Business Ethics and Corporate Social Responsibility

This paper discusses the importance of business ethics and corporate social responsibility through Westpac bank. It covers the impact of sustainability on brand image, stakeholder engagement, and profitability.

Running head: BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
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Introduction:
Proper business policies and practices plays significant role, specifically for the issues
that are potentially controversial (Crane, Matten and Spence 2013). Often business ethics are
guided by laws however, other times business ethics comprises of a basic framework is followed
to gain public acceptance. This paper is aimed to understand the importance of business ethics
and corporate social responsibility through three questions related Westpac bank.
Answer 1:
Westpac is among the Australia’s largest banks. In the year 1980s the bank was in a
financial difficulties and identifying its cause, the bank began its sustainability journey. The bank
moved towards a more stakeholder-led organization. Already having its relation with few
indigenous banks, then head of human resource, Ann sherry took a trip to Cape in 2001. The trip
had an impact on Sherry and after coming back formed Westpac’s Indigenous Working Group
including other senior leaders for the support of Indigenous Enterprise Partnership (IEP). The
partnership prioritized communities more than other philanthropic motive. It encouraged the
communities to take charge of their community and build strategies that would help their
community’s situation. The bank’s employees would visit Cape each year to provide capacity-
building and support on the local communities’ program. Westpac changed its way of
recruitment giving strong focus on the attitude and aptitude. Secondees, the employees visiting
Cape, would undertake extensive readings, management plans based on alcohol-substance-abuse,
economic strategies and guideline to communicate with aboriginals communities by the
aboriginals people. It took up induction training primarily on cultural understanding before
getting in touch with the aboriginal communities. Westpac’s secondees worked on two programs

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which focused in family income management and Business Facilitation. Family income
management was to provide help in individual budgeting skills while the business facilitation
was to provide advice on businesses. The programs were developed on the basis of employees’
skills. All the shorter-term placements were also initiated to have substitution to manage their
place if required. Westpac and IEP jointly funded for the long-term appointments. The company
now has a broader IEP program that is to create a critical mass of project which would support
indigenous initiatives including health, social and economic program. Today, Westpac has
participation of more than 400 employees in secondments in Cape York working to helping the
equivalent of 50 years of employment and it has announced an expansion of the program of
including inner areas of Sydney such as Redfern and Waterloo.
Answer 2:
From the trip to Cape, Ann Sherry was affected to a great extent. Sherry knew and said
that no one could walk into a community as such and come out without being bothered about the
existing social problem. The partnership between Westpac and other companies and indigenous
group engaged the entire stakeholder into contributing to society and the existing social issue.
The approach of Westpac was not from the philanthropic mindset however it was to encourage
the indigenous communities develop themselves with their capabilities. Westpac acted as a
supportive body to the communities by changing its principles and policies. Each employees was
able to go through life changing experiences. When the perspective of the work was changed
each employees was able to work serve communities through the medium of their work.
Employees were boosted with sprit and confidence in their work. The employees felt more
satisfaction in their job. Although there was an increase in the cost of shareholders in short-term,
it increased the share value of the company. The stakeholders were part of the Australia’s biggest

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alcohol epidemic and social problem. The stakeholder were able to get a more systematic
processes. The cultural understanding was prioritized to a great extent which lead the employees
into extensive pre-learning including Pearson’s book and have knowledge on alcohol-and
substance-abuse management plans. The following changes only lead to stakeholders’
development of interest. They developed cultural understanding and encouraged the indigenous
communities to overcome their problems. The employees were also happily serving the
communities with more commitment as the programs were designed as per the skills they were
best at. Many of the people included in the program were able to serve community for the first
time and that rebuilt the people’s confidence. The changes helped in improving company’s
reputation and image in the market.
Answer 3:
Sustainability is an issue that is faced and confronted by all businesses today. The size or
the place of the business is not of much of a concern (Laszlo and Zhexembayeva 2017). As
Westpac’s CEO, the sustainability journey could have been carried out however the brand image
should not be affected negatively. A brand is confronted by sustainability these day due to the
benefits it serves (Lehner and Halliday 2014). Sustainability improves the brand image and
competitive advantage. It also increases productivity of the company and reduce costs. It
becomes easy to increase business ability through sustainability as well as comply with
regulation (Kumar and Christodoulopoulou 2014). As integrating sustainability into business
improves business and brand image more investors and employees become interested in the
brand. Sustainability in its way improves society and reduces waste (Taneja and Toombs 2014).
In a business that is witnessing growth due to the positive impacts of the sustainability a
company is ought to do well and make the shareholders happy. According to Freeman profit is a

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consequence of the company’s activity however it is the primary cause (Ewald, Matt and
Zamboni 2013). To him the company’s aim should be to meet the needs of stakeholders when it
is taken care profit is evident (Lee, Park and Lee, 2013). Therefore, along with the brand image
the company has the potential to have profit when Freeman’s perspective. For all the beneficial
impacts of sustainability business should be able to integrate sustainability and modify its
principle and policies in accordance. Therefore, as a CEO of Westpac the journey should be
carried out.
Conclusion:
In the end of the paper, it is seen how Westpac was affected when went through changes
when it changed its business policies and principles. The business ethic that the company
followed involving the decision of integrating sustainability has resulted in positively. Therefore,
it can be concluded business ethics has important role to play.

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