Holmes Institute HC1062: ANZ Bank Ethical Management Problem Report

This report examines the ethical issues faced by ANZ Bank, focusing on a management problem stemming from poor management practices and unethical conduct. The assignment identifies a specific case where the bank allegedly forced an elderly customer off their farm despite no missed mortgage payments, and explores the bank's unfair property valuation due to natural disasters. The report employs positivism and an explanatory design to understand the relationship between factors contributing to the ethical issues. It reviews relevant literature and applies the ICAEW framework to analyze the issues, offering recommendations for addressing them. The report aims to identify the degree of deviation from the bank's code of conduct and the reasons behind such non-compliance, providing a comprehensive analysis of the ethical challenges faced by ANZ Bank and suggesting potential solutions.

Organizational Ethics

The term ethical dilemma or issues relate to a
situation in which the organization is required
to take a decision between alternatives
depending upon their moral values and it is
difficult to select any one alternative because
choosing one means overlooking the other and
the opportunity provided by the others (Biller-
Andorno and Capron 2016).
Introduction and Company background

 The company chosen for the purpose of this
study is the ANZ Bank of Australia that is
engaged in providing various financial and
banking services to other its customers and
had the mission of caring for customers,
community and to reduce the impact on the
community and others (Crane, Matten and
Spence 2019).
 The main aim of the paper is to discuss
about the management problem faced by
the company chosen for the purpose of the
study and provide various recommendations
for the same purpose.

 The present management problem being
faced by the company ANZ bank is that of
ethical issues due to poor management and
unethical practices carried out by the bank
for the same purpose
 The bank failed to adhere or comply with
their own codes of conduct in the dealing.
Identification of a management problem

 The company asked 87 year old customer to
leave their farm although they had not miss
any repayment on the mortgage loan taken
by them.
 They were forcefully asked by the bank to
leave the farm due to failure of repayment
according to the bank.
 the customer also had a complaint against
the bank that they unfairly devalued the
property occupied by the family because of
various natural disasters such as drought
affecting that area

 To examine the degree of deviation from the
code of conduct of the organization
 To identify the reasons for such non-
compliance?
Research questions

 In this research paper the positivism will be used
such that it is based on the analysis of facts
gathered through data collection methods.
 The explanatory design is aimed at understanding
the relationship between two main factors and
therefore it will be used for the purpose of
understanding all the concepts and theories that
are relevant with the purpose of the study.
Designing program

 Ethical issues of companies refers to all those
dilemmas that includes a choice between different
alternatives of the organization and decisions are
taken on the basis of moral values of the company
and its code of conduct.
 According to the Deontological theory of ethics,
people need to adhere to all their obligations and
responsibilities when taking certain decisions
related to ethical issues.
Literature review

 It has been found from the findings that the
company under study had carried out
unethical activities against its rural
customers and that negatively affected the
image and goodwill of the company in front
of its stakeholders and the general public
Analysis of the findings

 ICAEW framework provides the guidelines for
dealing with ethical issues (Ferrell 2016).
 According to the framework, in order to solve
the ethical issues it is necessary to- the
company needs to identify the issues it is
presently being faced with and try to gather
necessary information relating to the same.
Identification of alternatives and recommendations bout
the same

 Biller-Andorno, N. and Capron, A.M., 2016. Ethical issues in
governing biobanks: global perspectives. Routledge.
 Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate
social responsibility: Readings and cases in a global context.
Routledge.
 Crane, A., Matten, D., Glozer, S. and Spence, L., 2019. Business
ethics: Managing corporate citizenship and sustainability in the
age of globalization. Oxford University Press.
 Ferrell, O.C., 2016. A framework for understanding
organizational ethics. In Business ethics: New challenges for
business schools and corporate leaders (pp. 15-29). Routledge.
References