Corporate Governance and Ethics: AMP Case Study

Corporate governance and ethics

Corporate governance and ethics
Executive summary
This report emphasizes on the case related to AMP. The main focus of the report will be on the
relationship between corporate governance and corporate performance. Also, the deficiencies in
the corporate governance policies and ethic system of AMP which has caused the breakdown in
the overall working of the company will be discussed in the report. This report will also provide
some of the recommendations so that it can be simple to secure the interest of whistleblower and
it will help to focus on the policies which can minimize the ethical activities in the workplace.
And lastly, the strategies will be discussed which can provide the overall transparency in the
functions and work done by the employees and the top management the company. This will help
to prevent the company from future scandals.
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Corporate governance and ethics
Table of Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................2
Problem in the system of corporate governance and ethic at AMP.................................................2
Reasons for Breakdown...................................................................................................................3
Whistle blowers and mechanism sufficient to protect the various stakeholders.............................3
Recommended strategies.................................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................8
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Corporate governance and ethics
Introduction
AMP is Australia based organization providing financial advice, superannuation, banking
products, saving accounts and home loan services and is situated in Australia and New Zealand.
It has been investigated that the managers of the company has failed to apply the methods which
were important to complete the activities in an ethical manner. And this failure is seen after the
banking Royal commission 2018 (AMP, 2018a).
This report will focus on corporate governance and ethic system that should be performed by
AMP for managing the activities in an ethical manner. Deficiencies in corporate governance of
AMP will be considered in this report. Next part will emphasize on the reasons responsible for
the breakdown of AMP. The last phase of this report will recommend the ideas through which
the company can reduce the scandals.
Problem in the system of corporate governance and ethic at AMP
It can be evaluated that large number of people were affected by the activities of the company
and that is the only reason the company considered corporate governance structure so that it can
be simple to maintain transparency by giving the statement of governance in every year. The
Company created a corporate governance charter providing the outline of activities of board.
Provisions were also given to be considered so that high ethical standards can be maintained
(Aguilera, Judge and Terjesen, 2018).
All the policies considered in the charter are related to the constitution of the company and were
important for the company members to follow. This corporate structure consists of the code for
the business decisions keeping in mind the ethical and corporate views. Also, employee’s
policies ensure that company manages its activities with customers by considering the overall
regulatory obligations (Dion, 2017). If proper policies are considered by the management then it
can be simple for the employees to focus on their activities by considering the ethical values and
norms.
There are many deficiencies in the system which impacted the stakeholders of the company. One
of this is related with the lack of ethical training. And due to this it was simple for the team to
violate the policies, and there was no such policy for such breaching of the rules. There were also
no methods to focus on the activities to manage the policies of corporate governance and ethics.
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