HSBC’s website emphasizes their long-term strategy is sustainability and “HSBC believes long-term success and good corporate behaviour are linked.” In fact, HSBC really failed the stakeholders and governments’ expectations according to the laundering scandal. HSBC violated their promises on “achieving long-term profit growth, building enduring customer relationships and making a positive contribution to the environment and the communities in which they operate.” After the scandal, HSBC broke the chain of trust with stakeholders and their customers will run off. Based on the Bloomberg’s website, HSBC reports declining profit. The chief executive officer has closed or sold 47 businesses, sacrificing revenue and targeting 30,000 job cuts. In addition, the company has billion loss in Europe. By losing the chain of trust, how customers can still rely on “the world’s local bank?”
Citations:
Mustoe , Howard, and Gavin Finch. “HSBC Reports Declining Profit, Says Costs Are Increasing.” Bloomberg. (2013): n. page. Web. 25 Apr. 2013. <http://www.bloomberg.com/news/2013-03-04/hsbc-full-year-profit-declines-on-debt-revaluation-record-fine.html>.
“Sustainability.” HSBC. n. page. Web. 25 Apr. 2013. <http://www.hsbc.com.au/1/2/about/sustainability>.
