1
COMMONWEALTH BANK (CBA)
Q1:
An overview of the stakeholder trust crisis experienced by CBA with one to two illustrative
examples:
There are instances when Commonwealth Bank (CBA) had been in news for various kind
of stakeholder trust crisis. One of such instances is of criminal gangs and money launderers who
had illegally accessed the bank’s intellectual teller machines (Ryan, 2018). The consequence of
the incident was a strict action from the bank's chairman Catherine Livingstone who had
announced that bonuses for executives would be cut to zero (Ryan, 2018). According to
Hörisch, Freeman & Schaltegger (2014), the purpose of business should strictly be aligned to
satisfy the trust of stakeholders, not just the shareholders. A business needs to be benefitting the
customers, employees, suppliers and the shareholders. This also means that both stakeholders
and shareholders need to be given utmost importance. This is only possible when the business
organizations give the utmost significance to ethical practices.
Alienation of such practices with corporate social responsibility:
It appears as if the Commonwealth Bank (CBA) has in a way violated the corporate
social responsibility (CSR). According to the corporate social responsibility (CSR), it is
necessary that the business maintains a balance between the economic, legal, philanthropic and
ethical responsibilities (Cha, Yi & Bagozzi, 2016). The identified case seems to have violated the
ethical responsibilities or else the money launderers and the criminal gangs could not have access
to the bank's intellectual property. According to the CSR principle, a business should utterly
meet the ethical standards which it committees to fulfill. Customer builds up a perception that
they will be getting a specific kind of service from their target business. This is why it is

+13062052269

info@desklib.com

Corporate Social Responsibility and Value Creation

Contribute Materials

Related Documents