Ethical Issues for Commonwealth Bank: Analysis and Barriers to Organisational Learning

Analysis of the Ethical Issues for Commonwealth Bank
The ethical issues for the Commonwealth Bank of Australia are divided into the two major
categories. The first category states the individual behaviour of the financial planners who
acted unethically by placing elderly retirees savings into the risky products of the investment,
contrary to instructions and lack of the disclosure. The forging of the documents have been
came across in front of the management. The CBA lost its entire savings and kept all the
tracks hidden (Hutchens, 2018).
Secondly the impact of the global financial crisis on the financial plans industry and their
lack of the social responsibility and the ethical behaviour towards the banking sectors. The
unethical means were adopted to pay the compensation and the remuneration to the financial
planners and this creates a huge loss to the banks. The conflict also arises on part of the
regular running between the clients and the sale of the financial offers made to lure the
customers to purchase it (Stewart, 2017).
Analysis of repeated ethical scandals through the lens of organisational learning
theories
The Commonwealth Bank of Australia accepts that it has sold wrong insurance to 60000
unemployed customers. The Royal Commission warned CBA to cease the volume based
commissions to the brokers who sell the products on mortgage, where the brokers were
involved in the larger than necessary loans and putting the customers at risk. From the
perspective of the organisation learning this scandal pretty much destroyed the reputation of
the CBA, also the Royal Commission was not satisfied with the apologies, rather it was
interested in as to why such an incident happened in the era of the banking sector and what
policy makers shall take as a step to rectify this situation (Hutchens, 2018).
Analysis of existing barriers to the organisational learning at the Commonwealth Bank
The main necessity is the innovation of the organisation in terms of the change and the
advancement in the products and the services. The biggest barrier to bank is the regulator.
There are enormous regulatory policies and impediments which shall be removed so that he
banking sector can grow and this can help the women who are going to retire by providing
them with the assistance of the featuring products that can cater the needs (Bishop and
Connors, 2018).