Importance of Ethics in Business : Assignment

Added on - 21 Feb 2021

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Importance of Ethics in Business
Table of ContentsINTRODUCTION...........................................................................................................................2MAIN BODY..................................................................................................................................2CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
Topic: Importance of ethics in business drawing upon the implication of Australia’s recent caseof Royal Bank Commission.INTRODUCTIONEthics in a business organisation is of vital importance which guides the moral and ethicalconduct of the business. In the present essay the ethical breaches, revealed by Australian BankingRoyal commission are outlined. The bank managers have been asked certain question over thisbreach and at the end the findings of the interview are presented interlinked with the theoreticalaspect of the ethical practise within an organisation.MAIN BODYMajor Ethical breaches revealed by the Australian banking Royal commission: TheBanking royal commission of Australia is responsible for examining the banking and financialpractises of all the banks operating in Australia. In December 2017 the Royal commissionlaunched an investigation regarding the practices of banking institution of Austria after the claimsof customer abuse, poor governance and unethical lending practices adopted by banks(Cloutierand et.al., 2015). There were 4 ethical issues which were identified by the Hayne, thecommissioner of Royal commission:A high level of conflict of interest due to the constant pursuit of lack of ethicalremuneration structure and personal goals,Non-separation of the duties between sale/marketing of financial products and provisionof financial advice,There was a lack of transparency in information system regarding financial productwhich did not helped the client in any way to select a suitable product.The parties braking the laws and regulations were not held accountable for their acts.The ethical miscount was related with alleged bribery, forging of documents, repetitivefailures in verification regarding living expenses of consumers before landing of money and alsomis selling of the insurance to the people those who cannot afford it(Crane and et.al., 2019).Certain banks were found to charged fees from the client who have died in name of financialplanning. The report of the royal commission highlighted four major banks of Australia foundunder major ethical misconduct. These banks were Westpac, Commonwealth bank, AZN andNational Australia bank. The banks in order to earn higher profits provided misleading financial
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