Ethics and governance in the European Financial centers

When looking the communication for the financial center in Luxembourg and the communication of many companies located in Luxembourg, it appears that professionals focus on the steady, sustainable growth of the center. Actual "Red flags" are ignored or denied because of the current growth.

But it is important to focus on long-term business issues as achieving quality in production and developing good relations with stakeholders (clients, staff, suppliers and the community), and not just on short-term results that are figures.

As Kenneth Blanchard said, "Managing only for Profit is like playing tennis with your eye on the scoreboard and not on the ball" (K. Blanchard, The power of Ethical Management. Ballantine, 1988, p. 109).

While professionals were focusing on the scoreboard, they have not seen the paradigm shift and the international requirements for a credible business ethics. I am pragmatic: I am just saying that ethical values that are stated must be credible i.e. not contradicted by facts all the more if facts are official and public, which is unfortunately the case in Luxembourg as shown in many previous articles.

That is the reason why the center may be a risk for the reputation of head offices as it is a weak link.