BMG10404

MANAGEMENT ETHICS

FINAL PROJECT

GROUP ASSIGNMENT
Name Matric No.
Vivian Kee Wuan Wuan 2072016020083
Khor Yean San 2072016090012
Nur Irma Najihah binti Isma Azad 2072016020084
Rolland Allen Perreire 2072016020081
Muhammad Shafiq Bin Aznan 2072016020082

Lecturer: Ms Jessica

Submission Date: 18TH DECEMBER 2017

1. Background of the company

Maybank was established in 1960, and today Maybank is the largest company by market
capitalization on the Malaysian Bourse (Bursa Malaysia). It is ranked first among listed
Malaysian companies and among the top 500 companies in the Forbes Global 2000 leading
companies of the world.

Maybank was founded by Malaysian business tycoon Khoo Teck Puat, who died in 2004. The
company was led by President and CEO Amirsham Abdul Aziz from 2002 until March 2008
after which he was appointed Minister in the Prime Minister's Department in-charge of the
Economic Planning Unit, a post he held until April 2009. Dato' Sri Abdul Wahid Omar was
President & CEO of Maybank Group from May 2008 to June 2013. On 2 August 2013, Datuk
Abdul Farid Alias, Maybank's Deputy President and Head of Global Banking, was appointed as
President & CEO of Maybank Group. Can refers to the organization structure.

The Maybank Group offers a comprehensive range of products and services that includes
commercial banking, investment banking, Islamic banking, offshore banking, leasing and hire
purchase, insurance, factoring, trustee services, asset management, stock broking, nominee
services, venture capital and Internet banking.

3. Mission& vision
Mission

We want to humanize financial services across Asia by:

• Providing the people with convenient access to financing.

• Having fair terms and pricing.

• Advising customers based and on their needs.

• Being at the heart of community.

Vision

• Advancing Asia's ambition with you.

• To be a region financial services leader.

Malayan Banking Bhd (as known as Maybank) has reframed its vision and inspirations to
accelerate its journey of change and strategic transformation across the group. The bank had
reframed its strategic aspirations according to its new vision which was to be the regional
financial services leader and mission to humanize financial services from the heart of Asean.
Maybank also reorganised their operations structure to enhance the service and product delivery,
pioneering new ways of providing financial solutions across their key markets.

In support of the new vision and realisation of the strategic objectives for the group, Maybank
has realigned its organisation structure into a new “House of Maybank”. Next, the new structure
realigns of Maybank’s operations into three business pillars – global wholesale banking serving
the corporate commercial and non-retail banking segments; community financial services
focusing on retail financial services to the small and medium enterprises and consumer
portfolios; and insurance and Takaful.

The second strategy sees the bank strengthening its regional presence by enhancing operational
quality in the seven out of 10 Asean countries it operates, while continuing to look for
opportunities in other growth markets in the region.
In the third strategic thrust, Maybank is to become a talent and execution-focused company.

4. Practices of ethics code in the business and organization.

Maybank, as a custodian of public funds, has a responsibility to safeguard its integrity and
credibility. It is by this understanding that the organisation sets out clearly the code of ethics and
conduct for their staff. The code stipulates the sound principles that will guide all Maybank staff
in discharging their duties. It sets out the standards of good banking practice.

The purpose of the code is to:

I. Uphold the good name of the Maybank Group and to maintain public confidence in the
Maybank Group.

II. Maintain public confidence in the security and integrity of the banking system.

III. Maintain an impartial and unbiased relationship between the Maybank Group and its
customers.

IV. Uphold the high standards and personal integrity and professionalism of the Maybank
Group staff.

The code stipulates that staff should not:

I. Engage directly or indirectly in any business activity that competes or is in conflict with
the Bank’s interest.

II. Misuse or abuse their positions in the Bank for their personal benefit or for the benefit of
other persons.

III. Misuse information. Staff should not copy, remove or make use of any information
obtained in the course if business for direct or indirect benefit of themselves or of any
other persons.
5. ethics training

To overcome any ethical issues that they are facing in the organization, firstly they need to attend
the ethics programs that has been provided from the organization. All staff needed to attend the
programs is to ensure that, the staff can execute the ethics issues whenever they are facing it.

As for Maybank, it has two different types of training, they are on and off training. On training
is more related to an internal training organization. Where by manager conduct the training
programs at the working organization or brunch. Off training is more to an external training
programs. where the staff are send to a specific training centre, and be trained by an experience
trainer to gain more experience and knowledge, or getting promoted.

Lastly, Maybank do have an online training as well, where is more related to a test or
examination. where the staff are learning about ethics codes or organization culture.
6. Reason Maybank must be ethical.

The reason why Maybank conduct code of ethics is to ensure that they set out sound principles
and standards of good practice in the financial services industry, which they observed by the
directors and the employees. Both Directors and employees are required to uphold the highest
integrity in dis charging their duties and in dealings with stakeholders, customers, fellow
employees and regulators. This is in line with the group’s core values which point up behavioural
ethics when dealing with third parties and employees.

The purpose of the code is to uphold the good name of Maybank Company and to maintain the
public confidence in the Maybank Company. Then, Maybank try to maintain their public
confidence in the security and integrity of the banking system. Maybank maintain their impartial
and unbiased relationship between the Maybank company and their employees. Lastly, Maybank
uphold the high standards of personal integrity and professionalism of Maybank company staff.

The Maybank Company staff should ensure the integrity and accuracy of records or the
transactions. Maybank have to ensure that their staff should fair and equitable treatment in all
business dealings on behalf of the bank. Furthermore, Maybank staff have to maintain the
highest standard of service in their relationship with customers and maintain the confidentiality
of all relations and dealings between the bank and customers. However, Confidential information
concerning a customer may be given or made it available to third parties only with prior written
consent of the customers or when disclosure is authorised under the Financial Services
ACT2013. Maybank can manage their financial matters well and not subject themselves to
pecuniary embarrassment. Also, Maybank staff have to observe and comply with laws and
regulations relating to the operations of the Bank.
7. Ethics programs or policies in the organization.

As one of the biggest banking organizations in Malaysia, Maybank has to implement strong ethic
values among their employees. This helps build better relationship among employees, boost their
confidence and overall, helps Maybank to provide better service to their customers.

One of the terms and policy Maybank emphasizes on the organizations is to have employees
uphold utmost priority towards their customer’s data. The Data Protection Act Malaysia warrants
that all employees of an organization to protect the information of the customers and to not
reveal them to any third parties. This is to ensure that the customer’s information will not be
misused and to avoid any unwanted issues such as fraud or scams.

Next, Maybank holds several programs such as having an ethics centred talk among Maybanks’s
employees. The talk should include how to serve customers better and how to be more ethical
towards work-related issues. This will boost confidence amongst employees as they will learn
how to handle multiple situations that requires critical thinking and how to be ethical while
keeping their professionalism. For examples, Maybank holds similar seminars once every two
months where all employees have to attend and participate in.

Maybank also holds weekly pep talk among each department’s employees. This is to ensure that
they retained what they learned during the seminar and allows employees to voice out difficult
situations when handling customers. By doing this, other employees can learn from the
experience and handle the situation better in the future ethically.

Finally, Maybank also has an “Employee of the Month” program where they give incentives for
employees that performed well throughout the month. This helps by giving motivation to
employees so that they will strive to perform better in their workplace. Apart from monetary
rewards, employee’s will also get recognition for the good job that they have done and inspire
others to do the same
8. Factors of dilemma/ issue in ethical in business and organization.

In a perfect world, organization and their employees would always do the right thing.
Unfortunately, in the real world, ethical dilemmas are a common thing that happen in the
workplace. Dilemmas are those situations or problems where a person has to make a difficult
choice or also an ethical dilemma can be explaining as it is a problem where a person has to
choose between a moral and an immoral act. Besides, employees must deal with pressures to
perform and help the company succeed as well as personal temptations to take the easy way out.
In the end, workers will more likely face many dilemmas in their careers and companies should
provide training and information to assist the employees in making the right decision.

For example, the factors of dilemma that facing by Maybank company is that they have their
own rules and regulation such as they cannot review other customers’ information. In addition,
they have using the Personal Data Protection Act (PDPA) principles. The Personal Data
Protection Act includes of the following principles like General Principle, Notice and Choice
Principle, Disclosure Principle, Security Principle, Retention Principle, Data Integrity Principle
and Access Principle. For anyone who breaks any of the principles will be liable to a fine not
exceeding three hundred thousand ringgits (MYR300,000) or a jail term not exceeding two
years.

Next, the factor of dilemma in ethical that facing by Maybank is if there are any employees that
break the trust with customers and take or stole customers’ money, company will take action and
strict to those unethical employees. Or maybe if the unethical employees cannot follow the
instruction or policy that set by company, the organization will give those employees reminder or
last warning depends on the level of the case.

The issue in ethical that facing in Maybank is the customers are demanding on high value of
interest but they also feel sensitivity about their information according to the observed through
Maybank Penang branches. Not only that, Penang customers are very calculative about the
interest of the bank but at the same time for Kuala Lumpur citizens, they do not really care about
this.
9. Suggestion/ Recommendations

The suggestions and recommendations that was told by the manager to us during in the interview
is that any challenges in the market that are faced by the employees, they should know how to
suit in to the customer’s demands and the culture of the customers. Second is that the bankers or
the sales person of the bank must be good to attract customers to their banks and by doing that
the representatives need to deliver their best service to the customers and also having a good
attitude towards them.

Every organisations need to have a conduct of ethics for the employees. The top level or the
department in charge need to consult the staff whenever they are facing any problems during
worktime. Besides that, they need to give a warning letter to the staff if he/she had broken the
rules of ethics in the company so that they won’t do it again in the future. Besides that, the
leaders can have a short briefing session before work to remind and inform the team of the
important things to do and what they should not do.

Lastly, the company should give the employee that did not break any ethical rules a reward and
also if he/she gets a good feedback from the customers or client.
10. Conclusion

In the conclusion to overcome the ethical issue also to improve the ethics in the organization.

All the company should set their only and own Mision&Vision, the main point is for to know
more about their own company and even follow the rules of company. To create one good
Mision&Vision to ensure will influence employees is good effect. If want the working process
work in effect and efficiency, organization should set ethics code for the employees. The purpose
is to maintain the confident of the company also to maintain the security. Also maintain the
relationship and maintain the level of professional in organization. To create a code also easy for
employees in work. Because they have step by step and wont be so mess up or confuse.For the
code employees should not misuse information of the client.

Next to overcome the ethical issues that are facing n organization, they should provide ethics
training. To ensure all the employees to attend the training and make sure they are well training
with good quality or qualifies only let them continue work. Or we can get one high qualification
leader to lead the employees, give them a guide.

So why do we need ethical in organization or maybank is to ensure they set out principles and
standards of good practice in the financial services industry line. Then to build the relationship
between the employees and customers. To boots their confident just to ensure to provide good
service to customers. Sometimes do happen the dilemma issues in ethical in the company.
Organization should be professional and rational just to handle the issues.

For the suggestion to have a good attitude and services, employees should know what customer
needs and wants. Communication also is one of the important way to improve the services. So to
have good ethic in management also need to have good leader.
References

http://www.maybank.com/en/about-us/who-we-are/overview.page

http://www.maybank.com/MaybankAR16/pdf/Maybank_AR2016_Organisation_Overview.
pdf
Appendix