The Royal Commission into misconduct in the banking, superannuation and financial services industry
The Royal Commission into misconduct in the banking, superannuation and financial services industry (commonly referred to as the Hayne Royal Commission) has recently published its final report, which is compelling reading for any person with an interest in ethical and fair business conduct.
The Hayne Royal Commission is the latest in a long line of royal commissions, enquiries, Congressional hearings and other reports into "businesses behaving badly", both here and overseas. As you have probably guessed by now, unethical behaviour is not a new phenomenon in the conduct of business. For this assessment, you will be required to read parts of the Final Report of the Royal Commission and evaluate it using the knowledge of business ethics you will learn in this unit. You can find the Royal Commission's final report at: https://financialservices.royalcommission.gov.au/Pages/reports.aspx#final.
At a minimum, you must read the following sections of the final report:
Part 1: Introduction
Part 2: Banking
Sections 2.1–2.7 (pp. 60–84)
Volume Two (Case Studies):
Case Studies: Insurance - Freedom (pp. 302–317).
These readings give you an overview into the reasons for the Royal Commission and some of the unethical practices that the Royal Commission found. In particular, the banking and insurance readings will bring to your attention the problems found in the practices of using mortgage brokers. This is an issue that the Royal Commissioner often returns to in his report.
In this assignment, you will use a theory of ethics and APES 110 to evaluate different sections of this report.
What you must do:
1.Evaluate what you have read and select one theory of ethics from Modules 1 and 2 that best explains the Royal Commissioner's response (as recorded in Volume 1). There are many applicable theories, but select one theory and explain why and how this theory offers a good explanation of what is happening. To do this, you should:
1.Explain the theory, and
2.Use this theory to explain what the Royal Commissioner is saying.
2.Using your knowledge of APES 110 from Modules 4 and 5, read the designated section from Volume Two of the Royal Commission's final report (the Freedom Insurance case study). Assume you are a member of CPA Australia, so that APES 110 applies to you. Using Part A and Part C of APES 110 as your guide, explain why you should have an ethical issue with Freedom's expectations of its agents to use aggressive and inappropriate sales tactics. Explain the safeguards that are available to you using APES 110.
You must submit:
You must submit an individually written report in the following format:
4.Report of a maximum of 2,500 words, consisting of:
1.Your use of a theory of ethics, and
2.Your evaluation of the ethical issues associated with Freedom Insurance.