Strategies for Improving Ethical Culture in AMP Insurance - Report

This report addresses the ethical challenges faced by AMP Insurance, stemming from recent scandals and investigations. It begins by analyzing these scandals through the lens of organizational learning theories, highlighting failures in knowledge management and ethical decision-making. The report then applies relevant organizational learning frameworks to diagnose the root causes of the problems within AMP Insurance, such as barriers to learning, including resistance to change, lack of leadership, and insufficient customer focus. Recommendations are provided to help AMP Insurance transform into an ethical learning organization, emphasizing the importance of a code of conduct and ethical strategies. The report stresses the need for ethical management, transparency, and a commitment to customer welfare. It concludes by summarizing the key findings and recommendations, reinforcing the significance of ethical culture for the long-term success and reputation of AMP Insurance.

Running Head: The learning organization 0
AMP Insurance
The learning organization
Strategies of Improving Ethical Culture in a Learning Organization.
5/21/2019

Contents
Introduction.................................................................................................................................................2
Analysis of repeated ethical scandals through the lens of organizational learning theories.........................2
Applications of relevant OL framework/models..........................................................................................2
Analysis of existing barriers to organizational learning at the selected Bank or Insurance Company.........3
Recommendations to selected Bank or Insurance Company to become an Ethical Learning Organization.3
Strategies to assist the Bank to learn to be ethical.......................................................................................4
Code of conduct:.........................................................................................................................................4
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6

Introduction
The report is prepared so that the ethical things can be explained so that the bank can improve
their reputation. As there were many ethical scandals are happening in the banking and insurance
so that the ethical issues are very important so that the proper functioning can be done in the
organization (Paul, et al., 2015). In this report, the barriers of the organizational learning will be
explained. In this report, the ethical theories will be explained so that strategies can be made to
do the ethical things in banking and insurance. The code of ethics will also be explained as they
are the rules and regulations
Analysis of repeated ethical scandals through the lens of organizational learning theories
AMP is an insurance company in Australia which provides financial advice, insurance,
investment products, etc. The profit of the company crumbles and many scandals have been seen
in the life insurance sale. The profit of the AMP was crumbled by 97% and this was the biggest
scandal which was exposed by the Royal Commission (Muir, et al., 2014). The major drag in the
company was the wealth management as the sales in the life insurance of the business is
shrinking. The earnings of the company were underlying up to 35% to $680 million. The
company has done the biggest scandal as they charged the $220 million in fees from the
customers and they didn’t have the intention to provide the services.
Applications of relevant OL framework/models
Organizational learning’s models are very essential in the companies as these theories help in
solving the problems of ethical scandals. As per the theories of the troubleshoot consult theorize
the actions are taken to solve the issues. The experiments are done for the new ideas, data, and
the information so that ethical work can be done in the organization (Bontis, et al., 2012).
As per the author of the Argrys and Schon the theory of organizational learning is based on
understanding the conflicts in the operation of the business. This theory is helpful in the
company AMP in managing the work effectively and improving the ability of the employees
(Howell, 2015).

Analysis of existing barriers to organizational learning at the selected Bank or Insurance
Company
In the company AMP, many barriers have been seen in organizational learning. The biggest
challenge is to change the management of the company. There are many technologies in the
company which is needed to change so that better services can be provided by the company to
the customers (Schilling and Kluge, 2009). Another barrier is the lack of good leadership in the
company AMP. The leader should be in the process of improving the performance and the
learning the new performances. The company AMP has focused on the individuals who have the
maximum insurance documents and do focus on the team so that the success can be achieved and
the scandal can be removed (Garefalakis, et al., 2015).
In the insurance company, there was the barrier of the lack of value to the customers and
employees. The company doesn’t give good value to its customers and this was the reason for
the biggest scandal also. The company AMP also focuses on the big things and he has never
taken the short term goals (Argote and Miron-Spektor, 2011). The barrier for the company is the
too much control of the things by the senior management. As the AMP is the insurance company
so there are many policies and data which are controlled and managed by them.
Recommendations to selected Bank or Insurance Company to become an Ethical Learning
Organization
The AMP insurance company should use the code of the conducts and the ethical rules and
regulations in the company so that honesty and integrity can be maintained in the company.
Ethical learnings are very important in the company AMP as it helps the employees in acquiring
the skills and knowledge so that the function and operation in the company can be done with the
responsibility and autonomy (Muir, et al., 2014). It is recommended that the company should
adopt ethical learning so that morality can be developing in the company. By adopting the ethics
in the company the right and wrong can be evaluated so if nay scandal happens the company
AMP would be aware of that. Ethics also satisfy the needs of the humans and customers so if any
customers who have done life insurance with the company can get the fair and the honest data.
Ethical learning also builds the trust among the employees so if any disputes or any issues arises
in the company than it can be solved. Ethics are the superior and the higher ethical conduct

which is based on the laws and regulations so the company has to follow that rules so that no
misconduct and unethical work happens in the company (Matthews, 2016).
Strategies to assist the Bank to learn to be ethical
The strategies are very essential in the bank so that the ethical business can be conducted. There
are many banks and insurance companies which maintain the ethical organization in the
company but there should be proper ethical management by following the certain rules,
regulation and the policies of the company (Schmulow, et al., 2018). If the banks don’t disclose
any confidential information to other people than the organization can be work with ethically. If
any fraudulent and error occurs in any information than the ethics are helpful in rectifying them.
The banks should value ethics as it gives benefits to its customers only. The ethical strategies are
also helpful in the company in taking the proper decisions and making the work more effective.
Code of conduct:
Code of conduct is the set of the rules which the company AMP should follow so that the proper
ethics can be maintained in the company. The rules and responsibilities are guided in that so if
the employees, staffs and the customers will follow that then there will be no scandal or
unethical work can take place in the company (Abdullah, et al., 2014). According to the code of
conduct, the Australian insurance company has to work with the ethical standards and operate
their function in the welfare of the company. The company AMP should not make any rules and
laws that are affecting the interest of the public and the customers. The first priority of the
company should be should to remove any conflict and avoid any detrimental

Conclusion
From the above report, it is concluded that in any organization whether it is banking or insurance
the ethical culture is very important as it helps in maintaining the proper functioning and
effective working. In this report, the scandals of the data and the ethical problems of the AMP
were discussed so that the issues can be finding out. The barriers of the organizational learning’s
at the bank have also explained which helps in the smoothening function of the work. In this
report, the code of ethics was also discussed and the strategies were also assessed which helps in
marinating the ethical culture.

References
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