(PDF)Business Society - Assignment

Business Society

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1) Comparing Commonwealth and Danske bank.......................................................................1
2) Differences between two banks .............................................................................................2
3) Comparing Commonwealth and Danske bank on SDG.........................................................3
4) Quality of reporting :- Social accounting at Commonwealth and Danske bank....................3
5) Commonwealth and Danske bank: Values.............................................................................4
6) Group discussions...................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Every business must contribute towards the society so that it can develop a better image
in market. Moreover, it is the moral responsibility of business to provide valuable products and
services to society. For this they have to follow certain practices such as by providing reports,
contributing in CSR activities, etc. besides this, it helps in measuring the performance of
business towards CSR. Companies should inform stakeholder about social activities in which
they are engaged and how much contribution is done. In addition to this, business should practice
activities in ethical way so that business value is generated. Along with this, they must contribute
in SDG that will help in development of society as well as people. This report will compare the
performance of two banks that how they contribute towards society. It will show how reports are
provided to stakeholders and what process is followed in this. Also, it will describe the ethics
that are followed by them while providing services to people (Waddell, 2017). Moreover, what
methods are followed by them and issues that occurs in this. At last the solutions are that can be
followed by companies is discussed.
1) Comparing Commonwealth and Danske bank
They both banking companies are engaged in financial services and provide similar
variety of services to their customers. Basically, these banks deals in business loans, stock
trading, insurance, investment, etc. Commonwealth bank was founded by Australian government
in 1911 and is one of major bank in Australia. It is a public sector bank that is headquartered in
Sydney. It operates worldwide. But on the other hand Danske bank is not a large bank as it
majorly operates in Denmark and some countries of EU. It is headquartered in Copenhagen. Both
banks are major source of finance in their respective countries (Adams, 2015). They provide
various types of services such as securities exchange, broking services, etc. apart from this it is
observed that they both focus on retail business more as compared to commercial. This gives
them competitive advantage in local market. Furthermore, by operating in country they are able
to generate huge profits. They are able to attract large number of customers.

Therefore, it may unfair to compare these both banks as one operates worldwide and
other in local market. But it will give an insight on what values and ethics are followed by
financial industry. It will also show the SDG of both banks and on what issues they are focusing.
From the social reports of both banks it can be stated that they are effectively engaged
towards corporate social responsibility. Commonwealth bank is engaged in many social activities
such as education, healthcare, environment, etc. the CEO of bank has said that they are now
focusing on empowering students. They have developed a youth app for under 14 children to
experience money management by enhancing their skills. Besides this, their start smart education
program reached almost 574246 students making it largest program in the world.
Whereas Danske bank core business is to contribute towards society, customer
relationships, etc. There CSR focuses on every aspect of society (Doppelt, 2017). The basic
responsibility of bank is compliance. With this they are able to create customers value. It has
provided quality education to more than 4600 children in northern Ireland through SMART
programme.
Thus, it can be said that both banks has contributed to society in effective way. They have
solved various issues prevailing in society. It has enabled them to perceive customer promise and
value. Therefore, it is said that CB has contributed more towards CSR while Danske bank is
growing in different area so that it can engage more in society. Another difference between their
report is that CB value varies as it operates worldwide. They have to ensure that social activities
are organised to maintain image in society. Along with this, CB is also working to reduce
pollution. It has started providing healthy environment to people in Australia. Danske bank value
is customer service.
2) Differences between two banks
There are several issues that are faced by companies while engaging in CSR activities.
This creates a bad impact on value and image of company. Therefore, it is necessary to solve
them so that company can sustain for long term (Macaulay, 2018). By comparing both banks it
is identified that their way of presenting CSR report is similar. Every major contribution towards
society is been described in it. Moreover, they reflect on social value and ethics by providing

service. Both banks works in transparent way and is accountable to people. They have
collaborated with stakeholders by maintaining relationship with them.
The difference between reports is that CB bank provides reports of all segment in which
they have contributed. Also, the reports is provided to all stakeholders including government. CB
follows value of team work where they interact with stakeholders. In this way bank performs
operations and contributes in CSR. The accountability and excellence value allows them to
provide best quality services to customers. Danske bank on contrary determined two core
values. This has allowed them to create value of services. The organisation is able to operate in
EU countries.
3) Comparing Commonwealth and Danske bank on SDG
SDG goals are called as global goals in which business takes several actions and
measures to protect from different global issues. These issues are poverty, protecting
environment, quality education, etc. (Lawrence & Weber, 2014) It helps in ensuring that social
life of people can be improved. As both banks are related to financial sector, their major SDG
goals are providing quality education to children. It can be seen from reports that both
organisation has emphasised on SDG. Commonwealth bank has divided their SDG in 8
categories. They are teach children value of money, contribute to communities, etc. besides this,
they are also supporting the United Nations global impact program. It has been described from
the annual report of Danske bank that they are focusing on providing quality education and
economic growth. Other than this they support the UN agenda of 2030 for SDG. Both banks
have agreed on SDG so that the areas can be focused on where there is impact on material. This
will help in reducing the impact and focusing in long term vision.
The difference between their SDG is commonwealth provides scholarship as well as
training to children suffering from violence. It has majorly focused on children of Australia.
Moreover, it is effectively operating in South Africa and contributing towards quality education.
By comparing both Danske is not largely spread so it only focuses on certain SDG but CB has
been engaged in many SDG in different countries according to social needs of people.

Both banks have addressed SDG in respective manner. They have also mentioned in their
CSR reports. In addition to this, they have agreed on SDG of UN mission of 2030.
4) Quality of reporting :- Social accounting at Commonwealth and Danske bank
There are 8 standards if quality that are given by Zadek which can be applied by
organisation to determine their social accounting procedures (Grayson & Hodges, 2017). These
standards are derived from ISO 9000 series. It helps in maintaining standards and improving
performance. With this it is easy to identify whether company is reporting its social
responsibility at level of accountability and transparency or not. Commonwealth bank reports to
society in logical way. The ethics and values followed focuses on performing practices.
Danske bank follows quality standards in different way. They do with help of Deloitte
statsautoriseret partners and is having an effective quality control system through which
documents and procedures regarding compliance are applicable. Along with this, Danske bank
professional accounts reports is developed by their auditors with code of conduct that contains
principles of integrity, competence, etc. it can be said that both banks quality reporting is similar.
Accountability and transparency are value on which they work. Due to this they are able to
provide report to stakeholders. In addition customer trust is gained and value of service is
created.
5) Commonwealth and Danske bank: Values
Company values refers to the beliefs that shows the difference between right and wrong.
They are the fundamentals on which company works and fulfil their goals (Jones, Wicks &
Freeman, 2017) . It helps business to conduct activities and maintaining relationships with
stakeholders.
Commonwealth bank values focuses on two things that are collaboration and integrity. It
also includes accountability, excellence and service. In this collaboration means working in
teams and integrity refers to trust. Apart from this, CB is highly engaged in CSR activities as
they promote various educational programs in countries like Africa, Australia, etc. Danske bank
values emphasise on integrity, agility and collaboration. They are concerned more about

customers rather than social issues. However, from results it can be observed that in recent times
bank is getting engaged in providing quality education in different countries.
From the above it can be concluded that both banks are working ethically. They have
developed a better image by providing quality education (Dentchev, Haezendonck & van Balen,
2017). The CSR reports provided by them has reflected their values. It has shown that how both
banks are working on SDG goals.
6) Group discussions
In a group meeting it was discussed that both banks are highly engaged in CSR activities.
They have focused on providing quality education to children in different countries. But the
difference between them is Danske bank majorly operates in Denmark so it is not engaged
largely in this. On the other hand CB has started several programmes related to educational
activities in Australia as well as other countries. They both provide CSR reports to stakeholders
in which all efforts are mentioned. This has resulted in generating value of their services in the
market. Moreover, on contrary it has been evaluated that CB is engaged in more CSR activities.
With this it is stated that CB follows a better CSR model than Danske bank. It is because it
operates in large area (Lawrence & Weber, 2014) . Furthermore, both banks have agreed with
SDG of 2030. It has reflected their positive image of social responsibility.
Also, it was discussed in meeting that in a research conducted it was observed that social
responsibility of banking industry has emphasised on different issues. It was also observed that
CB sustainable activities has created a great impact on Australia. By providing quality education
it has provided scholarship to students. Danske bank also took an initiative in which they started
a program in Ireland. So bank should involve more in CSR activities so that it can sustain for
long term in the industry. Also, this bank is focusing more on compliance. It has created value of
their services. We also analysed that there has been many changes in values and ethics of banks
due to people needs and economic condition. Transparency has been increased that have resulted
in improving service quality (Grayson & Hodges, 2017) . Both banks are accountable to their
customers and stakeholders. Now they involve them in decision making and deliver reports
regarding CSR activities. For this they have modified and developed policies related to CSR,

values, ethics, that has to be followed. It was also concluded that both banks has majorly focused
on providing quality education. With this they are able to create a better image in society and
maintain sustainability in banking industry.
CONCLUSION
From this repost it is concluded that financial sector majorly focuses on transparency and
accountability. With this they are able to create customer value. Also, banking sector focuses on
financial needs of people. The areas in which there is high contribution are education,
environment, healthcare, etc. both banks provide CSR report to customers in which every
information is available. It has also been summarised that commonwealth bank focuses more on
education, it is engaged in ethical activities. On contrary Danske bank emphasises more on
compliance. It does appear, however, that the essence of CSR is embedded more deeply into the
company culture at CB than at Danske bank.

REFERENCES
Books and journals
Adams, C. A. (2015). The international integrated reporting council: a call to action. Critical
Perspectives on Accounting, 27, 23-28.
Dentchev, N. A., Haezendonck, E., & van Balen, M. (2017). The role of governments in the
business and society debate. Business & Society, 56(4), 527-544.
Doppelt, B. (2017). Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Grayson, D., & Hodges, A. (2017). Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Jones, T. M., Wicks, A. C., & Freeman, R. E. (2017). Stakeholder theory: The state of the
art. The Blackwell guide to business ethics, 17-37.
Lawrence, A. T., & Weber, J. (2014). Business and society: Stakeholders, ethics, public policy.
Tata McGraw-Hill Education.
Macaulay, S. (2018). Non-contractual relations in business: A preliminary study. In The Law
and Society Canon (pp. 155-167). Routledge.
Waddell, S. (2017). Core Competences: A Key Force in Business–Government–Civil Society
Collaborations 1. In Globalization and Corporate Citizenship: The Alternative Gaze(pp.
16-30). Routledge.
Online
Commonwealth bank, 2018. [online] Available through :
<http://www.combankltd.com/web/bank.nsf/vContent/6801E5B6479EC01965257CD9002E
B98F?openDocument>
Danske bank, 2018. [online] Available through : <https://danskebank.com/about-us/our-
essence#t4>