The article in the url below contains a staggering statistic:
"HSBC Holdings PLC's third quarter earnings call brought the striking revelation that nearly 25,000 of its 258,000 employees, almost 10%, work in compliance. Compliance was a major driver in the 5% increase in operating expenses reported, and management left no doubt that higher compliance costs would not go away soon, if ever."
That statistic (10% of all employees work in compliance) is a function of operating in a highly regulated industry. These regulations, however, are a function of past behavior that ignores the interests of a broad range of stakeholders. The result of such a narrow operational perspective is to invite additional scrutiny from the regulatory authorities. Banks have no one to blame but themselves for the increased costs that come from having to comply with that scrutiny.
Have a good weekend.
David
David
David Chandler & Bill Werther
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
HSBC Costs Illustrate New Cost of Banking
By Gregory J. Millman
November 4, 2014
The Wall Street Journal
