Code of Conduct for AMP

This essay analyzes the ethical challenges faced by AMP, a financial services company, and proposes a new code of conduct to address these issues. The essay emphasizes the importance of ethical behavior, non-discrimination, transparency, and compliance with regulations in the financial services industry.

Code of Conduct

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Case Scenario.........................................................................................................................1
Code of Conduct.....................................................................................................................2
Principles................................................................................................................................2
CONCLUSION................................................................................................................................6
RERERENCES................................................................................................................................7

INTRODUCTION
Code of conduct is defined as a set of professional regulations that guide personnel
regarding acceptable social and psychological norms within the entity. Also, it includes a clear
description of the expected way in which individuals should behave while delivering their
performance within organisation (Da Giau and et. al., 2016). This assignment is based upon
AMP which is a financial services enterprise operating within Australia and New Zealand. This
company provides insurance, investment as well as superannuation products, banking products
and financial advice. This paper includes a code of conduct based upon principles to deal with
issues related to exploitation, discrimination, whistle-blowing, corruption etc.
MAIN BODY
Case Scenario
AMP is Australia's biggest corporate as well as retail superannuation provider and also
the largest insurance company of the country. It is involved in provision of financial advice,
listed assets and infrastructure as well as management of funds of public. Since last some years,
company is regularly seen to be involved in a number of scandals. This is largely owing to a
number of unethical issues that personnel within the organisation have indulged in, with passage
of time. The key issue that have been noted after investigation of affairs in context of AMP is
that company has been charging life insurance premium of dead people from their
superannuation of accounts even after knowledge of their death (Banking royal commission:
AMP continues to charge dead customers life insurance premiums, 2019).
AMP Ltd. has also been overcharging the fees from corporate super clients in relation to
the services delivered to them. Besides this, a whistle-blower has revealed that company has
indulged in immoral and unethical behaviour while dealing with its business of financial
advisory. This conduct had been going on in front of eyes of managers, yet they were not
concerned to stop this. Another big issue highlighted within AMP is that company may have to
pay criminal charges for misleading ASIC although enterprise had been involved in continuously
charging fees from clients that are not even receiving services (AMP could face criminal charges
for misleading ASIC, banking royal commission told, 2019).
1

Code of Conduct
Code of conduct refers to the manner in which professionals are supposed to conduct
activities and processes within the entity to operate within the lines of company. It consists of
principles that guide and govern the behavioural characteristics of employees in organisational
context. A written and documented code of conduct clarifies the mission, vision, principles, rules
and regulations of an enterprise to the workforce (Džupina, 2016). This is used as a reference for
making ethical decisions in relation to day-to-day operations of business. AMP is a public
limited company which is largely dealing with funds of people. Thus, it is essential that
managers within AMP Ltd. make use of such methods and procedures which are ethical and in
public interest. Considering the issues and scandals that are continuously taking place within
AMP, it is required that leaders and managers ensure that there is no unethical behaviour in the
enterprise. Also, it is important that management realises the need of devising a new Code of
Conduct for AMP Ltd. taking into account the immoral activities of professionals of the
organisation.
Thus, keeping in consideration the need to regulate activities and conduct of employees,
AMP Ltd. has devised a new code of conduct. This is mainly done to avoid any kind of immoral
behaviour in organisational premises.
Principles
All the employees as well as management of AMP Ltd. are required to abide by the
principles at all the times. Such principles laid under the new code of conduct for AMP Ltd. are
specified below:-
1. Treat employees in a fair and dignified manner and giving the respect while having
communication
2. Create a non-discriminatory working environment for personnel in the enterprise
3. Encourage ethical behaviour within the organisation
4. Develop healthy relationship between business and society
5. Adopt ethical practices and ensure transparency of transactions
6. Act with integrity and honesty while taking decisions
7. Safeguard the rights of employees, consumers and shareholders
8. Refrain from any involvement in criminal activities or policies against public interest
9. Ensure the compliance of organisational rules and policies by all individuals
2

1. Treat employees in a fair and dignified manner and giving them respect while having
communication
Fairness, integrity and respect are the core elements that are kept in consideration by the
company while operating in marketplace. It is ensured that operations takes place within
organisational premises in a manner that is ethical and do not breach any act desirable by law.
Such principles are largely followed by personnel to maintain trust and loyalty amongst the
employees as well as management (Purnomo, Anand and Choi, 2018).
The personnel of AMP Ltd. is highly committed towards operating in a dignified and fair
manner that does not support any kind of partiality with anyone. Managers and leaders within the
business ensure that individuals are performing their duty with due care. Also, workforce of
AMP Ltd. does not engage in any unethical practices. If found guilty of unethical conduct within
the entity, managers communicate the same in a respectful manner. Employees of organisation
are accountable to the company for their conduct of behaviour and performance. Communication
carried out within the enterprise takes place in a structured manner. It is aligned with the
communication strategy adopted by organisation.
2. Create a non-discriminatory working environment for personnel in the enterprise
The organisation does not tolerate discrimination within the entity in any condition.
There is no discrimination on the basis of age, gender, caste, colour or any other aspect (Khan
and Rahman, 2017). It is ensured that employees are exposed to a workplace where there is no
partiality done by top management.
The workforce as well as management of AMP Ltd. believes in providing personnel an
environment where there is no discrimination. Organisation largely promotes equality within the
enterprise at all the times. Employees are treated in a free and fair manner. Partiality with
employees on any basis is strongly prohibited within organisational premises. Any kind of
discriminatory act found or reported within the organisation is liable to punishment. Employees
can be even asked to leave if the extent of such act is not meagre. Employers take suitable and
situation based steps to ensure that any person with disabilities employed within AMP Ltd. is
treated in the same manner as other employees to create a positive atmosphere. This fosters a
sense of belonging among employees towards the enterprise.
3. Encourage ethical behaviour within the organisation
3

Individuals within the organisation execute their work in ethical manner. Enterprise
promotes ethical behaviour within working environment so that employees can work honestly
and perform their business activities without any illegal work (Joshi and et. al., 2016).
The management team of AMP Ltd. encourage ethical behaviour within business
premises by providing regular based awards to employees on the basis of their performance. The
company also provides training sessions for employees so that they could improve their existing
skills. This helps employees in improving themselves professionally. The company also has
some policies which protects ethical values organisation. Company ensures that there is no
whistle-blowing act by making sure that personnel indulge in ethical activities.
4. Develop healthy relationship between business and society
Businesses and society are interrelated with each other as society gives opportunity to
businesses to develop products for them and generate revenue. The business organisation helps
society in fulfilling their basic needs and wants in a smooth manner (Sethi, 2016). Business
entity provides high quality products and services to society in order to improve their life style
effectively.
AMP Ltd. believes in enhancing their in their relationship with society in order to get
their support at every stage of business. For this, management team of the company conducts
some CSR activities that contribute in developing their positive image at market place.
Employees of the company are also asked to enrol in CSR activities so that they also consider
significant part of welfare activity and contribute in societal change. This develops positive
image of AMP Ltd among employees as their company is playing their societal responsibility
well. As a result, they perform their business activities more effectively and participate in
maximum CSR activities.
5. Adopt ethical practices and ensure transparency of transactions
The business organisation executes its business activities by abiding with the ethical code
of practices in order to build up their brand name with honesty. Company has implemented such
policies and code of behaviour that is against concealing of any information related to any key
day-to-day activity (Granquist and Nilsson, 2016).
Management team of AMP Ltd. ensures to make all of their transaction transparent with
its employees in order to develop trust among them. For this company also follows transparent
organisational structure in which management team informs each and every employee about
4

organisations decisions according to its relevancy with employees. This team also involves
employees in decision making process which enhances participation of employees among
organisation. It also helps company in getting huge number of ideas which will surely improves
its profitability ratio.
6. Act with integrity and honesty while taking decisions
The business organisation takes its each and every decision with honesty and integrity in
order to avoid chances of discrimination within organisational premises. Also, company largely
believes in motivating its employees as they are a significant part of the business organisation.
AMP Ltd. is strictly following honesty and integrity while taking organisational decision.
The company initially evaluates all of the organisational activities and after analysing it properly
it takes best suitable decision without being partial to anyone. AMP Ltd. has made truth as its
USP and this is followed at each and every stage of company whether it is favourable for
company or not in the long run.
7. Safeguard the rights of employees, consumers and shareholders
The organisation largely believes in operating in a manner that is in public interest. It
prohibits indulgence in any activity which is not desirable by statute or society (Ismail, Hassan
and Ariffin, 2016). It adopts such policies and structures that keeps in consideration the needs
and preferences of customers and employees. It emphasizes upon maintaining effective
relationship with stakeholders to ensure its sustainability for long duration of time.
AMP is a company that substantially focuses upon maintaining quality of work by
adopting such procedures which are aligned with organisational goals and objectives. The
company works in a way that considers the interests and powers of various stakeholders,
employees and customers. Company adopts a customer-centred approach and works for
fulfilment of their needs.
8. Refrain from any involvement in criminal activities or policies against public interest
The company operates in a manner that is in public interest. The methods, processes,
policies and procedures adopted by company are devoid of any dishonest or fraudulent behaviour
(Leipziger, 2017).
AMP is highly against criminal and unethical practices like exploitation or fraudulent acts
within organisational premises. Company’s policies are totally against operating in a manner that
5

is regarded as unethical by society or law. Company takes necessary actions against breachers of
law or rules of enterprise.
9. Ensure the compliance of organisational rules and policies by all individuals
Company believes in ensuring that employees abide by all the organisational rules and
regulations (Salimi, Kornelus and Abo-Hebeish, 2016). Also, entity largely focussed upon
making of such policies that are focussed upon benefits of employees.
AMP Ltd. ensures that all the employees as well as management follow all the rules and
regulations. Company ensures that all policies related to conduct of personnel within
organisational premises are complied with. AMP largely believes in developing a healthy
atmosphere for workforce so that work can be carried out in a desirable manner within
organisational lines.
CONCLUSION
From the above assignment, it has been concluded that it is imperative for every business
organisation to keep a check upon the activities performed by individuals within the enterprise.
Also, it has been comprehended that a code of conduct is necessary to be devised so that the
rules and regulations as well as the policies of company are being abided by. Besides this, this
has been analysed that it is important for entity to ensure that it does not engage in unethical or
immoral practices like discrimination, exploitation, fraudulent behaviour etc.
6

RERERENCES
Books and Journals
Da Giau, A.and et. al., 2016. Sustainability practices and web-based communication: An
analysis of the Italian fashion industry. Journal of Fashion Marketing and Management.
20(1). pp.72-88.
Džupina, M., 2016. A theoretical study on cross-national differences on corporate social
responsibility orientation (CSRO). European Journal of Science and Theology. 12(1).
pp.163-169.
Granquist, S. M. and Nilsson, P. Å., 2016. Who's watching whom?–an interdisciplinary
approach to the study of seal-watching tourism in Iceland. Journal of Cleaner
Production. 111. pp.471-478.
Ismail, E.H., Hassan, N.A. and Ariffin, S.A.I.S., 2016. Perceptions Differences in Professional
Integrity and the Risk of Public Safety in Architectural Self-regulation System. Journal
of Science, Technology and Innovation Policy. 2(1).
Joshi, P. L. and et. al., 2016. Determinants of compliance and disclosure requirements by top
listed companies under Malaysian Code of Corporate Governance (2012). Afro-Asian
Journal of Finance and Accounting. 6(2). pp.135-159.
Khan, M. S. and Rahman, M. S., 2017. Pesticide Residue in Foods. Springer.
Leipziger, D., 2017. The corporate responsibility code book. Routledge.
Purnomo, E. P., Anand, P. B. and Choi, J. W., 2018. The complexity and consequences of the
policy implementation dealing with sustainable ideas. Journal of Sustainable Forestry.
37(3). pp.270-285.
Salimi, A. Y., Kornelus, A. and Abo-Hebeish, A., 2016. Improvement in Accounting Students'
Perception and Judgment on Ethical Issues as They Progress Through the Accounting
Curriculum. Journal of Higher Education Theory and Practice. 16(3). p.51.
Sethi, S., 2016. Globalization and self-regulation: The crucial role that corporate codes of
conduct play in global business. Springer.
Online
Banking royal commission: AMP continues to charge dead customers life insurance premiums.
2019. [Online]. Available Through:< https://www.abc.net.au/news/2018-09-17/amp-
charges-dead-customers-for-life-insurance/10255978>.
AMP could face criminal charges for misleading ASIC, banking royal commission told. 2019.
[Online]. Available Through:< https://www.abc.net.au/news/2018-04-27/asic-fronts-
hayne-royal-commission/9702662>.