BUSM 4192 Introduction to Management
Topic: Ethical Management
Case Study: ANZ Bank
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Date of submission: 25th February 2014
This report will discuss the key concepts of ethical management with regards to ANZ Bank, how ethical are they and how successful are they in carrying out their ethical management strategy. It will also take into consideration of other banking sectors; how they carry out their side of ethical management and how similar or different are they from ANZ Bank, with supported opinions or arguments on the topic.
1. Introduction to Ethical Management 3
2. Ethical Management in ANZ Bank 4
2.1 Code of Ethics 4
2.2 Investments and Funding 5
2.3 Diversity 7
2.4 Whistleblowing 9
2.5 Fraud 11
3. Conclusion 13
4. Reference List 14
1. Introduction to Ethical Management
Ethics is denoted as the correctness of behaviour. However not everyone can come to a same conclusion that the behaviour is right or wrong, ethical or unethical (Lewis 1985).
In an organization level, the people who are affected by its ethics are the organization’s stakeholders. The ultimate objective of an organization’s ethical management strategy is to make ethical decisions, so as to benefit its stakeholders. So what determines a right or wrong, or ethical decision? There are some key criteria to making an ethical decision:
1) Legality- Will the decision affect the legal status? It is almost always considered unethical when the law is violated (William & Sauser 2005).
2) Efficiency- How will the decision affect the organization’s efficiency? An organization’s efficiency is often considered directly parallel to its revenue and profit; also known as the principle of optimization, the primary decision making factor will be the cost effectiveness- the aim to keep the cost for doing business to the minimum (Shumway, Elenkov & Badgett 2012).