Ethical Values and Human Dignity in Economic Decisions: A Report

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Ethical values and human dignity in economic decisions
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Contents
Introduction......................................................................................................................................3
Three most important issues............................................................................................................4
Relevant concepts............................................................................................................................5
Critique............................................................................................................................................5
Conclusion.......................................................................................................................................6
References:......................................................................................................................................7
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Introduction
In this report, a discussion will take on the ethical values along with human dignity in economic
decisions. An ethical value means what are the basic values of the individual or group of
individuals and how they will play their role and functions in economic for the purpose of taking
decisions accordingly. According to the ethics, the term value; denotes or indicate the degree of
importance of something in economic with the basic aims of determining which actions and why
actions are best in the decision in economic, while human dignity provides the right to the person
in economic for taking their own decisions as per what they think for their best. In this report, it
also discusses all elements of the economic relating with the main issue in economic and also
highlights the most important concept which is directly affected in economics that is relevant to
the report in order for analyzing and making a decision as per the economic conditions and
situations.
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Three most important issues:
This case study will provide a brief discussion on the report of the Royal Commission which
included into misconducting their powers and laws in economic decisions that harass the general
public laws. The Royal Commission, issues their position and powers that will ultimately affect
their customers in the banking sector and also this will directly affect while taking their decision
in relation to economic. The report includes severs misconducting issue which affects, this report
focus on the three importance issue in banking sector of the Royal Commissions. These issues
are related to risk adjustments related to remuneration, supervision of remuneration while
implementing the facts and laws and disclosure of the fact in reaction to the facts. All these will
discuss one by one in briefly so that it can easily understand what are the facts that included in
these (Alvesson, and Robertson, 2016).
Risk related to remuneration adjustments:
Many problems relating with the remuneration of CEO and group of executives were seen by the
committee in the financial year 2016 which are fixing by the CBA board when it releases its
remuneration report in August 2016. At that time the CBA was facing and knew all of the issues
which are known by the public such issue are anti-money laundering and counter-terrorism
financing, these two were affects economic. There was a change made by the committee 5
percent reduction in the remuneration of the executives. The issue was that the information was
not sufficiently provided by the executive to the board members. The board does not identify
who are the persons who responsible and accountable for the same. In the upcoming year, the
executive members provide all the relevant information to the CBA board regarding the
remuneration. In the same year, the ANZ board cut the remuneration of four executives who are
senior among the group (including CEO remuneration). CBA board reduced 20 percent
remuneration of all the other people in the same group of people.
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Supervision of implementation:
There is mandatory for the board that they were implementing the rules regarding remuneration
in such a way that will encourage the management of non-financial matter and help I reducing
the misconduct within the baking sector. It will help the proper supervision and execution of the
implementation process. The supervision process of APRA has been lacking behind the
regulation of remuneration. Afterward, APRA makes proper supervision process in the
implementation of remuneration by applying APRA regulations with outlines provided by that.
By implementing such regulations in the process, it will require to collect all the information by
the implying framework (Brody, 2018).
Disclosure of the facts:
It is mandatory for all the listed companies that they disclose the information regarding the
remuneration in their yearly reports including all facts regarding remuneration. If the companies
are not disclosing such things in their annual reports then the company is not able to get the
benefit of set off their payments with the past year (Bello, 2018). This will help in disclosing the
company value in the market and help in making economic decisions. If the board takes an
action against the executives because of the management of non-financial risk at a low level, it
will message directly to all other members of the group.
Relevant concepts:
The aim of this study is to evaluate the satisfaction of the staff in relation to remuneration. The
report is totally focused on the concepts of the baking sector for the remuneration in business.
The banking sector is related with accepting the assets of the general public in order to provide
the facility and these assets are used in such a way that they will create a high wealth for the
company by investing in other securities or in offering loans to other who needed. The report is
based on the implementation process and the disclosure of the fact with remuneration. CBA
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board overview on the part of remuneration because they saw that there was a un-authorization
of distributing of remuneration between the staff and the other employee including CEO
(Zalewska, 2016).
Critique
It is a critique that the rules of implementation of remuneration of the CEO and the other group
of members have been reduced by the board of CBA. In the point of view of public, the action
taken by the CBA board regarding the reduces the salary of the staff including company CEO
(chief executive officer) was appreciated because now it will help in understanding the things
that were done in the company earlier, onwards not such mishappening is occurred for the same
in the company. the reason being behind the acceptance of the things done by the board in order
to committee reduce salary of the staff is that, if it is done then the staff including CEO will
never do such things and it learn a lesson in front of all the staff of the company that such
mishappening and misconduct will not be accepted in any case. If this was not taking place then
it will encourage the company staff and they doing the same thing in future which will ultimately
make bad image or reputation in the banking sector and no other banks will ever help like
providing loans facility, giving acceptance on credit and other. From this, it is analyzed that the
action taken for reducing slay is good and never do the same things in the future (Cranston,
2018).
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Conclusion
It is hereby concluded from the case study of the above report that the Royal commission faced
the problem of remuneration and implementation. To conclude the report of the Royal
Commission, it was seen in this that there were three main issues in implementation. Risk
adjustment, supervision and disclosure of the fact regarding the remuneration of the key
personnel including Chief executive officer (CEO) are the main issues that were discussed in
brief in the above for the purpose of clear understanding issues. As per the report of this, it is the
opinion of the general public that action regarding the cut down the remuneration is taken by the
CBA board is in a good manner so that they be able to release their duty and responsibility and
onwards there was no such misconduct is done in future in the company.
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References:
 Alvesson, M. and Robertson, M., 2016. Money matters: Teflonic identity maneuvering in
the investment banking sector. Organization Studies, 37(1), pp.7-34.
 Bello, D., 2018. ENTERPRISE RISK MANAGEMENT AND PERFORMANCE
INCREASE IN THE BANKING SECTOR". SOTTOTITOLO:" Theoretical aspects and
empirical analysis on international banks" (Bachelor's thesis, Università Ca'Foscari
Venezia).
 Brody, G., 2018. When banking eats its customers. Arena Magazine (Fitzroy, Vic), (155),
p.7.
 Cranston, R., 2018. Principles of banking law. Oxford University Press.
 Zalewska, A., 2016. A new look at regulating bankers’ remuneration. Corporate
Governance: An International Review, 24(3), pp.322-333.
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