Reference no: EM133355479

Destructive Leadership - The Toxic Triangle:

The Australian Banking and Financial Services Sector was the subject of a Banking Royal Commission (BRC) in 2017. The processes of the Commission highlighted a substantial number of issues within that sector, including unethical behaviour. It led to a large report which outlined many key recommendations that the industry needed to address. Whilst the CEOs of many of Australia's top financial institutions were criticised because they led these organisations, with a number losing their jobs as a result, there was also criticism for how many senior managers executed their roles, especially in the face of substantial personal financial gain, with little regard for the customers of these institutions, and the negative impact on their customers. In the context of the broader criticisms of how many of the international banks behaved leading to the Global Financial Crisis (GFC 2007-2008), which preceded the BRC, the greed of the banks and their senior managers and leaders became a prominent observation within the broader community. Some even suggested that this greed was endemic within this sector and many within it behaved like 'cowboys' in a financial 'wild west'. It was even acknowledged by the BRC that Government Regulators did not do their job, and in fact, several the Recommendations centred around the role of Regulators.

Question:

1. In terms of the Toxic Triangle, what role do you think the relationship between Leaders, Environment and Followers played? Explain your answer

2. What role does ethics play in how Leaders and Followers behave?

3. Do you think that the behaviour that was evidenced during this period could be replicated? Why?