Jail may be needed to restore standards – IoD chairman

JOHN Rider, West Midlands businessman and regional chairman of the Institute of Directors, has hit out at the erosion of honesty and integrity in modern life.

He suggests the situation is so serious that jail sentences may have to be meted out before the financial sector can be prevailed on to change its ways.

Rider said 2012 had been a “bad year” for the press, police, bankers and politicians, citing the Leveson Inquiry Report, the Andrew Mitchell “Gate-Gate” affair and the questioning of police standards over the Hillsborough tragedy.

He said: “Bankers are still in the headlines with Libor rigging, money laundering on a seemingly industrial scale, mis-selling and a general failure to do the things normal banks should do – such as responsible lending.

“I can’t help thinking that even (tax deductible) fines over £1bn will not change behaviour unless they are accompanied by tough criminal sanctions.”

But Rider stressed: “The vast majority of business people are straightforward, honest and hard working.

“We must not let our standards of morality drop – honesty is the best policy. It’s time to stop bending the rules to breaking point. Let’s challenge dishonesty at every opportunity.

“The IOD’s strap line was at one time ‘Enterprise with Integrity’ and this should be a guiding principle for everyone.”