Governance, Ethics, and Sustainability: A Westpac Bank Case Study

This report provides an in-depth analysis of Westpac Bank's code of ethics, examining critical areas such as discrimination, exploitation, corruption, dishonesty, and fraudulent behavior. The report highlights the bank's commitment to ethical practices and its efforts to build trust and loyalty among customers. It discusses the importance of avoiding discrimination and providing equal opportunities, as well as the need to address issues of exploitation and corruption. The report also explores the bank's enforcement mechanisms, including whistleblower protection and adherence to regulatory standards. The report concludes by emphasizing the significance of maintaining integrity and a strong reputation in the market through a robust code of ethics and sustainable practices. The report also delves into Westpac's handling of cases related to child trafficking, fraudulent activities, and the importance of transparency and accountability.

GOVERNANCE, ETHICS AND SUSTAINABILITY

Contents
INTRODUCTION.................................................................................................................................3
CODE OF ETHICS FOR WESTPAC BANK.......................................................................................3
CONCLUSION.....................................................................................................................................6
REFERENCES......................................................................................................................................7

INTRODUCTION
Code of ethics refers to the set of principles or values which had to undertake by the
organization during the time of decision making. The main reason of carrying this ethics is
that they provide positive environment to the member to behave ethically at work place
(Yates and Tania, 2019). Present report is based upon the Westpac banking corporation
which is founded in 1817 and also located in 1,204. It is examined that the bank is covered
with 35,029 employees undertaking the business at worldwide. In this report, the code of
ethic is discussed in the form of discrimination, exploitation, corruption, dishonesty and
fraudulent behavior and enforcement during undertaking any activity.
CODE OF ETHICS FOR WESTPAC BANK
Discrimination: It refers to differentiating person on the bases of caste, sex, culture, region
and religion. Usually companies adapt the procedure of discrimination in respect of giving
individual the priority to bring innovative ideas and creative thoughts at work place. But due
to changes in time, it is necessary to avoid discrimination, so that they can enhance the strong
link between the employer and employee at work premises (Amor‐Esteban, Galindo‐
Villardón and García‐Sánchez, 2020). In case of Westpac bank, it is stipulated that the banks
major focus is on building trust and loyalty among the customer to invest the money in their
banks. Thus, values and belief is to be maintained in respect of treating every person equally
and also equivalent opportunity is given to them to share their ideas and views with the
banks.
In this, they carry the tagline regarding working as a team and achieve the target
within the set time period. As they promoted that they carry the interest of the person at work
place regarding respecting each other values and culture and also giving them equivalent
opportunity to present their thoughts (Bos, Contreras and Kleimeier, 2016). Usually leaders
adapts the participative leadership style in which they take reviews from the customer
regarding the ideas which is to be stipulated. In respect of reviewing the article, it is
stipulated that they hand over the duty to the Australian Prudential Regulation authority in
which they focus to recruit the person across the global. Through this manner, they are
contributing some amount of revenue in respect of providing employment opportunity to the
backward people (Bross, Houdart and Tripathi, 2018). Thus, through this aspects, the issues
of discrimination is avoided in respect of recruiting the person to work in the Westpac banks
for longer way. It also helps in building the team work through guiding them and instructing
them to attain the task as per the set instruction.
Exploitation: It indicates the action which is undertaken by the organization regarding
attaining any task which is unfair and also resulting in bringing benefits to such person in
respect of providing losses to others. The image of Westpac is affected regarding not giving
proper advice to the customer regarding investing in particular projects or also forcing them
to invest in such project to gain extra benefits (Brown, 2018). The data also presented that
they are forging the loan document in respect of using it for personal purpose. It is recorded
that the bank already deal in around 24 cases which results in imposing allegation upon
conducting the bad behavior with the customers. The matters which is mainly recognized by
Australia financial Intelligence agency is that Westpac failed to meet the obligation

mentioned under the anti – money laundering and also dealing in counter terror financing in
respect of child trafficking.
Thus, the code of ethics is to be mentioned in respect of not working under the
personal profits instead of focusing to improve the condition of people through providing
accurate guidance. Thus, in respect of managing the working in better way, they started
giving free legal advices to their customer regarding investing in particular projects or also
spending dollar in updating the IT systems (De Koker, Singh and Capal, 2017). Ethic under
the perspective of exploitation refers to providing more scheme and bonus to their customer
so that they retained their interest towards the banks for longer way. By imposing fines also
results in reducing the issues of exploitation at work places and help banks to work in the set
directions.
Corruption: The factors of corruption resulting in giving fraud detailed to the person in
respect of investing in particular projects. Usually it stated under the criminal offences which
is committed by the person by using his authority and power to commit such offences
(Wynn-Pope and Chambers, 2020). Through viewing the article of Westpac bank, it is
examined that the person which are holding the superior post by committing in such activity
which is related to the child pornographers or creating the culture to bring differences in their
working.
As ethics stated that the senior manager and leaders carry their right to work in ethical
way and also create the ethical working environment. In this, it is necessary to maintain the
administrative management theory regarding maintaining discipline, ethics and unity of
command in respect of following the orders as per the senior instruction (Dowding and
Martin, 2017). The impact of corruption is also reduced in respect of keeping the track on the
employees working in the organization. This is undertaken through upgrading the IT system,
which keeps the track record of the dealing of cash from one person to another and also not
involving in any illegal activity. Usually such stoppage in undertaken by removing the person
from that post who is dealing in such illegal activity.
In case of directors dealing in such activity, than it is the duty of the board to hold the
voting in which they mainly send notice to 2000 customer globally to vote and choose the
right directors. Transparency is another important aspects through the interest of customer are
retained for longer time (Hanrahan, 2018). As customer mainly demands honesty and fair
decision and also if they invested money in the banks, the records are to be provided
accurately. Through this manner, the impact of corruption are decreased and also they it
enhances the interest of the customer for longer time period.
Dishonesty and fraudulent behavior: This is one of the unethical norms which is mainly
carried at work place in respect of not behaving ethical with the employees or committing
fraud with the customers. The dishonesty lies in respect of giving bad advices to customer to
invest in certain projects which further results in decreasing their value or money. This refers
to the tort of negligence, in which the banks is familiar with the breach and also not perform
their duty in better aspects (Hargovan, 2018). Thus, it is necessary to maintain ethics in
respect of maintaining transparency regarding sharing the accurate information which helps
customer to take right decision.
Whistleblower Protections: It indicated that such person who exposes the company working
or any illegal activity which is committing in the organization. It is necessary to protect such

person in respect of not causing any harm to them or also not affecting their right regarding
living freely in the country. Ethics stated that he is working lawfully regarding disclosing the
internal information without involving themselves in such criminal offences. The right of the
person are protected under the Whistleblowers protection act, 1989. At work places the
impact raised in respect of paying employees less or also cutting the employees which are
engaging their interest for longer way (Kelly and et.al., 2019). In respective of business, the
violation under the Whistleblowers raised in respect of using the funds for personal use or
also violating any law which affecting the right of the customer or employees.
This is explained with the matters which is mentioned in the article regarding
examining the claims or frauds which is committed by Westpac during the time of
transferring the payment. As agency gathered the information through viewing the accounts
and financial statement of the banks, in which they stated that the banks are dealing in fraud
regarding failed to carry out the proper due diligence. The matters indicated that 12 customer
whose accounts are reflecting the shortage of money even if they are considered to be the
primes customer of banks (Kia, 2019). One of the person working in the agency also reflected
that the payment which is made to another person who is living in Philippines are later
arrested for the fraud committed regarding child trafficking. This is one of the serious
offences which is punishable under the criminal offences and thus, banks is obliged to pay
high penalty for such illegal offences.
It is necessary to secure the interest of the person who disclosed all the crucial
information of the banks to the senior authority or to the person who are liable to know all the
details of the internal working of the employees. In this aspects, IT system helps in tracking
the employees working and also the transaction which they are making to transfer the cash
from one person to another (Kofman and Payne, 2017). Thus, ethic in this case is to be
maintained in respect of securing the right of the person who disclosed the fraud engaged in
the banks and also the support of any superior person or employees which are hiding such
offences.
Enforcement: It refers to applying the laws, rules and obligation to secure the right of the
employees and person in respect of working under the right directions. In respect of Westpac
Banks, it is stated that certain standards are set for both employees and customer regarding
dealing in particular transaction (Sourdin and Atherton, 2020). It mainly resulting in
managing the insider trading or also allowing particular person loan who are in need of
money. In this case, ethics stated that particular investigation is to be undertaken before
giving rights to provide loan to that person (Nguyen and Shi, 2018). It is also necessary that
different culture people is to be maintained at work place so that they can bring more
innovative ideas regarding managing the diversity in better way. As this is one of the best
techniques which helps in expanding the business at larger scale.
By working under the Privacy act, 1988 resulting in securing the information of the
customer regarding their accounts or investment which they made during the particular time
period (Sheehan and Kinley, 2018). As in this case, the issues which is faced by Westpac is
relating to not securing the amount which they invested through opening the account and
investing money in them. Most of complains are raised in respect of not having sufficient
money in their account instead their account is red flag (North-Samardzic, 2019). Thus, in
such cases ethics are to be maintained regarding giving them security about the data which is

secured in the banks and also they can trust the banks through investing more money into
their accounts.
In respect of working under the Australian Prudential regulation authority, it indicated
that they carry the right to manage the finance, insurances and credit facility in the banks.
Through this manner, it indicated that such security carries the detailed information about the
person nature and background and also the reason of demanding money or insurances
(Roengpitya and et.al., 2017). It is also necessary that accurate step is to be undertaken before
disclosing any information or taking any steps. It requires proper interaction with the person
so that they are given accurate chance to present their ideas and thought and also the reason
of dealing in such activity.
CONCLUSION
From the above study, the report concludes the matters relating to examining the
usefulness of code of ethics in respect of enhancing the integrity and reputation of the
business in market. Present report is based upon the study of the Westpac banks whose
goodwill is affected in respect of engaging their interest in fraud activity such as giving
irrelevant advice to the customer regarding investing in fraud projects or also transferring the
payment for engaging in some criminal offences. By conducting the research about the banks
working various unethical behavior exited which distract the mind and interest of customer
regarding investing in banks for longer way. Thus, by conducting various factors helps in
understanding the issues which raises in banks and also the strategies which are used to
overcome from such factors.

REFERENCES
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