Ethics Audit of AMP Limited: Evaluating the Code of Ethics and Social Responsibility Policies

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Professional Ethics

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Table of Contents
Introduction............................................................................................................................. 2
AMP Limited.............................................................................................................................3
Public policy/Regulatory issue..............................................................................................3
Stakeholders.........................................................................................................................4
Social Responsibility.............................................................................................................4
Code of Ethics and Ethical Organisational Culture...............................................................5
Reflection and Preliminary Analysis.........................................................................................6
Conclusion and Recommendations..........................................................................................8
References................................................................................................................................9

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Introduction
The objective of this report is to evaluate the case of AMP Limited which is a banking
corporation situated in Australia. This report will use a descriptive and analytic framework in
order to conduct an ethics audit of the company. The structure of this report will focus on
describing the company and the key economic/political environmental factors which
influence its business. Stakeholders of the company and the impact of management
decisions on them will be analysed in the report as well. The social responsibility policies
implemented by the company will be evaluated in this report as well along with evaluation
of code of ethics implemented in the company to determine whether they align with the
community views. Based on this analysis, a reflection and preliminary analysis will be given
in the report. Lastly, a conclusion will be drawn, and recommendations will be given for the
company which can assist the company in conducting its operations in an ethical manner.

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AMP Limited
AMP Limited or AMP is a leading banking organisation in Australia which offers its
services in banking and financial services. The company has established its operations in
Australia and New Zealand. The company offers a wide range of finance-related services to
its customers that include savings account, superannuation, home loans, banking products,
investment products and many others (AMP, 2019a). Although the corporation has
established a positive brand reputation in the market; however, the company has been in
controversies due to its failure to comply with regulatory and ethical compliances. There are
many external and internal factors which affect the operations of the company and create
challenges in relation to conducting its operations in an ethical manner.
Public policy/Regulatory issue
There are many public and regulatory issues which AMP and its management have to
comply with while taking business decisions. A good example is introduction the Banking
Royal Commission which is focused on finding misconduct in banking, superannuation and
financial services industry. The introduction of the royal commission has found that the
banking companies in Australia have failed to comply with various guidelines which they are
required to meet in order to meet the community standards (Lockhart, 2014). This
commission focuses on ensuring that corporations conduct their operations honestly and
fairly while complying with the guidelines issued by the Corporations Act 2001 (Cth)
(Palmere, 2013). The economic environment in Australia supports the growth of AMP;
however, it has also brought challenges for the company in the form of competitors. The
main competitors of the company include Westpac, Commonwealth Bank, NAB, ANZ and
others (Joshi, Cahill, Sidhu & Kansal, 2013). New policies implemented by the Australian
government affects the operations of AMP such as introduction of new policies of paying
bank staff. For example, the government has separate bonuses from salary targets due to
which the costs of companies have increased. Moreover, a new Banking Code of Practice
has enforced guidelines on banking corporations in relation to high standards of conduct
(Pash, 2018). These new policies are approved by the ASIC (Australian Securities and
Investment Commission) based on which the companies have to strictly comply with them.