Ethics and Governance

Running Head: Ethics and Governance 0
Ethics and Governance
Student’s Name
4/27/2019

Ethics and Governance
1
Executive Summary
Ethics is all important in business these days and many of the businesses are used to be
listed under the fraudulent category. Banking commission has been set up to identify the
unethical conduct of the organization of banking, insurance and superannuation industry that
affect their working.
The report presented here is divided under two parts one of that is focused on ethical
theory and its reflection to the recommendation and another saying of banking commission. In
the next part, APES 110 standards are discussed that are applicable to CPA Australia members
and some safeguards are also that have been discussed. Freedom insurance case study has also
been highlighted and a comparison has been made between this case study and finding of the
royal commission.

Ethics and Governance
2
Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................2
Question 1........................................................................................................................................3
Ethics Theory 3
Banking Commission and Utilitarianism theory 5
Question 2........................................................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Ethics and Governance
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Introduction
Every organization works in an environment that affects and gets affected by many of the
factors. These factors are stakeholders of the firm. This is 21st century and businesses are giving
tough competition to each other. On the other side stakeholders also becoming aware of the
responsibilities of organizations. Therefore, the issue of business ethics is becoming crucial these
days. Stakeholders, as well as government authorities, have an eye on the governance and ethical
actions of the organizations. Business ethics let the entities know what should be done and what
should not be while dealing with different stakeholders. Further, to say, business ethics is equally
applicable to all the organizations irrespective of their size and industry and therefore businesses
should act in a fair and ethical manner.
In recent times, many of the organizations breached business ethics and been involved in
misconduct. In Australia, misconduct was prevalent in baking and insurance sector. To find such
incidents and to prevent the same, a commission has been established in 2017. This commission
is known as Royal Commission into Misconduct in the Banking, Superannuation, and Financial
Services Industry. The commission conducted its investigation into these industries and
identified many of the cases where organizations ignored the interest and value of one or more
stakeholders. In the report presented hereby, the discussion will be focused on the following
two:-
 Question 1:- Ethics and report of Banking Commission
 Questrion2:- Freedom Insurance ethical breached and APES 110