Social Responsibility for Australian Commonwealth-myassignmenthelp

Question: Discuss about theSocial Responsibility for Australian Commonwealth Bank. Answer: Introduction During the year 1911, the Act of Commonwealth Bank initiated the operations of Australian Commonwealth Bank, which is also simply known as CBA. Andrew Fisher labor government did the establishment of the same. The CBA was first bank in Australia to get the federal government guarantee (Bank 2014). Within a very short time period, the bank stared to establish both saving and general banking business. The three main countries in which the common wealth bank of Australia operates includes the United States, New Zealand and the United Kingdom. There are variety of ranges of the services provided by the bank that includes superannuation, management of funds, retail, Institutional banking, brokerage services, insurance and many more (Sivaraman and Turner 2016). The Commonwealth Bank is also abbreviated as Commbank was listed in the stock exchange of Australia in August 2015. It was then known as largesrt bank in the Southern hemisphere. Discussion Analysis of the Common wealth bank of Australias financial decisions and the Corporate Social Responsibility principles in context to the given situation In accordance to the annual report of sustainability of the company of the Australian Common Wealth Bank, there are numerous policies and principles related to the corporate social responsibility. It includes various kind commitments as mentioned in the report like ensuring, professionalism, honesty and fairness in dealing with its clients (Rice 2017). The statement of the Corporate Social Responsibility states that there are various commitments of the company like political donations, countering money laundering and frauds management. The main mission of the company is to promote financial well being in the various businesses, communities and the customers (Islam, Jain and Thomson 2016). The Annual Report of the CBA 2017 reveals various ethical principles and policies. According to the report, the CBA treats each other the way they would like to be treated. Therefore, it makes sure that there is respect within themselves. They also make sure that there is compassion in the working environment (Boersma 2015). The management of CBA are aware of the human vulnerabilities thus includes kindness in the work by showing generosity, appreciation, showing humanity and taking rational judgments. Moreover, there is trust that ensures the honesty and dignity is there in the business interactions. The element of trust is build and earned in the conscience that opposite person in morally satisfied. The commonwealth bank of Australia also commits to be true and fair and promotes leadership in workforce. Before stating the financial decisions taken by the commonwealth bank, it is important to know the purpose and objectives of the Corporate Social Responsibility as well as the operations. The CBA focuses mainly in the protection and enhancement of the wealth of its customers. Therefore, it provides cost effective and competitive banking and financial service. It behaves that the consumers transact with confidence and convenience. it also generates returns that are effective for many Australian customers who owns their shares and also through the process of superannuation (Bartlett 2016). Then comes the financial decisions, the CBA provides fianc to more than 2 million clients and pays interest to more than 11 million account holders. The annual payroll expenditure the banking group is more than $5 billion. Moreover, CBA is the Australias fourth largest taxpayer; it has paid more than $3 billion tax in the financial year of 2017. The CBA has conducted various health and well being programs for spreading banking knowledge. The CBA group has also been delivering a range of financial literacy programs to more than 280000 students across the world. However, the insurance company CommInsue highlighted the case of fraud involving the commonwealth bank. As per the insurance company, the bank has been accused to influence the medical intuitions so the insurance claims of the patients are rejected. It involved wrong use of the medical reports that includes files deletions and making the doctors to change the description of the diseases so that the insurance claims of the clients gets rejected. This misconduct contrasts with the fundamental principles and policies of the banking company and had wrong impact on reputation and goodwill of the company. The commonwealth bank of Australia and their sustainability As per the sustainability report of 2017, it is evident that the social responsibility and sustainability have a great impact on the banking company. They clearly consider sustainability and social responsibility in their operations. As on the date of May 2013, the group of the Common Wealth Bank declared a new decision in which enhancement focus has been made on the financial well being of the consumers, businesses and the community. Their new goal is to highlight various on culture, innovations and improvise the policies. There has been a new set of sustainable goals that says: Financial services that are responsible: Their approach to the terms of financial services are to be made more dependable Sustainable work force: To sustain and attract a workforce that is talented and there must be a innovation of the existing one Environmental stewardship: To make necessary measurement and reduction in the existing environmental limitations and provide effective solutions to help the customers and the employees to reduce theirs Improvisation of the policies of the business: The sustainable business principles and policies that have been set by the CBA that includes a system that is well established management, reporting that transparent and a strong governance responsible procurement Community service: To make contributions programs those are effective to the communities with the help of beneficial partnership Various Sustainability Services that the company has conducted are as follows: Increase of the flexibility in work The CBS has provided 24 hours real time banking Initiatives to help in reduction in usage of carbon by 20% Many effective awareness and educational programs to make the students aware of the banking system and policies. Violation of the ethical principles The various principles of ethics include: Principle of Justice: The principle of justice states that mangenent should focus on the actions that are fair. This refers to the decisions that are ethical and should stable with the Theory of Ethics. The customers of CBA had to face injustice in the present fraud case Principle of Beneficence: The principle of beneficence provides guidance to the management to make the judgment as to what is right and what is wrong (Newton 2017). This focus is made on the things that is ethical. This is also related to the utility principle that states that there should be efforts to strive to achieve the greatest amount of good for the benefits of the clients. In the given situation, CBA has violated the principle and has done no good to the insured patients who cannot obtain their insurance claim.. Principle of Respect for Autonomy: This principle states that the management process should focus on allowing the individuals to be autonomous. The people should have control in their as they are the ones who completely understand their chosen type of lifestyle (Gitman, Juchau. and Flanagan 2015). Principle of Least Harm: The least harm principle deals with the situations in which there is no choice that is beneficial. In these cases, management seeks to do the minimum harm and to do harm to least number of people. The scam case as reported by the CommInsue tells that the innocent customers have lost their medical insurance amounts in this fraud case, which is harm Ethical theories and its violations The ethical theories helps in the process of decision making and provides guides for taking the actions there are four broad categories of the ethical theories. The categories are: Theory of virtue: It is the ethical theory of values. A person is judged is done by their character rather than by their action. The character and the actions are by their common behavior. The personal morals, reputation, and motivation are considered. The unbalanced behaviors are taken as immoral (Kara 2017). The action made by the CBA lacks in virtue as the manipulation of the doctors to extract the medical insurance money of the clients is an immoral and unethical action. Theory of rights: The ethical theories on rights, it is a theory that is established by the society. As a result they are given the highest priority. There are the fundamental policies accepted generally by the public. The CBA has violated the right of the insured patients by rejecting their claim. This it is a criminal offence. This is a case where innocent patients are harmed. This is against the mentioned commitments and can harms the reputation. Conclusion The given scenario as pointed out by the largest insurance company in Australia that the Australian bank of commonwealth has been caught in some fraudulent practices like deletion of files, misusing of medical reports, and forcing the doctors to change their opinions so that the claims of the rejected, altering the description of diseases and delaying payouts. The discussion deals with the assesment of the management and policies of the bank and their violations. References Bank, C., 2014. Sustainability Report 2010.Small Medium Enterprise Development Bank Malaysia Berhad. Bartlett, J.L., 2016. Multiple voices shaping CSR meaning and practice Boersma, M., 2015. How Does Sustainable Banking Add Up? Gitman, L.J., Juchau, R. and Flanagan, J., 2015.Principles of managerial finance. Pearson Higher Education AU. Islam, M.A., Jain, A. and Thomson, D., 2016. Does the global reporting initiative influence sustainability disclosures in Asia-Pacific banks?.Australasian Journal of Environmental Management,23(3), pp.298-313. Kara, H., 2017. Research Ethics-Ethical Theories. Newton, M.T., 2017. A Comparison of Ethical Theories. Rice, M.E., 2017. The ethics of presenting a fair and honest treatment plan.The Journal of the American Dental Association,148(4), pp.277-278. Sivaraman, G. and Turner, P., 2016. The 7-Eleven wages scandal: The need for law reform.Precedent (Sydney, NSW), (135), p.53.