Ethical Issues and Decision-Making in Australian Business Sector

This essay provides an in-depth analysis of ethical issues within the Australian banking and insurance sectors. It begins by identifying key issues, such as customer complaints related to misleading practices and systemic problems within financial institutions. The essay then explores the decision-...Read More

ETHICS INDIVIDUAL
ESSAY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Issues raised from ethical perspective..........................................................................................1
Decision making process in relation to ethical issues..................................................................2
Ethical moral philosophies...........................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Ethics define as moral code or philosophy of morals practiced by group of people or
individual. Code of situation set by business is one of the example of ethics, it is a program of
moral values and branch of philosophy which specify what is better for society and individual.
Ethics play important role in business, it concerns person moral decision about wrong and write
(Crane and Matten, 2016). The present essay is based on article in context of business problem
within Australia, this essay clarifies issues raised from ethical perspective. It explains ethical
moral philosophies that applied to consequences/ actions. This essay justifies decision making
process in relation to ethical issues and also explain individual ethical judgment.
TASK
Issues raised from ethical perspective
Ethics in business is one of the most essential part of businesses, business ethics is set of
correct business practices and policies regrading potentially controversial problems such as
insider trading, corporate governance, discrimination, fiduciary responsibilities, corporate social
responsibility etc. Ethic create company reputation in market, if any organization follow ethical
principles in their business structure, it helps to build good market reputation or image, which is
very important for business development and growth.
Business ethics issue within Australia-
In Australia Federal government build three complaints bodies, Australian Financial
Complaints Authority is one of them. AFCA work for people they understand their issues and try
to solve it, just to make them happy and satisfy. From first five months of operations Australian
financial complaint's authority received more than 30,000 customer complaints in context of
fraud, mislead, systemic issues against insurers and banks (Shaw, 2016). In Melbourne
headquarter authority receive 600 phone calls the day regarding mislead by insurers about
policies and others things. In Australia many people feel that banks and insurers cannot provide
good services which influence on people life the most. Agency try to deal with aggrieved
customers and understand their issues just to solve is as soon as possible. Many people have
financial dispute that will incredibly difficult to face and stressful. They found that many
individual complaints against banking process, they are not feeling happy and satisfied with its
services or products. Complaint's increase more than 43% which is quite difficult to handle, but
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authority can deal with consumer grievances about financial services organization. Name and
shame are the two main issues that can be grow concern for companies.
In first issue insurers and bank does not provide good facilities to its customers which
make them unhappy and unsatisfied. Consumer placed their complaints against them and want to
resolve it. Second issues is related to system or program of banking that also is one of the
another business ethical issue (Michaelson and et.al., 2014). To solve the problems Australian
Financial Complaint's Authority try hard and find out the reason behind raised issues which
helps a lot to resolve. Insurers mislead about products and give inappropriate advice, they not
follow ethical codes in their business or working styles which create many difficulties for
Australian banks and insurers. Due to above issues businesses reputation will get lower and its
also affect on its profit margin, market reputation, financial budgets etc. Trust is one of the most
essential thing which need to be build or develop by any organization between its customers. But
if firms cannot follow the ethical principles and does not build good relationship with consumer
it directly impacts on their business growth and success.
Decision making process in relation to ethical issues
As discussed above in Australia people complaints against bank and insurers poor
services and misleading style, they also complaint to Australian financial complaint authority for
systemic issues in procedure of banking which makes them unhappy and unsatisfied. More over
issues in business is related to process, misleading advice and misleading products.
Decision making process in context of ethical issues-
Issue 1
These issues get affect bank and insurers profit margin and market reputation, they need
to take their decision for the purpose of improving their system and services structure as whole.
They have to take actions against customers complaints and try to solve it and understand why its
has been raise more and more (Johnson and Schaltegger, 2016). According to me Bank wants to
satisfy its consumers, they have to provide all the services to people which is meet with its
expectations. They can implement new and advance technologies in business that helps to run
banking process easily. They need to hire the most talented staff members who provide all the
basic information to customers in context of banking procedure which helps to make them happy
and satisfied via getting all the good services.
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Issue 2
Insurers is a person or organization that contracts to cover other in event of damage or
loss. They are interests to protect people by provide insurance policies in context of life, property
loss, health etc. In Australia many people complaints against insurers, they feel that insurers
misleading them and does not provide good services. Thus, to solve the issues according to me
insurers have to make some changes in their process and follow the ethical principles which refer
to treat customers appropriately without any faults. They need to give appropriate information to
consumers regarding insurance policies which helps to understand the whole.
Individual decision making process-
As working in Australian bank individual take their decision against ethical issues which
has been considered by customers in their services and products (Vitell, 2015). They can identify
the reason behind problems that make people unhappy, individual try to understand it with the
help of communication that is one of the best way to solve the issues. According to me staff in
bank will guide people perfectly, they can communicate with customers and discussed to its
higher authority about it which support to resolve problems.
As a worker in company they can find out the best ways to evaluate customers problems
which is very beneficial for business growth and success. With the help of understanding
customers needs they can provide services or information about insurance procedure properly.
Ethical moral philosophies
Three principal ethical philosophies that can be applied or used to analyze situation or to
actions, there are the golden rule, veil of ignorance and categorical imperative. Moral or ethical
philosophies is set of philosophy that includes defending, systematizing and recommending
concepts of wrong and rights conduct.
Golden rule, Ethic of reciprocity or golden rules teaches people who are working in any
organization to love and care their colleges. Staff need to give respect to another people or
individual in workplace, they have to take care about their feelings, show some respect to its
culture and beliefs which is one of the best ways to build strong team or group of peoples.
According to this philosophy, staff have to avoid doing what they blame another for doing. They
need to help each of the members in their work and try to make them comfortable at workplace.
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Veil of ignorance, is one of the second ethical philosophy, that considered all individual
are equal as if each person were wearing the veil so that attributes as gender, age, ethnicity etc
will not be determined (Kolk, 2016). According to this philosophy organization must treat their
workers or staff members equally without making any differences based on age, gender, culture
and so on. They have to treat all of them equal where they placed any position in workplace, it
helps to make them feel happy and satisfied within its job. It considered as one answer to
discrimination and prejudice that is very beneficial for business success and growth in market.
No one is treated unfairly according to veil of ignorance philosophy in companies, they will get
the best services and create positive environment around working areas.
Categorical imperative, it is considered as one of the most essential works in ethical
philosophical history. This concept is has been established by Immanuel Kant which is very
important in philosophies (Lacey and Lamont, 2014). Categorical refers unconditional and
imperative define that concept must be employed without any query, exceptions and extenuating
circumstances. This philosophy applied in business that provide many benefits to company.
According to Categorical imperative ethical philosophy organization must provide good and
appropriate services or products to customers even under most difficult or extreme business
conditions. Firms have to give right or equal services to each of its consumer that helps to build
strong relationship with them.
CONCLUSION
The current essay discuss about business ethical issues within Australia in context of
bank and insurers. It has been concluded poor services and misleading advice of insurers and
system issues will unsatisfied customers the most. This essay discussed about decision making
process of company to solve ethical issues and also discusses individual judgment as they are
working in same organization within Australia. Furthermore, this essay discuss about three types
of ethical philosophies which need to be followed by firms to grow business more and more.
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REFERENCES
Books and Journals
Ali, M., Ng, Y.L. and Kulik, C.T., 2014. Board age and gender diversity: A test of competing
linear and curvilinear predictions. Journal of Business Ethics. 125(3). pp.497-512.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Jennings, M.M., 2014. Business ethics: Case studies and selected readings. Cengage Learning.
Johnson, M.P. and Schaltegger, S., 2016. Two decades of sustainability management tools for
SMEs: how far have we come?. Journal of Small Business Management. 54(2).
pp.481-505.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Lacey, J. and Lamont, J., 2014. Using social contract to inform social licence to operate: an
application in the Australian coal seam gas industry. Journal of Cleaner Production.
84. pp.831-839.
Luppicini, R. and So, A., 2016. A technoethical review of commercial drone use in the context
of governance, ethics, and privacy. Technology in Society. 46. pp.109-119.
Michaelson, C. and et.al., 2014. Meaningful work: Connecting business ethics and organization
studies. Journal of Business Ethics. 121(1). pp.77-90.
Shaw, W.H., 2016. Business ethics: A textbook with cases. Nelson Education.
Vitell, S.J., 2015. A case for consumer social responsibility (CnSR): Including a selected review
of consumer ethics/social responsibility research. Journal of Business Ethics. 130(4).
pp.767-774.
Online
Australian Financial Complaints Authority inundated with claims against banks, insurers.2019.
[Online].Available through:<https://www.abc.net.au/news/2019-05-02/financial-claims-
authority-inundated-with-bank-complaints/11065678?section=business>
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