The paper "ANZ Bank and RBA’ s Proposal to Banks " is a perfect example of a business case study. Recently, RBA announced that commercial banks should lower their interest rates. Some of the factors that led it to such a decision include unemployment, inflation rates, the federal government, international force, and the dollar. In spite of this directive, various banks refused to comply. ANZ is one of the banks that declined to comply with RBA’ s decision, a move that caused a serious threat to its operations, especially in terms of the customers.
The company can use public relations to respond that it is independent of RBA; hence, should make its decisions alone. Alternatively, the firm can argue that its decision to defy with RBA’ s decision was due to its attempt to safeguard its profitability, as well as to cope with high costs. This issue has certain ethical implications for the company’ s organization public relationships (OPRs) in terms of the trust, commitment, openness, and satisfaction dimensions. This essay seeks to explore on identification and analysis of ANZ bank’ s response in relation to the issue of maintaining its interest rates despite the RBA’ s proposal to banks to change their rates.
It also seeks to discuss the response’ s effects on one of the ANZ’ s OPR dimension with the relevant public. The paper will also address various public relations response recommended in order to enhance one or more OPRs dimensions with the relevant public, and reasons for the recommended response. Lastly, the proposal will focus on the ethical importance of the alternative proposal. Recently, the Reserve Bank of Australia (RBA) proposed that all banks should adjust their interest rates in order to fit their interest rates (Immigrate Australia, 2012).
Although other banks agreed to change their rates in accordance to RBA’ s directive, ANZ bank and other financial institutions refused to comply maintaining that they are independent institutions (The Prince in Banks, 2012; Murdoch, 2012). Therefore, the major issue at ANZ bank entails its failure to comply with RBA’ s order to adjust its interest rates. The focus of this proposal regards the proposal of ANZ bank’ s response to the issue of non-compliance to RBA’ s interest rate. Following this issue, ANZ bank responds that it will not regulate its interest rates as per RBA’ s instruction because it is an independent bank.
It maintains it not reduce its interest rates to suit RBA’ s decision, since it is an independent financial institution, and therefore can decide on its cash rates on home loans. ANZ bank made a response to its stakeholders in order to maintain their trust in it. Trust is the most appropriate OPR dimension for in this case. ANZ bank made a response to the stakeholders to regain their trust in it.
This is influential in enhancing the bank’ s acquisition and retention of new and existing stakeholders respectively (Fisher, 2001). Basing on press agentry or publicity model, the bank can use a one-way type of communication to inform its publics on its response regarding its defiance to RBA’ s suggestion to reduce interest rates on lending loans (RBA, 2012). This public relations model is suitable in that the firm will employ manipulation and persuasion to influence its publics to behave or act as it desires. In relation to the response, press agentry or publicity model will help the firm in persuading and manipulating stakeholders and other publics to see, understand and agree with the bank’ s decision to raise their interest rates despite RBA’ s directive to reduce them.
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