Corporate Social Responsibility and Ethics for Managers

Ethics for managers
Corporate Social Responsibility

Ethics for Managers 1
Table of Contents
Abstract............................................................................................................................................2
Introduction......................................................................................................................................3
Question 1.......................................................................................................................................3
Question 2.......................................................................................................................................4
Question 3.......................................................................................................................................6
Economic Responsibility:............................................................................................................7
Legal Responsibility:...................................................................................................................7
Ethical Responsibility:.................................................................................................................8
Philanthropic Responsibility:.......................................................................................................9
Question 4.......................................................................................................................................9
Power:........................................................................................................................................11
Legitimacy:................................................................................................................................11
Urgency:.....................................................................................................................................11
Question 5......................................................................................................................................11
Transparency must be maintained:............................................................................................11
The Social Role:.........................................................................................................................12
Assigning Credit:.......................................................................................................................12
Poor Recommendations:............................................................................................................12
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

Ethics for Managers 2
Abstract
The report here consist of the ethical issues faced by Commonwealth Bank of Australia that how
the bank is in news recently for its unethical practices and behavior. Their corporate social
responsibility has been redefined by sampling the three attributes of Mitchell et al. in the context
of how the stakeholders have been treated by the bank itself. The values, beliefs, norms and
mission of the bank has been mentioned to showcase what the organization is all about and what
should they focus on. The model of corporate social responsibility by Carroll has been explained
where economic, social, legal and philanthropic responsibility has been explained. The three
components of sustainability in this sector are also explained in detail. Lastly recommendations
has been given for the bank to be ethical in future. The recommendations include the factors that
affects the ethics in the banking sector and also the benefits given by managing the ethics in the
sector

Ethics for Managers 3
Introduction
The banking sector in Australia is majorly dominated by the four banks named as
Commonwealth Bank of Australia whose market share is AUD80.34 billion, Westpac Banking
Corporation (AUD31.35 billion), Australia and New Zealand Banking Group (AUD28.74
billion) and National Australia Bank (AUD29.57 billion) (NASDAQ.com, 2017). This report
contains of how the Commonwealth Bank has been caught in following unethical practices
recently. The main objective of the assignment is to discuss the unethical practices followed by
CBA in these years and how knowingly they denied such allegations. Another objective is to
recommend the bank, few changes for making their business more ethical in the coming future
(Commbank.com.au, 2017).
It is very important to investigate ethics in the banking sector. The ethics should be applied in all
kinds of affairs and relations of bank with other persons such as customers, shareholders to
ensure the reliability of the profession. Ethics also enhances and maintains the status, stability,
confidence and consistency in banking sector.
Question 1
One of the major ethical issues that CBA has faced recently is the criminal money-laundering
and the controversy of terrorist finance. It was found out in August 2017, the Australian
Transaction Reports and Analysis Centre has filed allegations of breaches done by CBA under
the act of Anti-Money Laundering and Terrorism Financing Act. The allegations made so had
focused on Commonwealth Bank’s failures in reporting the transactions through their network of
IDMs (intelligent deposit machines). It was confirmed by Australian federal police that the
persons with related links to organize crime and terrorism have made number of transactions
(DW.COM, 2017).This serious conduct by CBA has exposed serious and financial crime to the
Australian community. The culture and accountability of the Commonwealth Bank was in news
and the bank raise voice against this specific allegation about their culture and accountability by
saying that these are all false allegations (Forbes.com, 2017).
There has been complaints from customers and whistleblowers regarding fraud, shoddy financial
advice led to significant customer loss and extreme staff commissions. Commonwealth has
received criticism from customers as well in relation to high charges and excessive fees, interest
charges and shareholder dividends (NewsComAu, 2014). One of the significant issue was that