Economics: Policy Frameworks and Markets

This article discusses the study of ethics in economics and its importance in business. It highlights the issues of misconduct in the banking and financial services industry and the impact on the economy. The article also explores the role of regulations in improving ethical behavior and increasing the overall performance of companies and the economy.

Running head: Economics: Policy Frameworks and Markets
ECONOMICS: POLICY FRAMEWORKS AND MARKETS
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Economics: Policy Frameworks and Markets
Table of Contents
Introduction......................................................................................................................................3
Brief about article and three important issues.................................................................................3
Underlying concepts........................................................................................................................4
Critical review.................................................................................................................................6
Conclusion.......................................................................................................................................8
Reference list...................................................................................................................................9

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Economics: Policy Frameworks and Markets
Introduction
The term ethics is one of the disciplines that are mainly helping in the development of
morality. The study of the moral ethics is going to indulge the development of human
relationship and accepts the human behaviour by accepting the general terms. Business ethics is
more like keeping and maintaining the principles within the partners and keeping the ethical
records will help in the development of competition. It is important in the sense that through the
development of ethics within the business may diverse but maintains the ethics is mandatory for
all businessperson. Now maintaining the ethics regarding human resource are also important and
it helps in restricting the human resource exploitation.
Brief about article and three important issues
Many employees within the company are facing problems in their workplace mainly due
to the racial discrimination of them. It is highlighted the fact in the sense that they face problem
in regarding gender, skin color, religion background and ethnic background. On the other hand,
maintaining the ethics for human resources is important and the company aims in increasing and
improving the effects so that their human resources are not being exploited by the domestic and
foreign economies (Foster, 2018). One of the important ethical conditions that are prevailing is
the spread of miscommunication and misinformation that are being spread within the employees.
On the other hand, many customers have faced lack of respects from the sellers during certain
point of time and if the company does not take any kind of actions against them then the brand
loyalty of the company will decrease and they will lose out the bunch of customers (Lumsden,
2019). Companies like Enron, WorldCom, Parmalat, Lehman Brothers, Satyam Saga are in lime
light today because of the scandals they had made in the financial environment by violating

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Economics: Policy Frameworks and Markets
numerous ethical issues. It has been seen that in order to minimize the domination of the
business organizations the companies must improve and implement better ethical considerations.
It is important for every company to take a close look at their ethical behaviors as they
significantly impacts on the long run profitability within them (Marsh and Phillips, 2019).
Customers, suppliers, stockholders, employees, competitors, regulators, environmental groups,
and the public closely monitor the behaviors of organizations. They are not going to stay quite if
they feel any kind of injustice is happening with them. On the other hand, the kind of actions that
are taken by the government will easily determine the consequences of breaching the ethics.
Commissioner Hayne and the Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry found a number of reasons that are being held
for the misconducts that are arising within the economy of Australia (Scott, 2016). On the other
hand, through the development of this kind of commission will allow the economy of Australia
to increase the development of ethics. According to the report, the cultural concerns can be easily
tackled using the laws and judiciary proceedings. Important issues that has been seen in this
article is mainly highlighted the roles that has been played by Financial Crisis Inquiry
Commission (FCIC) and the Dodd-Frank Act (DFA) in improving the overall ethics behavior
that most of firms that will not only increase the performance of company but also the economy
will improve.
Underlying concepts
According to the report most companies require the need for the development of a single,
central, disciplinary body so that they can coordinate the regulations like ASIC and APRA so
that they can influence the performances of Banking Executive Accountability Regime (BEAR).
On the other hand, these policies and regulations will definitely help the economy of Australia to

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Economics: Policy Frameworks and Markets
increase the effectiveness of their production by increasing the ethics of the company. On the
other hand, maintain the business ethics will definitely increase the resource utilization and they
will be aiming to increase the development of employees motivation and the business that are
mainly going to increase the rate of production (Spash and Gattringer, 2016). Even many
companies like Commonwealth banks Deutshe Bank was scrutinize deeply by financial
commission and they were charged with the anti-money laundering (AML) laws as they
breached number of contracts and business ethics that are crucial for the development of
sustainable monetary environment. Concepts that are closely related with the Misconduct in the
Banking, Superannuation and Financial Services Industry are increasing competition within the
economy and the regulations want to stop the entry of the banks and financial institutions to enter
the markets having characteristics like oligopolistic market and quasi-monopolistic markets.
It is important for the economy to increase the development of the resources in an
effective way. It has been seen that the demise of Lehman brother has created severe panic
within the economy of Italy regarding the development of financial conditions and in order to
achieve the development of the economy the regulations are helping in the improvement in the
business. All the banking and financial institutions are looking at the short-term profits and they
are taking illegal means of productions (Wagner, 2016). This need to be stopped because of the
fact that through the improvement in the economy and its means of production wills definitely
looking to incorporate the development of the whole economy. Maintaining the ethics within the
business is also part of the rules and regulations that are being implemented by various bodies as
they help in the smooth marketing of the products. Through the development of resources and
presence of regulations will not only induce the government to look for better productivity but
will also enhance the development of economy in a better way (Wight, 2015). Presence of ethics

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Economics: Policy Frameworks and Markets
will not only identify the resources but will also include the discussions regarding the economic
resource distribution. On the other hand the over presence of the rules and regulations will not
induce the government to bring stability but will also decrease the resource identification criteria
of the individual businessperson and entrepreneurs.
Critical review
Considering the issues of ethics and other aspects, the APRA review is important in the
sense that Goldman has faced the issues in the form of corporate criminal procedures as the anti-
bribery and internal accounting control provisions of the Goldman Sach’s met with the
requirements set by U.S. Foreign Corrupt Practices Act. The presence of internal weak control
policy has led to the development of this kind of criminal activities in its first place. However,
according to Professor Hill, it is easy to target the corporation itself under the US law of
corporate acts. On the other hand, the Australian corporate laws are more open to the breach of
contract and they are more open for the liabilities that are lying within the companies. On the
other hand, it is very tough to maintain the individual accountability and in order to indulge them
within the organization is one of the tough jobs. This is the main reason Commissioner Hayne
supported the view of using rules and regulations in order to meet the problems that are related
with cultural difference.
Being a part of post commission era, the ASIC has batted against the term of moving to
court regarding the ethical issues. On the other hand, cases of ASIC v Westpac 02 [2018] FCA
751 have given rise to a new the theory of entity criminal liability. In the given case, it was seen
that two traders were indulged in misconduct and the misconduct was attributed to the company.
Criminal Code Act (Cth) 1995 includes the corporate cultures as one of the main inclusion in the
corporate criminal liability. From the above case, it has been seen that ethics and business

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Economics: Policy Frameworks and Markets
regulations are not only important for the development of employee behavior but also plays a
significant role in improving the business misconducting that can shuttle the business
improvement and will be willing mainly to indulge in the improvement of the business. It has
been seen that in order to increase the resource development and resource distribution will
definitely allow the economy to bring in effective solutions that will not only highlight the
development of economic variables. Through the development of resources it will be important
for the banks and financial institutions to implement better regulations.

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Economics: Policy Frameworks and Markets
Conclusion
The whole study is mainly highlighting the development of resources into main channels
and they will be looking to increase the resource development that will not only indulge the
importance of rules and regulations. It is important for the Royal Commission to increase the
development of the policies that will increase the financial aspects that will not only includes
better policies but will also allow the economy to indulge better policies by improving the ethics
that are present within human resource.

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Economics: Policy Frameworks and Markets
Reference list
Brown, P.G., 2015. Ethics for Economics in the Anthropocene. Ecological Economics for the
Anthropocene. An Emerging Paradigm. Edited by Peter G. Brown and Peter Timmerman. New
York: Columbia University Press, pp.66-88.
Davis, J.B., 2018. (WP 2018-03) Comment on White on the Relationship between Economics
and Ethics.
Foster, G., 2018. Ethics in economics. Agenda: A Journal of Policy Analysis and Reform, 25(1),
pp.61-75.
Irlenbusch, B. and Villeval, M.C., 2015. Behavioral ethics: how psychology influenced
economics and how economics might inform psychology?. Current Opinion in Psychology, 6,
pp.87-92.
Lewis, S.C. and Westlund, O., 2015. Big data and journalism: Epistemology, expertise,
economics, and ethics. Digital journalism, 3(3), pp.447-466.
Lumsden, A., 2019. The Wider Implications of the Hayne Report for Corporate
Australia. Available at SSRN 3342855.
Marsh, T. and Phillips, G., 2019. The Hayne report–one giant leap forward for Australia. Law
and Financial Markets Review, pp.1-5.
Scott, E., 2016. Ethics and human resource management. In Practicing professional ethics in
economics and public policy(pp. 215-221). Springer, Dordrecht.
Spash, C.L. and Gattringer, C., 2016. The Economics and Ethics of Human Induced Climate
Change.
Wagner, A., 2016. Ethics and Economics-The Context of an Ambivalent Relationship. Scientia
Moralitas-International Journal of Multidisciplinary Research, 1(1), pp.55-67.

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Economics: Policy Frameworks and Markets
White, M.D., 2018. On the Relationship between Economics and Ethics.
Wight, J.B., 2015. Ethics in economics: An introduction to moral frameworks. Stanford
University Press.