Management Report: NAB CEO Appointment and its Implications

This report examines the appointment of Ross McEwan as the new CEO of National Australia Bank (NAB), focusing on the context of the financial services royal commission and the leadership challenges facing the organization. The analysis delves into the issues of corporate governance, including conflicts of interest, accountability, and ethical violations, particularly the "fees for no service" scandal. The report highlights the importance of media reporting in keeping stakeholders informed and the need for a horizontal communication system within the bank. It concludes that McEwan's appointment was a wise decision, given his experience and the need to rebuild the bank's reputation and regain customer trust after the damaging findings of the royal commission. The report emphasizes the importance of transparency and accountability in the financial sector and the potential for McEwan to implement strategies to address these issues.

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Arguments in the article
The given article mainly talks about the problems and the different issues that were faced
by the NAB or the national Australian bank. It is one of the major reputation crises that have
resulted into the loss of faith among the stakeholders of the organization (Ryan, 2019). In order
to solve this issue there were several propositions that were being given in order to solve the
problem of the lost reputation of then organization. Being one of the largest Australian banking
organizations they have to make sure that their stakeholders are being able to maintain the trust
that their customers have vested in them. However during the time of the royal commission there
were some kinds of irresponsible behavior that was exhibited by the members of the Board of
Directors. It must be ensured that they are selecting some well reputed or well experienced. Mr.
McEwan who was the outgoing chief id the Royal Bank of Scotland had to be selected as the
new CEO of the organization NAB.
This would have been really very good decisions as he would be really ready to take up
many different strategies in order to face with the new and the tough challenges. It must be made
sure that during the fallout season of the Royal Commission financial services. It was also
declared by Mr. McEwan that he will soon be resigning with the RBS or the royal bank
commissions and will be joining in his new post that is NAB or the Nationalized Australian
Bank. However this decision was considered to be a good one on the part of the NAB or the
Nationalized Australian Bank as he was a man of enough experience and a long standing
experience, it was hoped that he would be able to focus over the different damages that have
been created over the reputation of the bank as he can rebuild it with his expertise.

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Need for reporting by Media
It is really essential for the media to report on these issues so that the stakeholders are
really able to know about the different changes or the other transitions that are actually going on
around in the organization. Different forms of media like newspaper, television and others are
really essential for reporting these issues to the common or the mass public so that people do not
cease to invest in this bank and also to ensure that the customers are understanding all the
different trends that are going on around in the banking sector or the financial sectors in the
country.
However it is essential for the bank to develop a horizontal communication system so that
the banking managers and the officials can take up the opinions and the votes from all the
customers. This will ensure that the decisions are being taken by keeping in mind the views and
the opinions of the customers.For an instance if the journalists are able to go in their bans and
take the interview from the CEO or the other officials of re banking organization then it will
really be very good for the common public as they will be able to hear about some new policies
or new principles that are actually being undertaken by the new CEO and the ways in which the
bank can actually come out from the ongoing "fees for no service" scandal revealed during the
royal commission.

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Corporate governance issues and their importance
Conflict of interest
There are many issues that often arise in the field o the corporate governance of the
organizations. It is based on these issues that the different stakeholders or the CEO of the
organization can take up their decisions or formulate their principles. For an instance if the
manager or any of the managing director of the bank has some kinds of personal interest vested
in some other business concerns then here will naturally be some kinds of issues or clash of
interest arising in the organization. The same was in the case of NAB. The issue of fees for no
service that was reveled during the scandal shows that the customers were being charged for
some advices that they were never given therefore it shows that the managers surly had some
kinds of personal interests vested in some other aspects or some other organizations. It is for this
reason that they did not want to help the customers in reality rather they kept on charging more
money from the customers.
Accountability issues
Accountability is one of the most useful traits that must be present among all the
individuals so that there is a feeling of transparency and belief present among all the individuals.
However it must be ensured that all the officials both in upper, middle and the lower tiers of the
hierarchy is being able to provide the proper justification for all their actions and the different
moves that they are undertaking. However in NAB it was seen that the CEO and the other
officials were not accountable for their actions. They did not really show any justification or any
sense of accountability. It is for this reason that only after drafting the final report by Kenneth
Hayne it was seen that there are some damaging facts and some evidences of fraudulent activities

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that was seen on part of Andrew Thorburn. It was also mentioned that there is no silver bullet in
repairing the lost or the broken reputation of the organization. Being a financial institution it is
really much essential for the organization to make sure that they are taking some very strong
steps in order to solve this issue and somehow regain the lost reputation and the lost trust from
the customers.
Ethics Violation
This is one of the major aspects that must be taken into account by the owners of every
company. This is because of the fact that it is the responsibility of each and every organization to
make sure that they are being able to initiate the overall welfare of society and the people living
in the society. However it was seen that the given article talks about the unethical activities that
were being shown by NAB. The scandal that is fees charged for no advice is one of the major
scandals that made the customers lose all faith in the organization. This is because they have
been charging fees from their customers for giving them some financial advices which actually
were never given. Initially no actions were being taken unless solid evidence was given by any
witnesses. It was for this reason that the case was taking long. It was because of this reason that
appointing Mr. McEwan was a very wise decision as it naturally had a major solution along with
him; He had the solid experience and his practical knowledge of working in one of the major
banking sector that is RBS.
Conclusion
Therefore it can be concluded that the ethical issues that have been raised in this article
are really of some evidence. It is really essential for such a well known organization lie NAB to
ensure that they are being able to maintain a transparency or a senesce of accountability.

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However this article I evident of the fact that the former CEO of NAB did not really show any
kind of transparency or accountability for their actions and thus they led to the initiation of the
malpractice that is fees for no advice. This taking the decision for electing a new CEO that is Mr.
McEwan was really a good and very sensible decision for the organization.

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References
Ryan, P. (2019). Abc.net.au. NAB appoints RBS boss Ross McEwan as CEO after five-month
search, 1-5 Available at- https://www.abc.net.au/news/2019-07-19/nab-appoints-ross-mcewan-
as-ceo/11324616