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Beyond Compliance

In: Ethical Leadership

Author

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  • James M. Lager

Abstract

Once again, governments worldwide are seeking to impose new rules and restrictions on financial institutions and their leaders. It’s an age- old and predictable pattern — a scandal leads to cries of outrage, followed by legislation, regulation, and increased enforcement. It’s also a Newtonian approach to human behaviour, the belief that for every action there is or should be a reaction, and that an effective way to curb the normally encouraged drive to acquire is to make certain methods of acquisition unlawful. The problem is that human behaviour is much harder to describe and to predict than the effect of a force on a body in motion, so the blunt instrument of law and enforcement frequently strikes the wrong target, leading to unexpected consequences.

Suggested Citation

  • James M. Lager, 2011. "Beyond Compliance," Palgrave Macmillan Books, in: Carla Millar & Eve Poole (ed.), Ethical Leadership, chapter 11, pages 189-199, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-29906-1_11
    DOI: 10.1057/9780230299061_11
    as

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