Essay Implementation of the Ethical, Legal and Cultural Aspects – Management Assignment Help

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Task:

Introduction
This report reveals the case study aspects and implementation of the ethical, legal and cultural aspects of the Royal Bank commission. In addition to this, Royal Commission into Banking, Superannuation, and Financial Services Industry has been assessed. The report stated that the employees of the Commonwealth Bank had the impression that their bank was providing globally competitive services to the customers. But the fact remained that their services were nowhere near reasonably mature banking practices. The report also mentioned the managers and employees of the companies were fully devoid of any intellectual and critical thinking ability, which made them feel at ease while indulging in fraudulent activities However, it has been observed that for the legal and ethical business sustainability, Bank needs to align its business interest with the organizational stakeholder’s interest and there needs to maintain ethical legal compliance in its financial reporting framework.
 

Royal Commission
In the light of the media reported widespread culture of greed in the Australian financial services sector resulting in irregularities and unethical practices of the big banks, financial institutions, and superannuation funds, the government of Australia established the Royal Commission, also known as Banking Royal Commission on 14 December, 2017. The commission was established in pursuant to the Royal Commission Act, 1902, and was mandated to investigate the misconducts of the said companies. The Commission, chaired by the Honourable Justice Kenneth Madison Hayne AC QC, came out with the report revealing a number of findings of flawed corporate governance and resulting in misconduct of the sector.

The Unethical Practices of the Entities
The Commission made two rounds of hearing and came out with findings of the following misconducts by the entities.
Consumer Lending
The round 1 enquiry of the commission revealed irregularities by the sector in the consumer lending operations, including lending on housing, cars, credit card, and add-on

ROYAL BANKING COMMISSION
insurance products. The report shows that the institutions relied on fraudulent documents provided by customers in matter of providing loans, breached mandatory obligations required for responsible lending of public money, and indulged in processing and administrative misconduct by charging incorrect and higher interest rates and fees (Lexology, 2018).