Evaluate The Impact Of A Selected Business’s Ethical Behaviour On Stakeholders And The Business

In this report I leave al unitary be looking at how my businesses activities and respectcapable conduct affect different s acceptholders with in my business. My organisation (RBS). Royal Bank of Scotland is one of the worlds top disco biscuit monetary groups. The group employs 140,000 bulk crossways 30 countries and maneuvers crease turn up of more than 2000 sites worldwide. Its subsidiaries accept NatWest, Lombard, First Active and insurance policy groups a lot(prenominal) as Direct Line and Churchill. RBSs aims and objectives ar focusing on clients since the citation crunch in 2008 and they incapacitated a large amount of customers since past.So their aims and objectives atomic number 18 to piddle on harder to limit cooperate brinking better, to Provide lot and actualise to catch up with a nonher(prenominal) businesses release and provide them succeed in the more or less competitive markets and finally Improving customer service and gaining customer lo yalty. As a financial institution it is necessary that RBS turn over and plan c befully before they sack up every decision or realise any action in the business. They be dealing with financial products and service so they trulyly need to focus on existence honorable and behaving in a way that crime is not involved.Regulatory bodies work very hard to go along any wrong conduct that ordain not be tolerating by the authorities in charge for banking behaviour. Regardless regulatory bodies monitor banking activities and putting laws and procedures in place for banks to provide by un ethical behaviour understood takes place in banks often by individuals or groups or the bank as a whole. Looking at RBSs memoir I realize spy RBS has had ups and downs during the previous few years. Unethical behaviour has taken place in RBS and their behaviour has had a huge impact on various sh arholders in different ways.RBS dependable like many otherwise banks has had history of mis-se lling Payment Protection Insurance to customers. RBS and other banks who mis-sold PPI eat up had to pay back customers. PPI was a Payment Protection Insurance that is insurance on adds and other borrowings landed estate employ this insurance so if the debtors die or lose their jobs then the insurance give pay off the loan. Customers bought this insurance knowingly or unknowingly but were not told clear information roughly what the real circumstances give be if the psyche is unable to pay the loan.This insurance except compensable discover minimum repayments for just now a minimum fourth dimension for about twelve months. Customers were tricked and they paid the PPI which was no ingestion to them when they were unable to pay off their loan. RBS has already lost a lot of coin paying back pay. Since citizenry be digested to clam back their currency on PPI and interests they were charged RBS has make an estimated loss of among 580 zillion and 1. 3billion. At the moment they stool unbroken an amount of 500 million excursion for afterlife PPI compensation they whitethorn simmer down require to repay.After the PPI loss they receive truly foc utilise on how to stay misspell products so they entrust not give to face paying out compensations once again. As the result of RBS misspelling PPI stakeholders were affected in in many ways. RBSs shareholders are missing out on the extravagantly amounts of dividends they should eat mystifyd. As RBS has to pay out the PPI fines they owe to customer from their wampum. This factor that because RBSs acquire confirm diminish then this will affect the amount of dividends shareholders receive as the dividend will alike decrease.This is not a good image of RBS in front of their shareholders as they have deprived their shareholders by decreasing their dividends. Customers have been victims of PPI as they have been paying extra charges on their loans and on other amounts borrowed from RBS . ap proximately customers peel to even repay their minimum repayments so PPI had made it harder for them to pay off their loans. Mis-selling gave deal the wrong impression that they were insured if they lost their jobs or their source of income. hoi polloilose fatality in banking products as they expect to be assured in difficult multiplication but when they find out they are not insured and will stable have to repay loans they bunk mentally stressed and they feel like they heapt rely on banking products provided by RBS. The Financial service authority and other regulatory bodies also have also suffered financially as they had to pay employees at FSA to canvass the PPI scam. This is time consuming for them as they need to make sure that everyone who paid PPI is compensated.They have to spend time to trustigate and fine banks so next time they will not do anything wrong again. After this incident FSA are being stricter on the way that banks operate and have amended laws regardi ng selling products to customers and banking what the bank is allowed to do and what they are restricted to do. The FSA is looking into how banks interact with customers and are paying more management to all products that banks are selling. Most customers have been compensated by RBS however I reckon RBSs institutionalise stupefy with their customers has already been damaged.This influences customers behaviour before they buy and insurance products or additional insurance products as they will think twice before thinking of buying these products as RBS additional products may be seen as just another(prenominal) scam or unnecessary products. RBS need to take a crap up their trust with stakeholders again by providing them with information based on facts and altogether sell them with products that are pertinent to individual customers depending on their ineluctably.On 3rd sniffy 2010 the FSA announced fines of 5.6 million for RBS group for the visitation in its systems and bind with respect to the UK financial sanctions regime. UK banks and businesses are not allowed to provide financial services to people on the HM Treasury Sanctions list. The specie Laundry commandment 2007 states that RBS should have policies in place to prevent funding and services to people on the sanctions list, RBS is said to have not considered it all-important(prenominal) to investigate where the money was coming from into customers accounts. They did not look into customers to see the source of money they received or cashes out of their accounts.FSA believe that RBS fundings could have facilitated proceeding involving sanctions target and terrorist financing. After RBS admitted that they had made the luxate by not paying solicitude to these issues they were fined 5. 6 million. This outcome influenced different stakeholders in different ways. When the word terrorist is used with an organisations conjure up then people wish to cheque out of the story this is why afte rward RBS was fined for failing to screening procedures stakeholders did not want anything to do with RBS.I believe the main stakeholders that will influence RBS was their customers as they will cop opening accounts with RBS, NatWest and Ulster Bank and Coutts and Co. this was because they thought that the money they deposited in their accounts was being financed for criminal activities and financing terrorism activities. Customers stop using RBS and NatWest banking and locomote their money into other banks. The number of people opening accounts with them decreased as they were named as terrorist financers by some people. RBSs story will go down as people will think they are involved in criminal activities.RBS needs to make people have trust in them again and they need to take an action to prevent this from happening again. People stopped buying RBS market shares in the stock exchange and this left them with shareholders absent to sell their shares as soon as possible. Sharehold ers suffered as share prices decreased and RBSs reputation was bad which meant they lost respect in the stock exchange. RBS values decreased as they had to pay the fine from the lollys this means they will pay out less dividends to their shareholders.RBS have not been ethical all the time however they have worked to improve and build strong relationships with their stakeholders. RBS have done this by destineing the confederacy that they care about them and they have invested some profit towards the community. Corporate Social responsibleness has been RBSs strong activity which will make people they are ethical and care about the society. RBS has proved this by taking part in a number of activities and supporting projects to suffice the future working generation and supportprojects that are operating to make the earth a better place to live. RBS has been working with The Princes leave for more the 11 years they have financially supported the enterprise programme.The attempt Pr ogramme supports and guides people aged from 16 to 30 to overcome their personal barriers to victor and achieve their goals. RBS has been helping young people develop their ideas and become entrepreneurs. RBS are doing this to project people that they care about the younger generation that they spend their profits on projects that help provide young people a promising future.They want to show society that they are helping build businesses and are helping the society as a whole by helping young people. They will be prospered in winning customers trust and in bringing their reputation back up if they continue supporting the society. RBS have used 61% of their gas from natural gases in 2011. They are now lending large amounts of money to organisations that are working on renewable energy. They spent 50 million helping small businesses to start up their projects on renewing energy.They then alter out 366 million pounds in 2011 to help renewable projects in 2011. RBS has also made other small changes to the way they postulate out activities that have helped the environment a lot. They have showed that they operate ethically and that they operate ethically by doing simple things on a daily basis much(prenominal) as they have reduced the usage of paper by using electronic systems instead. RBS do not send customers statements by paper anymore because they have started providing electronic statements.I believe by showing that they support the environment and practice ethically they have showed campaigns like Greenpeace that they are unforced to help the environment and prevent global warming. In every success story at green peace projects RBS will be mention for making it possible to prevent global warming as they have invested in these projects. I believe that RBS execute ethically and making the right decisions has a major impact on the Government. I vocalise this because RBS was bailed out by the political sympathies in October 2008 after going bankrupt .The establishment bailed them out because they couldnt afford an effected bank to go down as this would affect so many things and bring into being so much loss to the nation as a whole. RBS was bailed out because they are one of the main companies that operate in the UK and they will lose so much money. The politics invested to bail out the bank so that they will have their say on the way the banks run and control over bonuses paid to management. Bonuses and dividends were cancelled by the authorities and RBS had to forcefully sell their shares to the organisation as no other investors were willing to invest.The government buying 605 of their shares meant that they were owners of RBS. This gave the government a better insight of how the bank operates and they are now able to order RBS of how they want it to operate. I think the bank has only invested in the banks so that they can make more money from RBSs profits in the future. This will also allow them to have a better ench ant of the banks finances so they make profit and the shareholders majorly the government can get proud dividends in beget on the profit in the upcoming years.If the government let RBS get bankrupt then the government would suffer severely. RBS going bankrupt means the nation losing one of their well schematic banks that means staff will be made surplus. When they are made redundant these unemployed people will turn to the government for financial support in the form of various state benefits. In my opinion the government invested money to alleviate the bank so that they can get a return on what they invest rather than just paying out benefits.Since the government has bailed RBS out of financial crises, I think there has been an improvement in the way they operate as the government is kept a close shopping centre on RBSs activities to ensure make a profit and are able to pay off tax payers. RBS has paid off 163bn in emergency loan they received from US and British taxpayers du ring the financial crises. Of their loan to the government with high return as the interest charged on the loan. I hope after elucidation off their loan they still arrange ethically so that they can distract paying out more compensation to people they have affected with their unethical activities.