Ethical Responsibilities Of The Stakeholders - Myassignmenthelp.Com

Question: Discuss about the Ethical Responsibilities Of The Stakeholders. Answer: Analysis of the Commonwealth Bank Stakeholders The fundamental legitimate obligations of executives are to act in compliance with established goals of the Bank in light of a sound concern for the bank. Furthermore, the obligations are owed to the bank for the most part and not the investors at a given point of time. Although the huge responsibility of governing the bank as a whole is endowed upon the directors, they receive various incentives especially in the form of money. The most prominent task of shareholders is to provide the funding. Furnishing information is also a major responsibility of the shareholders (Bebchuk, Cohen and Wang 2014). Shareholders of the Commonwealth Bank have the capacity to impact the companys decisions to a certain extent. Shareholders can expect a total return of about 104.8% at the end of 5 years (Commbank.com.au, 2018). Apart from this, special discounts and bonuses are also given to the shareholders. Shareholders consequently expect to be treated with importance while important decisions are made. Customers are the primary source of income for the bank. Banks invest the money deposited by the customers and gain huge profits from it. Customers expect a secure and hassle free deposition and transaction of their finances. According to the Shareholder Review of 2016 of the bank, deposits made by the customers represented 66% of the total group funding (Commbank.com.au, 2018). As in any other line of work, bank employees regulate and conduct all the interactions with customers. Their tireless efforts ensure the productivity of the bank at large. Employees receive bonuses and special benefits in return. The profession of banking is regarded as very respectable in general. Bank directors and the management teams are the gatekeepers of money related solidity, which is a standout amongst the most valuable open merchandise. Bank management teams need to guarantee that the bank procedure as considered and executed by administration has a proper functional profile. That budgetary information precisely portrays the bank's state in general and thus cautious measures are needed to ensure investors' cash and investors' assets security (Boubaker, Mansali and Rjiba 2014). In short, the directors perform their activities without acquiring unreasonable risks. According to the normative model, supervisors or directors need to ensure that unnecessary and impetuous risks are not taken by the bank (Parente et al. 2016). Establishing a well scrutinized policy can reduce these risks significantly. It is the responsibility of the director to make sure that all the employees and workers adhere to those norms and regulations (Agn, Dellmuth and Tallberg 2015). However, intro ducing a policy that somewhat restricts the actions of employees and workers can be challenging at times. Thus it needs to be in congruence with the bank's ideologies and should be of the best interests of all the employees as well (Bukair and Rahman 2015). Nevertheless, directors need to maintain a certain level of independency while constructing these policies. Any bias or partiality will not be tolerated on the part of the director as the director of the bank is usually held accountable for any major issues that the bank faces. Employees are considered as the limbs of any working organizations. From day to day interaction with the customers to making sure all the transactions are completed securely and on time, every duty is distributed among employees at different levels (Ferdous and Moniruzzaman 2015). Thus, it is essential that they work with commitment and perseverance. Bank workers, otherwise called bank employees, are in charge of the vast majority of the ordinary operations at money related establishments. They must monitor all the cash that goes through a bank. This is no simple errand, as a bank of this magnitude has numerous exchanges each day. The expected set of responsibilities of a bank employee uncovers what bank employees do to screen each penny (Sharif and Rashid 2014). According to the Lawrence Kohlberg's different stages of moral development model, the pre conventional level suggests that obedience and self interest should be incorporated in the employees (Mallin, Farag and Ow-Yong 2014). Employees should have the urge to avoid punishments or penalties at any cost. This urge can be enhanced significantly if the work in hand can be viewed from a perspective of self interest. Working harder for benefits or incentives will only elevate the overall quality of the work. Conventions are the second level of Kohlbergs hypothesis (Thoma, Bebeau and Narvaez 2016). Working by the social norms and maintaining a respectable character should be the main focus of the employees. Several laws and policies are also been implemented and developed in banks to maintain any such policies. The stakeholder theory refers to the management procedures of an organization that comprises of business ethics, morals and values (Hung 2015). According to the model, a bank has primarily two types of stakeholders, viz. Internal Stakeholders and External Stakeholders. Internal stakeholders are the various employees associated with the bank, the managers and the owners of the bank (Hrisch, Freeman and Schaltegger 2014). Whereas, society, shareholders, customers and the suppliers are the instances of external stakeholders. This theory is concerned with providing the maximum value to the stakeholders, especially shareholders. Since a bank relies heavily on the shareholders, both financially and administratively, it is the duty of the shareholders to encourage a steady prosperity of the bank. Shareholders, who have been associated with the bank for long and have significant knowledge about the bank's functionality, can provide guidance to the board of directors. In case the directing bo ard decides on doing something unethical, the shareholders can sell the shares and consequently make the bank incur huge financial losses. Recommendations (Memorandum) dd/mm/yyyy MEMOANDUM TO: The Board of Directors, The Commonwealth Bank of Australia FROM: -name- SUBJECT: Restoring credibility of the Commonwealth Bank of Australia. The three areas that should be regarded more important than the rest are the action of the board, functionality of the management and the assimilation of a decent human resource department. Rests four component model is named after its developer, James Rest (1983). It describes the four abilities. Moral affectability concentrates on the capability to distinguish between the circumstances that are ethical and those which are not. Moral judgment obliges the person of concern to analyse the situation and take appropriate action. Moral inspiration includes prioritization of ethical rationalities. Finally, moral actions are meant to be taken on the basis of moral skills that are required. The main purpose of the board of directors is to make sure that the company prospers as a whole (Jizi et al. 2014). Apart from all the professional issues, the board members face various issues regarding corporate governance. It is of paramount importance that the board members regularly meet and discuss the numerous policies and norms. Members are entrusted with governing the bank in the right direction. In recent times, the bank has been involved in various dishonoring acts and issues that even made the CEO resign. Thus an overall change is needed, starting at the top of the administration. Clueless management adds to instability of the administration significantly. Without a good management team to implement the strategies and policies defined by the board of directors, no organization can function accurately. A capable management team will guide the bank to a more productive and profitable path (Campiglio 2016). With introduction of systematic policies that ensures profitability of the bank and the skills to operate even under substandard leadership of board members, a good management team can take the bank a long way. A well-structured human resource development department can provide the bank with stability and honesty. From recruiting skilled and honest employees to maintaining a safe and honest environment in the office, human resources department ensures that a certain level of dignity is maintained through the hierarchy of officials. It is evident from the reports in the recent times that there is a lack of proper and ethical leadership in the Commonwealth Bank of Australia. Thus, a change in the leadership would cast an overall change over the bank for good. A bank of such high popularity will always be under the radar of media and other inspective organizations. Any sort of corruption or fraudulence will be exposed sooner or later. Time and again the bank has been involved in controversies. In spite of existing norms and policies of the bank, employees at different levels have been involved in corruption. A rigid board of members with ethical mindset will make certain that corruption is not tolerated within the bank. A management team with strong ethics helps to maintain a standard quality of work. Different ethical programs and norms highlight the required values while making sure that the organizations ideologies are in alignment with these values. A proper management team dedicates itself to the promotion of the banks public image. Scrutinizing every policy from an ethical point of view leads to an ethical environment overall. Needless to say, in the context of recent scandals, the bank needs it more than ever. It is better to invest more on ensuring a corruption free administration than to face a litigation charge. Thoughtfulness regarding business morals is basic amid times of principal change and is of utmost importance in times much like those confronted now by organizations, both philanthropic or for benefit. Amid times of progress, there is regularly no reasonable good compass to manage pioneers through complex clashes about what is correct or off-base. Proceeding with thoughtfulness regarding morals in the working environment sharpens pioneers and staff to how they need to act reliably. Human Resource department will ensure a better relation between customer and the employees. In recent times the public image of the bank has somewhat been derelict. Employees need to be assessed carefully depending on their personalities and attitudes. Human resource department complies with the laws established for the benefit of workers as well as the organization itself. In case the department fails to do so, the working environment may become unsafe inside the bank which will in turn result in degrade d productivity and cause dissatisfaction among employees and customers, both. Human Resource officials must outline and screen work procedures to diminish the open doors for internal larceny. Human resource strategies should scrutinize and carefully observe each steps of money collection, handling that money and keep accounts of all exercises by means of video surveillance. In case a corrupt official makes an attempt to take money from a bank, the HR division must deal with the necessary lawful actions and regulatory procedures required by the bank's policies. 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