Corporate Governance & Social Responsibility: A Case Study of AMP Insurance Limited Company

Corporate Governance 1
Corporate Governance & social responsibility
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Table of Contents
Executive Summary.................................................................................................................3
Introduction..............................................................................................................................4
Background and Ethical Question..........................................................................................4
Corporate Governance, CSR, CSV and Corporate Social Performance Analysis............6
Stakeholder Analysis................................................................................................................7
Corporate Governance Discussion based on ASX 2010 Principles and recommendations
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Ethical analysis.......................................................................................................................11
Conclusion and Recommendations.......................................................................................14
Conclusion............................................................................................................................14
Recommendations................................................................................................................15
References List.......................................................................................................................16
Executive Summary

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The objective of the royal commissions is to conduct inquiries into the misconduct and
perceived unethical practices in the Australian Superannuation, financial services, and
banking industry. In 2018, the Royal commission opened an investigation to investigate
alleged malpractices at the AMP financial service company. The study sought to examine the
perceived misconduct by the AMP Insurance Limited Company. The main issue was to
establish whether or not AMP was ethically right to continue making such deductions as well
as charging death customers for unoffered services. The study was based on ethical theories,
corporate governance and social responsibility practices, and the ASX 2010 principle and
recommendations. The study found out that AMP did not act to the best interest of its
customers. The company took advantage of the confusion to maximising its profit without
considering the impact of its action on its customers and its own reputation in the market.
Lastly, AMP should lead with an example by developing good corporate governance and
morally acceptable practices.
Introduction
The study seeks to investigate the perceived misconduct by the AMP Insurance Limited
Company. The Banking Royal Commission opened an inquiry to investigate alleged

Corporate Governance 4
complaints from customers that the company had continued to deduct premiums from
superannuation accounts even after being informed about the death of the account holders.
The main issue is to establish whether or not AMP was ethically right to continue making
such deductions as well as charging death customers for unoffered services. The study is
based on ethical theories, corporate governance and social responsibility practices, and the
ASX 2010 principle and recommendations.
Background and Ethical Question
The Banking Royal Commission was founded by the Australian government in 2017 contrary
to the Royal Commission Act 1992. The objective of the commissions is to conduct inquiries
into the misconduct and perceived unethical practices in the Australian Superannuation,
financial services, and banking industry. To date, the commissions have completed numerous
inquiries while other financial institutions are still under investigation. One of the companies
being investigated by the Royal Commission for misconduct is the AMP Insurance Limited
Company (Chalmers, 2018).
Early 2018, the Royal commission opened an inquiry to investigate alleged misconducts at
the AMP financial service company. There were complaints from customers that the
company had continued to deduct premiums from superannuation accounts even after being
informed about the death of the account holders. Based on this allegations, the commission
summoned Paul Sainsbury, AMP's Customer, and wealth executive, to respond. In his words,
Sainsbury admitted to the claims adding that the Company intended to repay the deductions
at the maturity of the death benefits. However, Sainsbury could not explain why the company
had continued to make deductions when there was no life to insure. Likewise, AMP had
failed to take corrective measures when two years after the first concern from internal
personnel and customers was raised (Chalmers, 2018).