COMMONWEALTH BANK OF AUSTRALIA Essay Example

COMMONWEALTH BANK OF AUSTRALIA

Commonwealth Bank of Australia

Organization prosperity is majorly anchored on the effectiveness and the efficiency of the communication strategy which is employed in the organization. Commonwealth Bank of Australia is among the organizations which require maintaining constant communication with the stakeholders and the market to ensure that the information is timely. The most relevant information which is passed across by the organization is about the compliance with the legislation governing the Australian Security Exchange. The organization also disseminates information about Corporation Act of Australia and the rules governing all the transaction carried out in the firm. The stability of the organization to carry out business internationally is founded on the stability of the government. Changes in the political power may have different impacts on the organization ranging from the environmental, financial, technological and governance effects.

Stakeholder Map of the Commonwealth Bank of Australia

The stakeholder map in the Commonwealth Bank of Australia is made up of some elements. The most significant element is the shareholders who have a large impact on the economy of the country. Secondly, the government of Australia is a stakeholder as it is the recipient of the taxes which are paid by the organization. Additionally, the employees and the employers in the Commonwealth Bank of Australia have a great significance as they distribute goods and services from the organization. Finally, the stakeholder map of Commonwealth Bank is inclusive of the loan borrowers who contribute to the economy of the land through interests.

Financial Aspect

The shareholders in the Commonwealth Bank of Australia are the major contributors to the Australian economy. The shareholders are effective as they lead to the distribution of both the financial and the non-financial benefits to the Australian public. The shareholders who have direct shares in the organization are estimated to be 800,000. Among this large group of the shareholders are the Australian retail investors who make 55% of the whole shareholder population. The citizens of Australia have the capacity of owning shares in the organization through the superannuation funds. Millions of the shareholders have direct shares courtesy of the superannuation cards. The citizens usually benefit from the organization through the dividends. According to the report of the 2013 financial year of Australia, Commonwealth Bank paid a tax of 5.9 billion dollars, which amounted to 75% of all the taxes paid I the country in that financial year. The continued prosperity of Commonwealth bank is the backbone of the financial stability of the shareholders. Political stability is hence required for the organization to continue prospering. The new political era should foster the capacity of the organization to improve the economy of the nation. Enhancement of the communication strategy in the firm will bring much success (Commonwealth Bank, 2014 p. 15; OCED 2014, p. 6).

Impacts Of Government Changes On The Social Aspect In The Australia To Commonwealth Bank

The communication strategy of the Commonwealth organization in Australia is inclusive of the social goals that the company is looking forward to achieving. The organization has a strong belief that economic impact to the country is highly associated with social responsibilities such as ending poverty in the nation. Among the social issues that the company looks forward to achieving is enhancing the education in Australia, health provision to the citizens and the increment of the job opportunities to ease the unemployment situation in the country (Commonwealth Bank of Australia 2016, p. 2). Changes in the political power in Australia are likely to compromise the capacity of the Commonwealth Bank of Australia to achieve the sustainable development social goals efficiently. Some of the strategies that the organization is putting in place to achieve the social aims include customer hardship assistance. The move is majorly meant to counteract the poverty among the clients and primarily requires strategic communication. The corporation is also aimed at creating equality between women and men and more importantly to empower the women. For instance, the organization cherishes management targets and parental leaves. The firm also has domestic violence campaigns and initiative to protect women who in most cases are more vulnerable to the violence. The support of the new government will be required by the CBA towards the implementation of the social justice among the Australians (CBA 2016, p. 7).

Environmental Aspect of Commonwealth Bank of Australia

The governmental changes in Australia may have both positive and negative impacts on the environmental aspect of the organization. On the positive note, the government may collaborate with the organization helping the firm to enforce various policies. An example of such a policy is the Group Environment Policy which is aimed at reducing global warming up to 2 degrees centigrade. The policy is also aimed at changing the traditional economic models which are energy-draining to the modern ones, especially integrating renewable energy alternatives and low carbon emission. The role of environmental conservation required political support and therefore failure of the new government to support the Commonwealth Bank of Australia strategies will be a negative impact. The support of the government is of great significance in the implementation of the national environmental policies initiated by the organization (CBA 2017, p. 4; CBA 2016, p. 2).

Technological Aspect

Technology in the Commonwealth Bank in Australia is highly linked to the government. Changes in the government, therefore, incur various impacts on the technological aspect of the corporation. For instance, the organization has a block chain which helps in issuing of semi-government bonds. The technology is new and requires regulatory approval by the government to aid in the settling and executing the transactions instantaneously (CBA, 2017, p. 1). The block chain technology requires some assistance from the government department such as the government financing authority in Australia. The cooperation of the new government will lead to increased capacity of the technology leading to economic benefit in the country (Eyers 2017, p. 2).

Governance of Commonwealth Bank of Australia and Governmental Changes

The government has a great impact on the governance of CBA. The CEO of CBA team makes decisions individually and collectively with the management concerning the transactions taking place in the firm and, concerning the stakeholders (CBA 2017, p. 6). The federal government had a target of raising the levy for the economic purposes. The decision would be detrimental to the corporation because it would discourage the borrowers due to the high interests. If the new government continues to strain the borrowers through increment f levy, the corporate is likely to incur low revenue, which will be related to poor management of the CEO. On the other hand, if the new government will cooperate to change the levy increment reforms, the company’s governance reputation will be improved to the borrowers (Frost 2017, p. 3).

General Impact

Variations in the national government have impacts in one way or the other on the Commonwealth Bank various aspects. The impacts could be on the stakeholders, the environmental, social and financial aspects among other aspects. The communication strategy of the organization is always at stake in such changes as all the stakeholders should be informed timely on the changes. The CEO and the management team should identify these changes and communicate them as early as possible particularly changes concerning levy.

References