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HC2121 Comparative Business Ethics and Social Responsibility
In this case, this ethical issue has resulted in resignations of a number of top-level executives for the company. It shows the failure of leadership capabilities of Clayton Utz, the CEO of AMP. the report that has been produced by him does not reflect the opinions of the management or the staff. It implies that the ineffective leadership has resulted in this fee for no service scandal where many consumers have been misled by its financial services. It has violated the regulations of Companies Act 1961 in providing transparent and effective financial and banking services to its customers. Section 4(a) of this act states that any company operating in the territory of Australia is required to furnish documents as per the demands of the Corporate Regulator ASIC (legislation.vic.gov.au, 2018).
Appropriate ethical decisions have not been made as far as the company has made no significant changes in its policies and procedures for ensuring ethical business practices. The company has not given compensation to its customers in view of its misleading practices of deducting fees from the customers' accounts. Besides these, it has been misleading ASIC in furnishing right reports and information regarding its internal practices. It has been reported that almost two million accounts have been affected because of this fees for no service. In Australia, ethical issues have been more prevalent in banking and financial institutions like ANZ, which has been forced to pay millions of