Business needs to address sales targets to develop an ethical culture, FINSIA’s first webinar from the Future of Regulation series heard.
Professor Christopher Hodges made the comments during the session asking why culture was a better answer than deterrence when it came to regulation.
In a wide-ranging session covering everything from the Royal Commission to notorious criminals like Bernie Madoff, Professor Hodges suggested looking at future behaviour was more important than punishment.
He said: “In my view, the Royal Commission was plain wrong in asserting that the answer was deterrence and public litigation.
“That idea was, indeed, orthodox thinking 50 years ago – it was what we were all taught 50 years ago.
“But it focusses only on framing the problem as wrongdoing and does not support good behaviour or eradicate bad behaviour.
“Regulators and academics often ask: ‘how do we increase deterrence?’ Surely,…