Project Report: Ethical and Financial Services
Added on 2020-05-16
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Running Head: Ethical and Financial Services1Project Report: Ethical and Financial Services
Ethical and Financial Services2ContentsPart B................................................................................................................................3Commonwealth Bank Stakeholder Analysis....................................................................3Stake in CBA................................................................................................................3Behavior of stakeholders..............................................................................................3Part C................................................................................................................................6Commonwealth bank- recommendation...........................................................................6Memorandum................................................................................................................6Highest priority areas....................................................................................................6Recommendation..........................................................................................................7Part D................................................................................................................................9Letter.............................................................................................................................9References.......................................................................................................................11
Ethical and Financial Services3Part B:Commonwealth Bank Stakeholder Analysis Stake in CBA:Directors and management:Directors and management contributes the man power into the bank and in return, they expect from the company monitory and non monetary items such as salary, incentive, bonus and sweat shares. Shareholders:Shareholders of CBA contribute the money and the funds in the organization for the operations and new projects of the company and in return, they expect dividends from the company. Dividends of shareholder depend on the total profit of the company (Gapenski, 2008). Customers:Customers of CBA contribute the money and the funds in the organization as savings and in return, they expect interest from the company. interest of customers depend on the total fixed % on that policy of the company. Employees:Employees of CBA contribute the manpower in the organization to run the business and in return, they expect salary and incentives from the company. Incentives and bonus of the employee depend on the work of the employee (Onyebuchi, 2011).Government/ regulators:Further, the government and the regulators of country contribute the new policies and the rules in the organization to manage the business properly and in return, they expect tax from the bank. Tax rate depends on the total profit of the bank. Behavior of stakeholders:Further, the behavior of the stakeholders of the company has been evaluated and the following results have been identified:
Ethical and Financial Services4Directors and management:Directors and management behavior in concern of the ethical theories are as follows:The hierarchy of ethical decision making:In case of directors and management, the hierarchy is set by them only (Directors and management) as they are in the category of top management of the company and the rules and policies for the operations and the function of the company are set by them only. This theory explains that the CBA is operating and managing its functions smoothly (Deegan, 2013). Stakeholder theory:In case of stakeholder theory, directors and management are one of the main stakeholders of the company. Company is required to manage and treat them in a professionalmanner as it is requisite for the company to listen to the stakeholders. This theory explains that the CBA is managing its stakeholder policies in a better way. Normative theory:Further, in case of normative theory, directors and management are required to evaluate that what is right and wrong, just or unjust, desirable and undesirable etc. if the principles of normative is followed by the directors and stakeholders in a better way than it becomes easy for them to evaluate the performance of the company. This theory explains thatthe CBA is managing its normative policies in a better way (Damodaran, 2011). Shareholders:Shareholder behavior in concern of the ethical theories is as follows:Descriptive theory:In case of descriptive theory, an organization is required to set the policies in such a manner those regulations and the rules could be prepared for the betterment of the shareholders of the company. It explains that the rules must be set with explaining and characterizing the regulations in such a choice that it could be dispose off. This theory explains that the descriptive theory has been applied by CBA is managing its business in a better way (Armstrong, Ketz and Owsen, 2003).Stakeholder theory:
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