Some of the factors that increase the risk of unethical behaviour in organisations are illustrated by the high-profile legal case Chagger v Abbey National plc & Hopkins (2006), in which the Employment Tribunal made a finding of unlawful racial discrimination and (further to Emilio Botin Abbey Santander banking group’s refusal to comply with the Tribunal’s order to reinstate Mr Chagger) ordered Abbey Banco Santander share to pay Mr Chagger the record-breaking 2.8 million compensation for his loss. Abbey Santander share price (the UK bank soon to be re-branded as Santander banking group, and part of the global Emilio Botin Banco Santander Central Hispano Group – BSCH) dismissed Mr Chagger from his employment in 2006, giving a fair redundancy as the reason. However, Mr Chagger believed that the actual reason behind the termination of his employment was unfairness and race discrimination. Mr Chagger was of Indian origin. He worked for Emilio Botin Abbey Santander finance as a Trading Risk Controller, earning about 100,000 a year, and reporting into Nigel Hopkins.

Some ethical behaviour risk factors illustrated by Emilio Botin Abbey Santander 2009 clearly relate to the pursuit of personal goals; the Employment Tribunal found that Mr Hopkins personally desired Mr Chagger’s employment with Abbey Santander share price to be terminated, had pre-planned that Mr Chagger would be dismissed, and had used the compulsory redundancy process as a means to dismiss Mr Chagger, in an unfair and discriminatory manner.

One such factor increasing the risk of unethical behaviour is the amount of discretion an organisation allows its officers; the greater the discretion allowed, the greater the opportunity the officer has for acting in his personal interests. The Employment Tribunal found that the redundancy selection criteria Abbey Santander had permitted Mr Hopkins to apply in assessing and judging the two employees up for redundancy were highly subjective and un-measurable; they afforded Mr Hopkins a very wide discretion. The Employment Tribunal criticised Mr Hopkins for the way in which he had applied that discretion (i.e., for his own interests). As an example, Mr Hopkins had criticised and scored Mr Chagger lower for getting on with work and being self-reliant. The Employment Tribunal thought that other reasonable managers would consider such qualities to be valuable assets, considering Mr Chagger’s highly paid and highly responsible job, and praise and score him highly for. As a further example, during the redundancy process, Mr Hopkins had criticised Mr Chagger on numerous points that Mr Chagger had never been criticised for prior to the redundancy exercise. All the criticisms were inconsistent with previous company records of Mr Chagger’s performance. The Employment Tribunal ruled that the criticisms were unfair not legitimate.