Integrity management after the credit crunch

Increasing normative force by 'walking the talk', adopting 'harder' controls and increasing supervision are prerequisites to achieve integrity within the financial institution in particular and the financial markets in general. The credit crunch clearly demonstrated that trust is essential to the operation of the market. Goodwill is a glass of water that one fills drop by drop. One shock can make the glass fall and spill all trust. It will take time and effort to restore all the spilled trust. With regard to integrity, two general approaches can de distinguished. The American approach is rule based. The European approach is principle based. As a result of the latest financial crisis, major reforms will take place. The protection of integrity will play a predominant part in these reforms. The author strongly believes that also in Europe a strong shift towards a more rule based approach will be noticeable. Confidence will not be restored easily. With regard to business ethics the end of the last century shifted the stakeholders shifted from "tell me" to "show me". In the decade to come, we will most certainly see a shift towards "prove me". Financial institutions will have to prove that they are in control , including with regard to their integrity policy. Normative force will have to be increased and the controls will harden until confidence is regained.