The paper 'Convergence and Cross Promotion in Commonwealth Bank " is a great example of a business case study. The different banking financial crisis which the world economies have witnessed has made it imperative that banks look to develop strategies which will help them to achieve a high degree of corporate governance. Banks thereby look towards strengthening different reforms and improving the entire process of monitoring so that the interest of different stakeholders is protected. Commonwealth Bank has moved in the same direction and has looked towards having different process and rules through which better governance can be achieved.
This will help Commonwealth Bank to determine their actions, justify their actions and ensure that they work towards protecting the interest of the different stakeholders. Purpose of the report To identify the different issues surrounding the Commonwealth Bank with regard to corporate governance and ethical standards while working on the international level To identify the different steps which have been taken by Commonwealth Bank to achieve a high degree of corporate governance and ethical standards Commonwealth Bank Commonwealth Bank as the name suggests works in the banking sector and is the second-largest performing bank in Australia.
The bank carries out business over entire Australia and has its presence at even far off places. Since the bank works in the service sector quality of service and customer satisfaction is an aspect which has been relied on. This has made the bank come up with an ethical code of conduct which the employees need to follow (Company Website, 2015). This has helped the bank improve its reputation and has been able to attract customers based on service quality. In addition to it, Commonwealth Bank faces issues associated with a different aspect of corporate governance and ethical standards and has developed rules which will help them to achieve a good international standard. Convergence in Commonwealth Bank Commonwealth Bank has looked to achieve corporate governance through the process of convergence.
Convergence is a state where organizations use two or more developments so that the working environment can be improved. Commonwealth Bank in this regard has looked at using technology to achieve a higher degree of corporate governance. Integrating the different functions together has enabled the bank to work on the ethical requirements.
The bank has looked towards working on the policy of transparency by allowing the customers to carry out different functions like electronic transfer, balance enquiry, cheque book request and other functions (Company Website, 2015). This has provided flexibility and ensured that the bank works on the policy of congruence through which community engagement will be achieved. This has been seen through a study which suggests that having a high degree of congruence helps to improve transparency and brings in community engagement so that their functions can be carried out (Fung & Cheng, 2010).
Commonwealth Bank has been able to understand that aspect and has been able to integrate those in its service process which has thereby improved the degree of services being provided to the customers. Cross Promotion in Commonwealth Bank Commonwealth Bank has looked towards having diversity in its board and has determined the composition of the board in such a manner that it represents all type of people. The bank has relied on having people from different cultural backgrounds so that adequate representation of all is ensured within the board.
This has helped to move them away from the concept of any form of discrimination and look at the adequate representation of the different stakeholders within the board. This has been matched by the fact that Commonwealth Bank has established all over Australia and has favored them in dealing with the different needs of the customers. The process has led towards maximizing the concept of corporate governance. In addition to it, an ethical code of conduct has been developed which determines the manner in which different people will form part of the board.
The same can be seen from the acquisition of Vietnam International Bank (Dhawan, 2010) where the business has looked at having people from all cultures to be included in the board and has brought diversity in the board. This has consolidated the position of Commonwealth Bank and has maximized the overall opportunities through which business process is being carried out and determined.
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