Principles of Finance - Doc

Running head: PRINCIPLES OF FINANCE
Principles of Finance
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1PRINCIPLES OF FINANCE
Table of Contents
Introduction......................................................................................................................................2
Evaluation of CBA’s Practices and Financial Decisions with Respect to CSR Activities..............2
Importance of Sustainability and Social Responsible Outcome for CBA.......................................3
Identification of Ethical Principle Breached by CBA.....................................................................4
Discussion of Ethical Violation with Ethical Theories....................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

2PRINCIPLES OF FINANCE
Introduction
In today’s business world, Corporate Social Responsibility (CSR) is considered as a
major pillar for the success of the businesses. CSR refers to a particular business approach that
has major coronation of towards sustainable development of the companies by delivering social,
economic and environmental benefits to the stakeholders (Schwartz 2017). In recent years, it has
been seen that the Commonwealth Bank of Australia (CAB) has been involved in the violation of
different CSR principles with their business activities. This report takes an honest attempt to
analyse and evaluate various aspects of CSR activities of CBA.
Evaluation of CBA’s Practices and Financial Decisions with Respect to CSR Activities
CAB is regarded as one of the major banks of Australia providing different types of
financial services to the Australians. It needs to be mentioned that CAB follows some practices
and financial strategies to make financial decision making that have some connection with
various CSR activities of the bank. For the identification of the relation of practices and financial
decagons with the CSR activities, it is required to shed on them (commbank.com.au 2018).
Three main categories can be seen in the practices of CAB; they are Governance
practices, Social Practices and Environmental Practices. The policy of governance of CAB
ensures professionalism, honesty, commonsense and fairness in the banking practices. The main
objective of CAB is to implement the highest practice of corporate governance. Moreover, CAB
always ensures the correct payment of their taxes (commbank.com.au 2018). In addition, CAB
has various practices to fight with bribery, corruption, money laundering, fraud and others. The
social practice of CAB ensures human rights, financial inclusion, diversity, responsible
procurement and others. Apart from these, CAB has also developed strategies to fight with
different environment factors like environmental management, climate change, responsible
investing and others (commbank.com.au 2018).
As a part of the financial strategies, the main aim of CAB is to provide the Australians
with the required financial services like banking, fund management, insurance and others. Over
the years, there has not been any change in the financial strategies of the bank
(commbank.com.au 2018). The board of CAB has taken the decision of reviewing the