online interviews in the U.K. and 250 in the U.S. with senior individuals within the financial services industry. More information about Labaton Sucharow and the Whistleblower Representation Practice is available at www.labaton.com.
