Goodwill runs in the long term. Any financial institution is required to maintain a good reputation. One way of maintaining a good image and keeping the trust of the customers is following ethical practices. Following these practices will help to cater with shareholders, employees, consumers, and regulatory agencies and keep their trust.  

The Australia and New Zealand Banking Group (ANZ) has made ethical behaviour an essential part of its business practices. This has been done especially in light of growing public scrutiny of the banking industry. Given its vast client base and global reach, ANZ needs to have a strong ethical hold.  It has a substantial impact on its long-term performance and image.

We will look at ANZ's ethical practices in this case study. This essay offers how they have changed over time, and how these practices have affected in maintaining stakeholder confidence. We will also examine key events that put the bank's moral stance to the test. At the end, we will also cover its reaction and how it has affected stakeholders' views.

A Synopsis of ANZ and Its Ethical Structure

ANZ is one of the "Big Four" banks in Australia.  It has branches in over 30 nations worldwide. The bank engages with a wide range of stakeholders. It offers a range of offers in retail, commercial, and institutional banking services. ANZ's operations, investments, and client connections are shaped by ethical norms. These norms have been set as a part of its commitment to responsible banking.

1.    The Code of Conduct for ANZ

ANZ’s ethical framework is stated in its Code of Conduct. All employees are obliged to follow these codes. The code addresses important topics like:

• Integrity and Honesty: Every employee must interact with clients and partners in an open, sincere, and truthful manner. There should be no secrecy. All decisions should be open and known. 

• Fairness: The bank makes sure that each person's needs are met by its offers and services. It aims for fair treatment and customised solutions. It caters to individuals without exploiting them. 

• Environmental and Social Responsibility: ANZ places a strong emphasis on sustainability. All its business practices and financial decisions are influenced by this. It vows not to support projects that directly harm human rights or the environment.

• Diversity and Inclusion: It has been aiming to promote a diverse and inclusive workplace. This helps to guarantee equal chances for all workers. This fairness and honesty reflects its ethical leadership.

2.    Corporate Social Responsibility (CSR)

ANZ has made corporate social responsibility a key component of its brand. Its programs are focused on social inclusion, environmental sustainability, and financial literacy. The bank's CSR strategy is to improve relationships with local communities.

Its initiatives leave a lasting positive influence. This is especially important for stakeholder trust. It is so that consumers and the general public expect businesses to be more socially conscious.

The Ethical Challenges ANZ Faced

Even with a solid ethical base, ANZ has had a difficult time keeping the trust of stakeholders. Much like many other financial organizations, the bank has been involved in several scandals.

The Royal Commission into Misconduct in the Banking, Superannuation, and Financial Services Industry examined it. The sudden check exposed many scandals. 

1.    Royal Commission Findings

The Royal Commission was established in 2017. Since then it has brought up multiple cases of unethical activity in Australia's banking industry. It also exposed ANZ fraud. The commission's report focused on several important topics, including:

• Overcharging of Fees: It was discovered that ANZ had overcharged clients for services that were never rendered. It included customers who had passed away.

• Irresponsible Lending activities: The bank engaged in activities that led to consumers taking on loans they could not afford. It added to their financial distress. 

• Misrepresentation of Products: Some clients were misled about the risks associated with specific financial products such as insurance policies. All the misleading information led to a loss of confidence and people were shy to buy from the bank again. 

The top executives of ANZ bank issued a public apology in response to these findings. However, the damage has been done and the bank's reputation has been harmed.  The results of the commission brought to light deliberate flaws. It was visible in its ethical behaviour, accountability, and risk management.

2.    Customer Remediation Programs

ANZ launched customer remedy projects in response to the findings of the Royal Commission. This was an attempt to fix its lost reputation. These included giving affected clients their fees back, examining lending procedures, and enhancing product information honesty.

Despite the vitality of these actions, the events seriously damaged stakeholder trust. The customers who were negatively affected completely lost their confidence. 

Affecting Stakeholder Confidence

Any financial institution that seeks to thrive must have the trust of its stakeholders. Any unethical behaviour can have far-reaching consequences. The findings of the Royal Commission severely affected ANZ. It has an overall impact on its relationships with its various stakeholders. 

1.    Customer Trust

The success of any bank is largely dependent on its customers. The findings of the Royal Commission showed that ANZ had at times placed shareholder profits above the welfare of its customers. This led to high mistrust.

Rebuilding this confidence has required large financial compensation. The bank also had to take institutional reforms. These were taken to ensure that consumer interests are prioritized in the future.

• Increased clarity: ANZ has since focused on boosting clarity surrounding fees, product risks, and loan assessments. The goal here is to better align its services with client expectations.

• Simplified Products: ANZ has introduced product offerings that are easier for customers to comprehend and use. This was done In response to complaints about misrepresentation. This clarity about products will help them make more informed decisions.

2.    Employee Trust

Employee loyalty and morale are also impacted by ethical behaviour within a company. ANZ has enhanced its internal ethics training programs. It has established a whistleblower protection framework.

This is done in order to ensure that unethical acts can be disclosed and handled without fear of retaliation. All these steps are a part of attempts to repair internal confidence following the Royal Commission.

• Ethics and Conduct Training: companies should ensure that ethical issues continue to be at the forefront of decision-making at every level.  ANZ has set up the required ethics and conduct training for all of its workers as a response. 

• Internal Accountability: the bank has put in place more rigorous internal controls and performance measures. This is done to make sure that staff members meet higher standards. It also exposes those who are engaged in unethical behaviour and ensures the necessary consequences. 

3.    Shareholders Trust

For shareholders, ethical mismanagement can lead to many consequences. It could be financial losses, lower dividends, and a decline in stock values. The Royal Commission report led investors to lose faith in ANZ's governance and risk management. This resulted in a decline in the bank's share value. To rebuild shareholder trust, ANZ has taken a number of steps:

• Corporate Governance Reforms: ANZ has improved executive and board-level control and accountability. This has been done In order to guarantee that moral standards are maintained. 

• Financial Performance: ANZ has shown a good recovery in its financial performance. This indicates to shareholders that it is capable of sustainable growth. It also has made high investments in its ethical reforms. This was necessary to establish a strong commitment. 

Changes and Adherence to Ethical Behaviour

ANZ has pledged to continue undertaking ethical reforms to regain the trust of stakeholders. Key initiatives include:

a. Enhanced Risk Management and Compliance

To make sure that the case of the Royal Commission doesn't happen again, ANZ has made significant investments in improving its compliance procedures. These events include better risk management frameworks and more rigorous internal auditing—this assured regulatory agencies of compliance.

b. Eco-Friendly Banking Methods

ANZ is using more sustainable banking practices as part of its long-term strategy. These policies include pulling from projects that have a negative environmental impact. Stakeholders have responded well to this strategy. This is a smart move in light of public awareness of social and ecological issues. 

c.  Customer-centric banking

ANZ hopes to restore trust through its increased emphasis on customer-centric banking. It aims to match its goods and services to the demands and values of its customers. The cornerstone of this strategy is the bank's dedication to making financial processes transparent. 

Role Of Digi Assignment Help

Digi Assignment Help is a renowned academic website committed to helping Australian students. Our professionals are well-versed in the subject matter and ensure that you have a solid start. Our quality assignment makers pay attention to all details and ensure there is integrity.

The well-written papers follow the right format, and all the university guidelines, and offer a fresh perspective. They are original and free of plagiarism. Our customised services like risk management assignment help offer:

• Timely delivery which saves you from last-minute submissions, 

• Papers written by quality assignment makers that abide by the format and guidelines,

• Well research, plagiarism-free papers at affordable prices, 

•  And an easy-to-order process with a supportive team. 

You can contact us via mail message or call. We understand your queries and stay focused on resolving them and getting you the desired academic result. 

 

Top Management Samples