Ethical Banking: an oxymoron or a change in banking practices required in the twenty first century? In the modern world, financial institutions are being held to strict regulation in a post Global Financial Crisis era yet financial institutions are still outlining their message of strong social responsibility. Is this all a façade or are financial institutions truly holding themselves to the strong message their claim? The pursuit of becoming a good corporate citizen and maintaining an ethical stance is becoming increasingly expensive for businesses worldwide, through issues such as sweatshops, child labour and environmental destruction. As one of Australia’s largest and most powerful financial institutions, the Australian New Zealand Bank (ANZ) stated its “committed to achieving outstanding performance and results to provide value to our shareholders, while considering the interests of employees, customers, the community and others with whom we do business” in Code of Conduct & Ethics(2013, pg. 10). ANZ’s focus on Corporate Social Responsibility (CSR) has come under fire of late due to issues relating to unethical loans and interest rate manipulation in Singapore (Yeates 2013). Banking institutions, much like many global companies, use CSR for many differing reason as a strategic ploy. From this institutions aim to create an equilibrium between the level of resources used in CSR and returns for shareholders .This paper aims to investigate and compare the level of corporate social responsibility and internal ethics in which ANZ claims it holds in high regard with its actual performance, as well look at the wider banking industry choices in relation to the application of CSR and exploring the link and benefit associated with CSR...
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...ger dividend returns over the long run as consumers will reward firms by accepting higher prices for these products. ANZ has been able to capitalise on their strong focus to be a good corporate citizen and building a strong reputation through its aims for gender equality and donation partnerships of over $52.6 million in 2013 (ANZ: Giving, 2013) In recognition of their strong CSR and ethical banking practices it has enable ANZ to earn profits over $6.49 billion dollars in the 2011-2012 financial year (ANZ Shareholders report, 2013). The clash between profits and CSR may not be all that is seems, when firms become conscious of the positive effect the CSR can have on profit, more firms may increase the level of CSR. ANZ holds itself to strict guidelines on its own CSR and for the most part does achieve this objective which has enabled build ANZ’s strong reputation.
Moncrief Company agreed to pay Jim Lester 20% of the gross profit made from the 2013 sales of the Zelenex. Between January 1, 2013 and December 28, 2013, Moncrief’s total available units for sale were, 50,000 units of Zelenex for $30.00 per unit ($1,500,000). Also in addition to the former activities, Moncrief sold 35,000 units for $60.00 per unit ($2,100,000). Moncrief Company uses periodic LIFO inventory method as a result, Jim Lester was to receive $210,000. (Textbook pg.469)
on September 8, 2016 Wells Fargo’s unethical behavior was reveal when the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency fined Wells Fargo $185 million because over 2 million credit card and bank accounts were fraudulently open or applied for in customer names without their knowledge (Blake, 2016).
From big financial and ethical scandals like Enron to WorldCom, Wells Fargo may be the next big financial and ethical scandal. Wells Fargo used to be one of the leading banks and credit lending companies in America. Now, they’re on a slippery slope downhill to one of the worst—and most unethical—banking and credit lending companies in America, maybe even in the world. Wells Fargo has been in an ethical uproar, has questionable ethical values, and questionable principles and practices in culture due to their downhill ethical standards. The company also may have been influenced by bad stakeholder judgment, and are now struggling to maintain the company’s culture. To give a description of business ethics as described by John Fraedrich, “business
Patients who deny suggested consideration represent a critical test in the emergency department. Such patients can be uncooperative, and their capacity to comprehend data may be impeded by medicinal pathology or intoxicants. The outcomes of a choice to reject emergency consideration may be not kidding and lasting. The numerous contending requests of an occupied Emergency treatment now and then make it troublesome for doctors to appropriately survey such patients before they are permitted to leave.
The root of Wells Fargo’s ethical breakdown lies in the company’s overall ethical culture and climate that places too much emphasis on self-interest and on the teleopathic goal of generating the most sales
Verschoor, CMA, Curtis C. "Ethics: Do The Right Thing." Strategic Finance (2006). Retrieved on 18 September 2006 .
Over the past several years our country has been inundated with different scandals from different organizations or individuals. Unfortunately, scandals end up costing the average citizen money because of the selfishness of others creating these crimes. The latest scandal that the media has addressed is with Wells Fargo Bank. A team of roughly 5,300 employees came up with a scheme that would result in them receiving high paid bonuses and hitting their monthly and quarterly goals. In most cases, companies set unrealistic goals to encourage their employees to produce more revenue for the company. During the scandal the employees opened over 2 million phony accounts to boost their sales averages and paychecks. Per Egan (2016), “The way it
Do you agree with Schmeltekopf that business schools are not preparing students well for the for the ethical challenges they will face in the workplace? Why or why not?
The term “ethical business” is seen, by many people, as an oxymoron. This is because a business’s main objective is to make as much money as possible. Making the most money possible, however, can often lead to unethical actions. Companies like Enron, WorldCom, and Satyam have been the posterchildren for how corporations’ greed lead to unethical practices. In recent times however, companies have been accused of being unethical based on, not how they manage their finances, but on how they treat the society that they operate in. People have started to realize that the damage companies have been doing to the world around them is more impactful and far worse than any financial fraud that these companies might be engaging in. Events like the BP oil
Many ethical dilemmas are philosophical in nature, an ethical issue can be described as a problem with no clear resolution. In order to solve the issue or dilemma a consensus between the parties involved must be reached. There are several reasons to come to an agreement over an ethical dilemma, it is the basis for all aspects of personal and professional dealings. Each one of us is part of a civilized society and as such it is our responsibility to be rational, honest and loyal in our dealings with others. (Alakavuklar, 2012) states that individuals make decisions for different situations in business life involving various ethical dilemmas. Each time either consciously or unconsciously individuals may follow some ethical approaches
Ethical business practices include assuring that the highest legal and moral standards are observed in your relationships with the people in your business community. This includes the most important person in your business, your customer. Short term profit at the cost of losing a customer is long term death for your business.
As a result of modern corporate scandals and rapid development of international business environments, social responsibility (SR) has become a key aspect of corporate competitive contexts. (Brammer, Williams and Zinkin, 2007). Businesses are under increasing pressure to incorporate SR amongst their profit-driven aims and have become increasingly accountable for their social and environmental actions. Increased interest in CSR developed in the mid 1990s as consumers began to lack their former trust in companies due to both environmental and financial scandals and it became noticeable that society was moving towards values incorporating harmony, quality of life and environmental conservation (Carrasco, 2007) Additionally, major corporate failures over the past two decades have resulted in increased demand for stronger, corporate governance (CG) rules. (Sui, Wright & Evans, 2007). Superior CG rules are needed in order to preserve the integrity of corporations, financial institutions and markets and the health and stability of world economies. (OECD Website)
Everyone in this world has experienced an ethical dilemma in different situations and this may arise between one or more individuals. Ethical dilemma is a situation where people have to make complex decisions and are influenced based on personal interest, social environment or norms, and religious beliefs (“Strategic Leadership”, n.d.). The leaders and managers in the company should set guidelines to ensure employees are aware and have a better chance to solve and make ethical decisions. Employees are also responsible in understanding their ethical obligations in order to maintain a positive work environment. The purpose of this case study is to identify the dilemma and analyze different decisions to find ways on how a person should act
A company has an economic obligation. It must earn a favorable return for its stockholders in the restrictions of the law. But, corporate social responsibility means that organizations have also ethical and societal responsibilities that go past their economic responsibilities. CSR needs organizations to develop their documentations of their responsibilities to include other stakeholders such as workers, customers, suppliers, local societies, state governments, international organizations, etc. Ethics could be seen as a fundamental component of individual and group activities at the heart of organizations’ errands.
The Facts: Kermit Vandivier works for B.F. Goodrich. His job assignment was to write the qualifying report on the four disk brakes for LTV Aerospace Corporation. LTV purchased aircraft brakes from B.F. Goodrich for the Air Force. Goodrich desperately wanted the contract because it guaranteed a commitment from the Air Force on future brake purchases for the A7D from them, even if they lost money on the initial contract.