This website uses cookies to ensure you have the best experience. Learn more

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.

Other Papers Like Big Four Banks

Banks, Bailouts, Bonuses and Blow Ups

1858 words - 8 pages responsibility lay on banks (Lucchetti, Enrich, & Lublin, 2009). Yet, as most Americans were learning to do with less, and the government stepped in to keep other banks from failing, some Wall Street employees were going home with larger paychecks than ever. In 2008, for example, Citigroup had an overall loss of $27.7 billion, received $45 billion in government funding, and then proceeded to pay its top four executives $43.66 million in addition to

Private Banks Of Bd Essay

4612 words - 19 pages keeping idle fund. This ratio should also be justified; otherwise it can affect profitability adversely. So private commercial banks should be prudent in maintaining this ratio to ensure maximum profitability. So it is found that profitability of private commercial banks in Bangladesh increases as total asset, No. of Branches and Business per Employee increase. Total asset can be considered to measure the size of a bank. Big banks can provide

Challenges of Banking Sector

3198 words - 13 pages projects, as the return did not compensate them for the risk involved. This led to the banks getting into the retail segment big time. It also led to a lot of banks playing it safe and putting in most of the deposits they collected into government bonds. Now with the bond party over and the bond yield starting to go up, the banks will have to concentrate on their core function of lending. The banking sector in India needs to tackle these

Similarities Between Credit Crisis And Japanese Asset Bubble

2839 words - 12 pages ). Policy makers mistook the slump for a short business cycle correction and did not apply enough fiscal stimuli to resuscitate the economy. The economy became worse and the problem became a full-blown crisis by the end of 1997 with the failure of Hokkaido Takushoku Bank, one of the 19 largest banks, and Yamaichi Securities, one of the big four securities companies. A year later the government rescued and nationalised another two major banks - Long

Centralbanks Save Europe

1915 words - 8 pages also put the Dow within six points of 12,000. It has not closed at that level since Nov. 15. Stocks closed 5 percent higher in Germany, 4.2 percent in France and 3.2 percent in Britain. European stocks had posted big gains earlier this week because investors saw hope that countries would settle on an attempted fix for the European debt crisis. Stock markets in Asia finished lower for the day. They closed before the Fed and other central banks

Fins Bank

2455 words - 10 pages 1-4 Banks: Recent Trends • In 2005 Australia had 49 banks, compared to 13 banks in 1985. • Overall increase in number of banks driven by: – relaxation of entry requirements – changes in the regulatory requirements of non-bank depository institutions. • In 2005, the Big 4 banks plus St George Bank held 73.9% of the assets of all Australian banks, which points towards a highly concentrated industry (see Table 1.3 in text

Basel Ii Implemenatation

4612 words - 19 pages , 1998, banks in the G10 countries are required to maintain regulatory capital to cover market risk (this is commonly referred to as the Market Risk Amendment to the Basel Accord). Regarding to the Market Risk we should mention that Albania has big challenges in the upcoming future. Financial system in Albania is still dominated by commercial banks. Capital market, in spite of the creation of the Albanian Stock Exchange is not functioning

Business Research Ethics

1222 words - 5 pages an overhaul of the banks management affecting nearly every executive and their compensation terms. Societal effects materialized in loss of confidence in the United States banking system resulting in a near economic collapse four years from event discovery. Nearly every family in the country would be affected by this in one way or another. This unethical behavior could have been avoided with more strict government oversight and tighter controls

Commercial Banks And New Capital Regulation

3326 words - 14 pages easily available (Asian Banking Association 2010). Another implication of Basel III in Australia according to Asian Banking Association (2010, p. 65) is that ‘there might be 1% gap in Core Tier-1 due to the definitional differences between APRA & Basel’. This is reasonable as minor changes may imply as different countries have different economic situation. Under, Basel III, ‘the big four banks will be adapting the AIRB approach’ (Asian Banking

Impact of Global Economic Situation on the Indian Banking Industry.Doc

2825 words - 12 pages India, faces minimal pressure from the government. Globalization, financial deregulation and technological advancements have all resulted in significant benefits for the Indian economy in general and the banking industry in particular. A snapshot of 2006-07 Following four consecutive years of economic growth, the Indian economy was looking strong in the year 2006-07. Banks across the board experienced growth driven mainly by retail banking

Speech by Tun Dr. Mahathir Bin Mohamad

2122 words - 9 pages transactions as carried out by hedge funds and currency traders will bankrupt the funds and the lending banks as well. 11. With that not only the investors but the fund managers and the banks would be bankrupt. The collapse of the big banks will lead to a financial crisis which can destroy even the richest economies. 12. Again, Islamic banks may not be open to high leverages because interest is not permitted and the requirement of risk sharing would expose

Related Essays

Banking Features Of Australia And Canada

3312 words - 14 pages and declines in risk-weighted assets. High quality is due to the composition of bank capital mainly is common equity. Besides, given these strengths, Australian banks are in good position to meet more conservative or higher capital requirements under Basel III (Jang & Sheridan 2012, p.12). Owing to the financial soundness of big four banks, they still have profitability with capital above regulatory minimums. Apart from improvements in

Global Banking Essay

2083 words - 9 pages commercial businesses. - United States big business groups and each of the seventeen major business empires in the US has at least one bank as a member. - For example, the top US banks like Citicorp, Chase Manhattan, Chemical Bank, and First National Bank of Chicago are all part of the Rockefeller Group of 100 companies while the Morgan Group of nearly 80 companies has also several financial institutions in its business structure. - The

Expansionary Monetary Policy Essay

762 words - 4 pages employment, and economic growth”(McConnell, Brue & Flynn, 2009). One of the ways the Federal Reserves seeks to maintain this balance in times of economic downturns or crisis is through the use of the expansionary monetary policy. The four tools used for monetary control are as follows: 1. Open market operations 2. Reserve Ratio 3. Discount Rate 4. Term Auction Facility The decision of the Federal Reserve to use such tools is an attempt to

Sustainable Banking An Indian Perspective Essay

3068 words - 13 pages ' environmental performance, manifested in lending and investments decisions, began to act as an additional driver of sustainability in the private sector. To understand the proceedings that banks are taking towards sustainability, we have identified four stages or attitudes. 7. Green Banking in India As far as Green Banking in India is concerned, the banking and financial institutions are running behind the schedules compared to global trends