Ethical Culture Improvement Strategies for Aussie Home Loans - MGT202

This report provides a comprehensive analysis of Aussie Home Loans, focusing on strategies to improve its ethical culture. It begins with an introduction and company background, followed by an exploration of learning organization processes, including structural roles and relevant models. The report then analyzes ethical issues within the company and examines past ethical scandals. It identifies existing barriers to organizational learning at Aussie Home Loans and proposes recommendations, including a detailed ethical training plan with needs analysis, design, implementation, and evaluation. The report also covers corporate social responsibility programs and concludes with a summary of key findings. The report is well-structured and supported by academic references, fulfilling the requirements of the MGT202 assignment brief.

STRATEGIES OF
IMPROVING ETHICAL
CULTURE IN AUSSIE HOME
LOANS

TABLE OF CONTENTS
■ 1.0 INTRODUCTION
■ 1.1 Company background
■ 2.0 learning organisation process
■ 2.1 Structure roles related to organisation learning
■ 2.2 Application for relevant LO models.
■ 3.0 Analysis of ethical issue
■ 4.0 Repeated ethical scandals
■ 5.0 Analysis of existing barriers to organizational learning at the Aussie home loans.
■ 6.0 Recommendation to Aussie home to become an ethical learning organization (Ethical training planning)
■ 6.1 Need analysis
■ 6.2 Designing ethical training plan
■ 6.3 Implementation
■ 6.4 Evaluation
■ 7.0 Corporate social responsibility programmer
■ 8.0 Conclusion
■ REFERENCES

1.0 INTRODUCTION
■ Ethical culture promotes ethical behaviour among the member of the enterprise. Hence,
the entity with strong culture has values and standards that needs to be clearly defined
and understood by their maximum number of members. Ethical culture within the
enterprise can be improved with the help of effective strategies and code of conducts.
■ The present report is based on the business activities of Aussie and it deals in Australian
retail financial services group.
■ Furthermore, Assignment will cover the strategies that aids to bring improvement in
ethical culture in Aussie home loans. Lastly, recommendation will be given on Aussie
home loans to become the ethical learning organisation.

1.1 Company background
■ Aussie is an Australian retail financial service group. Hence, its operation spanning all
mainland capital cities and major regional centres throughout the Australia.
■ It is private company and engaged in the services as home loans, Mortgage broking,
personal loans, credit cards and Insurance.
■ Therefore, this firm is having the unique approach to the home loans and allow them to
offer loan upwards of 3% cheaper than its competitors.
■ Hence, commonwealth bank has acquired 33% stake in Aussie.

2.0 LEARNING ORGANISATION
PROCESS
■ Learning is one of crucial phenomenon and it is important to business executive at the
worldwide level.
■ This is inclusive of CFOs, as they adapt to the disruptive change that is sweeping
through the corporate learning and development organisation.
■ Hence, it is process that defined as creating, retaining and transferring knowledge within
enterprise.
■ Therefore, the most common way to measure organisational learning is the learning
curve.

2.1 Structure roles related to organisation
learning
Organisation structure termed out as system that aids to explain hierarchy within an
enterprise. Hence, structure is need to be developed in order to establish enterprise
operates working. Thus, its defined in following manner as-
■ Functional- It is based on term that organise being divided up into the smaller groups
with particular task. Each department has manager and director who supervise the all
working within the enterprise.
■ Divisional- Larger enterprise that operates across the several horizontal objectives may
have the use of divisional structure. It is the structure that allows large autonomy among
the groups.

CONTI……..
■ Matrix- It is defined as hybrid organisational stricture, this is matrix structure and it is
blend of the functional structure and the projected structure.
■ Flatarchy- The structure of the enterprise aids to conduct the activities effectively. This
is helpful process that allows taking proper decision within the enterprise. It determines
the vertical appearance of a hierarchy.

2.2 Application for relevant LO models.
■ As per the senge's five disciplines of the learning organization defines that how
enterprise takes initiatives to manage the success and development. Hence, it has
defined the five disciplines of learning organization as-
■ Building a shared vision- In learning enterprise, the vision to the enterprise must be
created with the help of interaction with employees in enterprise. In addition to it, this
aids to defined that creation of shared vision is by compromising the organization and
individual vision.

CONTI……..
■ System thinking- It is thinking that reflects the
observational process of the entire system. Hence,
managers needs to understand the each action and
consequence correlated with another. Aussie need to
adopt it as it enable to see the interrelation and patterns
of change in particular situation. With help of it,
manager can able to determine the cause and effect.
■ Mental models- As per the Peter Senge employees to
the enterprise must identify the value of the firm.
Hence, the enterprise needs to be flexible in respect to
accepting the changes to the new mental models and to
build new image of the enterprise. Therefore, to be the
most successful firm Aussie must learn and adapt to
the new models to become faster than its competitors.
■ Team learning- To achieve the excellent functional team
dynamics, the primary importance is need to be given on
the learning of the team. This is very crucial for
workforce to consider its colleagues as team member
instead of rivals. Hence, working environment must be
safe so that honest mistake can be forgiven.
■ Personal mastery- It is mainly occurs when an
individual has clear vision of the goal and it combined
with the accurate perception of reality. Hence, the gap
between the vision and reality aids to drive the employee
to practice all crucial activities to the realize the vision.
Therefore, by providing training to the subconscious
mind can help to handle complex problems.

3.0 Analysis of ethical issue
■ It is systematic approach that aids to figuring out right moral decision in particular
situation.
■ Thus, it can be stated that the ethics and fair leading are the two crucial issues that helps
to cope up with mortgage career.
■ By analysing the situation logically as per the ethical code the things can be figure out
in both terms effective and morale.
■ Therefore, it is designed to assist with issues management. It is very helpful to
professionals as it aids to make correct decision in the process of management in order
to avoid the ethical problem and crises.
■ Thus, honesty and integrity are the two heart of ethical behaviours.

CONTI……..
Thus, ethics in the home loan industry seems to be the complex issue but it has to be build
on the basis of following points as-
■ Treat everyone at equal level.
■ Be honest
■ Give the full disclosure
■ Do not take the advantage of the people
■ Keeping up the good documentation.

4.0 Repeated ethical scandals
■ The credit rating firm Equifax makes their profitability form selling personal and
sensitive information to financial institution and lenders.
■ In the month of the September, it has been disclosed that at the centre of one of the
worst data breaches in history.
■ After this information, about 145 million people has made compromised.
■ Therefore, the chief information officer and chief executive officer was aware of the
system flaw that the hackers under it has taken the advantage till the month of the
march.
■ Hence, hack did happen and firm waited a full two before disclosing it.

CONTI……..
■ However, the justice department has looked into the top Equifex executives that
committed the insider trading with selling of shares of $1.8 billion just before the breach
was disclosed.
■ Australia bankers have attempted to address the community over repeated scandals by
rewriting their code of conducts.
■ Thus, changes in existing Australian banking association code of conduct followed the
demand from the corporate regulator.

5.0 Analysis of existing barriers to
organisational learning at the Aussie
home loans.
Organizational learning plays crucial role in terms to bring effective working at the
enterprise, However, barriers of organizational learning in Aussie home loans defined in
following manner as-
■ Resistance to change- It is one of the common barrier, Generally people do not accept
the changes easily. In order to have advancement in working, it is crucial to accept the
changes. Thus, changes in dynamic markets, use of techniques, knowledge and
processes needs to be keep up.
■ Leadership development- It is critical to the organizational learning. Therefore, the
process as communication, change management, support skills requires in providing
better learning to individuals.

CONTI……..
■ Disregard of team success- In order to enhance employee engagement in learning
process it is important to fit in with individual personal goals. Therefore, the things
needs to be understand that how new skills, processes and system enables to perform
better.
■ No motivation for growth- Employees to the Aussie home loans do not feel motivated
and it is one of the major barrier that barricades the growth of enterprise. In order to
overcome it, this is crucial to motivate the employees to learn and grow.
■ Short term focus- Enterprise needs to focus over to solve the short term problems that
aids to focused on long term vision of the business. In order to solve this issue, the
employees within the enterprise needs to encouraged and offer learning opportunities.

6.0 Recommendation to Aussie home to
become an ethical learning
organization (Ethical training
planning)■ Recommendation to improve ethical performance-
■ To develop a code and make ethical performance a strategic priority. Therefore, relevant
code of ethics set the clear standards, objectives and expectation is the key requirement
for ethical performance.
■ Senior management team should show leadership and they focus over ethical values.
Employees to the enterprise get in step an ensures the whole enterprise to achieve
success.

CONTI……..
■ To engage staff and other stakeholders such as suppliers, investors, consumer
communities through effective and informative communication.
■ Enterprise needs to develop clear routes for reporting suspected fraud and violation of
firm policies on the ethical behavior.
■ To ensure the best practice, enterprise needs to measure the ethical performance of the
employees and to foster open discussion.

6.2 Designing ethical training plan
Aussie homes loans should focus over providing continuous training and development is
the key to ensure managers and to guide the employees about the change and efforts of
learning effectively. Hence, ethical training plan will be framed as-
■ Make it specific
■ Make this two way conversation process
■ Make it interactive
■ Make it memorable and situational
■ Make it relatable
■ Reinforce
■ Repeat

6.3 Implementation
This has to be implement successfully as it aids to firm to promote awareness to the ethical
practices in the company. Hence, ethical programs boost morale of employees to
maintain positive culture. Thus, process of implementation as-
■ Root the code in core values such as trust and integrity
■ Give the copy of rules to each staff
■ Provide beaches in confidential manner.
■ To include ethical issues in corporate training programs.
■ To set up the board committees to monitor the effectiveness of code.

6.4 Evaluation
It will be done on the following basis as-
■ Informed consent.
■ Voluntary participation.
■ Do no harm.
■ Confidentiality.
■ Anonymity.
■ Only assess relevant components.

7.0 Corporate social responsibility
programmes
Corporate social responsibility termed out as specific theory affirms that working of entity
relates with economic, legal, ethical and obligations. It allows firms to demonstrate the
values, engaged their employees and communicate with the public About they operate.
Thus, the three kind of corporate social responsibility as-
■ Environmental sustainability initiatives
■ Ethical business practices
■ To focus on economic responsibility.

8.0 Conclusion
■ Hereby, it can be concluded that ethical culture promotes ethical behaviour among the
enterprise and aids to build strong culture and standards. Therefore, report has covered
the business activities of Aussie home loans.
■ Thus, it has covered the activities as learning organization models, structure of
organization learning and design ethical practices to promote positive culture.

REFERENCE
■ Hiekkataipale, M.M. and Lämsä, A.M., 2019. (A) moral Agents in Organisations? The
Significance of Ethical Organisation Culture for Middle Managers’ Exercise of Moral
Agency in Ethical Problems. Journal of Business Ethics. 155(1). pp.147-161.
■ Kangas, M and et.al., 2018. Why do managers leave their organization? Investigating
the role of ethical organizational culture in managerial turnover. Journal of Business
Ethics. 153(3). pp.707-723.
■ Mitonga-Monga, J., 2018. Perceived ethical behaviour of leaders in relation to
employees’ job satisfaction in a railway organisation in a developing-country
setting. Journal of Contemporary Management. 15(1). pp.447-466.
■ McSherry, R. and Pearce, P., 2018. Measuring health care workers’ perceptions of what
constitutes a compassionate organisation culture and working environment: Findings
from a quantitative feasibility survey. Journal of nursing management. 26(2). pp.127-
139.
■

THANK YOU!