ANZ Bank: Analysis of Ethical Issues in Accounting Report

This report provides an ethical analysis of ANZ Bank, evaluating its actions through the lens of utilitarian theory. It begins with an introduction to organizational ethics and the utilitarian approach, which focuses on maximizing benefits and minimizing harm for all stakeholders. The report then examines ANZ Bank's ethical practices, highlighting its contributions to communities through investments in community-based projects, support for minority groups, and financial wellbeing programs. The bank's tax compliance and emergency relief efforts are also presented as ethical actions. However, the report also acknowledges unethical actions, such as the treatment of farmers who missed mortgage payments. The conclusion summarizes the bank's ethical standing based on the analysis. The report references the 2017 ANZ Annual Report and other sources to support its findings.

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CONTEMPORARY ISSUES IN ACCOUNTING-ANZ BANK
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Introduction
Ethics is one of the most important aspects of organization modern organizations.
Organization ethics define the standards and principles governing the operation of organizations.
Ethical organizations are therefore those which demonstrate acts of responsibility, honor,
integrity, compassion and fairness (Robertson, 2017). Organization ethics can be analyzed using
a couple of theories including utilitarian and deontological theories. This report will analyze
ANZ Bank using the Utilitarian theory.
Utilitarian Theory has its central focus on the consequences of an action taken by an
organization on its stakeholders (Robertson,2017). According to this ethics theory, an
organization is considered ethical if its actions promote the interests of all its stakeholders. It
emphasizes making decisions that maximize benefits and minimize harm for all stakeholders. It
is based on the principle of the greatest good for the greatest number (Valentinov, 2017). Central
to the Focus of ANZ Bank is ensuring that it takes account of economic, environmental and
social opportunities and Risks. Through these the bank is able to create value for their
surrounding communities, the environment its employees, customers and other stakeholders
(Australia and New Zealand Banking Group,2017). ANZ Bank can therefore be considered as
ethical. This is supported by various actions by the company and its employees.
According to its sustainability report 2017, the company has backed numerous
businesses, financed multiple homes and invested more than $131 million in community based
projects for communities in which they operate. In addition the Bank has also had its employees
volunteer over 113, 000 hours in community based organizations (Australia and New Zealand
Banking Group,2017).

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Secondly, the organization has also offered employment opportunities to more than 250
people from the minority groups including people living with disabilities, refugees Torres Strait
Islanders and Aboriginals. This action according to utilitarian theory is ethical in that it
advocates for the rights of the minorities and seeks to maximize benefits for these under-
represented groups. In addition, the company has improved the financial wellbeing of over half a
million individuals through Saver Plus, Matched Savings program and MoneyMinded Financial
education program. Through these programs, more than 4000 people from low income families
have been able to save over $2 Million (Australia and New Zealand Banking Group,2017).
Through its seeds of Renewal grant program ANZ Bank has played a significant role in
enhancing sustainability and vibrancy among the Australian rural communities. Through this
program the organization has provided grants worth thousands of dollars to chosen community
organizations to support employment and educational programs. In 2017 only its total spending
on these grants amounted to $275,000 used to support 29 projects in different parts of Australia.
Some of the community based organizations and projects supported by its Staff grant foundation
program include a Social service Charity organization named Aviva which supports family
violence victims, majorly women. The organization also plays a role in supporting men to stop
committing violence against women and children. Aviva provides support to more 1500 people
in New Zealand Annually (Australia and New Zealand Banking Group,2017).
Tax compliance is one of the actions by the company that shows it is ethical. The
company is committed to paying taxes fairly. By paying its taxes the company looks forward to
promoting the well being of the community in which it operates. Through its taxes it able to
contribute to the economy in the countries in which it operates and facilitates the government to
provide services and amenities to its populace. In 2017 for example, The Company paid tax

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amounting to $3,415 million globally. The Company has also ensured that its tax disclosure
meets voluntary Tax Transparency code and Australian Board of Tax Requirements(Australia
and New Zealand Banking Group,2017).
The organization also helps communities to recover from emergencies through
emergency relief policy. In 2017 march for example it donated over $100,000 towards the
victims of Tropical Cyclone Debbie (Australia and New Zealand Banking Group,2017).
There are however actions by the bank that can be described as unethical. The
predominant unethical action by the company was pushing off rural farmers who had missed
their mortgage payment deadlines from their properties. The fact that these debt-laden farmers
had been significantly affected by draught and other pressures makes the action of the Bank to
force them off their land unethical (Roberts, 2018).
Conclusion
In conclusion ANZ Bank can be described as an ethical organization. The basis for this
conclusion is on some of the actions demonstrated by the company such as tax transparency,
helping local communities through community based programs, offering employment
opportunities to the minority communities and the disadvantaged in the society. The company
also plays a great role in emergency relief through monetary support policies.

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References
Australia and New Zealand Banking Group (2017). 2017 ANNUAL REPORT. [online]
Shareholder.anz.com. Available at:
http://shareholder.anz.com/sites/default/files/2017_anz_annual_report.pdf [Accessed 9 Nov.
2018].
Asrar-ul-Haq, M., Kuchinke, K.P. and Iqbal, A., 2017. The relationship between corporate social
responsibility, job satisfaction, and organizational commitment: Case of Pakistani higher
education. Journal of Cleaner Production, 142, pp.2352-2363.
Roberts, G. (2018). ANZ admits acting unethically when dealing with farmers. ABC News. [online]
Available at: https://www.abc.net.au/radio/programs/pm/anz-admits-acting-unethically-when-dealing-with-
farmers/9912188 [Accessed 10 Nov. 2018].
Robertson, D.C., 2017. Business ethics across cultures. The Blackwell Handbook of Cross
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Cultural Management, pp.361-392.
Stewart, A., 2017. Corporate reporting-it's time to tell the whole story. Equity, 31(10), p.17.
Valentinov, V., 2017. The Rawlsian critique of utilitarianism: A Luhmannian
interpretation. Journal of business ethics, 142(1), pp.25-35.

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