Ethical Scandals in Commonwealth Bank

This study analyzes the repeated ethical scandals faced by Commonwealth Bank and identifies potential challenges and their impact on the current business performance of the company. Recommendations for effective internal audits and improving banking regulations are provided.

Ethical scandals in
Commonwealth Bank

Introduction
The term ethical concern has become
necessary for understanding the moral
judgment capabilities of the human
being (Trevino and Nelson 2016). By
continuing this it cannot be denied
that depending on the ethical functions
in the workplace, the organizational
culture as well as the ethical values
are being improved.

Purpose of the study
 Analyzing the repeated ethical scandals
faced by commonwealth bank, different
changes have been proposed by the tender,
who has been appointed for critically
analyzing the emerging issues in this
organization. The aim of this study is to
identify the potential challenges and its
impact on the current business performance
of the company.

Background of the company
The Commonwealth bank of
Australian is popular financial
service providing
organization. In order to
provide effective customer
service, the credit cards, loan
and savings account services
are being provided by the
bank.

Problem analysis
In the words of Crane and Matten
(2016), in a recent article
published in 2018, it has been
mentioned that online transaction
errors have become the common
concern for the bank authority,
which has aroused the financial
security regarding questions on
the mind of the customers.

Continued…..
In the words of Crane and Matten (2016), in the recent
published article, it has been identified that from the last few
years the insurance selling lines are not being paid and due to
this reason the process of personal as well as home loans has
got delayed. .

Continued…..
 Network error has become common technical
problem faced by the users of commonwealth
banking apps (Smh.com.au 2019).

Continued…..
 The utility bills are increasing day by day, which is
driving the customer confidence towards the uninspiring
condition (Heraldsun.com.au 2019).

Continued…..
Slow housing market as well as digital dispute, has
created various ethical errors for the company

Continued…..
 Increasing rate of financial scandals and
employee turnover rate, the brand reputation of
commonwealth bank now is in concerning
situation (Heraldsun.com.au 2019).

Continued…..
 In the inappropriate organizational environment,
it has become challenging for the Commonwealth
bank authority to maintain the ethical values to the
organization.

Continued…..
 Due to millions of transactions in every year, the
banking authorities are less bothered about few of
the transaction errors faced by the customers
(Afr.com 2019). Management does not take any
kind of initiative for doing the internal audits, as a
result, the problems are not being solved
(Heraldsun.com.au 2019).

Recommendations
 effective internal audits are necessary
 by improving the banking regulations the cyber security
can be improved
 Cyber security of the bank needs to be improved. Data
processing and customer relationship development
process can be effectively developed
 Implementing the transformational leadership practices

Conclusion
It can be concluded in this study that improper management
initiatives, the repeated ethical scandals have become regular
incident in commonwealth bank. Analyzing the issues, it can
be said that individuals who are associated with the
organization needs to focus on understandings the ethical
values.

Reference list
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