Decision Making and Problem Solving: CBA Management Dilemma Report

This report examines the management dilemma faced by the Commonwealth Bank of Australia (CBA), focusing on ethical issues within the organization. The report identifies the anti-money laundering case as a key problem, detailing the ethical dilemmas faced by leadership and the aftereffects on the bank's reputation. It explores the lack of disclosure regarding financial risks and the impact on the bank's brand image. The research methodology includes surveys and secondary data analysis from case studies, articles, and government records. The report highlights leadership issues as a core problem and recommends stricter leadership policies, a more proactive approach from financial managers, and improved decision-making procedures. References include academic journals and reports related to leadership, decision-making, and financial management within the context of the CBA's ethical challenges.

DECISION MAKING
AND PROBLEM
SOLVING
NAME OF THE STUDENT
NAME OF THE UNIVERSITY
AUTHOR NOTE

ABOUT THE ORGANIZATION
 One of the top leading banks of Australia, The
Commonwealth Bank, is a bank that provides
several financial businesses
 Managing funds, retail, insurance, premium business, assets,
institutional banking are some examples
 CBA was established under the Commonwealth
Bank Act of 1911 and started its operations in the
year 1912
 800,000 shareholders and 52,000 workers are recently
involved at present with the bank

IDENTIFIED ISSUE
 Ethical issues in accounting as a management problem
has been identified to be researched and discussed here
 There are several examples like anti-money laundering
case related to financial management of the organization
 This has impacted the brand image of the organization at
all the places of its operations

INTRODUCTION
 The chief purpose of this presentation will be to explain
about the management dilemma of Commonwealth Bank
of Australia
 This paper will lay stress on principles of decision
making and problem solving within the organization
 Ethical issues related to accounts will be the key topic to
be discussed in this presentation

ANTI-MONEY LAUNDERING

RESEARCH QUESTION
 What are the ethical dilemmas that the leaders of the
management of the organization have faced in dealing
with the financial assets of the organization?
 What are the causes and details of the anti-money
laundering case that occurred within Commonwealth
Bank of Australia?
 What are the after effects related to ethical issues that is
faced by the organization of Commonwealth Bank of
Australia?

RESEARCH PROGRAM
 The research program will involve the survey which will
be held among the customers
 The people who have suffered or suffering due to the
unethical practices will be considered
 Survey will also involve thorough researches with
involving all the details of the cases
 The details of the accounts of the customers will be
considered
 They are the worst sufferers of this anti-money
laundering cases of Commonwealth Bank of Australia

SOURCES
 The resources in this research program will involve only
the secondary data
 Different case studies, case histories, newspaper articles
related to the unethical practices of management of the
bank will be taken into account
 Various records will be taken from the government
departments of Australia
 Organizational records and databases of the customers
who complained about the unethical practices

ETHICAL DILEMMAS
 There are ethical dilemmas in the leadership as well as
decision making within the organization and its
processes
 The financial planners of the organization who acted
unethically while dealing with various kinds of financial
products of the customers
 There is also lack of disclosure regarding the financial
risks of dealing with the products
 Lack of disclosure was also one of the issues that has
been found

ANTI-MONEY LAUNDERING
CASE
 The Commonwealth Bank has experienced half-yearly
benefits breakdown when it was compelled to set aside a
sum of 375 million dollars as penalty for being accused
for money laundering and financing of terrorism
 The company was prosecuted for 53,700 gaps of Anti-
Money Laundering and Counter-Terrorism Financing
Act 2006 by Austrac, a financial intelligence agency of
Australia (Bajada 2017)
 It has been found that the bank permitted the usage of its
smart deposit machines for money-laundering syndicates

AFTER EFFECTS
 Reputation of the bank was hampered
 some of the executive officers and board members has
been removed
 A plan is suggested to fulfill the recommendations given
by the report
 The bank was asked to submit the remedial
plan of action (Berhe 2014)

ALTERNATIVES
 The major problem which can be identified after
performing the research and analysis of the findings is
the issue in leadership
 Leadership possess a huge impact on the performances
and behaviors of the employees
 It also hampers the workflow of Commonwealth Bank
 Brand value and brand image is also hampered