Draft:Corporate scandals in the UK

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{{Short description|Overview of major publicized corporate wrongdoing and failures in the UK}}

Corporate scandals in the United Kingdom refers to a series of high-profile cases of corporate misconduct, financial irregularities, and governance failures that have shaped regulatory reforms, prompted public inquiries, and led to significant legal and financial consequences. Key examples include the Libor rate-fixing scandal at Barclays, Tesco’s accounting fraud in 2014, the collapse of Carillion in 2018, mismanagement and mistreatment of small businesses by RBS’s Global Restructuring Group, P&O Ferries’ mass redundancies in 2022, Rolls-Royce’s global bribery settlement, and the racial campaign scandal at PR firm Bell Pottinger.

Notable scandals

= Financial services =

== Barclays Libor scandal ==

In June 2012, Barclays was fined a total of £290 million ($450 million) by UK and US regulators for manipulating the London Interbank Offered Rate (Libor) submissions between 2005 and 2009. The scandal led to the resignation of CEO Bob Diamond and chairman Marcus Agius, and Barclays later reached a $100 million settlement with 44 US states over related investigations on 8 August 2016.{{cite news|last=Lynch|first=Sarah N.|title=Barclays reaches $100 million U.S. Libor settlement – NY attorney general|publisher=Reuters|date=2016-08-08|url=https://www.reuters.com/article/business/barclays-reaches-100-million-u-s-libor-settlement-ny-attorney-general-idUSKCN10J1R8/}}

== Tesco accounting scandal ==

In September 2014, the UK’s largest retailer Tesco overstated expected first-half profits by £250 million due to early recognition of supplier rebates. Following a Deferred Prosecution Agreement with the SFO, Tesco agreed on 28 March 2017 to pay £214 million in fines and compensation to settle false accounting charges.{{cite news|last=Davey|first=James|title=Tesco to pay $269 million to settle false accounting charges|publisher=Reuters|date=2017-03-28|url=https://www.reuters.com/article/business/tesco-to-pay-269-million-to-settle-false-accounting-charges-idUSKBN16Z0JT/}}

== RBS Global Restructuring Group ==

Between 2008 and 2014, RBS’s taxpayer-backed Global Restructuring Group (GRG) was found to have mismanaged and mistreated small business customers, with 92 percent of viable firms subjected to “inappropriate action” such as undue fees and forced insolvencies. MPs in October 2017 threatened to force publication of a critical FCA report on these practices.{{cite web|last=Packham|first=Alan|title=FCA urged to publish report on RBS mistreatment claims|publisher=Financial Times|date=2017-10-19|url=https://www.ft.com/content/aaac471a-995b-11e7-b83c-9588e51488a0}}

Corporate failures and collapses

= Carillion liquidation =

Carillion, a major construction and facilities manager employing 43,000 staff, collapsed into compulsory liquidation on 15 January 2018 under a £7 billion debt pile, marking Britain’s largest corporate failure in a decade. The disaster raised questions about outsourcing of public services and auditing standards, leading to parliamentary inquiries.{{cite news|title=Britain's Carillion collapses after banks pull the plug|publisher=Reuters|date=2018-01-15|url=https://www.reuters.com/article/business/britains-carillion-collapses-after-banks-pull-the-plug-idUSKBN1F30SY/}}

In July 2023, the former Carillion finance director was banned from holding directorships for 11 years over misleading financial statements published shortly before the collapse.{{cite news|title=Ex finance chief of collapsed Carillion hit with 11-year ban|publisher=Reuters|date=2023-07-03|url=https://www.reuters.com/world/uk/ex-finance-chief-collapsed-carillion-hit-with-11-year-ban-2023-07-03/}}

= PR and media =

== Bell Pottinger race campaign ==

In September 2017, PR firm Bell Pottinger’s British arm collapsed after losing major clients including HSBC and being expelled from its trade body for orchestrating a racially divisive campaign in South Africa that inflamed tensions and exploited vulnerabilities.{{cite news|last=Holton|first=Kate|title=Bell Pottinger's British business folds after South Africa scandal|publisher=Reuters|date=2017-09-12|url=https://www.reuters.com/article/business/bell-pottingers-british-business-folds-after-south-africa-scandal-idUSKCN1BN2AS/}}

= Engineering and defence =

== Rolls-Royce bribery settlement ==

In January 2017, Rolls-Royce agreed to pay over $800 million to settle bribery charges in the UK, US, and Brazil for corrupt practices in six countries between 1989 and 2013. The UK SFO negotiated a £671 million Deferred Prosecution Agreement following the Justice Department’s parallel action.{{cite news|last=Schectman|first=Joel|title=Rolls-Royce to pay more than $800 million to settle bribery charges – U.S.|publisher=Reuters|date=2017-01-17|url=https://www.reuters.com/article/business/rolls-royce-to-pay-more-than-800-million-to-settle-bribery-charges-us-idUSKBN1512NV/}}

In February 2017, former CEO John Rose was questioned under caution by the SFO as part of the investigation.{{cite news|title=Former Rolls-Royce CEO Rose questioned in bribery investigation – source|publisher=Reuters|date=2017-02-10|url=https://www.reuters.com/article/world/uk/former-rolls-royce-ceo-rose-questioned-in-bribery-investigation-source-idUSKBN15P1JC/}}

Recent controversies

= P&O Ferries mass redundancies =

On 17 March 2022, P&O Ferries dismissed 800 seafarers via video call without prior consultation, defying UK employment laws and prompting government legal action and widespread protests. The mass redundancies and replacement by cheaper agency workers sparked political outcry and calls to boycott the company.{{cite news|title=UK's P&O Ferries sacks 800 staff; unions threaten standoff|publisher=Reuters|date=2022-03-17|url=https://www.reuters.com/business/uk-registered-po-ferries-suspends-services-says-it-is-not-going-bust-2022-03-17/}}

== Impact and reforms ==

These scandals led to enhanced corporate governance codes, strengthened enforcement by the Serious Fraud Office and Financial Conduct Authority, and new legislation such as mandatory resilience statements for publicly listed companies. Parliamentary inquiries and regulatory reviews have sought to restore public trust and safeguard stakeholders against future misconduct.

== See also ==

== References ==