Report: Code of Conduct, Commonwealth Bank of Australia (CBA)

This report provides a detailed analysis of the Commonwealth Bank of Australia's Code of Conduct. It examines crucial aspects such as discrimination, exploitation, corruption, dishonest and fraudulent behavior, and whistleblower protections. The report delves into specific examples within the bank, highlighting instances of discrimination based on age and disability, exploitation of female employees, corruption involving bribery and unethical practices, and fraudulent behavior leading to the leakage of confidential information. Furthermore, the report explores the importance of whistleblower protections, using the case of Jeff Morris as an illustration. The report emphasizes the significance of creating and enforcing a robust code of conduct to maintain ethical standards, protect employees, and uphold the bank's reputation in the financial market.

Project feasibility study and
timeline

Table of Contents
A Code of Conduct for the Commonwealth Bank of Australia ......................................................1
Discrimination.............................................................................................................................1
Exploitation.................................................................................................................................2
Corruption...................................................................................................................................3
Dishonest and Fraudulent Behaviour..........................................................................................4
Whistle-blower Protections.........................................................................................................4
Enforcement................................................................................................................................5
REFERENCES................................................................................................................................6

A Code of Conduct for the Commonwealth Bank of Australia
A code of conduct is also defined as a code of ethics; which is a written set of principles
that typically works in conjunction with a firm's mission statement to clearly analyse the
expectations in regards to the potential behaviour (Blum, 2013). The Commonwealth Bank is an
Australian multinational Bank, which has its various business operations across New Zealand,
Asia, The United States and United Kingdom. The company deals in variety of financial services
involving retail, business and institutional banking funds management, insurance, investment,
superannuations and broking services. As a largest Australian bank, it is essential for The
Commonwealth Bank for Australia to design some code of conduct for managing the operations
of firm within the market place. Some important elements which needs to be addressed by the
Commonwealth Bank for Australia are described as below:
Discrimination
This can be considered as the most essential issue which has a direct or indirect influence
on the operations of the firm (Burke, 2013). Discrimination can be done on the basis of age,
gender, colour, convictions etc. In Australia, it is unlawful to discriminate people on the basis of
various protected elements which involves age, disability, race, sex, intersex status, gender
identity and sexual orientation in specified area of public life involving education and
employment .
These laws and policies are created by the Australian Government departments and
agencies like Age Discrimination Act 2004, Australian human rights commission Act 1986,
disability Discrmination Act 1992, Racial Discrimination Act 1975 and Sex Discrimination Act
1984 etc., thus these acts are needs to be implemented by each business firm as to save the rights
of people who are discriminated by the firm on the basis of their age, gender, colour, race, status
etc (Winkler and et. al., 2011). As a large Australian Bank, it is essential for the Commonwealth
Bank to create some code of conduct as to address the issue which are related with age, gender,
race and colour. For example: One of the Asian banker, who is working in the Commonwealth
Bank from last five years and all of sudden he is fired due to the reason of his physical disability
as he was suffering from the issue of leg fracture and was not able to walk only; and the
company took advantage of the situation and replaced by a 23 years old Australian banker. This
was not right and the Asian Banker wants to sue the Commonwealth Bank of Australia for
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disability discrimination over claims he was pushed out by an Australian man who was junior
than him. This may cause various issues for the bank likewise bank has to spend a huge amount
in the court hearings, this may also create a bad image in the mindset of people (Deen, 2013). So
as to addressing such kind of issues, bank needs to create some code of conduct which are
effective in providing benefits to the employees who are having some minor issue and replaced
by the bank.
The higher authority of Commonwealth Bank creates a code of conduct which is
effective for addressing the issue of discrimination that are taken place within the bank. At the
time of making employment contract, employer must ensure their employees that any case of
disability among employees during employment will not lead to replace them and adequate
compensation will be provided, so that employees feel secure about their job. This code of
conduct is effective in providing safety to the employees as they are being discriminated by the
reason of their age, gender, race, status, disability etc.
Exploitation
It is considered as an action or treating someone unfairly in respect to benefit through
their work. This defines as the major issue which has direct influence on the operations of the
firm. When an organization strives for exploitation, there is a tendency towards greater cognitive
state and greater speed, nearness and clarity of activities (Rigg, 2012). This suggests that less
effort is allocated to revolutionary innovations and over the medium to long term this may be an
element influencing trends for obsolescence of organizational knowledge . Explicit knowledge is
more present in exploitation, and there is an idea of continuity, routine, standards and repetition.
Exploitation is a serious issue which needs to be resolved in respect to creating an
effective environment for organisational employees (Waddell and et. al., 2014). For Example: In
the banking sector, the issue of exploitation is majorly faced by the female employees as the
higher authority and managers are sexually harass their female employees and bond them to stay
after office hours. In the Commonwealth Bank various young female staff members are facing
the issue of exploitation as they are being harassed by their managers or supervisors. It is
essential for the employees who are being exploited to take a legal action against the
organisation or its management who are taking wrong use of their power(Devlin and et. al.,
2011). As a largest financial organisation, it is necessary for Commonwealth Bank to create a
code of conduct so as to assure about the safety of employees especially female employees in
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terms of exploitation. The bank or its management create a code of conduct in which it is
required for the bank to form a committee which comprises the majority of female executives
and some of them would be higher authority, if any kind of complaint is registered by any
employee than a corrective action is taken by the committee and considered the persona as a
suspect of doing sexual harassment with any female worker at work place then appropriate action
would be taken by such committee against that suspect after having complaint by such victim.
The code is beneficial for the female employees as they are having the right to take actions
against the person who are exploit them. Bank and its employees need to be aware about the
basic rules of administration like working hours, pressure of work, sexual harassment etc. in
order to making their own self secure from any kind of exploitation.
Corruption
Combating corruption in the financial sector is considered as a central concern of law
enforcement agencies, central banks and financial regulators (Giezen, 2012). Probability in the
conduct of business by banks is critical, given that they deal with public money; since they are
financed by deposits of small savers and their equity is owned by the retail investors, either
significantly on the stock market or collected from institutional investors, like as insurance
companies, mutual funds and pension funds (Nimri and et. al., 2012). The government of
Australia has created some legal laws and rules which are effective in providing justice to the
people who are being corrupted by any bank or financial sectors (Harrison and Lock, 2017). It is
also essential for the bank to make their staff familiar with the policies which needs to be
followed by them in respect to maintain the decorum of the firm. Commonwealth Bank is a
largest Australian bank, which has various operations in different geographical areas. In the past
decades, this Bank has faced various issues due to corruption which is related to massive breach
of money laundering laws. For example: In the Commonwealth Bank corruption is the major
issue which has a huge influence on the activities of the bank. In Commonwealth Bank it has
been seen that the lower division employees are bribe the higher authority to promote them
directly on a higher and profitable position at the place of capable candidate. The bank
employees are providing monetary and non monetary benefits to their managers and higher
authority as to higher their family members, friends etc. at the place of capable candidates. This
is the major issue which has a direct influence on the employees as well as the organisational
activities. In regards to resolving such kind of issues, the bank should create an effective policy
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which is suitable for avoiding such kind of corruption. The Commonwealth Bank needs to create
a code of conduct in which it is restricted for the employees to give some momentary or non
momentary gifts to their higher authority or manager, if in any case it is being founded then the
bank will terminate the employees who are unethically doing their work and take a higher
position on the basis of the power of money(Masten and Tellegen, 2012).
Dishonest and Fraudulent Behaviour
Dishonest and Fraudulent Behaviour are considered as the most essential issue which has
a direct influence on the culture of the firm . Previously, the Commonwealth Bank faced various
kind of issues related with Dishonest and Fraudulent behaviour. For example: In the banking
sector dishonest and fraudulent are some common issue which has a direct influence on
activities, operations and image of the firm. In the banking sector, there are various information
which are confidential in nature and these are only shared among higher authority and
management of the firm. In such kind of meetings highly trustable employees are involved. In
Commonwealth bank confidential informations are convicted by some fraud employees who are,
dishonestly providing benefits to the other concerns in regards to earning more monetary benefits
or other advantages through leaking the information about the confidential plans of firm.
In respect to resolving the issue of Fraudulent and dishonest, the Commonwealth Bank
created some rules and norms for the people who are using their power in wrong manner like
conduct some fraudulent aspects (Heldman, 2018). The bank create a code of conduct in which
it would counteract these fraudulent and dishonest misconduct by way of inserting clauses
related to the undisclosed price sensitive information. Company needs to be aware about the miss
lead of their operations in respect to maintaining an effective and reputed position within the
marketplace.
Whistle-blower Protections
In this act, a person is not allowed to receive legal advice from a legal practitioner in
relation to a whistle-blower revelation, without having to first change the whistle blower's
consent (Ho, Liew and Lu, 2014). Reverse concern of proof is the main unsolved issues of
whistle blower protection . It is not subjected to a defence of reasonable management action in
commonwealth bank. For example: In commonwealth bank, Jeff Morris was working as a
financial planner who noticed that various kinds of corrupt practices were going on like the bank
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made crooked plans stitching up literally widows and orphans and the retired people as well. He
noticed that these activities are needs to be continue and no one in the firm will speak about it.
So, he acted as a whistle-blower in this situation and highlighted this situation in public which
led to the first parliamentary enquiry. In one case two retirees had reviewed a CBA financial
planner, but half a million dollars of their retirement portfolio had been "vaporised". As he gives
his statement that they could not get any straight reply out of the planner and even they also
could not get any answer from the manager at the CBA. And the individuals who were meant to
deal with this complaint were trying to fob them off. This is the reason Mr Morris realised that
the bank was going to do this to all these people and as an individual they are even not able to
stand a chance, unless people on the inside did some efforts about the cover up which was going
on. The cost of protection extended to the applicant just to be protracted towards communicator
so there is not any situation arises in regards to cross grained action field and in other to reduce
the risk of a development of unworthy claims (Khatiwada and et. al., 2012). There are many
cases of frauds in commonwealth Bank that's because of the reason of not following the Whistle-
blower Protections act. The bank has faced many problems and the major requirements of the
firm is to resolve the above-mentioned issues in whistle blower protection act.
Enforcement
This is also considered as the most essential issue which needs to be resolved by
organisations in order to attain higher growth and development. In the financial industry, growth
is the fundamental aspect of business and it is the prior responsibility of the firm to create some
norms and policies which are effective for conducing the business operations in effective
manner(Ku and Dulin, 2012). Enforceable issues are a controversial Australian invention to
punish corporate wrongdoers without regulators taking the expensive court of action. For
example: In the Commonwealth Bank employees are enforced by the higher authority or
managers. In the bank some employees are not follow the rules and regulation and misusing their
power. If someone is not adhering rules and regulations, which are applied to a bank, then strict
action would be taken by the organisation in order to implement such rules and regulations. So
that nothing can be left out by the bank. Bank is required to from a policy by which no one
would be allow to breach their duty at work place.
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