Corporate Governance and Ethics

Corporate Governance
and Ethics
Running Head: Corporate Governance and Ethics
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Corporate Governance and Ethics
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Executive Summary
Ethics is a set of moral principles that affect the way and manner in which individuals
take their decisions and live their lives. The same is also required in businesses. Nevertheless,
many businesses of Australia are not working ethically. In order to identify such businesses a
commission named The Royal Commission into Misconduct in the Banking, Superannuation,
and Financial Services Industry was established that also provided recommendations to
businesses of insurance, banking and superannuation industry of country. These
recommendations are based on deontological theory of ethics. One of the company named
Freedom insurance found to be engaged in misconduct in relation to specific and general
customers. APES 110 are the standards which states the ethical manner of behavior for all the
CPA member and Freedom association could prevent the incident of misconduct by using these
standards.
The report is detailed on the key finding of the final report prepared by this commission.
The main objective of this report is to understand the recommendations provided by this
commission, misconduct done by Freedom Insurance, principles of APES 110 and safeguards to
ensure those principles.

Corporate Governance and Ethics
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Contents
Introduction......................................................................................................................................3
Part 1................................................................................................................................................4
Ethics and Theories 4
Banking Commission Report: Volume One and Deontological Theory 5
Part 2................................................................................................................................................7
Banking Commission Report: Volume Two 7
APES 110 and its requirement 9
Conclusions....................................................................................................................................11
References......................................................................................................................................13

Corporate Governance and Ethics
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Introduction
Businesses are an important part of every economy that influences the success and failure
of the same. Many of the stakeholders are associated with an organization that are influenced by
the behavior of the organization. Role of stakeholders is being crucial day by day as they are
taking more interest in the affairs of organizations and informing their expectations as well.
Irrespective of expectations of shareholders, it becomes the responsibility of organizations to act
in their best concern. Laws are there to govern the behavior of business owners and managers.
For instance, Corporations Act 2001 (Cth) provides the duties of directors, that they are required
to perform (Lawhandbook.sa.gov.au, 2019). Nevertheless, certain other duties are also there that
ethics outlines. Similar to laws, ethics also govern the behavior of individuals and let them know
the difference between correct and wrong. When ethics applies to business, it is known as
business ethics. Royal Commission into Misconduct in the Banking, Superannuation, and
Financial Services Industry Banking Commission is the body that investigates into the matter of
misconduct and identified whether businesses are following ethics in their operations and
workings or not . Many incidents of misconduct have been found. On the different side, APES
110 is there that provides standard practices that should be adopted by professional accountants.
This piece of discussion is based on the topic of ethics and governance whereby
discussion will be made on ethical theory and its replication in Banking Commission report.
Further, the above-mentioned standards i.e. APES 110 and safeguards provided under the same
will also be focused.