PART 1
On 20 November 2019, The Australian Transaction Reports and Analysis Centre (AUSTRAC) Westpac Banking Corporation accused Westpac Banking Corporation of violating the anti-money laundering laws and Counter-Terrorism Financing Act on more than twenty-three million occasions. This is the biggest violation of money laundering laws in Australia’ history. Financial Crime Agency labelled the breaches at Westpac systemic and the result of indifference by senior management and inadequate oversight by the board. During the crisis, Westpack sought to raise $500 million equity from retail investors. According to allegations,Westpac enabled payments from convicted child sex offenders in high risk countries although they knew of child exploitation risks in some high-risk countries in Asia but choose not to take an action.
Required
Critically evaluate Westpac’s financial management policies and practices with respect to their social responsibility and social outcomes of their actions. Do you think Westpac has considered the ramifications of their financial decisions on sustainability and social responsibility? Ensure that your analysis is based on corporate social responsibility principles, corporation’s objectives and code of ethics.
i. Critically evaluate Westpac’s alleged practices vis-à-vis the Corporate Social Responsibility (CSR) principles and sustainability.
ii. Why should ethical conduct matter for financial institutions?
