Managing Ethical Scandals in Commonwealth Bank of Australia: A Public Relations Perspective

Running Head: Public Relations theory practice
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Public relations theory practice
8/11/2018

Public Relations theory practice 1
Introduction
Commonwealth Bank of Australia (CBA) is an Australian multi-national bank with
companies across Asia, New Zealand, the United Kingdom and the United States. It offers a
range of economic services comprising business, institutional, and retail backing, broking
services, reserves management, investment, assurance, and superannuation. It is the largest
bank in the Southern Hemisphere. This bank is one of the “enormous four” which is listed on
the Australian Stock Exchange in 1991. They have selected a new CEO who presently has a
huge accountability on his shoulders (Howell, 2015).
In 2018, discoveries from the Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Business have demonstrated a negative philosophy
within the bank, among claims of misrepresentation, deception, and tax evasion, among
various other crimes. Its vision is to exceed expectations and enhancing the well-being of
individual, business, and communities. To accomplish the organization argues that it has to
win the trust of the people it serves. The bank reinforces the trust of the client to ensure
success. CBA’s values incorporate collaboration, integrity, excellence, responsibility, and
service (Otchere and Chan, 2003). This value guarantees that clients have to be taken care
efficiently and competently so that outcomes in their satisfaction match with the
organization’s services. It advances the policies of environmental stewardship in computing
environmental footprint and enabling the use of renewable energy. It also develops a
disciplined monetary control system and committed governance for getting the current value
to clients.
In the following, an effort has been made to describe ethical standards through public
relations theory, identify the barriers to the organization, and recommendation to enhance its
CSR.
Analysis of the ethical scandals
Commonwealth Bank of Australia has faced many ethical standards that have influenced its
reputation and bank works continuously to legitimize its reputation. Some of the main
scandals faced by CBA are –
 Bank official charged allegedly over the bribery scandal.
 Bank staff concerned in alleged $76m fraud.

Public Relations theory practice 2
 A vast majority of financial Planners betrayed client’s interest.
Accusation over bribery scandal-
In bribery, scandal two Commonwealth Bank administrators, Keith Hunter (Previous director
of Technology Service Management) & Jon Waldron (GM of bank’s IT engineering
answered to Keith Hunter) were accused over a bribery scandal with a U.S based Technology
Company in 2013 with two counts of bribery. The co-conspirator Waldron was accused with
seven counts of receiving unethical payment associated to a lucrative agreement, which was
given by CBA to the Californian, centred IT firm Service Mesh. They helped them to secure
major IT tender to deliver products & services without putting it to general. Waldron &
Hunter expected a payment of almost $2.2 million in 2014 from an NGO, which was fixed by
Service Mesh. The bank identified in response to the scandal that they do not accept any
offense or illegal action by any of the banks' employee and will take genuine action. They
announced “Anti-bribery and corruption strategy and programme” in light of these scandals
(McIlroy, 2018).
Bank staff implicated over alleged fraud-
Bank staffs were apparently collusion in a $ 76 million Ponzi scheme and got undisclosed
commissions for their part in the suspected deception, which was overlooked by the bank's
administration for nearly five years-until forces were alarmed. Mr Zaia and Mr Jordanou are
alleged of using fake documents to acquire millions of dollars for some proper advances that
certainly not got off the ground. Assets were supposedly guided from client’s accounts
without their approval. Documents acquired by the Fairfax Media disclose the range of the
bank’s contribution and its disturbing integrity failings (Buckby, Gallery, and Ma, 2015).
Deceived client’s interest-
The head of financial advice for Anthony Regan, concedes he lost count and mislead the
corporate regulator, ASIC which compels to introduces public relations practices and
programmes. The company has suffered financial loss and failure to provide on-going
services (Sujan and Abeysekera, 2007).
Stakeholders’ analysis
One of our commitment series of forums are devoted to progressing our stakeholder
engagement, which includes-

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 Customers- Their engagement mechanism is related to: -
 On-going appraisals of satisfaction, complaints related to products, service,
and feedback
 Multi-channel commitment, comprising face-to-face customer involvement
 Sovereign and proprietary customer reviews
 Customer workspaces
 Communal group reviews
 Customer backer
 Call centres and grievances networks
 Social broadcasting
 Commitment with customer agents and organizations
 Conventions with relationship supervisors
 Conferences with advisers
 External quarrel resolution
Employees
Investors
Suppliers
Media
Government
and
Regulators
Community
Organization
Customers
CBA