Ethics and Governance

Running Head: BUSINESS AND CORPORATION LAW 0
Ethics and Governance
4/21/2019

Ethics and Governance
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Executive Summary
Ethics can be understood as the set of principles that govern the behavior of the
individual. Business ethics is a branch of ethics that provide a moral rule for businesses. This can
be understood as professional ethics or a form of applied ethics. Business ethics is important for
each kind of businesses and recently many of the cases have reported where banking and
insurance companies of Australia misconducted in their practices. In the presented report, one of
such case has been reviewed. In addition to this the report also highlighted the recommendations
made by subjective commission and ethical theory related to the same.
The report also evaluated the APES code of ethics. Part a and c of the code has been
discussed and at last of the report a conclusion is provided that highlighted the key points of the
report.

Ethics and Governance
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Contents
Introduction......................................................................................................................................2
Part A...............................................................................................................................................3
Ethical Theory 3
Report of Banking Royal Commission and Utilitarian theory 4
Part B...............................................................................................................................................6
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Ethics and Governance
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Introduction
A business is administrated by certain people who deal with other parties on behalf of the
business. In this manner, it becomes the responsibility of such people to administer the business
considering the moral principles. With the changes in time and globalization, the expectation of
society is increasing with the businesses. Here the meaning of business ethics is related to a code
of conduct, which every organization is required to follow in their practices. This helps the
organizations and their administrators to understand the difference between good and bad actions
and enlighten their path towards the adoption of good and ethical practices.
Royal Commission into Misconduct in the Banking, Superannuation, and Financial
Services Industry is a royal commission that inquiries into the matter if subjective industry. On
Friday 1 February 2019, this commission presented its final report to the governor general
(Jaf.Ministers.Treasury.Gov.Au, 2019). In its investigation banking commission found many
cases where banking companies misconducted and in its final report, these cases, cause of the
same and recommendations for the same has been summarized. There are two parts of the
presented report. In the first part, the discussion will be focused on the message that the banking
royal commission provided in its final report in addition to the related ethical theory. In the
second part of the report, the discussion will be made on the APES 110 Code of Ethics For
Professional Accountants and other related aspects.