Ethics and Governance

Ethics and Governance
Running Head: BUSINESS AND CORPORATION LAW 0
4 / 2 6 / 2 0 1 9
Student’s Name

Ethics and Governance 1
Executive Summary
Ethics is a mandate for modern business as they have huge expectations from the society. It
becomes responsibilities of these businesses and their mangers to adopt the business ethics in
their practice. Banking Royal Commission is working in the sector of banking, insurance and
superannuation by making inquiry into misconduct and fraudulent activities and by making
recommendations.
The report made by banking commission reflects utilitarian theory of ethics that focus on the
results. APES 110 Code of Ethics for professional accountants highlights some principles that
the professional accountants are required to adopt in their performance. Safeguards provided
under this code prescribe the manner in which professionals can adhere to these principles.

Ethics and Governance 2
Contents
Introduction......................................................................................................................................2
Part A...............................................................................................................................................3
Ethics and related theory 3
Relation of Banking Commission report and Utilitarian theory 5
Part B...............................................................................................................................................6
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

Ethics and Governance 3
Introduction
In cases of a corporation, there is a separation between ownership and management of the
business, which is the highlighted key factor (Perera, 2011). In such a situation, there is always a
chance that managerial people can misuse their position in the company. Ethics is always
required in every business that states the manner in which an organization should manage and fix
its activities (Businesscasestudies.co.uk, 2019). In recent times, the ethic becomes more
important in every business as competition is there and stakeholders want to be part of an
organization, which is responsible and accountable for its conducts. Business ethics is a kind of
applied ethics that includes moral principles using which a business can deal with ethical issues
(Courses.lumenlearning.com, 2019).
As mentioned above that every business is required to carry and follow business ethics,
many of the times businesses fail to do so. Following ethics is a part of corporate social
responsibility and corporate governance. In recent times, it has been noted that many of the
banks, financial, insurance, and other related institutions were engaged in misconduct and unfair
practices. To identify such issues and to take action against them a commission was founded
namely. Royal Commission into Misconduct in the Banking, Superannuation, and Financial
Services Industry. The commission is also known as banking commission. The lead objective
behind the development of this commission was to check the misconducts in the banking and
finance industry (Ryan, 2019). The commission worked in depth of this matter and provided its
final report on this subject in February 2019. The presented report has two parts, the first part is
based on the banking commission final report and another part is related to the APES 110 Code
of Ethics For Professional Accountants and related area.