"............Since the Royal Commission into Misconduct in the Banking, Superannuation and

Financial Services Industry began in February this year, Australians have learnt a great many things

- almost all of them bad - about our banks and financial institutions.

We've learnt that the banks have been charging us - and plenty of dead Australians, too - fees for

no service. That they've watched us lose our life savings because of advice they knew was

inappropriate, given by staff they knew were incompetent. They've let their employees fake our

signatures, allowed their boards to lie to our regulators, condoned their chairmen altering

"independent" legal reports, and refused to make changes that would protect us because doing so

would put them at a "commercial disadvantage"............."

Source: Sydney Morning Herald, July 21, 2018. Excerpt from the article "Why good people do bad things".

Required:

(a) In the light of the Royal Commission into banking malpractices, analyse the ethical

implications of a banking culture that is primarily driven by profit, and its implications for

risk management, based on the excerpt of the article above. Cite examples where necessary.

(10 marks)

(b) In your opinion explain whether and how such a profit-driven culture can be changed to

promote ethical behaviour.

(10 marks)