What are the costs and benefits of breaking industry norms around the world?

1.      What are the costs and benefits of breaking industry norms around the world?

Citigroup’s 2004 European scandal disrupted the market and affected many other companies and firms. Their choice to break away from the norm of the market did let them earn a profit of $24 million, but a large cost. There are many factors to be taken into consideration in breaking an industry norm.

Some industries don’t have any written laws about certain things, but are often looked down upon as dirty tricks. There are often advantages in breaking such norms, mainly because these allow for a greater profit or more efficiency. It could be said that the existence of such norms sometimes hinder the achievement of optimal conditions. Breaking industry norms may also result in innovation and the discovery of better and newer technologies or operations.

However, deviance does not always pay off. The risks involved in not following the norms are visible in Citigroup’s blunder. The firm’s reputation may be tarnished, making future business dealings extremely difficult. This is a very large loss for a company that requires consumer trust to get clients. Deviance may also cause a loss of profits, especially when investing money in these plans which could have been better spent in other ventures.

2.      What strategic response did Citigroup’s top management undertake? Is it adequate?

Citigroup’s top management had the company undergo much ethical changes. They issued a new code of conduct for the company, established a Global Compliance unit, and had employees go through ethics training. These were done in order to redeem Citigroup’s reputation in the business and banking sector.

In the Europe banking case, Citigroup issued a statement that the whole scandal was an accident and was not planned by Citigroup. According to their statement, the original plan did not include buying back the bonds; an action that was only caused by the market buying an unexpectedly large number of bonds from Citigroup. However, this statement was criticized by other bankers to be a weak excuse, as other big banks are able take a hit of 500,000 Euros without much problem (EuroWeek).

I believe that Citigroup’s actions were a business risk gone wrong. Provided a more competitive market where such tactics could be employed, Citigroup would have not suffered such losses. I think that their response was inadequate, as their unethical deeds affected many individuals and companies.

3.      Are some of Citigroup’s employees “bad apples” or is Citigroup a “bad barrel”?

I believe that Citigroup can be considered a “bad barrel”. Every company has their own brand of ethics, rules, and principles which are instilled into employees when they become part of the company. Thus, the actions of the employees show the firm’s motives and goals. Also, if Citigroup’s employees were the problem the company should be able to remove them easily, however this has not been the case.

Citigroup’s future dealings also are evidences that they are indeed a “bad barrel.” In 2007, Citigroup was found to be part of the Terra Securities scandal, which involved the sale of high-risk, low-return assets to several Norwegian municipalities (Landler). This is similar to Citigroup’s Japan undertakings, where consumers were also fooled into risky investments.

The company has also been involved in customer credit card theft which was discovered in 2008. Citigroup had been discreetly moving balances from card holders to the bank’s fund from 1992 till 2003. According to the Jerry Brown, California’s Attorney General, Citigroup mostly stole from poor people and those who were deceased, and that these were knowingly (Stempel). The company was to pay over $18 million in fines and consumer refunds.

Works Cited
EuroWeek. Under pressure, Citigroup climbs down on govie raid. Vers. 871. 14 September 2004. Euromoney Institutional Investor PLC. April 2009 <http://www.euroweek.com/Article.aspx?StoryID=436395&IssueID=11029>.

Landler, Mark. U.S. Credit Crisis Adds to Gloom in Norway. 2 December 2007. The New York Times. April 2009 <http://www.nytimes.com/2007/12/02/world/europe/02norway.html?pagewanted=1&_r=1>.

Stempel, Jonathan. “Citigroup to pay $18 mln over credit card practice.” 26 August 2008. Reuters. Thomson Reuters. April 2009 <http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN2636973720080826>.


Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyStudyWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business and administrative studies
excellent paper
Customer 452773, March 3rd, 2023
Human Resources Management (HRM)
excellent work
Customer 452773, July 3rd, 2023
Business and administrative studies
great job as always
Customer 452773, February 26th, 2023
Leadership Studies
awesome work as always
Customer 452773, August 19th, 2023
Thank youuuu
Customer 452729, May 30th, 2021
Business and administrative studies
excellent work
Customer 452773, March 12th, 2023
Business and administrative studies
Thank you for your hard work
Customer 452773, October 19th, 2023
I just need some minor alterations. Thanks.
Customer 452547, February 10th, 2021
Criminal Justice
The paper was not accused of plagiarism and was written very well. I will let you know the grade once it is graded. Thank you
Customer 452671, April 26th, 2021
excellent work
Customer 452773, October 6th, 2023
thank you so much
Customer 452749, June 10th, 2021
Human Resources Management (HRM)
Customer 452773, July 11th, 2023
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp