Business Ethics - Assignment Solved
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Added on 2021-06-17
Business Ethics - Assignment Solved
Added on 2021-06-17
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Running head: BUSINESS ETHICSBusiness EthicsName of the Student:Name of the University:Author Note:
1BUSINESS ETHICSArticle 1AMP could face criminal charges for misleading ASIC, banking royal commission toldOverviewIn the article, AMP could face criminal charges for misleading ASIC, banking royalcommission told, the business ethics issues faced by the company in terms of breach of corporateregulations is brought to light. The AMP is one of the largest financial advising companies inAustralia that has been penalized of late for codes of misconduct especially with the advent oftougher laws and rules framed and imposed by the government for financial and bankingexecutives that have been of adverse effect and impact on the customers especially. The articlefocuses on the fact that how the organization is now exposed to the possibility of facing criminalcharges and for misleading the Australian Securities and Investments Commission for chargingits customers for no reason, that is without even providing any kind of financial aid or advices orany other such services (abc.net.au. 2018). The article essentially asserts that there are evidencesof the manipulations and inaccuracy found in the reports submitted by AMP to ASIC, andcausing the institution to charge customers for no service. Further the article also posits that otherorganizations like the National Australian Bank, Westpac and the Commonwealth Bank are alsoexposed to the risk and in all probability will have to make rounds in the court for breaches ofthe Corporate Act in many different ways and more than once. These different organizationshave committed the misconduct of law in different ways which are also stated in details in thisparticular article. In fact, with proper investigation it has been found that most of the governmentbanks and financial organizations in Australia failed to keep a check and control the activities ofthe regulators working in association with them. The Australian Securities and Investments
2BUSINESS ETHICSCommission has reported that it has for the most part believed in negotiating with the financialinstitutions for breach of any code of conduct rather than prosecuting them. This is so because itgenerally takes a lot of years to really execute the proceedings in case of prosecutions. The reportclaims that in the past ten years, the Australian Securities and Investments Commission has onlyimposed one civil penalty order and is deciding to take up criminal action against people ratherthan the company as a whole. This is so because the criminal charges against the company wouldessentially take a total of around three years to proceed unlike individual prosecutions. Also, ifthe span of three years is taken into consideration, the public would be exposed to this harm for alonger period of time. Ethical issues:The ethical issue involved within the working and framework of the company ashighlighted by the article lies in the field of financial misconduct where the firm has imposedcharges and generated revenues without even providing any kind of service and also forwardedinaccurate reports without checking properly to the regulators. The article also essentially brings to light the risks of penalties that other financialinstitutions on Australia like the National Australian Bank, Westpac and the CommonwealthBank are faced with. The National Australian Bank is exposed to the risks of scrutiny of thevarious investment documents it withholds with falsified and forged signatures of clients or otherstakeholders. Westpac is faced with issues related to providing customers with shocking andcompletely wrong advisory. The Commonwealth Bank is also faced with charges similar to thosethat the AMP is facing.
3BUSINESS ETHICSIf all these issues of ethics are essentially and critically evaluated and analyzed, it isfound that there has been a lot of regulatory and compliance issues to the Corporations Act put ineffect in 2001 by the Australian Securities and Investments Commission. Corporate Governancein terms of business ethics is the way in which compliance to the regulatory laws and division ofpower is maintained in between the various governing and authoritative bodies of the firm(Pearson 2017). In this case, this aspect of business ethics and corporate social responsibility ofthe firm or firms has been violated and exploited. Corporate Social Responsibility is the path toensuring that the firm along with providing the best of services and carrying out revenuegeneration and activities and initiatives of expansion, also caters towards the needs of thecommunity and the society where they exist and operate (Suliman et al. 2016). This aspect ofcorporate has completely been breached by the firms. Also, Corporate Social responsibility alsoensures that the workers and employees of the present generation are not benefitted at the cost ofthe future employees and workers. In this case, again there has been a breach of this aspect ofCorporate Social Responsibility (Chell et al. 2016). While addressing the context of ethics, it is also important to mention the aspect of Ethicsand Governance wherein the financial executives and the accountants are expected to know andadhere to the different regulations and compliance issues and also the governance mechanisms inorder to ensure lawful and efficient and effective behavior in terms of corporate functioning andoperations. In this case, the major or the central pillar of criminal reporting for misleading thecustomer has been on the terms of the fact that the AMP has been reported to alter and influencethe report that was to be framed and researched on independently by the lawyers from ClaytonUtz. Instead AMP reported that letting the lawyers of Clayton Utz in making the entire report
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