Code of Ethics for Employees of Commonwealth Bank of Australia Assessment Answer
1. The code of Ethics for the employees of Commonwealth Bank of Australia:
In order to maintain integrity and honesty in business and to manage the reputation of business, the employees of the Commonwealth Bank of Australia can follow some specific Code of ethics. They are discussed below:
- Avoiding bullying to any employee
The employees could respect each other and should not bully any employees. Employees need to follow this rule strictly to eliminate discrimination issues from the organization. Along with this, respecting each other generates strong bonds between the employees and operation of the organization can be maintained properly.
- Providing equal opportunity to the employees
The authorities could provide equal opportunities to every employee of CBA. Every employee needs to get an equal chance to improve their performance. This rule will be effective to resolve the discrimination issue from the organization and to maintain the Code of ethics as well.
- Prohibition of the harassment of employees
Employees of CBA need not harass employees by verbally or physically. Harassment is a kind of exploitation that must be prohibited by the authorities to generate a positive and vibrant work atmosphere where employees can work safely without any worry.
- Prohibition in illegal allegation
Employees need not to alleged other employees illegally in CBA. The illegal allegation is also exploitation which destroys the integrity of the employees. Therefore, employees can maintain this rule to sustain the positive work environment of CBA.
● Need to avoid insider trading:
Firstly, the employees of CBA can avoid being connected with any insider trading of the company. Mostly, insider trading of the company deals with the sharing of any price-sensitive information or sharing of any confidential data. However, participating in insider trading is an unethical issue as per the Australian trading share policy. Therefore, the employees need not deal with any entity investment or not to encourage other employees to participate in insider trading.
● Need to avoid unauthorized payments:
As CBA provides banking policy to the Australian customer, therefore, employees can face unauthorised payments. Although, it is the responsibility of the employees to avoid such payments in order to maintain the business reputation of CBA in the market. Therefore, they must not accept gifts, services, discounts and other gains from any unauthorised channel for providing banking service from CBA. However, offering bribes to anyone for achieving any illegal service is prohibited, therefore, the employers need to maintain this rule to avoid unethical issues.
Dishonest and Fraudulent Behaviour
- Financial irregularity
The employees of CBA need to maintain the financial regularities of the company. Financial irregularity such as omissions of the information that are related to the financial transaction of the company or intentional statements and others are against the Code of conduct in CBA.
- Illegal order
Passing any illegal order and misuse of the job position will be considered as dishonest and fraudulent behaviour in CBA. Therefore, employees need to maintain this rule in order to follow the code of ethics of CBA.
As per the Whistleblower Protections act, employees of CBA can inform the higher authority in any case of fraudulent or dishonest behaviour of other employees in order to maintain the Code of ethics of the company. Through this act, CBA will provide the required protection to the employee who will provide information, and can cut the payments or punish the Whistleblower employee.
Employees can also follow the rules of enforcement to maintain the reputation of CBA in Australia. Therefore, they have to respect the constitution of Australia and need to respect the constitutional right of liberty and equality for all.
2. The discussion of the document:
|Code of ethics||Discussion|
Concept of discrimination:
In the view of Radulescu (2017), discrimination can be defined as an act to make distinctions between human-based groups, divisions or other categories in which they belong. Organizations need to eliminate discrimination completely from the workplace to maintain ethics in an organization.
Discrimination on the basis of the burden of work could be a major act that could amount to discrimination to CBA. This is because it creates inequality in terms of workload which could be a significant act harming the workplace culture of CBA.
Discrimination on the basis of race, colour is another activity that brings workplace discrimination. It is required for the employees also to avoid any race and colour discrimination among their co-workers. This issue can reflect the discrimination in the workplace of CBA which is against the Code of conduct.
Concept of Exploitation:
According to the view of Sindzingre, (2018), Exploitation can be described as an act to use the resources and to treat the people unfairly in order to achieve the benefit from labour. In an organizational context, exploitation is the act of selfishly taking advantage of labour.
In 2014, CBA was charged with the illegal financial transaction by some employees (Abc, 2020). This is a significant example of financial resource exploitation of the organization by their employees.
Another example of exploitation of the insured rights by providing misleading information and lack of respect when the insured alleged for misleading statements about coverage for heart attacks (Abc, 2020).
Concept of corruption
In the opinion of Jeppesen (2019), corruption is a misuse of power by the persons who are in the position of power in an organization like in managers or other higher echelons in a private or in government organization. Corruption can take place through taking bribe, gifts and in other ways. The pioneers of an organization are required to prevent all types of corruption.
For example, one of the Australian Chiefs, Mr Narev quit the bank in the year 2017 for the accusations that some criminals used the cash machines for laundering nearly $millions ( Williams, 2017).
For another example, CBA in the year 2018 paid $ 700 million in costs for systematic failure to its report (Abc, 2018). In such a case, The company is required to ensure its report through the reward and punishment to its employees in the accounts department
Dishonest and Fraudulent Behaviour
Concept of dishonest and Fraudulent behaviour
Fraudulent or dishonest behaviour means the behaviour of the employees that are not consistent with the ethos and code of conduct ( Zager et al., 2016).
In the year 2018, the employees of the Commonwealth Bank of Australia involved some fraudulent act and they misbehaved with the customers. This was an issue of serious fraudulent and misbehaviour on the part of the bank employees (Abc, 2018). However, to mitigate this issue the pioneers of CBA are required to provide the training to the employees so that they can understand the value of ethical behaviour.
Maintaining confidentiality within an organization is the other type of ethical behaviour. The employees of CBA should maintain bank customers' confidentiality through their ethical behaviour. This type of ethical behaviour will help the bank to foster sustainability in its business.
Concept of whistleblower protectionA whistleblower can be said to be a person who exposes secret information of the company to another business organization and this act is considered to be quite illegal (Kenny et al, 2020). Rigidity within an organization is to be followed and incorporated so that an employee cannot leak out secret information of an organization.
For example, it can be told that in the year 2016, the Commonwealth Bank of Australian questioned over the whistleblowing policies on some staff of the bank. This was an internal issue of the bank (Danckert, 2016). The Bank should incorporate Qui Tam actions on its employees to mitigate this.
Another example can be set by mentioning that some special types of anti-whistleblowing policies are to be included especially for the Commonwealth Bank of Australia.
Concept of enforcementEnforcement is the policies through which the organizations be it the government or the non-governmental organizations enforce some ethical rules and regulations for their compliance (Najmulmunir, 2020). Some of the employees are delegated the powers to enforce the rules and regulations in the company for their compliance.
For example, it can be cited that in the year 2017, the AUSTRAC filed a suit against the Commonwealth Bank of Australia for under money laundering and Counter-Terrorism Financing Act, 2006. This was for a money scandal against the bank (Aaustrac, 2018). The bank had to pay penalty also for this case. However, for this case, the CBA is required to incorporate some enforcement in the bank and give the power to some of its pioneers for the enforcement of the ethical policies.
Table 1: Discussion of the Code of ethics
(Source: Created by author)
3. What a Code of Ethics/ Code of Conduct is and what a company Code of Ethics is supposed to do.
In the opinion of Adelstein and Clegg (2016), a code of ethics is a guide through which the corporate professionals aide by some business rules and regulations and run their business in an honest manner. On the other hand, the code of ethics shows the vision, mission and the value of the organization and it also shows how the business pioneers in the company face different types of ethical issues within their organization. A code of ethics teaches the employees to respect other employees, not to do any discrimination to other employees, not to underestimate anyone and such others. Hence, from the above discussion, it can be said that the code of ethics is necessary for an organization. Through the code of ethics professionals mainly take the decision in their organizations. Code of conduct is a set of rules that are necessary for the employees to maintain the code of ethics. For example, in order to follow a code of ethics, an employee has to know the specific law that is necessary to follow that code of ethics. Therefore, both the code of ethics and code of conduct are interrelated to each other deeply.