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Comparative Business Ethics and Social Responsibilities

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Added on  2021-06-14

Comparative Business Ethics and Social Responsibilities

   Added on 2021-06-14

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Running head: COMPARATIVE BUSINESS ETHICS AND SOCIAL RESPONSIBILITIESComparative business ethics and social responsibilitiesHarmanpreet singh (Ary8074)Name of the UniversityAuthor Note
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1COMPARATIVE BUSINESS ETHICS AND SOCIAL RESPONSIBILITIESEthics is an integral part of every business and it refers to an individual’s moraljudgements related to right or wrong. In business ethical responsibility and corporate socialresponsibility holds significant benefits. It helps attract customers, employees and investors andretain them and increase the business productivity. On the other hand the unethical behaviour inbusiness damages the reputation of the company and profit reduces as the stakeholders lackinterest (Crane and Matten 2016). The aim of the essay is to investigate the recent ethical issuerelated to business within last three months. In regards to the identified issue in the online newsarticle, related to breach of ethics by Commonwealth Bank Australia, the essay explores if therewas any legal implications. The essay highlights the keys ethical issue/s related to news/article.The essay then discusses if ethical decision has been made supported with literature evidence. According to news published in the website abc.net.au, Commonwealth Bank admits tohave manipulated the children’s account. This news posted on 19th of this month has createdhavoc in Australia. The news highlighted conformation by the Commonwealth Bank aboutfraudulently manipulating the accounts of children by staff of the retail branch. Indulging in suchscam was out of the greed for earning bonuses and meet targets (abc.net.au 2018).Commonwealth Bank is the multinational bank in Australia, with its branches in UK, USA andNew Zealand. The organisation is popular for provision of variety of services includinginstitutional banking, funds management, retail business, investment and broking services. It isthe largest company listed on the Australian securities exchange and was fully privatised in 1966(Gollan 1968). As the new article unfolds, it was found thatMatt Comyn, CBA chief executive officerconfessed about the manipulation done by the staff. He apologised for the breach of trust. He
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2COMPARATIVE BUSINESS ETHICS AND SOCIAL RESPONSIBILITIESfurther informed that the purpose of the staff behind such unethical behaviour is to illegitimatelyactivate Youthsaver accounts also known as Dollarmites, based on which the staff can getincentive compensation. These Youth saver accounts in Australia were opened for young peopleto cultivate the saving behaviour since early life. These accounts were created by taking parents’consent (abc.net.au 2018). The bank’s staff activated accounts those that were left undepositedby many days by adding small amounts from personal profit such as ten cents. It fetched $2 peryear to the bank staff. It was argued by the Federal Opposition finance spokesman, “JimChalmers” that such action of CBA staff depicts need of culture change as it is troubling to seemeddling with children’s bank accounts. Mr Comyn apologised and asserted that such action didnot harm anyone financially (Knaus 2018). Further, the news article highlighted that CBAmentioned it new priority to expedite changesundermining the customer’s trust and terminateemployees involved in such unethical behaviour knowingly. Mr Comynargued that changeswere made to such unethical behaviour when observed in 2013 and asserts to not have noticedsuch practice in past five years. However, now he agrees to have put zero-tolerance for suchbehaviour, irrespective of any harm to the customer (abc.net.au 2018). This ethical issue in this scenario as per concerns raised in this article is corporategovernance, corporate social responsibility and corporate citizenship. Corporate governance inany business is established to prevent any major disaster similar to the popular Enron scandal.Such governance refers to processes and policies by which the company is directed andcontrolled allowing building the stakeholder’s value and confidence (Crane and Matten 2016).Transparency is one of the key elements of the good governance which seems to have beenbreached by the Commonwealth bank staff. The action taken by them for personal profit earningis not in compliance with the established rules and regulations of the bank. The investors do not
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