Improving Ethical Culture at Aussie Home Loans: A Strategic Analysis

This report provides a comprehensive analysis of strategies for improving the ethical culture at Aussie Home Loans. It begins with an introduction to the company and its background, followed by an examination of learning organization processes, including structural roles and the application of relevant learning organization models. The report then delves into an analysis of ethical issues and repeated ethical scandals, exploring existing barriers to organizational learning within Aussie Home Loans. Recommendations are made to help Aussie Home Loans become an ethical learning organization, including the development of an ethical training plan. Corporate social responsibility programs are also discussed. The report concludes with a summary of key findings and recommendations, supported by academic references. This report is a valuable resource for students studying leadership and management.

STRATEGIES OF IMPROVING
ETHICAL CULTURE IN
AUSSIE HOME LOANS

TABLE OF CONTENT
1.0 INTRODUCTION.....................................................................................................................2
1.1 Company background............................................................................................................2
2.0 learning organisation process....................................................................................................2
2.1 Structure roles related to organisation learning.....................................................................2
2.2 Application for relevant LO models......................................................................................3
3.0 Analysis of ethical issue............................................................................................................4
4.0 Repeated ethical scandles-.........................................................................................................4
5.0 Analysis of existing barriers to organisational learning at the Aussie home loans...................5
6.0 Recommendation to Aussie home to become an ethical learning organization (Ethical
training planning).............................................................................................................................6
6.1 Need analysis.........................................................................................................................6
6.2 Designing ethical training plan..............................................................................................6
6.3 Implementation......................................................................................................................7
6.4 Evaluation..............................................................................................................................7
7.0 Corporate social responsibility programmes.............................................................................7
8.0 Conclusion.............................................................................................................................7
REFERENCES................................................................................................................................9
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1.0 INTRODUCTION
Ethical culture promotes ethical behaviour among the member of the enterprise. Hence,
the entity with strong culture has values and standards that need to be clearly defined and
understood by their maximum number of members. Ethical culture within the enterprise can be
improved with the help of effective strategies and code of conducts.
The present report is based on the business activities of Aussie and it deals in Australian
retail financial services group.
Furthermore, Assignment will cover the strategies that aid to bring improvement in
ethical culture in Aussie home loans. Lastly, recommendation will be given on Aussie home
loans to become the ethical learning organisation.
1.1 Company background
Aussie is an Australian retail financial service group. Hence, its operation spanning all
mainland capital cities and major regional centres throughout the Australia (Hiekkataipale and
Lämsä, 2019). It is private company and engaged in the services as home loans, Mortgage
broking, personal loans, credit cards and Insurance. Therefore, this firm is having the unique
approach to the home loans and allow them to offer loan upwards of 3% cheaper than its
competitors. Hence, commonwealth bank has acquired 33% stake in Aussie.
2.0 learning organisation process
Learning is one of crucial phenomenon and it is important to business executive at the
worldwide level. This is inclusive of CFOs, as they adapt to the disruptive change that is
sweeping through the corporate learning and development organisation. Hence, it is process that
defined as creating, retaining and transferring knowledge within enterprise (Kangas and et.al.,
2018). Therefore, the most common way to measure organisational learning is the learning
curve.
2.1 Structure roles related to organisation learning
Organisation structure termed out as system that aids to explain hierarchy within an
enterprise. Hence, structure is need to be developed in order to establish enterprise operates
working. Thus, it’s defined in following manner as-
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Functional- It is based on term that organise being divided up into the smaller groups with
particular task. Each department has manager and director who supervise the all working within
the enterprise (Mitonga-Monga, 2018).
 Divisional- Larger enterprise that operates across the several horizontal objectives may
have the use of divisional structure. It is the structure that allows large autonomy among
the groups.
 Matrix- It is defined as hybrid organisational structure, this is matrix structure and it is
blend of the functional structure and the projected structure.
 Flatarchy- The structure of the enterprise aids to conduct the activities effectively. This
is helpful process that allows taking proper decision within the enterprise. It determines
the vertical appearance of a hierarchy.
2.2 Application for relevant LO models.
As per the senge's five disciplines of the learning organization defines that how enterprise
takes initiatives to manage the success and development. Hence, it has defined the five
disciplines of learning organization as-
 Building a shared vision- In learning enterprise, the vision to the enterprise must be
created with the help of interaction with employees in enterprise. In addition to it, this
aids to define that creation of shared vision is by compromising the organization and
individual vision.
System thinking- It is thinking that reflects the observational process of the entire system.
Hence, manager’s needs to understand the each action and consequence correlated with another
(McSherry and Pearce, 2018). Aussie need to adopt it as it enable to see the interrelation and
patterns of change in particular situation. With help of it, manager can able to determine the
cause and effect.
 Mental models- As per the Peter Senge employees to the enterprise must identify the
value of the firm. Hence, the enterprise needs to be flexible in respect to accepting the
changes to the new mental models and to build new image of the enterprise. Therefore, to
be the most successful firm Aussie must learn and adapt to the new models to become
faster than its competitors.
 Team learning- To achieve the excellent functional team dynamics, the primary
importance is need to be given on the learning of the team. This is very crucial for
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workforce to consider its colleagues as team member instead of rivals. Hence, working
environment must be safe so that honest mistake can be forgiven.
Personal mastery- It is mainly occurs when an individual has clear vision of the goal and it
combined with the accurate perception of reality. Hence, the gap between the vision and reality
aids to drive the employee to practice all crucial activities to realize the vision (Morais and de
Moura, 2018). Therefore, by providing training to the subconscious mind can help to handle
complex problems.
3.0 Analysis of ethical issue
It is systematic approach that aids to figuring out right moral decision in particular
situation. Thus, it can be stated that the ethics and fair leading are the two crucial issues that
helps to cope up with mortgage career. By analysing the situation logically as per the ethical
code the things can be figure out in both terms effective and morale. Therefore, it is designed to
assist with issues management. It is very helpful to professionals as it aids to make correct
decision in the process of management in order to avoid the ethical problem and crises. Thus,
honesty and integrity are the two heart of ethical behaviours. Thus, ethics in the home loan
industry seems to be the complex issue but it has to be built on the basis of following points as-
 Treat everyone at equal level.
 Be honest
 Give the full disclosure
 Do not take the advantage of the people
 Keeping up the good documentation.
4.0 Repeated ethical scandals-
The credit rating firm Equifax makes their profitability form selling personal and
sensitive information to financial institution and lenders. In the month of the September, it has
been disclosed that at the centre of one of the worst data breaches in history. After this
information, about 145 million people has made compromised.
Therefore, the chief information officer and chief executive officer was aware of the
system flaw that the hacker under it has taken the advantage till the month of the march. Hence,
hack did happen and firm waited a full two before disclosing it.
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However, the justice department has looked into the top Equifex executives that
committed the insider trading with selling of shares of $1.8 billion just before the breach was
disclosed.
Australia bankers have attempted to address the community over repeated scandals by rewriting
their code of conducts (Morais and de Moura, 2018). Thus, changes in existing Australian
banking association code of conduct followed the demand from the corporate regulator.
5.0 Analysis of existing barriers to organisational learning at the Aussie home
loans.
Organizational learning plays crucial role in terms to bring effective working at the
enterprise, However, barriers of organizational learning in Aussie home loans defined in
following manner as-
Resistance to change- It is one of the common barrier, generally people do not accept the
changes easily. In order to have advancement in working, it is crucial to accept the changes.
Thus, changes in dynamic markets, use of techniques, knowledge and processes needs to be keep
up.
Leadership development- It is critical to the organizational learning. Therefore, the process as
communication, change management, support skills requires in providing better learning to
individuals.
Disregard of team success- In order to enhance employee engagement in learning process it is
important to fit in with individual personal goals. Therefore, the things needs to be understand
that how new skills, processes and system enables to perform better.
No motivation for growth- Employees to the Aussie home loans do not feel motivated and it is
one of the major barrier that barricades the growth of enterprise (Morais and de Moura, 2018). In
order to overcome it, this is crucial to motivate the employees to learn and grow.
Short term focus- Enterprise needs to focus over to solve the short term problems that aids to
focus on long term vision of the business. In order to solve this issue, the employees within the
enterprise needs to encouraged and offer learning opportunities.
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6.0 Recommendation to Aussie home to become an ethical learning
organization (Ethical training planning)
6.1 Need analysis
Recommendation to improve ethical performance-
 To develop a code and make ethical performance a strategic priority. Therefore, relevant
code of ethics set the clear standards, objectives and expectation is the key requirement
for ethical performance.
 Senior management team should show leadership and they focus over ethical values.
Employees to the enterprise get in step an ensures the whole enterprise to achieve
success.
 To engage staff and other stakeholders such as suppliers, investors, consumer
communities through effective and informative communication.
 Enterprise needs to develop clear routes for reporting suspected fraud and violation of
firm policies on the ethical behavior.
 To ensure the best practice, enterprise needs to measure the ethical performance of the
employees and to foster open discussion.
6.2 Designing ethical training plan
Aussie homes loans should focus over providing continuous training and development is
the key to ensure managers and to guide the employees about the change and efforts of learning
effectively. Hence, ethical training plan will be framed as-
 Make it specific
 Make this two way conversation process
 Make it interactive
 Make it memorable and situational
 Make it relatable
 Reinforce
 Repeat
6.3 Implementation
This has to be implement successfully as it aids to firm to promote awareness to the
ethical practices in the company. Hence, ethical programs boost morale of employees to maintain
positive culture. Thus, process of implementation as-
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 Root the code in core values such as trust and integrity
 Give the copy of rules to each staff
 Provide beaches in confidential manner.
 To include ethical issues in corporate training programs.
 To set up the board committees to monitor the effectiveness of code.
6.4 Evaluation
It will be done on the following basis as-
 Informed consent.
 Voluntary participation.
 Do no harm.
 Confidentiality.
 Anonymity.
 Only assess relevant components.
7.0 Corporate social responsibility programmes
Corporate social responsibility termed out as specific theory affirms that working of
entity relates with economic, legal, ethical and obligations. It allows firms to demonstrate the
values, engaged their employees and communicate with the public about they operate. Thus, the
three kind of corporate social responsibility as-
 Environmental sustainability initiatives
 Ethical business practices
 To focus on economic responsibility.
8.0 Conclusion
Hereby, it can be concluded that ethical culture promotes ethical behaviour among the
enterprise and aids to build strong culture and standards. Therefore, report has covered the
business activities of Aussie home loans.
Thus, it has covered the activities as learning organization models, structure of
organization learning and design ethical practices to promote positive culture.
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REFERENCES
Books and Journals
Hiekkataipale, M.M. and Lämsä, A.M., 2019. (A) moral Agents in Organisations? The
Significance of Ethical Organisation Culture for Middle Managers’ Exercise of Moral
Agency in Ethical Problems. Journal of Business Ethics. 155(1). pp.147-161.
Kangas, M and et.al., 2018. Why do managers leave their organization? Investigating the role of
ethical organizational culture in managerial turnover. Journal of Business Ethics. 153(3).
pp.707-723.
Mitonga-Monga, J., 2018. Perceived ethical behaviour of leaders in relation to employees’ job
satisfaction in a railway organisation in a developing-country setting. Journal of
Contemporary Management. 15(1). pp.447-466.
McSherry, R. and Pearce, P., 2018. Measuring health care workers’ perceptions of what
constitutes a compassionate organisation culture and working environment: Findings from
a quantitative feasibility survey. Journal of nursing management. 26(2). pp.127-139.
Morais, C. and de Moura, G.R., 2018. How to Improve Ethicality Within the Organisation.
In The Psychology of Ethical Leadership in Organisation. Palgrave Macmillan, Cham
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