Corporate Responsibility and Governance

This article discusses the challenges faced by AMP, a fast-growing banking economy in Australia, and the appointment of a new CEO to restore its lost grace. It also highlights the importance of corporate responsibility and governance in promoting public image and gaining trust from potential customers.

Corporate responsibility and governance
Corporate responsibility and governance
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Corporate responsibility and governance
Introduction.
At a time when investors are typically exercising caution and distinct restraint, with
various much increased economic levels falling into recession, the global financial community
has optimized alert signs of maximum growth rate from existing unconventional sources. For a
host of reasons, current figures reported by Australia article has pricked significant attention of
international investors (Keneley, 2010). The Australia banking volumes are running at current
high records, increased inward investment, improved export figures are relatively improving
making the Australia bank acquire a huge chunk of overseas transactions that have been
completed over the past few years.
In the recent past, AMPS has been a fast-growing banking economies in the world ranking and
with arguably massive sophisticated capital markets in the entire Australia. However, following
years of success of AMP'S, under its former CEO Craig Meller, there has been reports of
continued mismanagements, currency crises, bad advice which led to the tremendous downfall of
AMP. Evidently AMP problems includes losing more than $1 bn in the current market value
after report evidence was provided to the financial services commission. AMP has been ten to
court for allegedly offering bad advice (Keneley, 2012).
Editorial 1: Sydney Morning Herald
The company has been at the core of misconduct in the financial system as having
overcharging fees to the prospective customers can be seen as criminal charges thus having an
issue with banking royal commission (Liu, 2010). The pressure that build up contributed to the
unending challenges facing the company. The customers have made it clear that they have much
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Corporate responsibility and governance
difficulties in putting their trust on the bank owing constant losses reported from many of the
clients over a given period of time.
According to the article "don't trust them": By Emily Cadman reports obtained from Bloomberg
indicates that AMPs fall from the top has been much greater than other banks existing in the
entire Australia region.
The Sydney morning article attributes to the developments brought about by the AMPS chairman
to have a new chief executive officer called DE Ferrari. The stakeholders think that the new CEO
I therefore expected to instill change, bring enormous developments, and reshuffle the company's
operating system with an aim of restoring its lost grace (Lovelock & Patterson, 2015). This will
be quite challenging for him to bring back sanity in the company owing to the already damages
done. In spite of this revelation DE Ferrari who has been in the recent past a successful business
CEO is determined to counter the problematic issues. The company's team is also confident in
proving Ferrari with an opportunity for a clear reset strategy and also to ensure balancing of the
past difficulties. They are enthusiastic, optimistic and with much higher excitement to move
forward (Sands & Ferraro 2010). As expected the new CEO will be under much pressure to meet
the high standards and high expectations from the shareholders, investors, government and the
entire customer base. According to the Emily Cadman articles report, the reputation scores has
fallen dramatically affecting perceptions regarding the company's products. There has existed a
steep decline in client requirements and preferences for its upcoming solutions (McGraw &
Dabski, 2010).
Editorial 2: Australian Financial Review
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Corporate responsibility and governance
Under the new CEO, the organization has responded to the critics saying that there's need to put
much effort in focusing on reinforcing its goals and much concentration on supporting societal
activities. It is also expected to sponsor Australian Team to Japan.The Company has
commissioned a research team to acquire various focus groups, with a wide range of presentation
from various market players including clients, shareholders and consumers an entire region such
as Sydney
According to the Article, "fix AMP woes and collect $17m", by James Eyers and Jessica
Gradener,there is increased confidence on new CEO De Ferrari given the power and authority to
redesign the company’s business model. This will contribute to the problematic wealth
rediscovered in paying the available commissions. This article highlights Mr. DE Ferrari pats
success as a former Credit Sissez CEO in Singapore who contributed immensely to its success.
Mr. Murray describes him as the urgently needed change agent who will contribute in large
transformations in the entire business.
The CEO is seen to have a high ethical standard and the aspect of developing the customers ta
personal level. According to his close associates, he has a high interest in teaching their
customers and investors on how to better investors (Norwani, Zam & Chek, 2011). This will
increase their cash inflows leading to increased benefits. The article also highlights the demerits
of commissions in offering client advice regarding restricting their business portfolio and
community affairs. Conclusion
Therefore the company should make great efforts in promoting its public image by
engaging the society in order for the potential customers to gain trust in their products and
services again.
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Corporate responsibility and governance
The Sydney morning article style involves sites its evidence and information from other reports
and articles such as the Bloomberg. The article from the Australian Financial review deals will
with primary data and information for example on the exact statement given by Mr. Murray and
Mr. Ferrari (Sargent Butterworth & Anstey, 2011). The Sydney morning has a critique
perspective. The article on the Australia financial review has a positive perspective on the rise of
AMP.
Both the articles have considered the ethical standards and governance measures by discussing
the royal financial commission and AMP being taken to the commission as a result of the
charges
The nature of AFR regarding the new CEO gives much confidence. A profile description of Mr.
Ferrari and his achievements has been provided making every reader to identify him and learn
more about him at a glance. The article has discussed the history and past achievements of the
CEO in detail and given his associates view on him.
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Corporate responsibility and governance
References
Keneley, M. J. (2010). The demise of the mutual life insurer: An analysis of the impact of
regulatory change on the performance of Australian life insurers in the 1990s.
Accounting History, 15(1), 65-91.
Keneley, M. J. (2012). The path to Project Darwin: The evolution of the AMP's organisational
structure. Business History, 54(3), 346-362.
Liu, H. (2010). When leaders fail: A typology of failures and framing strategies. Management
Communication Quarterly, 24(2), 232-259.
Lovelock, C., & Patterson, P. (2015). Services marketing. Pearson Australia.
McGraw, P., & Dabski, S. (2010). Corporate social responsibility reporting in Australia's largest
companies. Labour & Industry: a journal of the social and economic relations of work,
21(1), 390-409.
Norwani, N. M., Zam, Z. M., & Chek, I. T. (2011). Corporate governance failure and its impact
on financial reporting within chosen companies. International Journal of Business and
Social Science, 2(21).
Sands, S., & Ferraro, C. (2010). Retailers' strategic responses to economic downturn: insights
from down under. International Journal of Retail & Distribution Management, 38(8),
567-577.
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Corporate responsibility and governance
Sargent-Cox, K., Butterworth, P., & Anstey, K. J. (2011). The global financial crisis and
psychological health in a sample of Australian older adults: a longitudinal study. Social
science & medicine, 73(7), 1105-1112.
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