Safety Culture in Financial Trading: An Analysis of Trading Misconduct Investigations

Journal of Business Ethics 154 (2):461-481 (2019)
  Copy   BIBTEX


High-profile failures in financial trading have led to interest in how the culture of the industry produces risky and unethical behaviours among traders. Yet, there is no established theoretical framework for studying this: we apply safety culture theory to examine ten recent high-profile trading mishaps investigated by the UK financial regulator. The results show that the dimensions of safety culture used to understand organisational accidents in domains such as aviation also explain failures in Risk Management within financial trading organisations. This counters narratives focusing on traders who are unethical ‘rule breakers’, and emphasises the value of a systemic approach, whereby safety culture theory is used to explain why risky behaviours in financial trading occur. Safety culture therefore provides a conceptual basis for further research on risky and unethical behaviours in financial trading, alongside providing insights for possible intervention.



    Upload a copy of this work     Papers currently archived: 77,697

External links

Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

Similar books and articles

Trading zones and interactional expertise.Harry Collins, Robert Evans & Mike Gorman - 2007 - Studies in History and Philosophy of Science Part A 38 (4):657-666.
Financial Edgework and the Persistence of Rogue Traders.Mark N. Wexler - 2010 - Business and Society Review 115 (1):1-25.
Who Are the Real Victims of Insider Trading?: Why Current Insider-Trading Law Is Unethical.John Dobson - 2012 - Business and Professional Ethics Journal 31 (3-4):441-452.
Where should the line be drawn on insider trading ethics?Yulong Ma & Huey-Lian Sun - 1998 - Journal of Business Ethics 17 (1):67-75.
What is really unethical about insider trading?Jennifer Moore - 1990 - Journal of Business Ethics 9 (3):171 - 182.
The evolution of a trading zone: a case study of the turtle excluder device.Lekelia D. Jenkins - 2010 - Studies in History and Philosophy of Science Part A 41 (1):75-85.
Conflicting Codes and Codings.Marc Lenglet - 2011 - Theory, Culture and Society 28 (6):44-66.
Simulated Trading Environment as a Learning Tool in Corporate Finance.Zoltan Murgulov - 2012 - Journal of Business Ethics Education 9 (Special Issue):89-103.
Ethical Emissions Trading and the Law.Kirk W. Junker - 2006 - University of Baltimore Journal of Environmental Law 13 (149).


Added to PP

12 (#812,610)

6 months
1 (#481,005)

Historical graph of downloads
How can I increase my downloads?