Modern Business Practices Assignment: BNZ, Ethics, and Global Economy

This report analyzes modern business practices within the context of the global economy, using the Bank of New Zealand (BNZ) as a case study. It explores key concepts such as business ethics, organizational culture, and organizational goals, examining their interconnectedness and impact on business performance. The report identifies ethical issues, including gender discrimination, and proposes recommendations for improvement. It further investigates the influence of the global economy on organizational goals and practices, considering factors like the European and US banking situations, and the rise of China. The report also touches upon the 'code of banking practice' in New Zealand and its relevance. Overall, the assignment provides a comprehensive overview of ethical considerations, global economic influences, and practical business strategies within the banking sector.

Running head: BUSINESS PRACTICES
ASSIGNMENT 1
DBN 607 MODERN BUSINESS PRACTISES
STD. ID: YIB00001GA
SUBMITTED TO: PAMELA CHATWIN
SUBMITTED BY: MANISHA MALL
:

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Assessment 1
Part 1
1.1 Introduction
New Zealand is a small country but it is economically globalised and has a great
association with other countries in terms of trade and commerce in international trade
relations. Therefore, highly advanced, secure and fast banking services are very much
required. BNZ is one of the largest banks within New Zealand. It has a long history as it
started operating in the Australian territory as early as 1861. The bank is having operations in
all major regions of Australia. Apart from banking it also offers other financial services. The
social issue of gender discrimination is addressed by the company because the recent United
Nations has indicated that the standards of the women equality at work place in New Zealand
is low and that more measures are required for successful implementation of the same
(Bnz.co.nz., 2018).
In 1861 The Bank of New Zealand was formed, in the beginning as a private company,
however in the next month it was incorporated by “The New Zealand Bank Act 1861”. The
company was authorised to issue banknotes. In the 1944 the government had declared the
nationalisation of the bank. In 2008 the company completely rebranded itself as BNZ. Today
the bank is one of the largest in New Zealand and Australia.
1.2 Ethics, Culture and Organisational Performance
1.2.1 Ethics is the way a person should behave in a particular situation that will not
compromise on morality, responsibility, honesty and credibility. In a business ethics
has a diverse meaning and it applies to various situations in various ways. Hartman,
DesJardins & MacDonald, (2014) states that it is actually the way one must conduct
himself or herself in the business scenario. It is the ethical behaviour of the worker to

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act in a certain way to ensure that the business runs properly and the profits are
maximised and a healthy work environment is maintained.
1.2.2 Organisational culture is the work environment that prevails in an organisation. The
employees must act responsibly, on the other hand the business again must extend an
ethical behaviour to the employees so that each of the employees get equal chance to
grow and flourish. There must not be any discrimination based on caste, gender,
religion, nationality, age or physical appearance. Organisational culture should be
diverse, flexible and ensuring equality.
1.2.3 Becker, (2012) states social ethics has a direct relationship with the organisational
culture, as proper ethical practices ensure that the organisational culture is ideal and
practical. On the other hand, ensuring optimal organisational culture will
automatically ensure that employee productivity is high and the productive employees
will result in a better organisation performance. Carroll & Buchholtz (2014) opines
that organisational culture should be ideally based on equality and diversity.
1.3 Social Ethical issue identified in the case study
The case study describes the recent fate of the women in work place in New Zealand.
Though there are enough reasons to believe that the country comprehensively is taking
appropriate measures to establish equality and women empowerment, however this is also
true that the present standards on which the women empowerment level in work place is
judged within the country. The United Nations has declared that the standards are not high
enough and there must be measures to ensure that these are raised to ideal. The BNZ has
established some very practical and effective rules to ensure that diversity is work culture is
maintained and women empowerment has been given special importance in the list.
The various efforts taken by the company in order to ensure workplace diversity and
especially women empowerment are, Approaches and procedures were audited, modified or

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changed where essential to help the expectation of the assorted variety system and,
specifically, sexual orientation adjust. They checked on their manager esteem suggestion to
decide if they were alluring as a business over a scope of ability pools, including ladies.
Changes were made to the wording of work commercials. They likewise took a
comprehension at enlistment works on, including ordering that there would be at any rate one
lady on the short-list for all senior parts and there would be a lady on the talking with board.
Supporting their sexual orientation balance motivation, the bank likewise ordered that all
parts would be promoted as 'offering adaptable work rehearses'. The company trusts this is a
territory that drives a light-footed and profitable workforce, too as backings work/life adjust.
They guaranteed a 'sexual orientation focal points was connected to the ability forms, which
has brought about expanded ladies in the bank's ability speeding up cycles and, vitally, in the
progression records for official and basic parts.
1.4 Three Other Non- Listed Ethical Issues
Three other ethical issues that were not listed in the case study are, (a) Abnormal
work hours which is unethical. The ethically standard work hour is considered as 8 hours a
day. Abnormal working hours result in frustration among the employees which affects
productivity and there is higher chance of attrition among the work force. The company must
be giving more importance to the balance between work and life of the employees. (b)
Abnormal targets that cannot be achieved. Unachievable targets alienate the employees and
make them lose their confidence. When they feel it impossible to achieve their target they
simply lose interest in their job. (c) Not paying the employees as per the minimum standards
of the country. Money is the biggest factor of motivation for the employees and giving proper
payment is important for employee retention and proper productivity.
1.5 Recommendations

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(a) The work hours should be kept at 8 hours per day and the employees must get one
day week off along with listed holidays.
(b) The bank must consider before setting targets, about the limitations of the human
beings. Abnormal target settings will cause a drop-in employee retention.
(c) Every country sets their minimum pay to the employees, the bank must not engage
in unethical activities like paying less than the minimum standards or paying late.
(d) The company must be regularly engaging in the revision of its existing policies to
adapt new policies with changing dimensions of the world.
(e) There are various factors apart from monetary incentives which help the
employees in getting better interested in their jobs and their productivity is increased. These
factors may be health benefits, tours and trips and extra holidays.
1.6 Conclusion
Ethical standard is important to establish the business in a sustainable way which will
lead to growth of both the employees and the business. Ethics is business must be followed
both by the employees and the employer. The question however remains about by whom and
how will the ethical standards be set. The Bank of New Zealand has effectively prepared the
case study after thorough research about the existing ethical practices within the organisation
and the correctional measures about the possibilities of correcting the flaws and gaps that
exist within.

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Assessment 2
Part 2
2.1 Global Economy
In Europe, the banking situation has improved to a restricted degree as a result of the
whole deal renegotiating undertakings of the “European Central Bank (ECB)”, which ensured
there was a considerable measure of liquidity in the structure. Additionally, the proposed
banking affiliation, when totally realized, will give the ECB supervisory vitality to mediate
direct in any of the Eurozone's more than 6,000 banks. In any case, until the point that
remaining vulnerabilities are tended to and periphery economies upgrade, it is likely going to
be seen continued with challenges for banks and borrowers as improvement in Europe stays
calmed. In the US, the photograph is more fun loving yet in the meantime mixed.
Improvement in 2012 was certain however underneath whole deal designs, and the cabin
recovery remains direct and scrappy. Furthermore, in spite of the way that associations and
purchasers are starting to get yet again, credit improvement stays erratic. China seems to have
assembled a fragile touching base without swinging to the level of lift used as a piece of 2008
and 2009. Additionally, in a charming whole deal progression, banks now have greater
chance to veer off from the People's Bank of China benchmark financing costs for stores and
advances. In snappy improvement economies other than China, 2013-14 will see advance
immense enthusiasm for system and the progression of higher-end organizations to lessen
dependence on unrefined materials and items conveys. Improved corporate organization and
a diminishment in the traverse of the casual economy will empower firms to get to capital
markets for sponsoring and depend less on bank endeavour.
2.2 Modern Business Practice

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2.2.1 Looking at recorded scenery of the budgetary markets in the United States, it was
terrible banking practices and general society complaint after the offer exchanging
framework crash of 1929 that accomplished the “Glass-Steagall Act of 1933” (Maues, 2013).
Oddly, the Act took after an enquiry into whether business banks had sold unsound securities
to their customers, in this way changing over potential horrendous credits into securities
issues. The Act accordingly limited business banks from ensuring, holding or overseeing in
corporate securities, either particularly or through securities branches. In expert’s view, the
stresses that incited the Act were in a general sense the same as those at display being voiced
– particularly in association with stresses over banks' designs of activity and the offer of
unsound securities to confused monetary authorities. The Act all around influenced centred
conditions. For instance, the tremendous proximity of critical US wander banks in Europe
can be taken after back to the use of this Act, which secluded hypothesis banks from business
banks. The Act similarly influenced the supervision of banks, generally in the United States,
yet furthermore in various territories on the planet, including Europe.
2.2.2 In New Zealand the “code of banking practice” has been established and followed
which states “This Code has been prepared by the member banks of the New Zealand
Bankers’ Association and is effective from 1 July 2012. It replaces the Code of Banking
Practice which took effect from 1 July 2007. Compliance by participating banks with the
Code is considered by approved Dispute Resolution Schemes through complaint
investigations undertaken from time to time. Formal review of this Code by participating
banks will be commenced within three years of the effective date. Consultation with the
public (including interested organisations) will take place during the review process. Changes
to banking practice, technology and legislation may also justify an interim review and
amendment of the Code. This Code records good banking practices. We agree to observe
these practices as a minimum standard. This Code is not a complete record of our relationship

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with you, as specific products and services may have their own terms and conditions. These
terms and conditions may include additional rights and obligations for both you and us. This
Code does not alter or replace those terms in any way” (Nzba.org.n, 2018).
2.3 Organisational Goals
2.3.1 The “general destinations, reason and mission of a business” that have been set up by its
administration and “conveyed” to its workers. The “authoritative goals” of an organization
ordinarily centre around its long range aims for working and its “general business reasoning”
that can give helpful direction to representatives trying to satisfy their directors.
2.3.2 Organisational goals are very important to have a clear direction about the future of the
organisation and how the organisation will be run in various situation with the participation
of various people.
2.4 Impact of Global Economy to Organisational Goals and Practices
The globalisation of economy has led to a situation where the organisation goals are
set keeping the global economy in mind. A large number of companies either have presence
in multiple countries or conducts business with multiple countries. In such situation the
companies have to set organisation goals that are aligned with diversity and cultural variation
within the workplace.
2.5 Case Study Analysis
2.5.1 One of the modern business practices identified in the case is “BNZ identified high-
performing women in all areas of the business and noted their aspirations. We are now
providing particular support and development for them. By actively setting goals for the
development of women and identifying that talent for development opportunities, we are
ensuring they are making it to management succession planning lists, to reduce the risk of

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them leaving the organisation.” Therefore, the bank has taken the most modern method of
encouraging women at workplace. It is found in various research works that giving
responsible positions to women in the organisation actually performs better in terms of
productivity. Women are in many ways more responsible about the assigned work and they
tend to be more patient in situations of pressure. However till date there is an
underrepresentation of women in all the levels of the corporate scenario in America. A
research called “Women in the Workplace 2017” which has drawn “on data from 222
companies employing more than 12 million people, as well as on a survey of over 70,000
employees and a series of qualitative interviews”. Our company BNZ has contributed
exceptionally in the field of employing high performing women in various fields of its
business area. It is important to expand on this endeavour and take the initiative forward and
include more women in ore important spots.
2.5.2 As already mentioned that women empowerment is one of the most prominent
workplace issues that have been raised in companies all over the world. The modern business
practice that has been identified is directly related to the incident when United Nations has
stated that the standards of measuring women empowerment at workplace in New Zealand
are not enough. New Zealand is one of the countries which is very much proactive in taking
steps to improve the rights and participation of women in every fields. The country officially
states, “Coming back to New Zealand really is a breath of fresh air in terms of women’s
rights. If women are so inclined, they have the opportunity to do anything they like- to
become a fireman, builder, electrician, entrepreneur or billionaire.”
2.6 Recommendations

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2.6.1 The three recommendations are (a) The company may adopt an active policy of
specifying the percentage of culturally diversified employees in the workplace. This will help
the company in measuring the achievements in a particular way.
(b) The company must ensure that the top position of the company may be occupied by
women at regular intervals. This may be done by specifying the various posts which women
will be occupying or the minimum percentage of women who will be at the management
positions.
(c) The company must ensure an open system of recruitment by introducing online interviews
and selection processes and archiving of the results. There are various innovative interview
and recruitment processes that has been employed by various companies. McDonalds started
recruiting by snap chat.
2.6.2 (a) The first policy will help the company in ensuring that there is enough number of
culturally diverse employees which will result in more idea generation and productivity. The
process will become quantifiable and measurable.
(b) It is mentioned in the case study how ensuring participation of women increases company
productivity. Crucial positions of the company occupied by women will become more
productive and the company will profit.
(c) More people will take part in recruitment process and employee retention will be higher.
Innovative and open recruitment processes will also help in making the process more
transparent, in other situations when there are some effective and skilled employees are left
when there is a closef process of interview, in an open process of interview the participation
will happen at mass level which will result in better employee appointment and retention.
2.7 Conclusion

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Therefore, it is evident that the organisations are directly influenced by the global
business practices and ethical standards. The case study of BNZ is directly influenced by the
global phenomena of ideal business practices. The company has ensured best practices in the
field of banking and is encouraging cultural diversity and women empowerment which is a
plausible action.

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Reference & Bibliography:
Becker, G. K. (Ed.). (2012). Ethics in business and society: Chinese and western
perspectives. Springer Science & Business Media.
Bnz.co.nz. (2018). Personal banking - BNZ. Retrieved from https://www.bnz.co.nz/?
gclid=CjwKCAjwiurXBRAnEiwAk2GFZmJEJVcZdtBz6qEm3NQ0NtFoNHDbiBB
XZRa3GzsbsSf_dwiYUqJRKhoCgeoQAvD_BwE
Carroll, A., & Buchholtz, A. (2014). Business and society: Ethics, sustainability, and
stakeholder management. Nelson Education.
Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases.
Nelson Education.
Hartman, L. P., DesJardins, J. R., & MacDonald, C. (2014). Business ethics: Decision
making for personal integrity and social responsibility. New York: McGraw-Hill.
Maues, J. (2013). Banking Act of 1933, commonly called Glass-Steagall. Federal Reserve
History.
Minus, P. M. (Ed.). (2013). The ethics of business in a global economy (Vol. 4). Springer
Science & Business Media.
Nicolăescu, E. (2013). Business ethics, corporate governance, and social
responsibility. Journal of Self-Governance and Management Economics, 1(1), 86-92.
Nzba.org.n. (2018). Code of Banking Practice - New Zealand Bankers' Association.
Retrieved from http://www.nzba.org.nz/consumer-information/code-banking-
practice/code-of-banking-practice/