Financial Institutions’ responsibility towards society
Economical slow down is understandable, if for a given period demand is lower than supply, but large financial institutions going bankruptcy overnight is unthinkable and disastrous to the society in the modern world. Over last few decades various educational and training institutions have been churning out so called highly specialized personnel in different subjects under the sun including FINANCE / ECONOMICS. One wonders how such talented people at helm of affairs cannot read the warning signals and take corrective measures! Can any one digest that a 100 years old globally present financial institution going bankrupt almost by overnight? The board members and top echelon were blind, careless and irresponsible towards society? The impact of such disaster is globally felt if the institution is multinational and its effects on local citizens can be far reaching in certain countries especially those of poor countries. The employees loosing their livelihood overnight their families are subjected to extreme hardship and uncertainty. Apart from this there are scores of people incurring sizeable loss in the investments due to share market collapses.
More particularly in present global scenario, financial institutions have vital positive role and responsibility towards society. People from all walks of life depend on these financial institutions for their monetary needs like fixed deposits, insurance, children education, retirement plans, housing etc. Therefore like medical institutions, financial institutions role should be blemish less and highly committed towards people.
However small or big and private or state owned, the financial institutions should be honest and transparent in their business. They should not be greedy to short term attractions or falsify their income in order to boost their share prices and eventually declare losses beyond recovery.
The finance people must have had plenty lessons to learn and correct from recent episodes. Honest and quality management is what we need to garner the confidence and growth. It might help them to read books written by Juran and Deming explaining quality management in simple methods.
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