Stakeholders Assignment | Ethical Responsibilities
Added on 2020-05-28
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Running head: ETHICAL RESPONSIBILITIES OF THE STAKEHOLDERS OF CBA ETHICAL RESPONSIBILITIES OF THE STAKEHOLDERS OF CBAName of the StudentName of the UniversityAuthor Note
1ETHICAL RESPONSIBILITIES OF THE STAKEHOLDERS OF CBATable of ContentsPart B - Analysis of the Commonwealth Bank Stakeholders..........................................................2Part C - Recommendations..............................................................................................................5References........................................................................................................................................8
2ETHICAL RESPONSIBILITIES OF THE STAKEHOLDERS OF CBAPart B - Analysis of the Commonwealth Bank StakeholdersThe fundamental legitimate obligations of executives are to act in compliance withestablished goals of the Bank in light of a sound concern for the bank. Furthermore, theobligations are owed to the bank for the most part and not the investors at a given point of time.Although the huge responsibility of governing the bank as a whole is endowed upon thedirectors, they receive various incentives especially in the form of money.The most prominent task of shareholders is to provide the funding. Furnishinginformation is also a major responsibility of the shareholders (Bebchuk, Cohen and Wang 2014).Shareholders of the Commonwealth Bank have the capacity to impact the company’s decisionsto a certain extent. Shareholders can expect a total return of about 104.8% at the end of 5 years(Commbank.com.au, 2018). Apart from this, special discounts and bonuses are also given to theshareholders. Shareholders consequently expect to be treated with importance while importantdecisions are made. Customers are the primary source of income for the bank. Banks invest the moneydeposited by the customers and gain huge profits from it. Customers expect a secure and hasslefree deposition and transaction of their finances. According to the Shareholder Review of 2016of the bank, deposits made by the customers represented 66% of the total group funding(Commbank.com.au, 2018). As in any other line of work, bank employees regulate and conduct all the interactionswith customers. Their tireless efforts ensure the productivity of the bank at large. Employeesreceive bonuses and special benefits in return. The profession of banking is regarded as veryrespectable in general.
3ETHICAL RESPONSIBILITIES OF THE STAKEHOLDERS OF CBABank directors and the management teams are the gatekeepers of money relatedsolidity, which is a standout amongst the most valuable open merchandise. Bank managementteams need to guarantee that the bank procedure as considered and executed by administrationhas a proper functional profile. That budgetary information precisely portrays the bank's state ingeneral and thus cautious measures are needed to ensure investors' cash and investors' assetssecurity (Boubaker, Mansali and Rjiba 2014). In short, the directors perform their activitieswithout acquiring unreasonable risks. According to the normative model, supervisors ordirectors need to ensure that unnecessary and impetuous risks are not taken by the bank (Parenteet al. 2016). Establishing a well scrutinized policy can reduce these risks significantly. It is theresponsibility of the director to make sure that all the employees and workers adhere to thosenorms and regulations (Agné, Dellmuth and Tallberg 2015). However, introducing a policy thatsomewhat restricts the actions of employees and workers can be challenging at times. Thus itneeds to be in congruence with the bank's ideologies and should be of the best interests of all theemployees as well (Bukair and Rahman 2015). Nevertheless, directors need to maintain acertain level of independency while constructing these policies. Any bias or partiality will not betolerated on the part of the director as the director of the bank is usually held accountable for anymajor issues that the bank faces. Employees are considered as the limbs of any working organizations. From day to dayinteraction with the customers to making sure all the transactions are completed securely and ontime, every duty is distributed among employees at different levels (Ferdous and Moniruzzaman2015). Thus, it is essential that they work with commitment and perseverance. Bank workers,otherwise called bank employees, are in charge of the vast majority of the ordinary operations atmoney related establishments. They must monitor all the cash that goes through a bank. This is
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