Ethical Issues and Codes of Conduct in Australian Banking Sector

Running head: ETHICAL ISSUES AND CODES OF CONDUCT
Ethical Issues and Codes of Conduct
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1ETHICAL ISSUES AND CODES OF CONDUCT
Executive summery
This reports aims to talk about violation of ethical conducts in Australian banking
sector by evaluating two case studies, allegation of terrorism financing against
Commonwealth Bank and bribery practices of National Australia Bank’s employees
respectively. Analysis and comparison of two case studies will help to understand the nature
of violation and assist to suggest future strategies. At first, this report has discussed the
relevance of code of conduct and ethical practices within a business scenario concentrating
on banking industry of Australia. After that from a brief descriptions of both the case studies
have assisted to understand varied nature of ethical violation within banking sector. The
trend of moral crime has been elaborated in this course. Following with the evaluation of
case studies in terms of banking sector, strategies for each issues have been suggested to
combat such major morality issues. Therefore, the purpose of this report is to analyse the
available information about these cases, suggest positive outcomes and strategies to
mitigate the issues. Comparing these two cases with the ethical guidelines of relevant
sector, the areas of violation will be understood. This report will work as a guideline to the
banking industry for applying safety measures in advance against the potential loss of
business ethics.

2ETHICAL ISSUES AND CODES OF CONDUCT
Table of Contents
Introduction...................................................................................................................3
Importance of code of conduct and sustainable business...........................................3
The case of Commonwealth Bank: money laundering breaches and terrorism
financing...................................................................................................................................4
The case of National Australia Bank: Bribery issue.....................................................5
Evaluation of case studies in terms of industry regulation...........................................5
Strategies to mitigate terrorism financing.....................................................................8
Strategies to mitigate bribery issues............................................................................9
Conclusion..................................................................................................................11
References.................................................................................................................12

3ETHICAL ISSUES AND CODES OF CONDUCT
Introduction
This report intends to analyse one case study related to violation of ethical guidelines
of Australian banking sector. In addition to that, another case study will be presented as
compared to the former one in order to analyse and find positive outcome from the ongoing
crisis. Whatever the judgment will be, it must be integrated with the ethical guidelines of
relevant industry sector. Analysis and comparison of two case studies will help to understand
the nature of violation and assist to suggest future strategies. The chosen cases are bribery
scandal of National Australia Bank staff and allegation against Commonwealth bank of
encouraging money laundering breaches and financing terrorism activities. At first, this
report will talk over the relevance of code of conduct and ethical practices within a business
scenario. After that from a brief description of both the case studies will help to understand
varied nature of ethical violation within banking industry. The trend of moral crime will be
elaborated in this course. Following with the evaluation of case studies in terms of banking
sector, strategies for each issues have been suggested to deal with such major morality
issues. Therefore, the purpose of this report is to analyse the available information about
these cases, suggest positive outcome and strategies to mitigate the issues and comparing
these two with the ethical guidelines of relevant sector, the areas of violation will be
explored. This report will work as a guideline to the banking industry for taking safety
measures in advance against the potential loss of business ethics for accomplishing
organisational goals (Michaelson et al. 2014).
Importance of code of conduct and sustainable business
According to Chun et al. (2015), the corporate culture of business industry does not
entertain unethical practices to ensure company goodwill and a sustainable position in the
market. Yet, acknowledging the profit centred business industry it can be easily assumed
that organisations seek opportunities to satisfy customers with the intention of making more
profit and competitive advantage. They work for environmental and social sustainability to
attain organizational goals. That is why, while dealing with corporate governance and code
of conduct; higher authority finds numerous cases of both minor and major violation of
regulations (Lock and Seele 2015).
Ethics can be associated with behavioural aspects of a certain organisation or
individual. People can make themselves way behind from adopting such practices if they
consider one of the ethical guidelines into mind, whether it is personal or related to
organisation (Nicolăescu 2013). As instance, the cases of Australian banking scandals can
be mentioned. These two examples from banking industry are evidence of degradation from