Another one of top 4 banks (in Australia) to join the club of money laundering and counter terrorism breaches! Where are we heading to?
http://www.abc.net.au/news/2017-11-15/nab-may-join-cba-in-austracs-sights-over-money-laundering/9154078?section=business
More revelation of high profit yielding banking industry (Australia) issues/malpractices! This time liar loans! As per some investigations, these loans can add up to 1/3 of the home loans. Is this the tip of the iceberg?
http://www.abc.net.au/news/2017-11-16/nab-sacks-bankers-writing-dodgy-home-loans/9157984?section=business
Definitely not in my view.
High profit yield is not always an outcome of malpractice and fraudulent corporate behavior.
But are a number of high profit raking businesses are involved in sharp practices? Yes!
Many businesses making high profit do so basically because of the value they create, whether in goods or services. High value most times results in highly priced products and vice versa.
If production cost is low in any business model and price of the product or service is affordable to many, then there will be high patronage which will bring about high profitability ceteris paribus.
Though some highly profitable business still cut corners, window dress their financial reports, evade tax etc. This could be due to greed for more which could be related with the Profit Maximization capitalist line of thought. Thank You
I don't think so,
Maybe they have high optimization on their operational if we compare to others, then they can push their performance.
Or maybe there just a game played by the people because supply and demand is easy to play, but it won't work in long term. Thank You
Dear Chandana,
Liked your question.
Well, I would answer 'not necessarily' - logically - but I think that you have a deeper interest in this question.
I indeed ask myself if you tend to a "sociological question" to discuss the behavior of people in general misleading ethics, or if you tend to a more technical one, to discuss skills that managers should have and not ever have... What would you tell me?
what about the regulatory institutions , the role of outside auditors who can uncover all the illegal acts.central banks should implement direct investigation over the banking system to prevent any illegal or unethical acts.
It may and it may not. the integrity of the management as well as board of the organisation will be determinant factors. Eron case on creative accounting is a good example.
Dear Aurelio
I like to have this question to be answered in the broadest possible way. We may discuss it without restricting ourselves to any particular domain/discipline/field or in other words, to be answeerd in every possible way.
Regards
Chandana
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