Thoughts on Ombuds and Crises in the Financial Sector

An article posted on Mediate.com last week urges the development of Ombuds programs in response to the recurring ethical crises in the U.S. financial services industry.  Author Alia Ismail cites the recent Wells Fargo cross-selling scandal as an example of a situation that could have been mitigated by an Ombuds program.  While this type of scandal has led others to urge the appointment of an Organizational Ombuds, Ismail argues for a unique arrangement: Ombuds that are not only federally mandated but also federally managed.

In her concluding paragraph, Ismail says:

New laws should be legislated by congress where it becomes a requirement that each financial institution creates an ombudsman office where the department of labor would ensure and oversee its activity. Creating an outlet for employees to voice perceived or suspected violations not only will help with employee protection, but also with customer protection, shareholder protection and ironically, CEO protection.

(Mediate.com.)

Related posts: Mediate.com Unveils Certification Program; Cogent Critique of Certification; Resources Online and Beyond for the Aspiring Ombuds; Mediate.com Posts Full Interview With Howard Gadlin.