BUSINESS AND CORPORATION LAW

Running Head: BUSINESS AND CORPORATION LAW
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Corporate Social Responsibility and Governance
2/5/2020
Student’s Name

Corporate Social Responsibility and Governance
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Contents
Editorial: ABC News..........................................................................................................2
Broken Ethics, Can Westpac justify. 2
Editorial: The Daily Telegraph...........................................................................................4
Westpac: The other side of the coin 4
References.........................................................................................................................6
Bibliography.......................................................................................................................6

Corporate Social Responsibility and Governance
2
Editorial: ABC News
Broken Ethics, Can Westpac justify.
In the world full of completion, corporate governance, business ethics, and social
responsibility are some concepts that have their huge significance. The responsibility
has been more crucial after globalization where stakeholders have a range of choices.
But whether every organization understands the value of these aspects? The world's
second-largest bank, Westpac, Probably does not. Westpac has been found guilty of
hindering criminal money laundering. Not only once or twice but the bank has breached
anti-money laundering law for the whole 23 million times. The incident rocked the
financial sector of not only the country but also the international economy. Out of these
23 million transactions, nearly 19.5 million have done between Westpac and other
correspondent banks to process customer transactions of each other. The issue is not
only limited up to a breach of money laundering law but also attracts guilty of child sex
trafficking. How significant the issue can be understood by the fact that each of the
braches attracts penalty worth A$63,000 and Westpac has committed millions of such
breach. It means Westpac is liable to pay more than A$1 trillion in the form of penalty
(Fargher, 2019).
As per the requirements outlined by The Australian Transaction Reports and
Analysis Centre, Westpac was liable to monitor and report suspicious transactions. The
bank has done clear noncompliance at the board level. Brian Hartzer, the Chief
executive officer of the company also resigned from his post when the Scandal has
reported in the media. Lindsay Maxste, the chairman of the company is also likely to
resign from his post. These actions are a clear reflection of the irresponsible behavior
pursued by these leaders. The management is leaving its position rather than making
the doubt of millions of stakeholders clear. Not only the principles of leadership but also
the principles of business ethics seem to unfollow here. Firstly, directors and executives
of the bank have breached their legal duties by not reporting the transactions, which
were mandatory to. Further, they have not taken responsibility for their actions.