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Reputational Damage

5 min read

This is a story about loyalty...

Griffin Saver

Midland Bank was taken over by HSBC (Hong Kong & Shanghai Banking Corporation) in 1992 and in June this year, HSBC announced that they were going to bury the Midland brand. I think that's a real shame.

I have family connections with both Sheffield, UK and Hong Kong, SAR, China. I have a very personal connection with The Bank as it's affectionately known in Hong Kong. I even learnt to speak Chinese, with the intention of furthering my career with HSBC, in the Far East.

HSBC had the 'prime' years of my life, and they taught me a hell of a lot. Not just how to drink like a fish, and prop yourself up with vast quantities of strong coffee. It might not have come across with a few of my previous blog posts, but I really do love Midland Bank and HSBC.

CIO of Global Standards

That's a snippet of an email I personally got from the CIO who is in charge of the #1 project in the biggest bank in Europe, which did $6bn of profit in the last quarter... I'm talking about HSBC of course.

So, I rather burnt myself out trying to get the #1 project back on track. Of course, heroics are never good. Projects are a team effort, and my actions were just as one tiny member of a very talented and dedicated team.

Did I make a difference? Did I make a noteworthy contribution? Emails like the one above remind me that I was pulling my weight in a big team, helping to get the #1 project over the line in time for the timetable imposed by the Department of Justice, to avoid the Deferred Prosecution Agreement (DPA) which could mean a fine of $5bn, or worse.

So, I'm sure if the project was going wrong, was running late or there were any concerns, that things would be escalated. It's really important that public companies are very careful to tell their shareholders how things are going, and be honest. Those shareholders own that company, and they need the facts in order to make their decisions about how their company should be run.

If you're a HSBC shareholder, you do attend the AGM don't you? You do ask the board some really hard, cutting questions, and demand that your company is run to the very highest standards, don't you? You do demand that your C-suite executives - the CEO etc - are all doing their job effectively and are keeping you, the owner (limited by shares) informed of everything that you need to know.

Clear Conscience

It's actually a legal requirement, and part of the role of the Financial Conduct Authority (FCA) to keep public companies honest. If a group of people knew that there was a problem in a company before the public did, they would be able to sell their shares before that news became general knowledge, and as such they would be able to profit at the public's expense.

Insider dealing is a serious crime, as is knowingly withholding information from shareholders, when issues are being escalated.

For me, a clear desk is not a clear conscience. If I know that some wrongdoing is being perpetrated, the fact that it is a well guarded secret does not make it OK, for me. If you've taken the public's money, when you floated a company on the stock exchange, then you have duties to those shareholders. It's an issue of morality.

Very few white-collar criminals go to jail and I'm really not OK with that. Many people's life savings and pensions have been obliterated by white-collar criminals, who think that the law doesn't apply to them.

Cases brought against companies are incredibly hard to fight. Big companies have big legal teams, and the cases are so hard to prosecute. Plus white-collar criminals are extremely adept at covering their arses. They will make sure they have a fabricated paper-trail that supposedly exonerates them from any personal responsibility. They will make sure that the water is sufficiently muddy that they are really hard to prosecute.

Technology is helping. We can now mine millions of emails and use data visualisation to understand the connection between keywords and people and start to build up a picture of what really went on during the run-up to the eventual downfall of an organisation.

At HSBC on the #1 project in the bank, we started to use a hashtag in our email subject line. That hashtag was . Yes, I saw a lot of that hashtag during my time working on the #1 project in the biggest bank in Europe. I didn't see a lot of , and I'm not sure if I saw any at all, but that's just from memory. I'm sure hoping that somebody tells the shareholders if there's a problem with the #1 project.

It's not my job to communicate to the shareholders. It's somebody else's. The guy in charge of communication left shortly before me. Not sure who's in charge now. I wouldn't really want that job. Jeeps! That'd be a lot of pressure to do the right thing.

I like doing the right thing though. It means I can sleep at night, when there are 245,000 jobs, 220,000 shareholders and a bank that's too big to fail on the line.

Do the right thing.

That is all.

Level 9, 8 Canada Square

I lied on my timesheets. I was actually working every hour that I was awake. I didn't sleep very much, but not because of a guilty conscience, but because of the importance of the project (September 2015)

 

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