Evaluation of News Article: Unethical Business Conduct in Commonwealth Bank Australia

In this article we will discuss about evaluation of news article and below are the summaries point:- The news article evaluates a case of unethical business conduct within Commonwealth Bank in Australia. The report highlights allegations of money laundering, inadequate organizational culture, and management negligence. The article suggests issues of social responsibility, communication gaps, and failure to recognize criminal activities, calling for recommended solutions.

Running head: EVALUATION OF NEWS ARTICLE
Evaluation of News Article
Name of the university
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Introduction
The objective of the report is to analyse the Australian case of unethical business
conducts that is recent and quite renowned within the country. A case of unethical business
practise within Commonwealth bank in Australia has been published by Royal banking
commission and the evidence also indicates certain ineffective organizational culture that
might not be dealt with after certain interference with certain visionary, highly paid along
with managerial authority.
Report Summary with Background
A report published by the “Hutchens Guardian News 2019” indicates that the
Commonwealth Bank has responded to allegations related with scandal of Australian money
laundering. Commeasure along with the retail industry scan that took place through hacking
of children’s bank account in order to attain bonus along with attaining the individual targets.
The report prepared by Hutcens (2019) indicates that the Commonwealth Bank has responded
towards the exposure of Austrac money laundering scandal and has also suggested that even
after appointing a new chief executive officer because of certain limitations desired results
are not been attained yet. As per the given report offered by the new chief, it is also observed
that it serves as the matter of reputation while getting engaged within the process of
investigation. This is because Australian prudential authority has presented a critical report
along with explaining weaknesses related with managerial support along with negligence.
The individual did not consider publishing a remuneration report with shareholders preferred
maintaining updates of private investigation for security reasons. The issue of the
management is that they ignore the warnings based on mortgage broker commission deals,
insurance facilities misuse and their indifferent nature towards regulation compliance in the
company. Not just the Commonwealth Bank but certain other banks such as Westpac are

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accused for insurance scamming. Royal Commission took the responsibility of gathering
relevant evidences against these practices. The report is indicating the fact that resources are
not safe even if banks offer necessary security.
Recognised issues
The issue of social responsibility and corporate governable took place as the
managerial authority has ignored the warnings of supporting companies and supervisors
regarding high data systems breach threats. Conversely, they did not understand that the
Commonwealth Bank’s ATM machines were employed for drug dealings by several fake
accounts. Other than that, several black cash sources along with criminal groups have been
recognised within Royal Banking Commission as explained in the report. Analysing the total
report, certain major issues are highlighted and explained under:
 Terrorism financing along with money laundering are certain serious complaints those
are coming within the forefront
 There are some drastic communication gap among employees along with existence of
negligence in reporting incidents and identifying bleaches.
 Commonwealth bank regularly took failed attempt in recognising criminal activities
patterns of money laundering
Proposed recommended solutions
There are certain instances of scenarios those have implemented ethical methodology
in becoming successful regarding restricting system breaches irrespective of it being an IT
organization or a bank. CAB took the decision of appointing new chief for main the higher
authority free of corruption. Moreover, there are other considerable factors restricting
necessary changes. Unlike CAB, National Australian Bank or NAB has developed a better
workplace culture along with ethical business practices by means of strategic operational

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planning, effective risk management team along with supervision related with regulation
compliance, finance management and reporting shareholders with responsibility along with
sustaining ethical business practice culture. Through implementing such framework, NAB
can deal with such scenario in case of certain identified breaches and can also deal with
things in a better manner than other companies dealing improperly with such concern.
Ethical decision making process
The moral philosophies support the business management in making ethical business
decisions. Morality differentiates among a good along with poor practice but the managers
require setting business strategies to support shared goals. The major responsibility of a bank
is to offer security to assets of consumers and the CAB failed in dealing with basic criteria.
There are major moral philosophies implemented by the business managers such as Egoism,
teleology, deontology, relativist, utilitarianism, justice and value ethics (Hutchens, 2019).
Based on such opinion, utilitarianism supports correct actions increasing capability of
companies to deal with the odds. Moreover, it brings wellbeing for a lot of people. It is
gathered that, dismissing the old chief was suitable decision because of the casual nature of
dealing with the widely increasing corruption was not suitable. Through following justice
regulations such methods must be followed with increased ethical sense.
Conclusion
It can be gathered that Commonwealth bank regularly took failed attempt in
recognising criminal activities patterns of money laundering. National Australian Bank or
NAB has developed a better workplace culture along with ethical business practices by
means of strategic operational planning, effective risk management team along with
supervision related with regulation compliance, finance management and reporting
shareholders with responsibility along with sustaining ethical business practice culture.

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References
Hutchens, G. (2019). The biggest banking scandal is that everyone knew – but still did
nothing. [Online] the Guardian. Available at: https://www.theguardian.com/australia-
news/2018/nov/24/the-biggest-banking-scandal-is-that-everyone-knew-but-still-did-
nothing [Accessed 30 Jan. 2019].

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Appendix

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