Ethics and Sustainability- Doc

Added on - Dec 2020

Trusted by 2+ million users,
1000+ happy students everyday
Showing pages 1 to 3 of 8 pages
ETHICS ANDSUSTAINABILITY
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK...............................................................................................................................................3Company's overview and the nature of the alleged inappropriate behaviour.........................3Practices of AMP in regard to social responsible framework................................................4Effect of malpractices on the wealth of shareholder's of AMP..............................................5Sustainability and socially responsible outcomes for AMP...................................................5Identification of changes on AMP in regard to the findings of Royal Commission..............6CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8
INTRODUCTIONThe study is based on the operations of Banking and Financial Industry in Australia. Itreviews that after a number of scandals of banking and financial industry, The federalGovernment of Australia called Royal Commission into banking and financial services. Thestudy discusses the inappropriate conduct of AMP alleged by Royal Commission. It furtherdefines the practises of AMP in regard to a socially responsible framework and how it affectedthe shareholder's wealth. It also explains the sustainability and socially responsible outcomes thatshould AMP take in regard. The essay also specifies the changes on the company's behaviour asper the findings of Royal Commission.TASKCompany's overview and the nature of the alleged inappropriate behaviourAMP is an Australian company founded in 1849 which provides financial services suchas investment products, superannuation, financial advice and insurance. Craig Meller, the CEOof AMP resigned on 20th April 2018 after it was revealed about the inappropriate behaviour ofAMP (Baldwin and Black, 2016).AMP was alleged of misconduct and inappropriate behaviour as it charged clients for theservice of financial advice which was not provided actually and it also misled the Australiansecurities and investments commission on various occasions. The allegation resulted on loosingmore than the amount of 1 billion dollars in market value from AMP's shares. AMP was definedas a party of misconduct as it mistreated customers by charging extra fees for the unprovidedservice. The company was also charged of interest rate rigging and money laundering activities.It involved concealment of the origin or source of money obtained from illegal sources. The firmwas severally alleged for extracting revenue for no service from its clients (Davis, 2019). Thislead to reflection of profit that was earned by false means and it manipulated its shareholders byshowing its false financial statements. Royal Commission exposed the nature of allegedinappropriate behaviour of AMP which lead to the shrinking of profit of 848 million dollars tojust 28 million dollars. AMP executives may face criminal charges for mistreating its clients. Thepractices of AMP have been treated unethical by Royal Commission (O’Brien, 2019).Practices of AMP in regard to social responsible frameworkSocial responsible framework focusses on ethical business practices, sustainabilityinitiatives, fulfilling economic responsibility and to hold an obligation to act for the welfare of
Desklib Logo
You are reading a preview
Upload your documents to download or

Become a Desklib member to get access