The collapse of a European bank in the financial crisis: an analysis from strategic, stakeholder, ethical and governance perspectives

The collapse process of Fortis’s during 2008 - 2009 is taken as a basis for reflective considerations from strategy perspectives, stakeholder, ethical and corporate governance perspectives. These perspectives are relevant since Fortis group was internationally recognized as an example of good and leading practice in the field of CSR. Additionally most literature on causes of irresponsibility is in the fields of economics, and specifically the economics of market failure. The business ethics literature tends “not to address explanatory questions about the causes of CSR breaches”. The Fortis case focuses on a short history with a selected number of key events. The study provides an overall strategic analysis from corporate governance perspectives. Major issues in the corporate governance literature are applied to or confronted with the Fortis case, especially the role of the board in strategy. This analysis is complemented with some specific issues as the problematic of CEO remuneration and the role of egos. This governance analysis reveals inconsistencies between law and corporate governance, and tensions between the law and ethics. We conclude with some lessons for corporate governance and corporate strategy