Questions On Commonwealth Bank Of Australia

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This report seeks to critically analyse specific aspects of the organisation in regards to the companies; general and specific environment, social and ethical responsibility and its organisational culture. As Commonwealth Bank Australia is a major company with around 52 thousand employees (Commbank.com.au, 2016), it is large employer within the banking industry and has offices and branches nation and worldwide, hence it is important to analyse the external environments and the internal environments that effect the business. External environments are forces that exist outside of the company that have the potential to affect it in some way. Thus both general and specific environments will be analysed for the purpose of this report.…show more content…
One Major Factor that effects CBA’s business is the Political and legal environment. this is because legislation, regulation and court decisions that govern and regulate business behaviour have the power to dictate many different aspects of the organisation. As one of big four banks, that maintain market control in Australia, CBA has strict legislation and regulations it must abide, such as the 1959 Commonwealth Banking Act (Austlii.edu.au, 2016), which defines the “banking business”. The regulations the commonwealth enacts to control the conduct of our banks are policed by ASIC and APRA. The ASIC (Australian Securities and Investments Commission) Act 2001 (Cth) contains within division 2, the unconscionable conduct as well as consumer protection provisions in relation to financial services providers that are no longer in the Trade Practices Act. APRA is a body established in 1998 by commonwealth legislation.The role of the Australian Prudential Regulation Authority (APRA) is to oversee the banks, and act as a regulator within the finance industry. (Wentworth, 2007) Banking regulation and legislation is a complex web, sometimes deeply political and issue ridden. Recently, in 2016 we have seen a push by the Labour government for a royal commission to be launched into the banks. The liberal government maintains that there is no need for a Royal Commission into the banking industry because the Australian Securities and Investments
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