Big Four Banks Essay

519 words - 3 pages

Ethical Dilemma

In this case, we observed the four big banks in Australia – ANZ, Commonwealth, NAB and Westpac in relation to their profitability, fees and charges, as well as their decision to raise the interest rates beyond the changes by the Reserve Bank of Australia (RBA). In addition, the corporate social responsibility of banks has become a central issue in the public debate around the Global Financial Crisis (GFC).
I believe banks do have social responsibility because of their special position in our society but they also ensure that the banks are profitable and healthy in need to have a stable, efficient and secure banking system. The view from the banks is that they do regard themselves as socially responsible. Therefore they exercise socioeconomic view of the social ...view middle of the document...

That is why AWB knowingly paid bribes to the Iraq government in the form of transport costs.

Another factor would be the lack of openness and frankness in AWB’s dealing with the Australian Government and the United Nations because at no time did AWB tell the Australian Government or the United Nations of its true arrangements with Iraq.
Discussion Question 3

As analyzed from the textbook. Concentration of effect and consensus of wrong are the characteristics that determine issue intensity faced by the AWB’s employees.

In our case, other factors namely individual characteristics and organizational culture could also be involved. As studied in the course, individual characteristics are all about values which represent basic convictions between what is right and wrong. Therefore we can correlate as AWB’s employees knowingly bribed the Iraq government although it was wrong and unethical. Organizational culture is also one of the factors since culture of any organization influence ethical behavior. This can be concluded when Andrew Lindberg was appointed managing director of AWB in April 2000, AWB continued its trade with Iraq in spite the increase in trucking fees or transport cost.
Discussion Question 4

I would say Andrew Linderberg’s leadership was unethical. In april 2000, he was appointed as the new managing director of AWB. Despite knowing the transaction between AWB and Iraq Grains Boards (IBA) were dishonestly structured by AWB, he agreed to continue the trade with IBA.

My recommendation would be as soon he gets to know about the situation he should have stopped all the transactions between two organizations and should have refused to cover transport cost for the wheat similarly to what Canadian Wheat Board did back in January 2000.

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